The Difference Between the Concept of a Company Mission Statement

question 35

Multiple Choice

The difference between the concept of a company mission statement and the concept of a strategic vision is that

• A) a mission concerns what to do to achieve short-term objectives, while a strategic vision concerns what to do to achieve long-term performance targets.
• B) a mission statement focuses on the methods needed to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit.
• C) a mission statement deals with what to accomplish on behalf of shareholders, while a strategic vision concerns what to accomplish on behalf of customers.
• D) a mission statement typically concerns a company's purpose and its present business scope, whereas the principal concern of a strategic vision is a company's aspirations for its future.
• E) a mission statement deals with "where we are headed," whereas a strategic vision provides the critical answer to "how will we get there?"

---

Definitions:

Variable Cost

A variable cost changes in direct proportion to the level of production or activity in a business, such as materials and labor.

Marginal Cost

The additional expense incurred from generating one more unit of a product or service.

Total Fixed Costs

The total of all expenses that stay unchanged no matter the amount of production or output.

Average Variable Costs

The variable cost (e.g., labor, raw materials) per unit of output, calculated by dividing total variable costs by the quantity of output produced.