Why They Differ
Every business has its own nature, customers and goals, so its vision, mission and objectives also differ. Factors such as the industry, the form of ownership (sole proprietorship, Sdn. Bhd. or cooperative) and the scale of the business shape how direction is set. Profit-seeking firms usually stress profit and growth, while a cooperative or a non-profit body stresses the welfare of its members or of society.
Comparison by Field
- Bank: The mission stresses the safety of money and trusted financial services; an objective might be to grow the number of deposit accounts.
- Food factory: The mission stresses quality, safe food; an objective might be to cut the defect rate of products.
- Cooperative: The mission stresses economic benefit to members; an objective might be to pay members a higher dividend.
Example
Compare two businesses. A technology Sdn. Bhd. has the vision "To lead digital innovation in Southeast Asia" with an objective of launching three new apps a year. A food stall has the vision "To be the number-one breakfast choice of the village" with an objective of selling 200 packets of nasi lemak a day. The scale of the dream and the size of the target clearly differ.
Remember
Although they differ, most businesses share common elements: a focus on customer needs, and increasingly an emphasis on sustainable development.
What They Have in Common
Even though the details differ, every vision is aspirational, every mission explains the reason for existing, and every objective should be specific and measurable. Comparing the statements of several businesses helps us see that direction must fit the real situation of each organisation.
The Influence of Ownership
The form of ownership also shapes direction. A small sole proprietorship may aim only for a steady income for the owner's family, while a large Sdn. Bhd. sets objectives for market-share growth and returns to shareholders. So when comparing several businesses, we must consider not only the field but also the size and the form of ownership, so that the comparison is fair.