ASSIGNMENT 2



Abstract—Vision and mission are often considered as an

essential part of strategic management. There is probably not a

strategic management book that does not mention or explain

the importance of these two elements. In history we can find

beautiful examples of great visions of e.g. Bill Gates, Steve Jobs

or Henry Ford that stay behind companies’ success. Based on

these examples we often try to analyze how successful vision and

mission statements should be created and defined. But there are

still some people that remain skeptical on this subject. They see

these statements only as formal documents or just another

“marketing tool,” not a strategic one. There is also often

confusion also with distinguishing vision and mission. The goal

of this paper is to investigate the role, the attitude and

significance of vision and mission statements for enterprises in

current environment. It will discuss the experiences and

approaches to vision and mission development in the Slovak

Republic based on research from 2012. The research was based

on gathering of information by questionnaires and structured

interviews in companies operating in Slovak Republic from

various sectors and on quantitative analysis.

Index Terms—Mission, mission statement, vision, vision

statement, enterprises in Slovak Republic.

I. INTRODUCTION

Some enterprises do not have vision or mission statements;

for some they mean the same or they are quite unclear in how

both statements may be defined. If we study the various

companies in terms of their vision and mission, we will find a

lot of different approaches and styles. Similarly, there are

varying theoretical views on vision and mission

development.

Vision and mission are not new terms or topics of research.

Even in ancient Greece, there were two views on how to

develop a vision. The first view explained visions as

emerging pictures based on visual rays emanating from the

eye [1]. This view was promoted by the mathematician

Euclid (300 BC). The second view explained visions as

images generated in our mind based on knowledge and

experiences. This was the view of Aristotle (384-322 BC)

and Plato (427-347 BC). Plato claimed in his dialogues that

our thoughts are guided by our desires mainly derived from

our experiences.

Many experts in this field admit that there is not one

precise or ideal way to develop mission and vision in the

organization. But the issue is not only about the creation and

development but also about seeking the value, meaning and

significance of vision and mission for management of

Manuscript received March 24, 2013; revised May 29, 2013.

Z. Papulova is with the University in Bratislava, Faculty of Management

(e-mail: [email protected]).

organizations and about their implementation in praxis.

As the environment is constantly changing, the theory of

strategic management is developing as well.

The importance of vision and mission is not declining and

is still a real and interesting area to research.

II. POSITION OF VISION AND MISSION IN STRATEGIC MANAGEMENT

The development of vision and mission is a part of the

strategic management process. The process of strategic

management is often described as a model that involves four

basic elements: environmental scanning, strategy

formulation, strategy implementation and evaluation and

control [2]. The development of vision and mission is a part

of strategy formulation. This step not only includes the vision

and mission development but also specification of strategic

objectives and strategy development.

The relationship between strategy, strategic goals and

vision is marked on the Fig. 1 [3].

Fig. 1. Strategy, strategic objective and vision.

If the task of the strategy is to lead us to the desired

strategic position, defined as the strategic goal of our

direction at a certain time, the vision and the mission should

tell us more about the future and our future direction. Vision

and mission should explain why we chose the specific

strategy. Strategic objective, unlike vision, is generally

perceived as an obligation rather than an image or prediction.

Strategic objectives promote the intentions, speak about what

positions we take, and eventually the results that we would

like to achieve.

A constantly changing and unpredictable environment

does not create favorable conditions for the development of

long-term plans and strategies. Nevertheless, it is necessary

to have something besides strategy that will provide

long-term orientation and direction for us.

The Significance of Vision and Mission Development

for Enterprises in Slovak Republic

Z. Papulova

Strategic

objective

Vision

Starting

position

Strategy

Time t0 t1

Journal of Economics, Business and Management, Vol. 2, No. 1, February 2014

DOI: 10.7763/JOEBM.2014.V2.90 12

III. DEVELOPMENT OF VISION AND VISION STATEMENT

A. Vision in Strategic Management

Vision is generally seen as a picture of the future. It is a

picture of excellence, something that the person, team or

organization wants to create in its best possible future.

