TERM PAPER

On
“Critical Analysis of Vision and Mission Statement with Special Reference
to Selected Companies in Automotive Industry”
By
Purandhara Reddy N (1JS19MBA37)
For
Strategic Management 18MBA25
To
Dr. Suresh Naidu Boddu
Professor

Department of MBA and Research Center

JSS Academy of Technical Education, Bengaluru – 60
(2019 - 2021)

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 No Topic Page No
1 Introduction 3-4
2 Theoretical Background 4-6
3 Literature support 6-7
4 Discussion 7-8
5 Conclusion 8
6 Reference 8-9

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“Critical Analysis of Vision and Mission Statement with Special Reference
to Selected Companies in Automotive Industry”

1. INTRODUCTION:
Indian automotive industry is the fourth largest in the world with sales increasing 8.3 percent
year-on-year to 3.99 million units. The two wheelers segment dominating the market in terms
of volume owing to growing middle class and young population. Moreover, the growing
interest of the companies in exploring the rural markets future aided the growth of the sector.
Indian Automotive companies have their own Vision and Mission which serves as there
benchmark for them. The paper is based on analyzing the vision and mission statements of two
selected companies from Automotive sector with special reference to selected two-wheelers
companies. These two companies are HERO MotoCorp Ltd and TVS Motor Company limited.
The analysis is done based on the secondary data available on the website of companies as well
as the paper releases in esteemed newspapers and magazine articles published.
Hero MotoCorp Ltd:
Hero MotoCorp Ltd., formerly known as Hero Honda, is an Indian motorcycle and scooter
manufacturer based in New Delhi, India. Hero Honda started its operations in 1984 as a joint
venture between hero cycles and of India and Honda of Japan. The company is the largest two-
wheeler manufacturer in the world and also in India. The Vision and Mission statement of the
company is stated as below.
VISION:
The vision of a mobile and an empowered India, powered by its two wheelers. Reflecting its
commitment towards providing world class mobility solutions with renewed focus on
expanding company’s footprint in the global arena.
MISSION:
To become a global enterprise fulfilling its customers needs and aspirations for mobility,
setting benchmarks in technology, styling and quality so that it covers its customers into its
brand advocates.
The company will provide an engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and enduring relationships with its
partners.
TVS Motor Company Limited:
TVS Motor Company is an Indian multinational motorcycle company headquarter at Chennai,
India. Was founded in 1972 in collaboration with Clayton Dewandre Holdings, UK. In 1980
TVS 50, India’s first two-seater moped was launched. It is third largest motorcycle company
in India. It is second largest exporter in India with exports to over 60 countries.

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VISION:
We are committed to being a highly profitable, socially responsible and leading manufacturer
of high value for money, environmentally friendly, lifetime personal transportation products
under the TVS brand, for customers predominantly in Asian markets and to provide fulfillment
and prosperity for employees, dealers and suppliers.
MISSION:
TVS motors will be responsive to customer requirements consonant with its core competence
and profitability and provide total customer satisfaction by giving the customer the right
product, at the right price, at the right time.
TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing
on the expertise developed in the areas of manufacturing, technology and marketing.
TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking
against international leaders.

2. THEORETICAL BACKGROUND
What is Vision statement of a company?
A Vision statement of a company talks about what an organization wants to become. It reflects
the optimistic view of the organization’s future.
What is Mission statement of a company?
A Mission statement of a company talks about where the organization is going now, basically
describing the purpose, why this organization exits.
Developing a Strategic Vision:
Top management’s views and conclusions about the company’s long-term direction and what
product-customer-market-technology mix seems optimal for the road ahead constitute a
strategic vision for the company. A strategic vision thus points an organization in a particular
direction, charts a strategic path for it to follow in preparing for the future, and builds
commitment to the future course of action.
A clearly articulated strategic vision communicates management’s aspiration to stakeholders
and helps steer the energies of company personnel in a common direction. An effectively
communicated vision is a tool for enlisting the commitment of company personnel to actions
that move the company forward in the intended direction.
The Dos and Don’ts of a Vision Statements:
The Dos The Don’ts
Be Graphic. Clear picture of where the Don’t be vague or incomplete.
company is headed.
Be forward-looking and directional. Don’t dwell on the present.
Keep it focused Don’t use overly broad language.
Have some wiggle room. Don’t state the vision in bland or uninspiring.

