Evaluation Of Mission Statement Business Essay
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I used the vision statement matrix and shortcomings to review the vision statement. The components included are directional, focus, feasible, desirable and easy to understand. In shortcoming analysis, there are only 2 matrix involved which are vague and not distinctive.
I used the mission statement evaluation matrix to analysis the mission statement. The mission statement got the components such as products/services, market, concern for survival, growth, profitability, philosophy and concern for employees.
PepsiCo is an American multinational food and beverage corporation with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products in around 200 countries. PepsiCo offers the world's largest portfolio of food and beverage brands included 22 different product lines. PepsiCo is the biggest rivalry of Coca-Cola in soft drink industry.
I, as a business analyst in PepsiCo's Corporate Strategy department, had appointed to review the PepsiCo's current vision statement and mission statement. I used the vision statement matrix table and shortcoming matrix of vision statement to review the vision statement of PepsiCo while used the mission statement evaluation matrix to analysis the PepsiCo' mission statement.
3.0 Analysis of vision statement
Vision statement is concerning a firm's future business path such as "where we are going".
I had used the vision statement matrix to review the PepsiCo's vision statement. I used the components such as directional, focus, feasible, desirable and easy to understand to evaluate the vision statement. (refer Appendix 1)
In directional component, it is about the direction of PepsiCo target in future. Through viewing the vision statement, PepsiCo wants to become the truly sustainable company by improving the aspects involved and emphasizes on environment management, CSR and commitment to shareholders. By becoming a truly sustainable company, PepsiCo will become a strong and stable company and well known globally. Market expansion will bring opportunities to PepsiCo to extend its products range and lines and thus able to get in many other industries. Besides that, become a sustainable company will get PepsiCo into a more intense competition with competitors such as Coca Cola and other competitors from other industries that PepsiCo took part.
For graphic component, it is about the picture that the company that the management trying to create. Well, in the vision statement of PepsiCo, the products portfolios are not mentioned. People are hard to get the picture of what the company wanted to do. Thus, the graphic component is not appeared in the vision statement of PepsiCo.
In focus component, it is about whether the vision statement of PepsiCo is specific enough for PepsiCo to focus on actions that PepsiCo want to choose. From the vision statement, PepsiCo focus on environmental stewardship, activities to benefit society and commitment to build shareholder value to become a truly sustainable company. Thus, management of PepsiCo will make decisions based on the 3 actions that PepsiCo focused on. By completing the environmental stewardship, activities to benefit society and commitment to build shareholder value, it will make PepsiCo be environment friendly and gain good reputation with good CSR and fulfillment of commitment to shareholders. Thus, PepsiCo is able to gain the awareness of customers by good CSR and investors by good shareholder value. Well, it may bring opposite effects to PepsiCo if PepsiCo is not doing well of what it emphasizing which are stated in its vision statement. The shareholders might complain about the un-fulfillment of the commitment to build shareholder value and public might have a bad image toward PepsiCo with poor CSR.
In feasible component, it is about whether the company able to achieve the target. By viewing the vision statement, the feasible part of PepsiCo is improving all the aspects that PepsiCo operates in to create better tomorrow and thus become sustainable company. PepsiCo expected to able achieve the improvement of the aspects that PepsiCo operates. By achieve the improvement of the aspects, PepsiCo will has better control and understand of the aspects that PepsiCo involved. Thus, it is one step forward for PepsiCo to become a truly sustainable company. Well, some aspects are uncontrollable and PepsiCo has to stick in the uncontrollable aspects.
In desirable component, it is about the long term interest of the stakeholders. Through the vision statement, the desirable part of the PepsiCo's vision is commitment to build shareholder value. PepsiCo promise the shareholder's benefits in order to gain full supports of the shareholders. Thus, the internal of company will become more united. Contribution of shareholders are become more significant such as introduce the investors and partners. By the way, it may be create barriers among the shareholders if the distribution of value is not equal.
In easy to understand component, it is about ease to understand and communicate of the vision statement. By viewing the vision statement, PepsiCo's vision statement is a bit lengthy but in clear English. The vision statement has 2 long sentences of stating what PepsiCo set for future vision. The vision statement is in clear and simple English but it is better to make it shorter and simpler.
3.1 Shortcoming of vision statement (refer Appendix 2)
Vague mean that the vision statement is short of specifics about the company. The vision statement of PepsiCo is a little vague. It is because there are few options of actions in the vision statement and not sure which actions that PepsiCo want to follow. People will feel a bit confuse with the vision statement and will worry that whether PepsiCo is able to fulfill the actions in the vision statement.
Next, the vision statement of PepsiCo is not distinctive. There are many actions in the vision statement for PepsiCo to go on and not specific enough. Besides that, the vision statement is too normal and can be any company using the same vision statement.
There are only 2 shortcomings for PepsiCo vision statement and the other 3 shortcoming matrices are not related to the PepsiCo vision statement which are not forward looking, rely on superlatives and bland.
Not forward looking mean the vision statement is not concern about the future. Well, PepsiCo's vision statement is forward looking because in the vision statement, PepsiCo is concerning about the future with wanting to create better tomorrow by improving the aspects that PepsiCo involved.
Rely on superlatives mean that the vision statement is set to be the most successful position. PepsiCo's vision statement is not relying on superlatives because it didn't mention that PepsiCo want to be the top company but only want to create a better tomorrow and become a truly sustainable company.
