Influences on Mission, Objectives and Strategies (AQA A Level Business): Revision Note

The distinction between mission and vision

• A mission statement outlines the fundamental purpose and reason for an organisation's existence

  • It describes what the company does, who it serves and how it provides value to its customers or stakeholders

  • It may also include the business's non-financial and community goals

• A vision statement sets out a business's ambition, or the position it hopes to achieve in the future

  • It is forward-looking, positive and intended to be an inspiration to stakeholders

  • It is usually focused on the long-term and informs a business's corporate objectives

Examples of mission statements and vision statements

Influences on the mission of a business

1. Values of the owners and founders

   • Founders often write their personal beliefs straight into the mission

     • E.g. Patagonia’s owner-founder Yvon Chouinard is a lifelong environmentalist, so the firm’s mission is simply “We’re in business to save our home planet,” putting climate action ahead of short-term profit

   • New owners can change the mission overnight

     • E.g. When Elon Musk bought Twitter in 2022, he renamed it X, changed its mission to “promote and protect public conversation” and set the goal of turning it into an all-in-one app for payments, video and AI

2. Values of employees and other internal stakeholders

   • When staff have real influence or ownership, they often push for a mission that reflects their priorities.

     • E.g. The John Lewis Partnership's purpose is “Working in Partnership for a happier world”, emphasising fairness, inclusivity and community because its Partners (employees) vote on key business decisions and share profits

3. Societal views and expectations

   • Changing consumer attitudes to ethics and the planet can reshape a business's mission

4. Industry characteristics

   • The type of market a firm trades in can have a significant impact on what it must promise

     • E.g. As an ultra-low-cost airline, Ryanair’s mission revolves around “offering the lowest fares while maintaining on-time performance,” because price leadership is the key competitive factor in budget aviation

5. Corporate objectives and long-term strategy

   • A mission echoes the top-level objectives set by directors

     • Apple’s corporate objective is to lead the market on innovation, so its mission is “to bring the best user experience to customers through innovative hardware, software and services.”

6. Legal form (ownership sector)

   • The way a business is owned and legally set up shapes its mission

     • Public-sector organisations are funded by taxpayers and must serve everyone, so their missions focus on public service rather than profit.

     • Not-for-profit organisations, such as charities, exist to tackle social or environmental problems, so their missions focus on a cause, not commercial gain
       E.g. Oxfam International's mission is “We fight inequality to end poverty and injustice”, underscoring its humanitarian purpose.

7. Regulation, technology and global issues

   • External pressures can force a business to rethink its mission

Influences on corporate objectives and decisions

• Corporate objectives are quantifiable and specific performance goals set by senior management for the business to achieve over the medium- to long-term

  • They are also known as strategic objectives

  • They provide the basis for functional objectives to be set by the different areas of a business, such as marketing, finance and operations

• Corporate objectives are likely to focus on at least one of the following strategic areas:

  • Profits and profitability

    • Setting goals for the amount of profit earned or the profit margin made on each unit sold

  • Market position

    • Aiming to improve the business's market share in terms of sales volume or brand reputation

  • Productivity

    • Raising the output produced per worker, machine or hour so that the business can make more with the same, or fewer, resources

  • Capital

    • Ensuring the business has enough long-term finance and achieves a strong return on money invested by owners and lenders

  • Human resources

    • Developing and deploying employees effectively through recruitment, training, motivation and retention

  • Physical resources

    • Acquiring, maintaining and utilising assets, such as factories, equipment, vehicles and IT infrastructure, efficiently to support operations

  • Innovation

    • Generating new ideas, products, services or processes that keep a business competitive and drive its growth

  • Social responsibility

    • Reducing negative impacts and increasing positive contributions to society and the environment

• Strategic decisions are are forward-looking, one-off choices made by top managers that shape the organisation’s structure, physical resources and finances

  • They are focused on corporate objectives and are usually agreed at board level

Influences on corporate objectives and decisions