Strategic Management, Module 3 1

How a Vision and Mission Statement contributes to a company’s successes.

By: Charles Dallas McCarthy

MGT340 – Strategic Management

Aston American University

Instructor: Tim Johnson, M.S.S., M.A

January 22, 2018

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Introduction

Vision Statement Purpose

According to Bart & Baetz (1998), a vision statement should offer more of a “direction”

by incorporating a “perspective of corporate values”. Bart & Baetz say the purpose of this vision

is not only to provide “direction for the next five to ten years”, but also to show commitment in

practicing “integrity, transparency, openness, called an “entrepreneurial value system”. It should

inspire employees and give them a “sense of purpose” (p.823).

Mission Statement Purpose

A company's mission statement, as per Bart & Baetz, is essentially a “statement of

purpose” and a guide to all of the “company's decision-making”. It communicates the

organization’s “reason for being”, and how it aims to serve its stakeholders. Bart & Baetz

continue in saying, “customers, employees, and investors are most often emphasized, but the

company’s responsibility towards local “government or communities” [in the form of social or

environmental impact] may also be discussed. Mission statements are often longer than vision

statements. The below diagram reveal how a company’s vision and mission statement forms part

of the strategic management process. (p.823)

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Vision Statement of Johnson and Johnson

“By caring, one person at a time, we aspire to help billions of people live longer,

healthier, happier lives.” Direct quote - Johnson and Johnson Strategic Framework (2012, p3)

In the above vision statement and as a “multinational corporation who specialize in the

manufacturing of Pharmaceuticals, Medical Devices and Consumer Products”, Johnson and

Johnson speak of “caring” for people and assisting them through the use of their innovative

medical products to “live longer, healthier and happier lives”. The statement speaks of their

corporate values, [caring - by displaying kindness and concern for others] the same value system

that gives purpose to the employees. Further to this statement, Johnson and Johnson’s strategy is

to envision growth by helping “one person at a time” leading up to billions of people. This gives

indication of their 5 to 10 year plan going forward and will effect continuous growth in market

shares.

Mission Statement “Credo” of Johnson and Johnson

1. “We believe our first responsibility is to the doctors, nurses and patients, to mothers

and fathers and all others who use our products and services. In meeting their needs everything

we do must be of high quality. We must constantly strive to reduce our costs in order to maintain

reasonable prices. Customers' orders must be serviced promptly and accurately. Our suppliers

and distributors must have an opportunity to make a fair profit. [This part of the mission

statement, also known as their credo, gives Johnson and Johnson purpose and reason for being.

The company’s entire decision making process is driven by their primary clients, doctors, nurses

and patients. Johnson and Johnson say by providing patients and consumers with “quality health

care products, services and solutions-driven” by their “needs and insights”, gave them the

advantage in winning market shares.] 2. We are responsible to our employees, the men and
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women who work with us throughout the world. Everyone must be considered as an individual.

We must respect their dignity and recognize their merit. They must have a sense of security in

their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and

safe. We must be mindful of ways to help our employees fulfill their family responsibilities.

Employees must feel free to make suggestions and complaints. There must be equal opportunity

for employment, development and advancement for those qualified. We must provide competent

management, and their actions must be just and ethical. [According to Bart & Baetz the

company’s employees are often “emphasized” within the mission statement. Johnson and

Johnson talk about their responsibility towards their employees and their wellbeing, driven by

their “Entrepreneurial Value System”. Internationally the corporations is highly rated as one of

the best companies to work for and known for looking after their employees. Johnson and

Johnson say, “We are in the business of health, and a focus on good health starts with our

employees.”] 3. We are responsible to the communities in which we live and work and to the

world community as well. We must be good citizens – support good works and charities and bear

our fair share of taxes. We must encourage civic improvements and better health and education.

We must maintain in good order the property we are privileged to use, protecting the

environment and natural resources. [Bart & Bartz say the company’s responsibility towards local

“government or communities”, in the form of social or environmental impact, can also be

discussed. Above Johnson and Johnson talk about their social and environmental responsibilities

as well as their corporate governance, therefore spend annually over 2 Billion USD driving such

initiatives internationally. Johnson and Johnson say, “Health is our business, and we do our

utmost to ensure that the impacts of our business activities are in the best interests of society.”] 4.

Our final responsibility is to our stockholders. Business must make a sound profit. We must
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experiment with new ideas. Research must be carried on, innovative programs developed and

mistakes paid for. New equipment must be purchased, new facilities provided and new products

launched. Reserves must be created to provide for adverse times. When we operate according to

these principles, the stockholders should realize a fair return.” Direct quote - Johnson and

Johnson Strategic Framework. (2012, p5) Above the stakeholder’s interests and returns are

discussed, Bart & Bartz say within a mission statement “investors are most often emphasized”.

2017 Johnson and Johnson showed phenomenal growth in turnover with a gross income of 71.2

Billion USD, achieving a market share growth of 10.27% year on year. According to Johnson

and Johnson their shareholder returns have outperformed many “competitive benchmarks over 3

and 10-year periods”, and they had “50 consecutive years of dividend increases” with a further

“28 consecutive years of adjusted earnings increases.

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Conclusion

Looking at the aforementioned both the vison and mission statement of Johnson and

Johnson served them well. After 125 years of staying true and operating according to their credo,

there is no medical care company better positioned to continue in achieving further successes

than Johnson and Johnson.

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References

4.3 The Roles of Mission, Vision, and Values | Principles of Management. (2015, October 27).

Retrieved from http://open.lib.umn.edu/principlesmanagement/chapter/4-3-the-roles-of-

mission-vision-and-values/

Johnson & Johnson. (n.d.). Retrieved from http://www.makingafortune.biz/list-of-companies-

j/johnson-and-johnson.htm

Johnson & Johnson Homepage | Johnson & Johnson. (n.d.). Retrieved from https://www.jnj.com/