Vision guides and perpetuates corporate existence. Vision

is viewed as a mental picture of a compelling future situation.

It originates from creative imagination, the act or power of

perceiving imaginative mental images, sort of

foresightedness. [4]

Visionaries are those who can create compelling images of

the future. Vision in terms of strategy cannot be an ordinary

picture of the future that can be created by anyone who

knows the past and the present. Vision is a picture of the

future that is based on ideas outrunning present time and that

often motivates generations of managers.

Vision in this understanding should be developed based on

ideas about future dominant factors and their impacts that

will create an environment different from the environment in

the past or present. Vision is particularly important to reveal

new factors and new connections in the environment. There

are many examples of such visions. At least we can recall the

vision of IBM founder - Thomas Watson. It has been almost

hundred years since the founder came up with a vision to

establish a sector of informatics and information

technologies that previously did not exist. Thanks to this

vision, IBM became one of the most successful companies in

this area and still retains a significant position on the market

till this day.

Vision is an essential ingredient in the success of any

company. It provides the driving force that can get a

company through the growing pains it will inevitably

encounter. It is a basic "shape" of the company future; it

expresses optimism, and hope about possibilities regarding

the desired future. [5]

B. Development of Vision

There are several ways to develop a vision [3]:

 to discover visions through intuition,

 to use a team approach to develop a vision,

 to use a rational approach,

 to adapt the vision of other subjects.

Using intuition is the traditional way to discover and

develop a vision. Vision is seen as an idea which surprisingly

and suddenly approached its creator - a visionary. It rarely

occurs intentionally. Often these visionaries are also founders

of organizations (like Thomas Watson or Steve Jobs) who

can lead the whole organization towards vision achievement.

A team approach is another option for vision development.

Working in a team with people that can bring unusual ideas,

views and inspirations can be very beneficial and result in

creative and innovative solutions. Every individual has

abilities and an incredibly large capacity of mind. If we

consider that there is team of people who are creative and are

thinking strategically, we could apply the saying, "two heads

are better than one."

The rational approach to vision development is another

possible alternative. This approach uses rational and logical

thinking. In this case, we rely on analysis and synthesis,

induction and deduction, comparison and other techniques of

empirical investigation. But this approach will never lead us

to new revolutionary or radical vision because it relies on

suggested techniques and practices based on analyzing

information from the past. Rational thinking is a conservative

approach that will never lead us to creative solutions.

The last possibility is to adapt the vision of another

subject/organization. We can be motivated by the vision of

another organization and understand its importance and

significance. In this is the case we can join this subject and as

a partner work together to fulfill the vision.

C. Vision Statement

A vision may or may not find its expression in vision

statements. The length and complexity of the vision

statement differ between organizations. [6] Generally, we

can recommend that the vision statement be:

 easy to understand

 easy to remember

 positive

 motivational

 inspiring

 attractive

 challenging

 future-oriented.

The organization and its employees should be identified

with the vision statements. Great visions not only need

visionaries but also leaders who can communicate the vision

to others and get support from partners.

IV. DEVELOPMENT OF MISSION AND MISSION STATEMENT

A. Mission in Strategic Management

The mission is an important part of strategic management.

It should be defined before we develop the strategy. The

mission defines the space in which we create a strategy.

Unlike the vision that allows us determine direction and

indicates where we want to get to, mission defines the space

in which the company will operate. The mission therefore

relates to the present and future directions. Mission, unlike

vision, is not directed to the distant future. It would be

preferable to say that the mission itself has not a built-in time

dimension. It is rather timeless in character. Its purpose is to

present the subject in its essence, in its permanent and

long-term sustainable way of being.

An organization ś mission seeks to answer the question as

to why an organization exists. [6]

Companies are like people; they need a mission. Without a

purpose or a mission, people and companies will flounder. [7]

Mission is shaping the identity, purpose and direction of an

organization.

