BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Organizational mission statements typically do not include statements about profitability and earning above-average returns. A firm’s mission tends to be enduring while its vision can change in light of changing environmental conditions.

Detailed explanation-2: -The firm’s mission is based on its vision. It specifies the business(es) in which the firm intends to compete and the customers it intends to serve. The value of having a vision and mission is that they inform stakeholders what the firm is, what it seeks to accomplish, and who it seeks to serve.

Detailed explanation-3: -A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision.

Detailed explanation-4: -The firm’s mission is more concrete than its vision. However, similar to the vision, a mission should establish a firm’s individuality and should be inspiring and relevant to all stakeholders. High returns to customers, therefore, might come at the expense of lower returns for capital market stakeholders.

Detailed explanation-5: -The process figures out possibilities and opportunities for a firm to expand its business in new areas. It also helps the firm retain its dominance in the market and thus aligns its business strategies with its vision. In this way, the firm can maintain a competitive advantage besides achieving it.