The VMOST Analysis is a tool that allows a business to evaluate its core strategies in terms of whether the supporting activities of that strategy are being carried out. The VMOST analysis tries to answer that by looking at five core elements: vision, mission, objectives, strategies, and tactics.
Understanding the VMOST analysis
In most cases, VMOST analyses are performed so that a business can define current and future strategies, organizational units, projects, and programs.
Employees – as a part of the business or as individuals – can also be assessed using this technique.
Here is a look at each of the five elements that give the VMOST analysis its name.
Vision encompasses ideas that summarize where a business sees itself in the future.
Where will it operate? Which target audience will it serve? How will it position itself against the competition? What does the business want to be known for?
The answers to these questions should inspire and challenge the business do to better without being completely unattainable.
Mission is the series of steps that guide a business to carrying out its vision. To change old and outdated ways of operating, missions must be adopted from senior management down to the entry-level employee.
Objectives define whether a mission has been accomplished, usually quantified in the form of key performance indicators (KPIs).
In other words, is the objective:
As objectives guide missions, so too do strategies guide objectives. If the goal of a taxi company was to increase revenue by $10 million annually, a potential strategy may include expanding the service into five new cities by the end of the year.
Tactics encompass the specific, low-level actions that are taken for strategies to be fulfilled. If we return to the example of the taxi company, possible tactics for expanding into five new cities might include:
- Identifying competition in the form of ride-sharing across the proposed cities.
- Identifying areas in smaller cities where there are gaps in taxi coverage.
- Acquiring a fleet of new vehicles at a cost-effective price.
Advantages of the VMOST Analysis
- Given the somewhat hierarchical nature of the VMOST structure, the analysis is easily understood by various employees and stakeholders.
- The VMOST analysis provides clarity, agreement and focuses on the future direction of the company. This discourages the formation of weak and vague strategies which encourage disharmony and malaise within a company.
Disadvantages of the VMOST Analysis
- A well-constructed VMOST analysis does not guarantee employee buy-in. Strategies that are created by upper management with little employee involvement may be met with inertia when presented to the whole company. Input must be sought by multiple levels of the organization to counter this.
- Some organizations start with a mission or vision that is simply unachievable. Despite perfectly sound objectives and strategies, they will find that they lack the necessary resources to achieve their goals.
VMOST analysis examples
In this section, we will work through a VMOST analysis using The Coca-Cola Company as an example.
The mission of The Coca-Cola Company is described on its website as follows: “Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better shared future that makes a difference in people’s lives, communities and our planet.”
In recent years, The Coca-Cola Company dropped its mission statement in favor of the vision statement seen above. However, elements of the original mission statement which read “To refresh the world, To inspire moments of happiness, To create value and make a difference” have been retained.
While not exactly equivalent to a mission statement, the company also notes the following purpose statement: “Refresh the world. Make a difference.”
According to the investor relations section of its website, the company has five key objectives to navigate the pandemic and drive a subsequent growth trajectory:
- Win more customers.
- Gain market share.
- Strong system economics.
- Strengthen stakeholder impact.
- Equip the organization to win.
Coca-Cola has various strategies that are described in the context of its vision statement. We have included a few of them from each area of focus below:
- Powerful partnerships with its bottling system to bring brands to life.
- Excellence in product ingredients, design, marketing, and innovation.
- Maintain a focus on both local and global actions.
- Improve water security where it is needed most.
- Reduce the carbon footprint of the company.
- Contribute to a circular economy with a focus on recycling all waste.
For a better, shared future
- Support local communities, particularly when it is most needed.
- Build an inclusive society characterized by equal opportunities.
- Invest in the personal growth and unique talents of employees.
Tactics in The Coca-Cola Company help it create a culture with a passion to make a difference and refresh the world. The company defines tactics in terms of these behaviors:
- Mindset – an expansive, creative, and growth-oriented mindset that believes in continuous learning and values the way work is performed.
- Curious – this means never becoming too comfortable and consistently searching for new possibilities or horizons.
- Empowered – employees must be accountable for their actions and believe that they can make a difference to the success of the company.
- Inclusive – it is also important Coca-Cola leverages its broad employee diversity and global network to facilitate success. What’s more, the company believes that most of the time, two brains are better than one.
- Agile – the best way to learn is by doing and there is nothing wrong with iterating until something is perfected. Agility also means acting with a sense of urgency.
- Online Retail Store:
- Vision: To be the top online retail destination for sustainable products by 2030.
- Mission: Offer a wide variety of quality sustainable products, ensure a seamless online shopping experience, and promote eco-friendly practices.
- Objectives: Increase the number of sustainable products by 50% in two years and achieve a customer satisfaction rate of 95%.
- Strategies: Partner with eco-friendly brands, implement a user-friendly interface, and launch a marketing campaign promoting sustainable shopping.
