Strategic Direction Essay

Improved Essays
Vision statements and mission statements are management tools used to set strategic guidelines for an organisation. Strategic Direction “forms the basis on which an organisation will devise its plan.” There are three tools which are used in planning namely a vision statement, a mission statement and the strategic intent. These statements must be clear and relevant and must be communicated in the most effective manner so that employees and shareholders will believe in it (University of South Africa, 2016:217).

A vision statement is better known as a company’s road map providing information of the company’s goals and how it is going to achieve them (Wikipedia). In the Business Dictionary states that a vision statement must be clear and give
…show more content…
- A vision statement can be vague or incomplete. This happens when the organisation does not give a full understanding of what the company’s goals are and how they are going to achieve them. SodaStream’s vision statement is considered to be slightly vague as it does not give specifics nor does it provide any details of how it’s going to get there or what resources it will use to achieve these goals.

- A vision statement can be too broad which means that no set road maps are identified. It can be used in any industry or for any product. This is not the case for SodaStream as they are focused on the beverage industry.

- A vision statement can be bland or uninspiring as it does not provide excitement or encouragement to staff so that they can buy into the concept. Shareholders must also feel confident and positive that their investment will or has good potential for growth.

- SodaStreams vision statement can be consider to be not forward looking which in essence means that it does not state how the company will make this change. They mention a new product but they don’t elaborate how the product will be made. Will management focus on new technology or will they focus on customers or will they focus on different
…show more content…
According to the business dictionary a mission statement should mention the core purpose and focus of a business.
In research done by Bartkus, Glassman and McAfee (2005) who found that some elements in mission statements did not have a direct impact on an organisation’s financial performance Sidhu (2003) however found that mission statements could lead to an organisations performing exceptional.

Mission statements have three important components as identified by Pearce & Robinson (2009) being product/service, market and technology. An organisation uses one or more of these components to differentiate itself from other organisations and thus outsmarting its rivals. Pearce and Robinson (2009:27-36) have identified that there are more components that can be taken into consideration in a mission statement which includes profitability, customers, the organisations philosophy, public image and

Related Documents

  • Improved Essays

    The corporate mission is vital to establishing the strategies of the organization, (De Wit, & Meyer, 2010). The mission establishes direction, thus guiding the organization in the right direction. The functions of the mission include elements, functions and form, (De Wit, & Meyer, 2010). The elements of the corporate mission are broken down into three areas to include organizational beliefs, values and business definitions, (De Wit, & Meyer, 2010). The organizations beliefs, is what is followed and valued within the organization.…

    • 1005 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Bp Swot Analysis

    • 3377 Words
    • 14 Pages

    However, the article fails to discuss how signature processes can be successfully implemented. It assumes that if a company has a signature process, it is fulfilling the role that management has mandated. BP’s signature process was well-known but not fully enforced. In some ways, the article’s authors were naive, since they took the signature process at face value and failed to account for its implementation and other factors leading to superior performance. They relied on secondary sources and interviews with executives to identify the importance of signature processes and did not consider the reality of company culture.…

    • 3377 Words
    • 14 Pages
    Improved Essays
  • Great Essays

    As the final appeal for the project (Geever, 2001), this proposal failed to move the funder further. Conclusion Technically speaking, the proposal did not mention how the leadership skill could be built by attaining those attributes, i.e. there is no definition of ‘Leadership’. In short, the proposal was detailed and informative that could give a clear picture to the reader. However, the planner failed to organise the useful materials to present to the potential funders.…

    • 1856 Words
    • 8 Pages
    Great Essays
  • Superior Essays

    Likeability and social proof are not present either because I have no connections and no similarities with the model. This GUESS advertisement also doesn’t use scarcity. There is no “Hurry before they’re gone!” screaming at me from the page and I’m not worried about losing anything. Furthermore, it also doesn’t offer reciprocity. Maybe it’s suggesting that by purchasing GUESS product the consumers will become just like the attractive model; however, that’s a poor way of “giving back”.…

    • 1567 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    These “economy sharing companies” are not seeking out operative permits either because they believe the rules don’t pertain to them or they’re unsure how (Zrenner, 2013). Established companies face higher standards than those of the “sharing economy” which creates the ethical decision to question if these new companies are fair to their competitors. The legality of these companies are also questioned due to the fact that they’re are not subjected to tax collections from these transactions. Given Airbnb and Uber’s Terms of Services, these companies are not held to full legal responsibility for the actions of the application or website users (Zrenner, 2013). The ethical issues regarding legalities of Ubers is their lack of response to legal concerns.…

    • 883 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    It does not rank results in level of importance. For instance, a threat may be a major threat to an organization, whereas an advantage may be a very small business advantage and hardly gives the company any leverage. The results are not necessarily balanced. The SWOT matrix needs to be broken down further in order to be useful. Input for the matrix can be gathered from major departments within the company.…

    • 1357 Words
    • 6 Pages
    Great Essays
  • Superior Essays

    System errors happened when performance management system was used only to detect if the list of individuals KPIs have been achieved. But there was no match done between individuals and the organizational goals. Unfortunately, the system only monitors the input individuals have made, but no mechanism is used to monitor the output for the organizations. Sadly, the output produced for the organizations are influenced by the factors beyond the input given by the individuals. So, the performance management does not effectively focus on individuals.…

    • 2688 Words
    • 11 Pages
    Superior Essays
  • Improved Essays

    Strategic Decision Making

    • 915 Words
    • 4 Pages

    The only problem is they target their wares toward organizations or institutional environments. Those also tend to have complex management structures. Some are considerably esoteric. To be sure, no one has cornered the market on these. Panaceas or one-size-fits-all solutions simply don’t exist.…

    • 915 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Value based pricing. 2) Lack of sufficiency II. Acquire exclusive distribution ii. Being a start-up company or an unknown brand might give customers an impression of not buying our products 3. No leaks of information from our company.…

    • 946 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Eighth, specific leadership issue is the organization does not address or hold public forums to gauge homeland security concerns with current and future products, services, and operations.(Fisher,2013). The first specific strategic planning issue is the organization may not have any strategic plans in place for homeland security, and this type of issue hurts the organization overall structure for homeland security. The second specific strategic planning issue is that there is not a vision in place that shows specific strategic objectives to executed a plan for homeland security issues in this organization. The third specific strategic planning issue is there are some key factors not being considered in homeland security strategic plan like a problem in its corporate intranet system or a problem with transportation. The fourth specific strategic planning issue is problems with transportation can mess with shipping and receiving goods and services and hurt supply chain needs.…

    • 842 Words
    • 4 Pages
    Improved Essays