It is not only a source of direction for employees, it is also

there for customers, stockholders and the public to know

about the fundamental principles by which a business

operates. It may also explain company values, beliefs,

philosophy and aspirations.

B. Development of Mission Statement

A mission statement can be defined as a way in which the

Journal of Economics, Business and Management, Vol. 2, No. 1, February 2014

13

organization communicates the business it is in to the outside

world. [6]

Development of mission statements is based on several

decisions. The main concern should be about the target

audience of our mission statement. The target audience of the

mission statement can vary following the purpose of the

mission statement. Companies need to first clearly identify

the target audiences and communication potential of the

mission statement.

Multiple audiences can addressed with the statement, like

staff, employees, customers, clients, colleagues, partners,

stockholders, patrons, community. These decisions will have

the significant impact on tone, length, communication and

visibility of mission statements. [7]

There is no one way of creating an effective mission

statement; there is no recommended format, formula or

pattern focusing on reaching the target audience. Experts and

researchers in this field however recommend some suitable

elements of mission statements.

F. David suggests these nine components in the mission

statement [8]:

1) Customers (the target market)

2) Products/Services (offerings and value provided to

customers)

3) Geographic Markets (where the firms seeks customers)

4) Technology (the technology used to produce and market

products)

5) Concern for Survival/Growth/Profits (the firm ś concern

for financial soundness)

6) Philosophy (the firm ś values, ethics, beliefs)

7) Public Image (contributions the firms makes to

communities)

8) Employees (the importance of managers and employees)

9) Distinctive Competence (how the firm is different or

better than competitors).

These various aspects of the mission are often neglected.

In this way, the company has the opportunity to present its

values and added values for different subjects. It is a

manifestation of our wisdom and also a sign that we are not

here just for ourselves.

V. APPROACHES OF SLOVAK ENTERPRISES

A. Research Description

The approach of Slovak enterprises towards the vision and

mission development is evaluated through

research(September 2012 - December 2012). The gathering

of information was done by questionnaires and structured

interviews in companies operating in Slovak Republic from

various sectors. A total of 242 enterprises of various sizes

were studied and analyzed (Table I).

TABLE I: ENTERPRISES IN RESEARCH (2012)

Size Number %

Micro Enterprises 63 26,03%

Small Enterprises 77 31,82%

Medium Enterprises 52 21,49%

Large Enterprises 50 22,66%

B. Approaches to Vision Development

The first area of research focused on study and analysis of

an actual state and attitudes of enterprises towards vision

creation, vision importance and identification with vision.

The result shows that only 24 companies out of 242 (9,

92%) did not have a vision in 2012. These companies

(without vision) were mostly micro and small enterprises (83,

43%) as it could be assumed. Small enterprises are in general

less strategically oriented.

11 companies (4, 55%) even stated that they will not

consider creating a vision in the future. The rest of the

companies feel the absence of vision.

22 companies (9%) feel that vision is just a formal

document without any strategic purpose. 26 companies (10,

74%) understand the importance of vision in strategic terms.

But the majority of companies (69, 60%) consider vision as a

basis for their strategy and that strategy is headed towards

vision.

The vision of 90 companies (37, 19%) was created by its

founder. Only 4 companies (1, 65%) used consulting services

in order to help create vision. The rest of the companies used

team approach to vision creations (35% strategic groups,

17% group of managers from various levels and

departments).

141 companies (58, 26%) are satisfied with their vision

statements and are able to identify themselves with their

vision.

C. Approaches to Mission Development

The second area of research focused on the study and

analysis of an actual state and attitudes of enterprises towards

mission. I analyzed their views on mission, their attitudes to

mission and its strategic importance and their approach to

mission statement development.

