Lesson 12: The Business Purpose

Learning Objectives
At the end of this module, you should be able to:
• Write the mission, vision of the company;
• Identify the values statements of the company;
• Set the goals and objectives of the company.

Identifying the Business Purpose

To propel the business towards success, it is important that the entrepreneur knows why
he is in the business and what he wants to achieve. Once he identifies the purpose of the
venture, he would be able to identify who is his market and how he would be able to meet the
needs of his customers.

This section will guide you in identifying and writing your business purpose by helping
you write the following:

A. Mission/ Vision
B. Core Values
C. Goals and Objectives

Mission Statement of the Company

A Mission Statement defines the purpose of the business and guides in attaining the
goals towards success. There are three basic dimensions that define a best mission statement.
First, what the company does for its customers. Second, what it does for its employees. Third,
what it do for its owners. Some companies would include in their mission what they could do
to their community and to the world.

In Tim Berry’s article entitled “How to Write a Mission Statement in 5 Easy Step”, he
pointed out that in order to write a well-developed mission statement, it should be able to
answer questions about your business like, who is your company? What do you do? Do you
want to make a profit? Who are your target market and what benefits you offer them? What
kind of environment do you have for your employees? He also said that only few mission
statements could answer these questions.

Here are the guidelines in writing a mission statement:

1. Keep it short and simple. Briefly describe the company, what it does and what makes
it different;

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 2. Use plain language to make sure that people who reads the mission statement will
understand it;

3. Be specific on the products/services that the company offers;

4. Use straightforward and simple explanations.

Vision Statement of the Company

A Vision Statement is like a big picture that shows the future of the company. In
making strategic plans, the vision statement lights the direction of the firm. It has to be clear
and precise to turn the idea into reality. To an entrepreneur, vision statement provides long
term direction and guidance.

Here are some examples of vision statements from well-known companies.

Avon’s Vision

To be the company that best understands and satisfies the product, service and self-
fulfillment needs of women---globally

Coca-Cola

Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving sustainable,
quality growth.

People: Be great to work where people are inspired to be the best they can be.
Portfolio: Bring the world a portfolio quality beverage brands that anticipate and satisfy
people’s desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity: Be a highly effective, learn and fast-moving organization.

Values Statements of the Company

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 A clear set of values keeps the company oriented and reliable. The values statement is
a set of beliefs and principles that guides the business activities and how it should be operated
by the entrepreneur. These core values tell how the business will behave during its operation.

An example of core value is shown below.

Core Values of Jollibee Group Foundation: Our work is guided by JFC corporate
values, namely, excellence, honesty and integrity, frugality, teamwork, humility to listen and
learn, respect for individual, spirit of family and fun, and customer-focus. We partner with
communities and find synergy with other institutions to ensure that our programs are strategic
and sustainable.

Goals and Objectives for the Company

It is imperative to have a well-chosen goals and objectives to put your new business in
the right direction. The goals and objectives create a road map for the future of the company
and minimize the risk of making wrong decisions and wasting resources. Both goals and
objectives are important to the entrepreneur since they help clarifying the purpose of the
business and the necessary actions to achieve its mission and vision.

According to Don Hafstrand goals are the general statements of what you need to
achieve in your vision while objectives are specific, time-sensitive statements for achieving
goals. The goals are usually describe in words while objectives are more on numbers and
specific dates.

Example of Goals and Objectives:

Goal: To increase brand awareness

Objectives: To create awareness by giving flyers to different areas in Metro Manila

by November 25, 2018

To attract customers by offering a ten percent discounts on the first

month of the operation by December 25, 2018.

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