Explain the importance of an organisation’s purpose

An organisation’s purpose is made up of 3 elements and will be unique to them depending on what it does.



This is the organisation’s long term aims. It is usually a concise statement which will guide the company or organisations decision making to help reach their goals.  Although a vision statement can be revised, enough thought should be put in initially to ensure it is relevant.


An organisation usually produces a Mission Statement which defines their product or service, their customers, their long term goals, and why they exist.  The mission statement and vision statement often get confused.  However the mission statement refers more to the company’s current position; the vision statement refers more to the future.



This shows the organisation’s core principles. It indicates what is important to them and the standards expected.  This is relevant to the customers and employees.

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