The mission and vision statements of a company

A strategic management plan includes the purpose and vision statements of the organization. They are intended to highlight their distinctive qualities and set them apart from one another (Taiwo, Lawal, & Agwu, 2016). The purpose and goals of the Coca-Cola Company and Pepsi Bottling Ventures will be the main topics of the study. The objective of Coca-Cola is to “Refresh the World, to Inspire Moments of Optimism and Happiness, Create Value, and Make a Difference” (The Coca-Cola Company, 2017). By continuing to be an industry leader in terms of growth, profit, and customer service, Pepsi aims to “maximize long-term shareholder value” (Pepsi Bottling Venture, 2017). coca-cola states “Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish to continue achieving sustainable, quality growth” (The Coca-Cola Company, 2017). While Pepsi indicates ”To continuously improve the economic well-being and quality of life for all PBV stakeholders. We define stakeholders as all employees, our owners, our customers and our suppliers” (Pepsi Bottling Venture, 2017).

Value of the two vision statements

The vision statement highlights the ultimate goal of the entity and where they want to be in the long term. Coca-cola lays its value on sustainability and growth which is to be achieved through the creation of a favorable environment for employees, creating a portfolio of quality beverages while maximizing productivity and profitability. Pepsi vision bases its value on bringing economic value to its stakeholders. Its vision highlights the stakeholders indicating where the foundation of the entity is laid.

Value of two mission statements

The mission statement should guide the day-day operations of the entity in major and minor decision making (Taiwo, Lawal, & Agwu, 2016). Coca-cola mission bases it values on the qualities they deliver and the reason as to why one should take their drink. The statement highlights the reason for their operations, what they are offering today regarding refreshing the world. It tells the employees what they are expected to do in delivering service and product to clients. Pepsi’s mission focusses on giving back to their key stakeholders and staying in leadership in service delivery. Their core value is in growing, staying profitable and customer focus.

Compare and contrast vision statements

Coca-Cola vision is longer and detailed in nature and seems to detail how they will achieve their long terms goals. They emphasize on the vision guiding the entire business and addresses specifically how the various units will be involved. Pepsi’s vision is shorter and also incorporated all the stakeholders in the improvement of economic value. The statements of the two companies include financial sustenance which is core for profit making organizations.

Compare and contrast mission statements

Coca-Cola composes its mission solely with the customers in mind while Pepsi again incorporates all the stakeholders. Pepsi’s mission seems to focus also on the long term through maximization of wealth while Coca-Cola purely focuses on what they are offering their clients on a day to day basis. The importance of Coca-Cola mission is to guide their decisions while that is Pepsi is to grow, make profits and offer quality service to their clients.

Relationship between Mission and Vision Statements with performance and strategy

A debate always arises on the importance of mission statements as once written; some employees never seem to remember it or incorporate it in their daily duties. Rarely do customers understand the mission of the entity and thereby adding little value to performance. However, companies that integrate the mission statements into internal policies and programs have seen their employees positively motivated which results in better performance (Taiwo, Lawal, & Agwu, 2016). Some research has shown that companies with mission statements report higher returns by up to 30% compared to those operating without one (Bhandari, & Verma, 2013).

The mission and vision are the stepping stones in the development of company’s strategic goals. They create an understanding of the specific factors that affect the business while differentiating the services they offer in the industry. By the mission and vision being specific, the entity understands the nature of their stakeholders and the expectations laid out in the market. As the industry evolves, companies can comfortably change the mission and vision, but the original reason for their existence should be highlighted.

Why mission statements should not include monetary amounts

Mission statements are general statements with a broad-spectrum scope. The inclusion of figures to the mission would limit the everyday potential of the organization. Putting numbers to the mission would also limit creativity in management and operations of the entity. The mission focusses on a wide range of stakeholders including customers, shareholders, and employees. These are persons that need different financial communication. Thereby, putting a figure on the mission statement would be misleading. El-Homsi, & Slutsky (2010) highlight that there is more to an organization than making money. Incorporating ratios and percentages would compromise the overall purpose for the existence of the entity.

References

Bhandari, A., & Verma, R. (2013). Strategic Management (1st ed.). New Delhi: McGraw-Hill.

El-Homsi, A., & Slutsky, J. (2010). Corporate sigma (1st ed.). New York: Taylor & Francis.

Pepsi Bottling Venture, (2017). Mission & Vision - About PBV - Pepsi Bottling Ventures. Pepsibottlingventures.com. Retrieved 12 April 2017, from http://www.pepsibottlingventures.com/about/mission.html

Taiwo, A., Lawal, F., & Agwu, E. (2016). Vision and Mission in Organization: Myth or Heuristic Device?. The International Journal Of Business & Management, 4(3).

The Coca-Cola Company,. (2017). Mission, Vision & Values. The Coca-Cola Company. Retrieved 12 April 2017, from http://www.coca-colacompany.com/our-company/mission-vision-values