EFFECTS OF VISION AND MISSION STATEMENT ON FIRMS’ SURVIVAL
The mission statement is becoming a vital part of the operational plans of both governmental and private organizations in and outside of Nigeria. The purpose of this study was to examine the impact of vision and mission statements on the survival of businesses.
One hundred questionnaires were delivered to Nestle PLC Sagamu employees as part of a descriptive survey and data gathering. Using frequency count and t-test statistics, the collected data were evaluated. The study’s findings indicate that there is no significant difference between the perceptions of male and female workers regarding the effects of vision and mission statements, nor is there a significant difference between the survival of firms that use vision and mission statements and those that do not.
Therefore, the report proposes, among other things, that businesses find a way to survive the current economic adversity, which may delay the time required to implement the developed strategy. Management should establish the necessity of vision and mission statement planning by identifying business objectives and formulating policies that serve as a decision-making guide.
1.1 CONTEXT OF THE EXPERIMENT
The mission statement is becoming a vital part of the operational plans of both governmental and private organizations in and outside of Nigeria. In fact, numerous modern businesses produce short or brief drafts of their mission statements or their counterparts for a specific time period. Specifically, for organizations with a profit motive, the vision and mission statements serve as preambles to what they aim to achieve and how they want to achieve it when establishing business strategies, strategic and operating plans, and even when drafting loan application letters to commercial banks. Moreover, strategic business management experts assert that well-defined vision and mission assist firms in aligning the ambitions of individual employees with corporate plans.
In the past, strategic plans articulating business missions and objectives, as well as the establishment of business divisions such as marketing and customer service, were accorded considerable consideration (Dorrian, 1996; David, 2007). In reality, the inclusion of mission statements in corporate documents looks to be here to stay in nominally established firms, notwithstanding the obscurity surrounding their contribution to marketing and customer service efforts. Mission and vision statements are an integral element of the strategic management process for all types of organizations, whether they are in the public sector, the not-for-profit sector, the private sector, the for-profit sector, a multinational corporation, or a small or medium-sized business. It is widely thought that mission and vision statements have an effect on strategy and the majority of organizational performance factors. Mission and vision statements are common in businesses. Mission and vision statements are suggested implicitly under the worst-case scenario.
Mullane (2002) stated and supported empirically that mission and vision statements are useful for actual day-to-day operations, in contrast to some who claim they are outdated texts often displayed as wall hangings. Campbell and Yeung (1991) have outlined how mission and vision statements can be utilized to generate a shared feeling of purpose and also serve as a channel via which employees’ attention is moulded. Other schools of thought contend that mission and vision statements tend to motivate, shape behaviors, foster high levels of dedication, and ultimately have a favorable impact on employee performance (Mullane, 2002)
Toffler (2003), an authority on strategic management, compares a company without a strategy to a jet zigzagging through the sky, buffeted by winds and lost among the thunderheads. If neither lightning nor crushing winds destroy it, it will simply run out of fuel. In a similar vein, Ross, Rosenberg, Schewe, and Perry (2000) assert that an organization without a strategy is comparable to a ship without a rudder. As a vagrant, it travels in circles without a particular destination. Clearly, these remarks stress the significance and necessity of a complete, systematized, and dynamic vision and mission planning for every company that wishes to survive in an ever-changing global business climate. Ansoff (1970) contends that planning promotes better alignment and financial results in firms that are handled strategically as opposed to those that are not. This indicates a correlation between strategic planning and the end performance of a company in terms of growth, profits, goal attainment, and continued competitiveness (Strickland, 2004).
Despite the fact that these assertions are generally accurate, there are cases in which certain businesses succeed not due to the implementation of a strategic plan, but rather as a result of favorable external environmental factors. Nonetheless, and keeping with the requirement for evolving and continually reviewing strategy, it is essential to recognize that having a sound strategy by itself does not necessarily result in the achievement of desired performance objectives if it is not implemented effectively. Both strategy and execution must be effective and timely in order to produce great outcomes. Malamud (2004) compares a company whose strategic planning is flawed to a train on the incorrect track, stating that every station it reaches is the wrong one.
As expected, management is not immune to the dynamism of these fundamental concepts. The assumption is that strategic planning, like other management initiatives established primarily for businesses, can be adopted despite the distinctions between for-profit and non-profit organizations. Vision and mission statements give the basic direction and rationale for identifying the focus of an organization, as well as the criterion by which any company can best determine what to do and how to achieve it. Simply described, it is the process of constructing and describing a better future in quantifiable terms and selecting the most effective strategies to attain the intended outcomes. It is essential to emphasize that not all planning, despite being labeled as such, is genuinely strategic. According to the saying, failing to plan leads to unsuccessful planning.
