EFFECTS OF VISION AND MISSION STATEMENT ON FIRMS’ SURVIVAL
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EFFECTS OF VISION AND MISSION STATEMENT ON FIRMS’ SURVIVAL
INTRODUCTION
1.1 Background of the Study
The mission statement is becoming an essential component of corporate operating plans for both public and private firms in and outside Nigeria. Indeed, many modern organisations create short or tiny draft documents that reflect their mission statements or equivalents for a specific period of time.
Specifically, for profit-driven businesses, the vision and mission statement serve as preambles to what they aim to achieve and how to achieve it when drafting company strategies, strategic and operating plans, and even letters to commercial banks.
At the same time, strategic business management experts argue that a well-defined vision and mission enable organisations to match individual employees’ goals with company aims.
Strategic plans, which outline business aims and objectives as well as the establishment of business divisions such as marketing and customer service, have previously been given considerable consideration (Dorrian, 1996; David, 2007).
In fact, the presence of mission statements in business documents appears to be a permanent fixture in nominally operational organisations, even if their usefulness to marketing and customer service operations in the business itself is uncertain.
Mission and vision statements have been widely accepted as an essential component of the strategic management process for organisations of all types, whether public, not-for-profit, private, for-profit, multinational, or small and medium-sized enterprises.
It is widely assumed that mission and vision statements influence strategy and most elements of organisational success. Most companies have mission and vision statements. In the worst-case situation, mission and vision statements are assumed implicitly.
Mullane (2002) claimed and scientifically backed the claim that mission and vision statements are valuable for actual day-to-day operations, in contrast to some who believe they are outdated papers that are typically displayed as wall hangings.
According to Campbell and Yeung (1991), mission and vision statements can provide employees with a feeling of purpose and define their focus. Other schools of thought think mission and vision statements tend to motivate, shape behaviours, develop high levels of commitment, and eventually affect positively on staff performance (Mullane, 2002).
According to strategic management expert Toffler (2003), a company without a strategy is like an aeroplane flying through the sky, thrown up and down, smashed by winds, and lost in the thunderheads. If lightning or violent winds do not destroy it, it will simply run out of fuel.
In a similar vein, Ross, Rosenberg, Schewe, and Perry (2000) argue that without a strategy, an organisation is like a ship without a rudder. It travels about in circles and, like a vagrant, has no clear destination.
Clearly, these comments emphasise the need and necessity of a complete, methodical, and dynamic vision and mission strategy for any corporation seeking to withstand competitiveness in the ever-changing global competitive business landscape.
According to Ansoff (1970), strategically managed firms produce better alignment and financial performance than those that are not. This shows an apparent link between strategic planning and a firm’s overall performance in terms of growth, earnings, goal achievement, and sustainable competitiveness (Strickland, 2004).
Though these assumptions are essentially correct, there are times when certain businesses gain not because they had a strategy in place, but because they simply benefited from unexpected external events. Nonetheless, and in keeping with the requirement for strategy to evolve and be reviewed on a regular basis
it is vital to recognise that having a strong plan does not always convert into desired performance goals if it is not implemented appropriately. To get favourable results, both strategy and implementation must be effective and timely.
Malamud (2004) compares a firm led by poor strategic planning to a train on the wrong track, arguing that every station it reaches is the wrong stop.
These fundamental principles fundamentally apply to all industries around the world, and as one would anticipate, management is no exception to the dynamics of these trends. Strategic planning, like other business-oriented management initiatives, is thought to be adaptable despite distinctions between profit and non-profit organisations.
A vision and mission statement give the basic direction and justification for identifying an organization’s emphasis, as well as the specifications against which any organisation can best select what to do and how to achieve it. Simply expressed, it is the process of developing and expressing a better future in measurable terms
as well as selecting the best method to attain the intended goals. It is crucial to emphasise that not all planning is strategic, even if it is referred to as such. It is claimed that failing to plan results in planning to fail.
The vision and mission statements give the basic direction and justification for identifying an organization’s emphasis, as well as the specifications against which any organisation can best select what to do and how to achieve it. Simply expressed, it is a process of developing and describing a better future in measurable terms, as well as selecting the best methods to attain the intended goals.
It is crucial to emphasise that not all planning is strategic, even if it is referred to as such. It is claimed that failing to plan results in planning to fail. Strategic planning standardises the procedures of goal/objective setting, scenario analysis, alternative consideration, implementation, and assessment that help an organisation achieve its goals and objectives.
