A mission statement refers to a concise explanation of what an organization does and for whom. It describes the purpose of the existence of a firm and its overall intention. A mission statement comprises values that define a firm’s very existence (Gurley et al., 2015). That being so, principles embedded in Coca Cola’s mission statement include improving lives, improving communities, and exceeding expectations. Accordingly, the company has lived up to these principles for all its years of operation. It is a world-renowned multination corporation whose commitment to its mission has reflected its leadership and influence of the nonalcoholic industry for more than a century.
However, the company has failed to live up to the principle of improving communities. The idea of improving communities involves initiating promotional programs that aim to change communities in terms of education, healthcare, and infrastructure. Although the company has been associated with some of these activities, its products are linked to the rising cases of lifestyle diseases such as obesity and diabetes (Baah & Bohaker, 2015). Similarly, Nestle’s mission statement is centered on the principle of creating value and improving lives. The company has lived up to its purpose by ensuring its products comply with minimum health standards.
Delegate your assignment to our experts and they will do the rest.
On the other hand, a vision statement describes where an organization intends to be in the future. It takes the form of an aspirational and inspirational message that offers a strategic direction that guides an organization's actions and decisions (Hattangadi, 2015). Coca Cola is a global leader in the beverage industry because of its commitment to its vision statement. The company ranking among the world's best brands is testimony that Coca Cola's vision statement developed a path that the company has followed to arrive at what it is today.
Nestle's vision statement's two components are “become a leading company” and “deliver improved values.” Since the 1900s, the beverage firm has strived to become a leader in the beverage sector worldwide that focuses on delivering improved value. Today, the company has edged out its rivals because of its quality products and services. Over the years, Nestle has honored its vision statement not only by becoming a global leader in the beverage industry but also by becoming a brand of choice that customers can relate to. That is because of the value it creates for its customers and other stakeholders.
If traditionally led, companies would have to modify their vision and mission statements when adopting a servant leadership model. A company’s vision and mission statement inform the actions, behaviors, interaction, and other aspects within the organization, including leadership. Under the leadership model, a leader is a people-oriented, which means they prioritize people's wellness as opposed to tasks (Allen et al., 2016). Thus, for an organization whose statements are centered on accomplishing certain objectives, it would have to modify them to reflect the need to meet employees and other stakeholders' wellbeing. Also, combining elements of vision and mission statement provides a statement that defines a company's values. In turn, these values establish a corporate culture that influences how an organization views and treats its workforce.
Conclusion
The analysis shows how two companies operating in the same industry can be similar and differ in leadership and mission and vision statements. For instance, Coca Cola is known for its servant leadership model – a leadership philosophy where the main goal is to serve. On the other hand, Nestle adopts a standard leadership model where a leader's role is to focus on the accomplishment tasks. Interestingly, these two companies' sets of mission and vision statements embody the leadership model each practice.
The extent to which the two companies' mission and vision statements are similar is based on a focus on consumers and attaining a global leadership status. Both mission and vision statements of the companies are customer-centered. They are geared towards creating value and excellent experience for customers. As mentioned earlier in the text, the mission statement describes a firm's purpose and what stakeholders it serves. Primarily, the most important stakeholder for any profit-making entity is the customer. Thus, it is only natural for both the companies to include mission and vision statements that reflect their customers' intentions.
Despite the similarities, differences exist between the two firms as far as vision and mission statements are concerned. While Coca Cola aims to make a sustainable difference globally, Nestle focuses on becoming a brand of choice in the beverage industry. The difference can be attributed to the leadership model each company adopts. The servant leadership model shapes the vision of Coca Cola to enable it to become a servant in changing lives for the better. That being so, each of the companies has not only lived up to the principles embedded in their mission and vision statements but also ensured the manifestation of these principles in their public image.
It is important to note that the purpose of the vision and mission statement goes beyond communicating the purpose and intended future of an organization. These statements are critical in other areas of an organization, such as strategic planning, determination of goals and strategies, employee behavior, and employee interaction. They serve as a roadmap that guides all the actions and decisions a company takes. For instance, it informs core company values that are essential in defining an organization's corporate culture. In turn, the corporate culture influences aspects such as brand image, employee relations, leadership model, treatment of stakeholders, and others. It explains why Nestle and Coca Cola differ.
References
Allen, G. P., Moore, W. M., Moser, L. R., Neill, K. K., Sambamoorthi, U., & Bell, H. S. (2016). The role of servant leadership and transformational leadership in academic pharmacy. American Journal of Pharmaceutical Education , 80 (7).
Baah, S., & Bohaker, L. (2015). The Coca-Cola Company. Culture , 16 , 17.
Gurley, D. K., Peters, G. B., Collins, L., & Fifolt, M. (2015). Mission, vision, values, and goals: An exploration of key organizational statements and daily practice in schools. Journal of Educational Change , 16 (2), 217-242.
Hattangadi, V. (2015). Changing and Aligning of Vision and Mission Statements. Sansmaran Research Journal , 5 (2), 25-28.
