Visions, Missions, and Goals in Strategic Management for Global Firms

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Visions, missions, and goals are critical components of strategic management for all organizations, but they are especially critical for multinational corporations (Kennedy, 2020). David (2018) states that operating in a worldwide market brings with it new hurdles like cultural differences, government laws, and economic changes. Global firms may traverse these hurdles and achieve their strategic objectives with a clear vision, purpose, and goals.

This paper will investigate the significance of visions, missions, and objectives in global corporate strategic management. It will begin by defining these words and examining their significance in strategic management. Following that, it will pick three significant concepts or facts from the textbook that are critical for organizations operating in a global market.

These ideas are:

• The importance of having a clear vision and mission statement that is communicated to all employees.
• The need to align goals with the vision and mission statement.
• The importance of regularly reviewing and updating the vision, mission, and goals to ensure that they are still relevant in the changing global marketplace.

The paper will next go into the importance of a strong leader in developing vision and mission statements. It will also determine if internal or external elements are more important to a global firm’s vision and mission statements.

Three Key Ideas or Facts from the Textbook

The textbook written by Kennedy (2020), outlines three critical principles or truths for organizations operating in a global market:

1. The significance of clearly communicating a vision and purpose statement to all personnel: A strong vision and mission statement may serve to bring people together and give them a feeling of purpose. It may also aid in decision-making and ensuring that all staff are working toward the same objectives. It is vital for global firms to have a clear vision and purpose statement that is conveyed to all personnel. This is due to the fact that global businesses employ people from many cultures and backgrounds. A strong vision and mission statement can aid in bridging these gaps and fostering a feeling of shared identity and purpose.
2. The need to align goals with the vision and mission statement: Goals should be specific, quantifiable, attainable, timely, and relevant. They should also be consistent with the firm’s vision and objective. This will assist in guaranteeing that the company stays on pace to meet its long-term objectives. It is extremely vital for global firms to connect goals with the vision and mission statement. This is due to the fact that global firms operate in a complicated and dynamic environment. Global firms may guarantee that they are focused on the most essential things and making progress toward their long-term objectives by aligning goals with the vision and mission statement.
3. The significance of assessing and updating the vision, purpose, and goals on a frequent basis to ensure that they remain relevant in a changing global economy: The global marketplace is ever-changing. Firms must examine and update their vision, purpose, and goals on a regular basis to ensure that they remain relevant in this changing world. It is extremely crucial for multinational companies to examine and update their vision, purpose, and goals on a frequent basis. Because of reasons like technical breakthroughs, new government rules, and the entrance of new rivals, the global economy is continuously evolving. Global firms may guarantee that they are well-positioned to prosper in the evolving global economy by examining and revising their vision, purpose, and goals on a frequent basis.

The Role of a Strong Leader in the Formulation of Vision and Mission Statements

A strong leader may play an important role in developing vision and mission statements. A strong leader can assist in clearly articulating the firm’s vision and objective (Doz & Prahalad, 1992). He or she can also assist in communicating the vision and purpose to all personnel and ensuring that they are aligned with the aims of the company. A competent leader who can assist in establishing vision and goal statements is especially vital for multinational businesses. This is due to the fact that global enterprises operate in a complicated and dynamic environment (Doz & Prahalad, 1992). A great leader may assist in ensuring that the company’s vision and mission statements are clear, succinct, and relevant to the global marketplace.

Are Internal or External Factors More Relevant to a Global Firm’s Vision and Mission Statements?

The vision and purpose statements of a global organization must include both internal and external concerns. External variables, on the other hand, are usually more significant. Global enterprises must be able to react to changes in the global marketplace since they operate in a complex and dynamic environment (Porter, 1986). This is why global firms must have a comprehensive awareness of their external environment and build vision and purpose statements that are matched with the changing environment (Porter, 1986).

According to Porter (1986), some specific examples of external factors that are relevant to a global firm’s vision and mission statements include:

1. Government regulations
2. Competition
3. Economic fluctuations
4. Technological advancements

Implications for Managers

When establishing their vision and mission statements, global business executives should carefully evaluate both internal and external considerations. They should also make certain that their vision and mission statements are conveyed to all personnel and are linked with the firm’s aims (World Economic Forum, 2023).

Conclusion

Visions, missions, and goals are critical components of strategic management for all organizations, but they are especially critical for multinational corporations. A clear vision, purpose, and goals can assist global firms in navigating the obstacles of the global economy and achieving their strategic goals.

Global businesses should carefully evaluate both internal and external variables when crafting their vision and mission statements. External variables, on the other hand, are usually more significant. Global firms should also have a strong CEO who can assist all workers in identifying and explaining the firm’s vision and objective.

References

David, F. R. (2018). Strategic management: Concepts and cases: A competitive advantage approach (15th ed.). Pearson.

Doz, Y. L., & Prahalad, C. K. (1992). Global strategy: Competing in the borderless world. McGraw-Hill.

Kennedy, R. (2020). Strategic management. Virginia Tech Publishing. Retrieved from https://vtechworks.lib.vt.edu/handle/10919/99282

Porter, M. E. (1986). Competition in global industries. Harvard Business Review, 64(3), 120–134.

World Economic Forum. (2023). The Global Risks Report 2023. World Economic Forum. Retrieved from https://www.weforum.org/reports/global-risks-report-2023

This article is written based on University of The People, Strategic Decision Making and Management (BUS 5117) written assignment by Fristy Tania in September 2023