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 Be sure the journey is feasible. Don’t be generic.
Indicate why the directional path makes good Don’t rely on superlatives only.
business sense.
Make it memorable. Don’t run on and on.

Features of an effective vision statement include:

• Clarity and lack of ambiguity.
• Paint a vivid and clear picture, not ambiguous.
• Describing a bright future (hope).
• Memorable and engaging expression.
• Realistic aspirations, achievable.
• Alignment with organizational values and culture.
• Time bound if it talks of achieving any goal or objective.

Crafting a Mission Statement:

A mission statement describes the enterprise’s current business and purpose “who awe are,
what we do, and why we are here.” The mission statements that one finds in company annual
reports or posted on company website are typically quite brief; some do a better job than others
of conveying what the enterprise is all about. A well-conceived mission statement conveys a
company’s purpose in language specific enough to give the company its own identity.
Ideally, a company mission statement is sufficiently descriptive to:
• Identify the company’s product or services.
• Specify the buyer needs it seeks to satisfy.
• Identify the customer groups or markets it is endeavoring to serve.
• Specify its approach to pleasing customers.
• Give the company its own identity.
Difference between Vision and Mission:

Components Mission Statement Vision Statement

A Mission statement talks about
HOW you will get to where you
want to be. Defines the purpose
About and primary objectives related
to your customer needs and
team values.
A Vision statement outlines
WHERE you want to be.
Communicates both the purpose
and values of your business.

It answers the question, “What It answers the question, “Where

do we do? What makes us do we aim to be?”
Answer
different?”

A mission statement talks about A vision statement talks about

Time the present leading to its future. your future.

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 It lists the broad goals for which
the organization is formed. Its
prime function is internal; to
define the key measure or
Function measures of the organization's
success and its prime audience
is the leadership, team and
stockholders.
It lists where you see yourself
some years from now. It
inspires you to give your best. It
shapes your understanding of
why you are working here.

Your mission statement may As your organization evolves,

change, but it should still tie you might feel tempted to
back to your core values, change your vision. However,
customer needs and vision. mission or vision statements
Change
explain your organization's
foundation, so change should be
kept to a minimum.

What do we do today? For Where do we want to be going

whom do we do it? What is the
benefit? In other words, why we
Developing a statement
do what we do? What, For
Whom and Why?
forward? When do we want to
reach that stage? How do we
want to do it?

Purpose and values of the Clarity and lack of ambiguity:

organization: Who are the
organization's primary "clients"
Features of an effective (stakeholders)? What are the
statement responsibilities of the
organization towards the
clients?
Describing a bright future
(hope); Memorable and
engaging expression; realistic
aspirations, achievable;
alignment with organizational
values and culture.

3. LITERATURE SUPPORT
Vision & Mission is conceptualized as something that offers direction to an organization and
that helps increase organizational success. Vision is like a road map which shows the route a
company aims to take in developing and enhancing its business. It portrays a picture of
company’s destination for the future & provides a rationale for going there. The vision and
mission statements of a company describes the future, purpose, potential, culture, commitment,
competitiveness and growth of the company. The literature presents many variations on the
meaning of vision: vision identifies the worth of work, allowing the individual to identify their
contribution towards accomplishing an ideal (Tvorik and McGivern, 1997). Vision is energy;
the inspiration and supervision of the flow of energy and meaning that people use to control
change (Smith, 1996a, 1996b; Snyder and Grraves, 1994). Vision is an over-reaching concept
that enlightens the organization’s values, guiding philosophies, and tangible image (Collins
and Porras, 1991). Vision is a concept that is personally mastered and used to support the
personal and professional conditions of an individual (Senge, 1990). Visioning provides the

