chapter  1
4 Pages

From Mission, Vision, and Values to Business Model

ByTiffany Pham, David K. Pham, Andrew T. Pham, Mitchell Fox, Larry Rothstein, Michael Weiner, Emily Simoness, Kiran Rijhsinghani

This chapter provides the concepts frequently used in business strategy formulation: mission, vision, and values. It presents the concept of a business model, which is also considered the foundation of an organization's business strategy. As construct a mission statement for organization, it is important to coherently articulate organization's particular purpose for existing. While providing a tangible vision is the next important step, asserting values is another critical component of business strategy. The lack of respect for values crumbled the foundations of accounting firm Arthur Andersen's original mission to audit, displaying a lack of what Jack Welch calls "conscientiousness." In addition to the mission, vision, and values, there is another concept that can be used to determine an organization's business strategy: the business model. A business model should define a commercial company's target customers or a non-profit association's constituents, and assert how that organization intends to create value for the people.