Mission, value strategies, and market definition
This chapter explores the function and components of a mission and a vision, and examines a vision and a value strategy. It shows how to define a market: components and guidelines. The goal of a mission is threefold: market definition, employee motivation, and external image. According to A. Klemm et al., the internal function of a mission statement is especially important, as it is meant to sell the philosophies and values of top management to the employees. The chapter discusses the mission component ‘market definition’, and then the component ‘corporate identity’. An important issue is that the vision should contain a clear and motivating ambition with which the entire workforce can identify. Treacy and Wiersema’s arrangement has similarities to the well-known generic competitive strategies of Porter. Porter mentions three ways in which a company can differentiate: differentiate, cost leadership, and focus.