Vision and mission statements give the basic direction and justification for identifying the focus of an organization, as well as the criteria against which an organization can best determine what to do and how to do it. Simply described, it is the act of seeing and defining a better future in quantifiable terms and selecting the most effective strategies to attain the intended goals. It is essential to highlight that not all planning is genuinely strategic, despite being labeled as such. According to the saying, failing to plan leads to unsuccessful planning. Strategic planning standardizes the processes of goal/objective setting, scenario analysis, alternative selection, implementation, and assessment that enable an organization to achieve its objectives. Sarason and Tegarden (2003) argued that the positive association between strategic planning and performance outcomes is extremely advantageous to organizations.
1.2 SYNTAX OF THE PROBLEM
Management’s leadership position necessitating strategic thought, planning, decision-making, and ultimate implementation may also have a significant impact on the success or failure of diverse firms within their particular industries. Despite the fact that disparities in organizational performance are to be expected, it is widely held that the vision and goal pursued by each company are significantly responsible for their existence.
Vision and mission formulation is a challenging endeavor that necessitates inventive thought and action. The Vision and mission planning process is used by management to develop objectives, set goals, and schedule actions for accomplishing those goals. The process also includes a system for monitoring success. Through the steps of the strategic plan, these objectives can be attained, beginning with an external and internal analysis, a clearly defined mission statement, goals and objectives, the formulation of specific strategies, and concluding with the implementation of the strategy and the managed control process. The failure of many firms in Nigeria to satisfy annual demands, revenues, etc. is a result of their vision and mission statements. Therefore, it is necessary to investigate the impact of vision and mission statements on the longevity of businesses.
1.3 OBJECTIVES OF THE STUDY
The study has the following objectives:
i. To investigate the necessity of a vision and purpose statement in an organization.
ii. To evaluate the perceptions of male and female employees about the influence of the vision and mission statements.
iii. Identifying the survival of firms that utilize vision and mission statements vs those who do not in the industry.
iv. to highlight the obstacles faced by companies that employ a vision and mission statement strategy.
1.4 RESEARCH QUESTIONS
i. Is it essential for every organization to have a vision and purpose statement?
ii. Is there a substantial difference between the perceptions of male and female employees about the effects of vision and mission statements on the survival of a firm?
Is there a major difference between the survival of companies that utilize vision and mission statements and those that don’t?
iv. What are the problems faced by businesses that implement a vision and mission statement strategy?
1.5 RESEARCH HYPOTHESIS
The perceptions of male and female employees on the effects of vision and mission statements are not significantly different.
H02; There is no statistically significant difference in the survival rates of businesses that utilize vision and mission statements and those that do not.
1.6 IMPORTANCE OF THE EVALUATION
This research is anticipated to have an impact on strategic planning professionals, business management, academia, and the general public. This study will add to the existing body of information on the issue of vision and mission statements, as well as act as a conduit for future research on new strategies for attaining a competitive advantage in the interest of the nation’s overall economic health.
In addition, it is anticipated that the research and its findings will benefit firms in the areas of applying vision and purpose statements and decision making in strategic management utilizing strategic planning.
This study will be very valuable to other researchers who are interested in the topic; the findings will serve as a foundation for business magnates and academics who may like to undertake additional research on the impact of vision and mission statement strategies.
1.7 METHODOLOGY STUDY AREA
Design of research refers to the organization of an investigation aimed at finding variables and their relationships. Nestle Nigeria PLC in Sagamu, Ogun State, was responsible for the project.
The research population would consist of Nestle Nigeria PLC employees in Ogun State’s Sagamu.
Data Collection Instruments
This study used both primary and secondary data collection methods. Primary data is a direct source and will consist of a self-constructed questionnaire that will act as the study instrument for data collection, whereas secondary data will consist of journals, internet materials, etc.
The statistical software for social science (SPSS), reported as a simple percentage, was utilized to analyze the data for this study. Consequently, t-test statistics were utilized in this study.
1.8 SCOPE OF STUDY
This research was limited to Nestle Nigeria PLC employees in Ogun State’s Sagamu.
1.9 DEFINITION OF TERMS
Vision is typically viewed as a snapshot of the future. It is a vision of excellence, something that a person, group, or company hopes to realize in the greatest possible future.
Mission: it is an assumed responsibility of the company resulting from its social objectives. Mission exemplifies how vision may be translated into a physical reality for the organization.
Firms are described as a business organization that owns, operates, and uses productive resources to get goods and/or services that are sold on the market for a profit.
1.10 ORGANISATION OF THE STUDY
This investigation was organized into five (5) chapters. The first chapter is the introduction and provides the study’s context, research topic, aims, research questions, importance, structure, scope, and operational definitions of terminology.
Chapter two is a review of literature pertinent to the study scholars and researchers in the subject of strategic management. The third chapter described in detail the stages, instruments, and techniques used to acquire the data necessary to answer the research problems. The fourth chapter was devoted to the examination and discussion of data gathered during field surveys. The summary of facts, conclusions, and recommendations are presented in chapter five, the concluding chapter.
EFFECTS OF VISION AND MISSION STATEMENT ON FIRMS’ SURVIVAL