vmost-analysis

What Is A VMOST Analysis And Why It Matters In Business

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

The VMOST analysis divides a strategy into five different elements. Each element is analyzed individually based on how well it aligns with the overall business strategy.

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

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

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 To change old and outdated ways of operating, missions must be adopted from senior management down to the entry-level employee.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

Objectives define whether a mission has been accomplished, usually quantified in the form of key performance indicators (KPIs). To maximize the chances of meeting certain objectives, businesses can adopt the SMART goal attainment strategy

In other words, is the objective:

  • Smart?
  • Measurable?
  • Attainable?
  • Realistic?
  • Time-sensitive?

Strategies

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

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 and disadvantages of the VMOST Analysis

Advantages

  • 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

  • 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.

Vision

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.

Mission

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.” 

Objectives

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:

  1. Win more customers.
  2. Gain market share.
  3. Strong system economics.
  4. Strengthen stakeholder impact.
  5. Equip the organization to win.

Strategies

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:

Loved brands 

  • 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.

Done sustainably 

  • 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

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.

Key takeaways:

  • 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.

Connected Analysis Frameworks

Cynefin Framework

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The Cynefin Framework gives context to decision making and problem-solving by providing context and guiding an appropriate response. The five domains of the Cynefin Framework comprise obvious, complicated, complex, chaotic domains and disorder if a domain has not been determined at all.

SWOT Analysis

swot-analysis
A SWOT Analysis is a framework used for evaluating the business’s Strengths, Weaknesses, Opportunities, and Threats. It can aid in identifying the problematic areas of your business so that you can maximize your opportunities. It will also alert you to the challenges your organization might face in the future.

Personal SWOT Analysis

personal-swot-analysis
The SWOT analysis is commonly used as a strategic planning tool in business. However, it is also well suited for personal use in addressing a specific goal or problem. A personal SWOT analysis helps individuals identify their strengths, weaknesses, opportunities, and threats.

Pareto Analysis

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The Pareto Analysis is a statistical analysis used in business decision making that identifies a certain number of input factors that have the greatest impact on income. It is based on the similarly named Pareto Principle, which states that 80% of the effect of something can be attributed to just 20% of the drivers.

Failure Mode And Effects Analysis

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A failure mode and effects analysis (FMEA) is a structured approach to identifying design failures in a product or process. Developed in the 1950s, the failure mode and effects analysis is one the earliest methodologies of its kind. It enables organizations to anticipate a range of potential failures during the design stage.

Blindspot Analysis

blindspot-analysis
A Blindspot Analysis is a means of unearthing incorrect or outdated assumptions that can harm decision making in an organization. The term “blindspot analysis” was first coined by American economist Michael Porter. Porter argued that in business, outdated ideas or strategies had the potential to stifle modern ideas and prevent them from succeeding. Furthermore, decisions a business thought were made with care caused projects to fail because major factors had not been duly considered.

Comparable Company Analysis

comparable-company-analysis
A comparable company analysis is a process that enables the identification of similar organizations to be used as a comparison to understand the business and financial performance of the target company. To find comparables you can look at two key profiles: the business and financial profile. From the comparable company analysis it is possible to understand the competitive landscape of the target organization.

Cost-Benefit Analysis

cost-benefit-analysis
A cost-benefit analysis is a process a business can use to analyze decisions according to the costs associated with making that decision. For a cost analysis to be effective it’s important to articulate the project in the simplest terms possible, identify the costs, determine the benefits of project implementation, assess the alternatives.

Agile Business Analysis

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Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.

SOAR Analysis

soar-analysis
A SOAR analysis is a technique that helps businesses at a strategic planning level to: Focus on what they are doing right. Determine which skills could be enhanced. Understand the desires and motivations of their stakeholders.

STEEPLE Analysis

steeple-analysis
The STEEPLE analysis is a variation of the STEEP analysis. Where the step analysis comprises socio-cultural, technological, economic, environmental/ecological, and political factors as the base of the analysis. The STEEPLE analysis adds other two factors such as Legal and Ethical.

Pestel Analysis

pestel-analysis
The PESTEL analysis is a framework that can help marketers assess whether macro-economic factors are affecting an organization. This is a critical step that helps organizations identify potential threats and weaknesses that can be used in other frameworks such as SWOT or to gain a broader and better understanding of the overall marketing environment.

DESTEP Analysis

destep-analysis
A DESTEP analysis is a framework used by businesses to understand their external environment and the issues which may impact them. The DESTEP analysis is an extension of the popular PEST analysis created by Harvard Business School professor Francis J. Aguilar. The DESTEP analysis groups external factors into six categories: demographic, economic, socio-cultural, technological, ecological, and political.

Paired Comparison Analysis

paired-comparison-analysis
A paired comparison analysis is used to rate or rank options where evaluation criteria are subjective by nature. The analysis is particularly useful when there is a lack of clear priorities or objective data to base decisions on. A paired comparison analysis evaluates a range of options by comparing them against each other.

Related Strategy Concepts: Go-To-Market StrategyMarketing StrategyBusiness ModelsTech Business ModelsJobs-To-Be DoneDesign ThinkingLean Startup CanvasValue ChainValue Proposition CanvasBalanced ScorecardBusiness Model CanvasSWOT AnalysisGrowth HackingBundlingUnbundlingBootstrappingVenture CapitalPorter’s Five ForcesPorter’s Generic StrategiesPorter’s Five ForcesPESTEL AnalysisSWOTPorter’s Diamond ModelAnsoffTechnology Adoption CurveTOWSSOARBalanced ScorecardOKRAgile MethodologyValue PropositionVTDF FrameworkBCG MatrixGE McKinsey MatrixKotter’s 8-Step Change Model.

Other strategy frameworks

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