I found out that 54 companies out of 242 companies (22,

31%) did not have a mission in 2012. 79, 63% of these 54

companies (without mission) were small and micro

enterprises. If we compare it with results in vision, we can see

that twice as many companies do not have a clear mission.

Moreover there are still many companies that do not

recognize the difference between vision and mission (39%).

This lack was common mostly (93, 22%) among micro, small

and medium enterprises. As I mentioned earlier, each of these

strategic elements has its own characteristics and purpose.

When it is mixed, they risk losing their role and purpose.

A positive approach could be seen in the analysis of the

strategic importance of mission. Only 14 companies (5, 79%)

believe that mission does not have any strategic significance

and should not be seen as a strategic element. The rest of the

companies agreed with the strategic role of the mission. For

the majority of companies with defined mission (77, 6%),

this is also applied in praxis. They stated that their mission

influences their strategy and it sets the strategic direction and

space for strategy and their business.

The last analysis was dedicated to development of mission

statements. Almost half of the companies (46, 28%) have

mission statements created by founders. The others prefer to

develop mission statements in teams of managers. Only 1%

used consultancy help for mission statement development.

In terms of target audience of mission statement, I found

Journal of Economics, Business and Management, Vol. 2, No. 1, February 2014

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out that in most cases companies choose to address the

mission statement to only one audience. The target audience

are customers in the majority (70, 74%) of cases.

The rest of the companies use more elements in their

mission statement. They usually address the mission

statement to customers (the target market), employees and

partners. These statements describe products, services,

industries or business areas in which the company operates,

and they describe also other values and value orientations.

Table II shows which elements were used in the analyzed

mission statements from companies.

TABLE II: MISSION STATEMENT ELEMENTS

Elements Number %

Customers 133 70,74%

Products/Services/Industry 116 61,70%

Employees 80 42,55%

Partners 69 36,70%

Founders/Stockholders 21 11,17%

Concern for environment 65 13,30%

Other elements 44 23,40%

To conclude, only two companies (1, 06%) were close to

the approach presented by F. David concerning the nine

components of mission statements.

VI. CONCLUSION

Vision in strategic management has several functions. First

of all, it gives direction. It is a reference point in the future,

indicating where you are going and why. Vision tells us also

about the future and suggests how we should change, where

we will get and how we will be in future. Vision acts as

motivation, it offers us new possibilities about how we can

succeed.

The research in Slovak enterprises showed quite positive

attitudes towards vision development. More than 90% of the

companies nowadays have visions and only 4,5% of

companies do not consider creating one.

Almost 70% of companies recognize the strategic

importance and significance of the vision. This positive trend

is not only among the large companies, although we can still

see small and micro enterprises struggling with strategic

management orientation.

The majority of visions (52%) were created in teams.

Team approach is a current trend in vision development

because of its creative potential. But still we can find many

visions created (37%) by founders of companies.

Companies can choose to express their vision in vision

statements. More than half of companies (58%) were

satisfied and identified with its vision statement formation.

The mission should emphasize the main focus of the

company and its activities. It usually says what is our main

field or activity and in which market do we operate. It should

explain the "who we are" and "what we do". Additionally,

companies can use the mission broadly. Mission can cover

wider dimensions such as a philosophical dimension, in

which we refer to "why we exist" and "what is the meaning of

our existence."

According to the research, and I might say, surprisingly,

more companies did not have mission (22%) in comparison

with vision (10%). Generally, we can say, that vision is much

harder to prepare because of its long term orientation and its

message about our future and strategic direction. Vision is

also seen as a more stable element. We can prepare visions

for years ahead without actualizations. On the other hand,

mission can be updated more frequently; it should be always

fitted to our business. There are always debates about what

we should prepare first, mission or vision and if we need both.

In my opinion, both are necessary and they should be

determined before the business started to operate and

possibly updated if there is some necessary shift in our

business.