Bland is the lacking of motivational power of the vision statement. PepsiCo is making commitment to build shareholder value in the vision statement. The commitment will motivate the shareholders to fully support the company.
Since there are few options in the vision statement and make the vision vague, I recommend that the vision statement should become directly to points which mean that PepsiCo should combine all the options of actions into 1 sentence. This will make people know that what PepsiCo want to do and goes on when they read the vision statement.
Next, the vision statement is not distinctive to let people differentiate itself from other company's vision. PepsiCo's vision statement is too broad and any company can use the same vision as PepsiCo. Thus, I recommend that PepsiCo simplify its vision statement and make the vision statement short and memorable for people.
Based on the recommendations above, the old vision statement of PepsiCo is vague and not distinctive. Thus, I had modified the old vision statement based on the recommendations to enhance the old vision statement. The new vision statement of PepsiCo is as below:
PepsiCo aims to keep improving all aspects that we operate and focus on environmental management, CSR and commitment to shareholders to create a truly sustainable company.
4.0 Evaluation of mission statement
Mission statement is focused in current business activities such as "who we are and what we do". A company mission is not to make a profit but what we will do to make a profit. Making profit is only an objective. (refer Appendix 3)
I used the mission statement evaluation matrix to review the PepsiCo's mission statement. From reviewing the PepsiCo's mission statement, there are components such as products/services, markets, concern for survival, growth and profitability, philosophy, concern for public image and concern for employees can be seek from the mission statement. By the way, the customers, technology and self-concept are not exist and absent from the mission statement.
Products/services component is about what the company offered. From reviewing the mission statement, PepsiCo is offering the convenient foods and beverages such as snack foods, soft drinks and etc. Well, this component can be enhanced by expanding the products portfolio. PepsiCo can try to get into more foods and beverages industries other than its already owned products such as instant noodles and perhaps alcoholic drinks and etc. The strong brand name of PepsiCo will make the new products adapt easier by customers and to successful.
Market component is about what the market that the company is targeting and occupying. From the mission statement, PepsiCo want to serve the global market. PepsiCo is a well known company around the world and PepsiCo is now serving the world market as well. Thus, I would like to recommend PepsiCo to put efforts in penetrate into deeper demographic markets. For example, PepsiCo can cooperate with the vendor companies and put its drinks in the vendor machines in even smaller places such as schools, colleges, some grocery shops and etc.
For concern for survival, growth, profitability component, it is about how the company concern about its survival in the industry, growth and profitability of itself. By reviewing the mission statement, PepsiCo provide financial rewards to investors and also chances of growth and enrichment of the employees and business partners. PepsiCo build good relationship with investors to guarantee the sources of capital for survival and grow. The enriched employees with skills are significant for the company to survive, grow and gain profits. The upgrade of business partners of PepsiCo also vital to earn profits. Thus, I recommend that PepsiCo could build a really stable and strong relationship with the investors, enriched employees and business partners. Hence, keeping the talented and skillful employees in the company and strong business partners are a very important step for PepsiCo to survive, grow and earn profit in the industry.
The philosophy component is about what the company always strive to do. From the mission statement, PepsiCo strive for honesty, fairness and integrity in everything. PepsiCo would like to care for customers, consumers and the world. PepsiCo put the customers at the first place before anything.
The concern for public image component is about whether the company is concerning about the public image. Through the mission statement, PepsiCo is concerning its public image by providing the opportunity for its business partners and communities to grow and upgrade. PepsiCo become environmental friendly and implement the CSR to gain the reputation.
Concern for employees is about how the company cares about its employees. From mission statement, PepsiCo provide opportunities for growth and enrichment to employees. Well, PepsiCo can build good relationship with the employees and bring the sense of belonging toward company to them.
By here, I recommend that PepsiCo to add in the 3 missing components which are customers, technology and self-concept to enhance the mission statement.
Customers component is about the target market that the company served. PepsiCo can improve the mission by stating that it will serve the global customers of all ages since PepsiCo is serving the world market.
For technology component, it is about the technology of the company adopt and using. This component is absent in the PepsiCo's mission statement. By the way, PepsiCo can add in the component by stating easier delivery of products to customers with the advance technology and thus save cost and time.
For self-concept component, it is about the self concept that the company hold as concept. This is missing from the PepsiCo current mission statement too. The self-concept of PepsiCo can be add in is delivering sustained growth through empowered people acting responsibly and building trust.
By the new descriptions added in, I would like to suggest few modifications to the current mission statement.
Our mission is to be global premier consumer products company serving the global market with customers of all ages focused on wide product lines of foods and beverages. We seek to produce financial rewards to investors as we provide chances for enrichment to our employees, business partners and the communities in which we operate. The technology makes us easier to reach customers. And we strive for honesty, fairness and integrity in everything we do.
As a business analyst of PepsiCo, I had reviewed the vision statement and mission statement of PepsiCo with the analysis and evaluate matrix. Thus, I had recommended few enhancements and modifications to the current vision statement and mission statement. With the enhanced vision statement and mission statement, it is easier to read and understand by people. Hence, with a clear and simple vision statement and mission statement, PepsiCo can create a better future and become a truly sustainable company.
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