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organization with a clear sense of direction, a powerful selection of power, and it gives an
individual with the sense of being empowered in something essential (Goodstein et al., 1993).
A company’s mission is a long-term view of what the organization is determined to become in
future signifying the basic strength of the firm including its products, business and markets.
The identification of a mission is the basis of awareness of a sense of purpose, the complex
environment, and the extent to which the firm’s mission fit its capabilities and the opportunities
which the environment offers. The mission of a company is the fundamental unique purpose
that differentiates one firm from another of its type. It indicates the nature and scope of business
operations in terms of product, market and technology. Vision portrays the future business
scope of the company and involves a choice about the strategic path to take; Mission is
concerned with the company’s present business scope, present capabilities, its products and
services, customers and business makeup. The study of mission statements started in the early
1970s and has expanded since then to take a key place in both the literature and the strategic
planning processes of organizations. This trend has granted researching mission statements a
focused popularity in academic writings as well as in organizations’ strategic management
process.

4. DISCUSSION
From the above literature support and the theoretical background, we now going to analyse the
vision and mission statements of Hero Moto comp Ltd and TVS motor company Ltd, using the
appropriate components of vision and mission. The following analysis will give the clear idea
of how effective and efficient in terms of portraying the required effective elements in their
vision and mission statements. The analysis is done on the basis of major required components
of vision and mission statements.
Analysis of VISION Statement:
Components of Vision Hero MotoCorp Ltd TVS Motor Company
Statement Limited
1) Graphic N Y
2) Forward looking Y Y
3) Focused Y Y
4) Memorable Y Y
5) Long term interest Y Y
6) Feasible Y Y
7) Makes good business Y Y
sense

Analysis of MISSION Statement:

Components of Mission Hero MotoCorp Ltd TVS Motor Company
Statement Limited
1) Customer Y Y
2) Product/Service Y Y
3) Geographic market Y Y
4) Public image Y Y

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 5) Concern for growth Y Y
and survival
6) Employees N N
7) Distinctive N Y
competence

From the above analysis we can find out how the two companies have built their vision and
mission statement. By the analysis of the two-companies vision and mission statement we can
see that in both vision and mission statements the TVS motor company Ltd has more accuracy
toward the components required to built the vision and mission statement then the Hero
MotoCorp Ltd, it doesn’t specify certain major components on their vision and mission
statements.

5. CONCLUSION
A properly designed vision and mission statement of the company which include all the major
components of the good statements have the potential to become one of the most important
strategic for a firm in achieving its goal. The analysis of two companies’ vision and mission
statement says the true potential and values of the company. The vision statement of hero motor
does not specifically talk about the market position the company is striving to stake out. But it
perfectly talks about other components which are equally as essential as speaking of market
position of the company those are the company future looking, focused, feasible and makes a
good business sense. Where as the TVS motor company vision statement covers all the major
essential components. when the both companies’ statements are compared the hero motor
company vision is not as efficient as the TVS motor company.
As important as vision statement to the company the mission statement is also very much
important for a firm to survive in the present competitive market and to be in parallel with the
day to day changing technology, design, market and business process. The company survival
depends on what the companies mission states. From the analysis it can be clearly see that in
mission statement also Hero motor is not as effective as of TVS motor, and TVs motors in their
mission statement also doesn’t speak about its employees. A mission statement acts as an
internal communication tool that conveys an organization’s policies, procedures, plans, and
strategies, thereby guiding the behaviours and decisions of management and subordinates.
Organizations develop a mission statement for a number of reasons. According to King and
Cleland (1979), the mission statement provides a standard for allocating resources, facilitates
the transition of objectives into a work structure, and specifies unanimous organizational
purposes that are translated into objectives for standard performance.

6. REFERENCES
Crafting and executing Strategy. A Thompson Jr, Margaret A. and John E Gamble. Mc Graw
Hill Publication, New Delhi.
The International Journal of Business & Management (www.theijbm.com).

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International Journal of Business and Social Science (www.ijbssnet.com)
Annual reports of Hero MotoCorp Ltd http://m.heromotocorp.com
Annual reports of TVS Motor company Ltd http://www.tvsmotor.com