Sarason and Tegarden (2003) argued that the favourable association between strategic planning and performance accomplishments is extremely advantageous to organisations.
1.2 Statement of the Problem
Management’s leading position, which requires strategic thought, planning, decision-making, and ultimate implementation, may have a significant impact on the fortunes of various organisations in their particular industries.
Although disparities in performance levels are to be expected, it is widely recognised that any organization’s vision and mission are significantly responsible for its survival.
Vision and mission are complex processes that demand creative thinking and action. Management uses the Vision and Mission Planning Process to develop objectives, set goals, and schedule actions to achieve those goals, as well as to measure progress.
These goals can be achieved by following the processes of the strategic plan, which include an external and internal analysis, a clearly defined mission statement, goals and objectives, the development of particular strategies, and the implementation of the strategy and controlled control process.
Most organisations in Nigeria have experienced challenges as a result of their vision and mission statements, which have resulted in many firms failing to achieve yearly needs, earnings, and other objectives. As a result, there is a need to investigate the impact of vision and mission statements on organisations’ survival.
1.3 GOALS OF THE STUDY
The study’s aims are:
i. To investigate the necessity for a vision and purpose statement in an organisation.
ii. To examine how male and female employees perceive the effects of the vision and mission statement.
iii. Determine the survival rates of organisations that use vision and mission statement strategies vs those that do not in the industry.
iv. To illustrate the difficulties encountered by businesses that employ vision and mission statement strategies.
1.4 RESEARCH QUESTIONS
Is there a need for a vision and purpose statement in every organisation?
ii. Is there a substantial difference in how male and female employees see the effects of a company’s vision and mission statement on its survival?
iii. Is there a significant difference in the survival of organisations that utilise a vision and mission statement against those that do not?
iv. What obstacles do firms that use vision and mission statements face?
1.5 Research Hypothesis
H01: There is no significant difference in how male and female workers perceive the effects of the vision and mission statement.
H02: There is no substantial difference in the survival rates of organisations that utilise vision and mission statements against those that do not.
1.6 Significance of the Study
This study is predicted to have implications for strategic planning practitioners, corporate management, academics, and the general public. The study’s findings enrich the current body of knowledge on the issue of vision and mission statements
while also serving as a conduit for future research on novel approaches to obtain a competitive advantage for the nation’s overall commercial well-being.
Furthermore, the research and its conclusions are expected to assist organisations in utilising vision and purpose statements, as well as to shed light on strategic management decision making through strategic planning.
This study will be very valuable to future researchers interested in the subject, as the findings will serve as a foundation for business tycoons and academicians who may want to perform additional research on the impact of vision and mission statement approach.
1.7 METHODOLOGICAL STUDY AREA
Research design refers to the organisation of an investigation with the goal of finding variables and their relationships to one another. The operation was carried out at Nestle Nigeria PLC in Sagamu, Ogun State.
The research design used in this technique is a survey, and the research population will be Nestle Nigeria PLC employees in Sagamu, Ogun State.
Data collection instruments
Two strategies were used to collect information for this study: primary and secondary data. Primary data is a direct source, such as a self-created questionnaire used as a research instrument for data collecting, whereas secondary data is found in journals, internet materials, etc.
Data analysis
The statistical software for social science (SPSS) was used to analyse data in this study, and the results are expressed as a simple percentage. As a result, the statistical tool used in this study was the t-test.
1.8 SCOPE OF THE STUDY.
This study was restricted to Nestle Nigeria PLC personnel in Sagamu, Ogun State.
1.9 Definition of Terms
Vision is commonly viewed as a picture of the future. It is an image of greatness, something that the individual, team, or company wishes to achieve in the greatest possible future.
Mission: It is the firm’s assumed obligation resulting from its societal purpose. Mission reflects how vision can be translated into a practical life for the company.
Firms are described as a business organisation that owns, operates, and utilises productive resources to get products and/or services for sale in the market with the goal of profiting.
1.10 Definition of Terms
This study was divided into five chapters. The first chapter provides context for the investigation, stating the research topic, study objectives, research questions, study importance, study structure, scope, and operational definitions of words.
The second chapter is a review of relevant literature for strategic management scholars and researchers. The third chapter described the exact stages, tools, and techniques used to collect data for the study problems.
The fourth chapter was dedicated to the analysis and discussion of data obtained during the field surveys. The fifth and final chapter summarises the findings, conclusions, and suggestions.
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