Chapter 9, Problem 1CRQ

What does a mission statement explain about a firm that a vision statement does not?

Summary Introduction

To explain:

The meaning conveyed by a mission statement about the firm that the vision statement fails to convey.

Vision statement and mission statement:

The vision statement is a broad expression of what the business wants to achieve, while the mission statement focuses on the manner to achieve the company's vision. Laying down the firm's vision and mission is an important step in the process of strategic planning.

Explanation of Solution

The vision statement is a broad expression of what the business wants to accomplish. The vision statement does not explain in detail the strategies that the business will adopt to accomplish its vision. It merely explains the reasons for the existence of a firm. The mission statement on the other hand is more specific and focused.

The mission statement explains the reason for the existence of a business and the way the firm plans to achieve its objectives. The mission statement cannot be called as a strategy. However, it describes the products and services the firm plans to offer to its target customers and the target audience and geographical segments it plans to serve. While the vision statement does not contain the detailed information, the mission statement gives enough information regarding the existence of a company, what it plans to offer to its customers and how it plans to achieve its goals.