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Berkshire Hathaway Mission and Vision Statement Analysis

Berkshire Hathaway Mission and Vision Statement Analysis

Berkshire Hathaway mission statement and vision statement analysis

Introduction

The popularity liked to Berkshire Hathaway Corporation is all because of the business model of the company that incorporates effective mission and vision statements. As a holding company, Berkshire Hathaway has perfected its operations in this sector especially in how it applies these corporate statements.

Ideally, a corporate vision statement simply sets the growth trend towards the future of a company, while a corporate mission identifies the operations of a business. This case analysis of Berkshire Hathaway shows that the vision of the company focuses on the leadership and security the firm can provide its customers. Similarly, its mission echoes the influence Berkshire Hathaway seeks to have everywhere it operates. 

Ever since its foundation in 1839, this company has shown its consistency in its business model, perhaps due to the core values that keep everyone in the corporation focused.  Despite its constantly positive growth trend, Berkshire Hathaway continues to find ways of improving through its mission and vision statements.

Mission Statement

Berkshire Hathaway mission statement is “to deliver the right parts exactly on time, exceed our internal and external customer requirements through continuous improvement, and provide a place for hard-working, dedicated, knowledgeable and ethical people who believe in the company.” The statement places leadership and control at the center of all its activities. The statement has these main parts:

  1. Exceeding expectations
  2. Improving lives

The activities of Berkshire Hathaway are numerous due to its business model. The company must, therefore, be proactive and dynamic to achieve more while meeting the needs of its customers as shown in the first component of this mission. In the second part, it is evident that Berkshire Hathaway highly values the growth of everyone it interacts with including its workforce. That is why its mission statement emphasizes on distinguished corporate governance that cares about everyone.

Vision Statement

Berkshire Hathaway vision statement is “to be the provider of choice in our communities for comprehensive real estate and financial solutions.” In this vision, the emphasis is on the dependability of this corporation. The statement has the following components:

  1. Provider of Choice
  2. Financial solutions

There is no doubt that Berkshire Hathaway owns various multinational companies with immense influence on different industries. The best part as expressed by the CEO of this corporation, Warren Buffet, is that the firm identifies the needs of its customers and recommends them to the appropriate places where they can get the best assistance. In fact, Buffet expresses his confidence that people get to save real money as a form of financial freedom.

Core Values

Berkshire Hathaway core values comprise “growth, authenticity, empowerment, relationships, compassion, and service.” The credibility that this corporation command is an indication of how stable it has been for over a century. In addition, these core values have enabled it to continuously expand its influence not only through growth but also its long-term relationships with different stakeholders across the globe.

References

  • Berkshire Hathaway – Home.
  • Buffett, W. (2002). Berkshire Hathaway Inc. Shareholder Letter.
  • Calandro, J. (2012). “The Most Important Thing” Is Value Realization. The Journal of Private Equity15(4), 89-93.
  • Calandro, J., & Flynn, R. (2005). Berkshire Hathaway, General Re, and Franchise Risk. The Journal of Alternative Investments8(1), 83-95.
  • Engel, M. L. (2018). Crafting the ideal mission statement for your organization. Leader to Leader2018(87), 7-12.
  • Finkle, T. A. (2010). Warren E. Buffett and Berkshire Hathaway, Inc. Journal of the International Academy for Case Studies16(5).
  • Hanlon, M., & Slemrod, J. (2009). What does tax aggressiveness signal? Evidence from stock price reactions to news about tax shelter involvement. Journal of Public Economics93(1-2), 126-141.
  • Kepler, J. (2015). Berkshire Hathaway Inc.
  • King, D. L., Case, C. J., & Premo, K. M. (2010). Current mission statement emphasis: be ethical and go global. Academy of Strategic Management Journal9(2), 71.
  • Martin, G. S., & Puthenpurackal, J. (2008). Imitation is the sincerest form of flattery: Warren Buffett and Berkshire Hathaway. Available at SSRN 806246.
  • Miles, R. P. (2003). The Warren Buffett CEO: Secrets from the Berkshire Hathaway Managers. John Wiley & Sons.
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