- Tactics: Offer discounts on eco-friendly products, optimize the website for mobile use, and collaborate with influencers for sustainable product promotions.
- Healthcare Startup:
- Vision: Revolutionize healthcare delivery through technology by 2025.
- Mission: Provide affordable and easily accessible telehealth services to patients globally.
- Objectives: Serve one million patients and expand operations to five countries in three years.
- Strategies: Develop a robust telehealth platform, collaborate with renowned doctors, and offer competitive pricing.
- Tactics: Offer free initial consultations, ensure platform security, and engage in targeted online marketing.
- Fitness Gym Chain:
- Vision: Be the preferred fitness destination for families by 2030.
- Mission: Offer diverse fitness programs catering to all age groups in a safe and motivating environment.
- Objectives: Open 50 new branches and achieve a member retention rate of 90% in five years.
- Strategies: Offer family packages, introduce innovative fitness programs, and maintain high hygiene standards.
- Tactics: Organize monthly family fitness events, collaborate with celebrity trainers for special sessions, and implement a strict cleaning schedule.
- Eco-friendly Travel Agency:
- Vision: Promote sustainable tourism and be the go-to agency for eco-conscious travelers by 2028.
- Mission: Offer travel packages that ensure minimal environmental impact and contribute to local communities.
- Objectives: Increase bookings by 70% and establish partnerships with 100 eco-resorts in the next four years.
- Strategies: Curate unique eco-friendly travel experiences, collaborate with sustainable accommodations, and promote responsible tourism.
- Tactics: Offer carbon offset options for flights, provide eco-travel tips to clients, and host webinars on sustainable travel practices.
- Educational Tech Platform:
- Vision: Bridge the global education gap through technology by 2032.
- Mission: Offer quality online educational resources and tools for students and educators worldwide.
- Objectives: Reach 10 million users and collaborate with 500 educational institutions in six years.
- Strategies: Develop a comprehensive online curriculum, offer multi-language support, and collaborate with renowned educators.
- Tactics: Offer free trial periods, integrate AI-driven personalized learning paths, and host international educational webinars.
- Organic Food Cafe:
- Vision: Be the leading organic cafe chain championing health and wellness by 2030.
- Mission: Serve fresh, organic, and tasty meals that contribute to the well-being of customers.
- Objectives: Open 20 outlets and maintain an average customer rating of 4.8/5 over the next three years.
- Strategies: Source locally produced organic ingredients, introduce diverse menus, and focus on customer feedback.
- Tactics: Offer loyalty programs, introduce seasonal specials, and engage with customers on social media for feedback and promotions.
- The VMOST analysis is a strategic planning tool that helps businesses focus on activities that are aligned with their core visions.
- The VMOST analysis is comprised of five separate elements that together, deconstruct how a business can align its words with actions.
- The VMOST analysis is a simple and effective framework that all key stakeholders can understand. But it is nevertheless vulnerable to a lack of employee buy-in.
- VMOST Analysis: A tool to evaluate business strategies by analyzing the alignment of vision, mission, objectives, strategies, and tactics.
- Vision: The future state a business aims to achieve, inspiring and challenging but attainable.
- Mission: The steps that guide a business towards its vision, adopted from top management to entry-level employees.
- Objectives: Quantifiable goals that determine mission success, often framed using SMART criteria.
- Strategies: Guiding plans that lead to objectives’ achievement, driving the mission.
- Tactics: Specific actions and low-level steps that support the implementation of strategies.
- Advantages: Clarity, agreement, and focus on the company’s future direction, discouraging vague strategies and promoting harmony.
- Disadvantages: May lack employee buy-in if not involving multiple levels of the organization, and vision or mission may be unachievable.
- VMOST Analysis Example: Applying VMOST analysis to The Coca-Cola Company, examining its vision, mission, objectives, strategies, and tactics.
- Importance: VMOST analysis helps businesses align their strategies and actions, ensuring that core elements of the business work together to achieve their goals. It provides a clear roadmap for decision-making and goal attainment.
Connected Analysis Frameworks
Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-To-Be Done, Design Thinking, Lean Startup Canvas, Value Chain, Value Proposition Canvas, Balanced Scorecard, Business Model Canvas, SWOT Analysis, Growth Hacking, Bundling, Unbundling, Bootstrapping, Venture Capital, Porter’s Five Forces, Porter’s Generic Strategies, Porter’s Five Forces, PESTEL Analysis, SWOT, Porter’s Diamond Model, Ansoff, Technology Adoption Curve, TOWS, SOAR, Balanced Scorecard, OKR, Agile Methodology, Value Proposition, VTDF Framework, BCG Matrix, GE McKinsey Matrix, Kotter’s 8-Step Change Model.