Many companies (39%) do not recognize the difference

between the vision and mission. There is often confusion if

the vision and mission should be viewed and prepared as the

same statement. By the nature of the vision and mission, I

believe that each of these statements has a different purpose

and meaning and should retain its characteristics and be

presented in the “right” way.

A positive approach could be seen in the recognition of

mission. The majority of companies with formulated mission

statements (77%) understand the concept and strategic

importance and significance of mission.

The approach most often used to develop a mission

statement was a singe target audience orientation. We can

also see a positive trend in mission statement development;

companies not only address their mission statements to

customers but also look for other audiences and presentations

of their values. Over all, we can say there is still a potential

for improvement of mission statements in enterprises in

Slovak republic.

REFERENCES

Zuzana Papulova was born in Bratislava, Slovak

Republic, 9 th of February 1981. Her educational

background: Bachelor degree in Management, Faculty

of Management, Comenius University in Bratislava,

Slovak Republic, 2002, Master’s degree in Management,

with specialization in Strategic Management, Faculty of

Management, Comenius University in Bratislava,

Slovak Republic, 2004, PhD. Degree in Business

Journal of Economics, Business and Management, Vol. 2, No. 1, February 2014

[1] I. Putri. (2007). Ancient Theories of Vision and Al-Kindi’s Critique of

Euclid’s Theory of Vision. Isis. [Online] pp. 1-9 Available:

http://campar.in.tum.de/twiki/pub/Chair/TeachingSs07ScienceHistory

/ HistoryOfVision1H.pdf

[2] T. L. Wheelen and J. D. Hunger, Strategic Management and Business

Policy, 3rd ed., MA: Addison-Wesley Publishing Company, 1989, ch.

1, pp. 10-17.

[3] J. Papula, Z. Papulova, StrategickýManažment. Teoretické Východiská

Alebo Jadro Vedomostí, 1st. ed. Bratislava, SR: Kartprint, 2009, ch. 4,

pp. 50-51.

[4] A. Joachim, “Interface between Corporate Vision, Mission and

Production and Operations Management,” GJMBR, vol. 10, no. 2 pp.

18-23, April 2010.

[5] M. Lipton, Guiding Growth: How Vision Keeps Companies on Course,

Boston, MA: Harward Business School Press, 2003, ch. 1, pp. 15-18.

[6] A. Henry, Understanding Strategic Management, Oxford, UK: Oxford

University Press, 2008, ch. 1, pp. 11-12.

[7] J. Abrahams, Plus Guidelines for Writing Your Own Mission Statement

101 Mission Statements from Top Companies, 1st. ed. Berkeley, CA:

Ten Speed Press, 2007, ch. 1, pp. 1-8.

[8] F. David and F. David. (January / February 2003). It's Time to Redraft

Your Mission Statement. Journal of Business Strategy. [Online] 24 (1),

pp. 11-14. Available: http://www.esf.edu/for/germain/David_8_12.pdf

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management, Faculty of Management, Comenius University in Bratislava,

Slovak Republic, 2007

She also studied internationally, one trimester at Faculty of Economics,

University of Groningen, Netherlands in 2002. She completed the

International Faculty Development Program at IESE Business School, The

University of Navarra, Barcelona, Spain, in 2007 and Summer Business

Program: Strategic Business Development with Europe in Lyon, France in

2009.

In 2004 she worked as a Business Process Specialist in Slovak Telecom, a.

s. From 2007 until now she is as an Academic Lecturer at Faculty of

Management, Comenius University in Bratislava, Slovak Republic. She is an

author and co-author of several publications and articles. The most important

books: Strategic Analyses with support of Strategic thinking (Bratislava,

Slovakia, Kartprint. 2012), Strategy and strategic management (Bratislava,

Slovakia Iura Edition, 2012), Strategic thinking of managers (Bratislava,

Kartprint, 2010).

Dr. Papulova is a member of various research projects and is an active

researcher, lecturer and thesis supervisor, twice rewarded by the Rector of

Comenius University in Bratislava.

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