Business Strategy

SUMMARY: An organization's vision and mission act as guidelines for strategy formulation. A well-conceived vision has two main components: core ideology and envisioned future. A well-drafted vision should be realistic, credible, attractive, and future-oriented. A mission statement describes the product, the market, and the technological areas of emphasis for the business, and forms its overriding raison d'être, that is, ‘reason for existence'. The vision and mission statements together provide the growth directions for the organization and control the allocation of resources.

The mission statement of a firm centers on its basic product, primary market, and principal technology. It also reflects the firm's philosophy/creed, public image, and self-concept.