What is the role of mission and vision statement in business

Entrepreneurs need to write down there mission and vision statement when establishing new entities or realigning existing business that have shifted there focus. The statement helps in creating a road map which the organization will seek to follow as it tries to address problems or opportunities that might have encouraged the establishment of that entity. Bain & Company (2017) defined a mission statement as "the company’s business, its objectives and its approach to reach those objectives." This outlines that in the mission statement the entrepreneur will reveal what the entity will be all about and also what they want to achieve or address in pursuing the idea together with the action that need to be in place for the success implementation of those ideas.  The desired future position of the company was regarded as the vision by Bain & Company(2017). Both vision and mission statement work hand in hand as the mission statement addresses the now factor while the  vision creates a clear picture of where you want to go.

The two statement will help in the establishment of the objectives and goals that the entity will seek to follow. Thus the strategies that will be used by the company will determined by the mission and vision statement. The entity will have an overall mission and vision statement which will be used to formulate mission and vision statement of functional departments within the organization with soul purpose of creating enabling environment to the success of the business. The mission statement is the one that addresses the creation of the corporate identity that will be used to  build the culture of the organization. This is because the objectives that a used on the day to day running of the organization are directly derived from the mission statement. Corporate culture is how the organization relate and operate within the internally  and the external environment. Thus there conduct of business and interactions with the internal and external environment.  According to Investopedia, "Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions.