Vision Statement Analysis: Study on Retail Companies Listed in

Indonesia Stock Exchange

Resti Indriarti, Ayu Hana Aulia, Sekardila Pratiwi and Mokh. Adib Sultan

Universitas Pendidikan Indonesia, Jalan Dr. Setiabudhi No.229, Bandung, Indonesia

{restiindriarti, ayuhanaaulia, sekardia}@student.upi.edu

Keywords: Vision, Vision Statement, Retail.

Abstract: Industry progress requires an effective management strategy. The first step that must be taken in determining

the management strategy is to create a vision statement. Vision statement is a company's strategy that explains

the goals of a company in the long term. The purpose of this study is to analyze vision statements on retail

companies listed in Indonesia Stock Exchange based on the five criteria of vision statement by using

descriptive method. Total population on this study are 21 retail companies which have been divided into three

categories (Food Retailers, General Merchandise Retailers and Non-Store Retailers). Saturated sampling

technique have been used on this study, so the entire population was sampled. The results showed that from

the 21 retail companies, there are only six companies which are meet with the ideal vision statement criteria.

It means there are companies that its vision statement does not meet with the five ideal criteria. This study

suggests to each company to create and consider a vision statement as a first step in formulating management

strategies. This is important, because a vision statement will explain the company's long-term goals.

1 INTRODUCTION

The initial step in the process of organizational

transformation is reflected in vision statement

(Kantabutra et al. 2010). Vision statement is very

important as a first step in determining the goals and

the company as a company in the long-term

orientation (Leithwood & Jantzi 1999). Generally, a

vision statement has eleven to twenty-two words

(Kantabutra 2011). A vision statement is formulated

by a manager as an achievement in a few years (David

& David 2017) and as the basis for the company to

run its strategy (Joachim 2010). A vision statement

should answer the fundamental question "what do we

want to become?" It has to be written from an external

and internal perspective (David & David 2017). A

vision statement shows a direct statement of

company’s main purpose (Kantabutra et al. 2008) that

should be more oriented towards company’s

competence to achieve competitive advantage

(Candemir 2013). A vision statement should indicate

the future of the company to lead the company in

improvement and expansion (Tanković 2013), thus

the vision statement should be constantly revised and

modified in response to changes in the organization

and its environment (Yozgat & Karata 2011).

A vision statement assists in achieving corporate

goals and organizational performance (Akeem &

Edwin 2016; Liao & Huang 2016), it has also has a

positive effect on the company’s effectiveness to

survive in the business environment (Anthony 2012).

A vision tells about the future and how the company

should change, what would be obtained, and how the

statement provide motivation to succeed in the future

(Papulova 2014), even it can be the key factor for a

company to create a brand that is different from

another company (Altıok 2011). Beside that, a vision

statement can be used to promote the competence of

the organization (Spear 2017), develop the

organization, and become a medium of

communication for stakeholders (Khajindar & Patil

2016).

As a major attribute in a company, vision

statement has been widely studied (Kantabutra 2011).

Industry progress requires an effective management

strategy. The first step that must be taken in

determining the management strategy is to create a

vision statement. A vision statement should consist of

seven criteria (Kantabutra et al. 2010):

 Concise/Brief: A vision statement should be

concise/brief.

 Clear: A vision statement should be clear and

precise that can be understood and accepted.

Indriarti, R., Aulia, A., Pratiwi, S. and Sultan, M.

Vision Statement Analysis: Study on Retail Companies Listed in Indonesia Stock Exchange.

In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 577-581

ISBN: 978-989-758-308-7

577

 Future-Oriented: A vision statement should

focus on the organization’s long-term goal and

the environment in which the vision function.

 Stable: A vision statement should be general, do

not be affected by the changes in market and

technology.

 Challenging: A vision statement should

motivate people to work toward the desired

outcomes and challenges people to do their best.

 Abstract: A vision statement should be

representative of the general picture as opposed

to a particular achievement.

 Inspiring: A vision statement should describe an

ideal, valuable, and can be followed by all

employees. Employees will not be committed to

a vision that they do not see as attractive.

Another study stated that a vision statement

should containt five criteria (Khajindar & Patil 2016):

 Clear: A vision statement should be clear.

 Appealing: The vision statement should

incorporate interesting words.

 Feasible: The vision statement should be

tailored to the company's ability in terms of

resources, energy, dedication and time.

 Meaningful: A vision statement should have

actual sense.

 Measurable: A vision statement should contain

a simple language that is measurable and

accountable.

Previous study on retail companies in Thailand

showed that vision statements with brief, clear,

abstract, future-oriented, and stable attributes may

affect leadership performance of the manager, vision

statement can also indirectly predict an increase on

employee satisfaction (Kantabutra 2011). The vision

statement on retail companies in Turkey showed that

managers who have entrepreneurial vision and

motivation to learn the corporate competitions

philosophy and aware of the strategic

competitiveness will have creative decision-making;

clear and conscious vision; duties and

responsibilities; and also trained at strategic planning

(Karakaya et al. 2016).

Based on the description above, this study

purposes to analyse the retail companies’ vision

statement listed in the Indonesia Stock Exchange

which have been divided into three categories (Food

Retailers, General Merchandise Retailers and Non-

Store Retailers). Retailing is a series of business

activities that provide value added to the products and

services sold to consumers for personal, family (Levy

& Weitz 2009), and or household use (Berman &

Evans 2010). This study would address whether

vision statement of the retail companies listed in

Indonesia Stock Exchange meet the five criteria of

vision statement which were used by Khajindar and

Patil (2016), namely: Clear (C), Appealing (A),

Feasible (F), Meaningful (MF), and Measurable

(MB). The difference between this study and previous

studies lies in the difference that exists between this

study and previous studies. Most of previous studies

just describe the criteria or attributes that should be

contained in a vision statement, while this study tried

to practice how to analyze a vision statement based

on the ideal attributes or criteria of vision statement.

2 METHODS

The purpose of this study is to analyse vision

statements on retail companies listed in Indonesia

Stock Exchange which have been devided into three

categories (Food Retailers, General Merchandise

Retailers, and Non-Store Retailers). Descriptive

method is used to gain description related to research

question, whether the vision statements on retail

companies listed in Indonesia Stock Exchange meet

the five criteria of vision statement which were used

on the previous study. Total population on this study

are 21 retail companies. Saturated sampling technique

have been used on this study, so the entire population

was sampled. Secondary data are used on this study.

This vision statement analysis is done subjectively.

3 RESULTS AND DISCUSSION

The list of retail companies listed in the Indonesia

Stock Exchange 2015 (Anon 2016) can be seen in

Table 1. In addition, Table 1 also described the vision

statements of each company which had been taken

from its official website.

Table 1: Vision statement of retail companies.

Companies’ Name

Vision Statement

Matahari

Departement Store

Tbk.

To be Indonesia's most preferred

retailer.

Sona Topas

Tourism Industry

Tbk.

To become the leading duty-free

shop operator in Indonesia while

continually achieving the best

growth prospects to all

shareholder.

Mitra Adiperkasa

Tbk.

To be the leading omni-channel

retailer in Indonesia.

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

578

Companies’ Name

Vision Statement

Trikomsel Oke

Tbk.

Deliver satisfaction win trust

Matahari Putra

Prima Tbk.

To be Consumers’ Most

Preferred Retailer.

Hero Supermarket

Tbk.

Pioneers in Indonesia Retail.

Electronic City

Indonesia Tbk.

Develop modern electronic retail

store with exhibition concept to

provide the best service,

endorsed by competent human

resources and professional

business partners to extend

consumer satisfaction.

Ace Hardware

Indonesia Tbk.

To be the leading retailer of

home and lifestyle equipment in

Indonesia.

Midi Utama

Indonesia Tbk.

To be a retail distribution

networks that is integrated with

community, able to fulfil

consumer needs and

expectations, as well as

providing best quality services.

Tiphone Mobile

Indonesia Tbk.

To become the leading and prime

service, product, content and

cellular telecommunication

multimedia Provider in

Indonesia.

Ramayana Lestari

Sentosa Tbk.

As a retail chain company

committed to serving daily needs

of the low-to-middle income

segment, we vow to offer a wide

range of value-for-money

products, with friendly, attentive

customer service.

Sumber Alfaria

Trijaya Tbk.

Being a leading retail

distribution network owned by

the public, oriented to

empowering small

entrepreneurs, fulfilling the

needs and expectations of

consumers, and able to compete

globally.

Erajaya

Swasembada Tbk.

To provide mobile products and

solutions to improve the quality

of life and lifestyle.

Global Teleshop

Tbk.

To provide valuable and quality

products and services as well as

excellent after-sales services.

Skybee Tbk.

To become a well-known

services provider for technology

products and creative and

innovative integrated

telecommunications to increase

Companies’ Name

Vision Statement

the quality of the community

lifestyle.

Catur Sentosa

Adiprana Tbk.

To be the leading Indonesian

company in distribution, logistic,

and retail in Indonesia and

South-East Asia.

Supra Boga Lestari

Tbk.

To become the most respected,

loved and trusted in Indonesia's

supermarket industry.

Golden Retailindo

Tbk.

Kokoh Inti

Arebama Tbk.

To be the one of the leading

companies in Indonesia with

sustainable growth for

distributing excellent quality

building materials products from

both SCG and non SCG products

to serve costumer's needs and

satisfactions with highest efforts

and contributions from highly

competent staff.

Rimo International

Lestari Tbk.

Being one of the leading

department stores in Indonesia in

the middle segment.

Centratama

Telekomunikasi

Indonesia Tbk.

To become a leading

infrastructure provider in the

Indonesian wireless industry.

Source: IDX, processed data

Result of processed data shows that there are 21

retail companies listed in Indonesia Stock Exchange,

that its vision statements would be analysed based on

the five criteria which were used by Khajindar and

Patil on previous study, namely: Clear (C),

Appealing (A), Feasible (F), Meaningful (MF), and

Measurable (MB). Here are the results of the vision

statement analysis on 21 retail companies in

Indonesia presented in tables 2, 3, and 4.

Table 2: Food retailer’s category.

Companies’ Name

Vision Statement Criteria

Midi Utama

Indonesia Tbk.



Sumber Alfaria

Trijaya Tbk.



Supra Boga

Lestari Tbk.



Matahari Putra

Prima Tbk.



Hero Supermarket

Tbk.



Vision Statement Analysis: Study on Retail Companies Listed in Indonesia Stock Exchange

579

Food Retailers category consists of five

companies. We can see at Table 2 there is only Hero

Supermarket’s vision statement which is meet with

the five ideal vision statement criteria. Midi Utama

Indonesia does not meet Appealing, Meaningful, and

Measurable criteria. Sumber Alfaria Trijaya does not

meet Appealing and Measurable criteria. Supra Boga

Lestari does not meet Feasible criteria. While

Matahari Putra Prima does not meet Appealing

criteria.

Table 3: General merchandise retailer’s category.

Companies’ Name

Vision Statement Criteria

Matahari

Department Store

Tbk.



Ramayana Lestari

Sentosa Tbk.



Electronic City

Indonesia Tbk.



Catur Sentosa

Adiprana Tbk.



Ace Hardware

Indonesia Tbk.



Mitra Adiperkasa

Tbk.



Golden Retailindo

Tbk.

Kokoh Inti

Arebama Tbk.



Trikomsel Oke

Tbk.



Erajaya

Swasembada Tbk.



Rimo

International Tbk.



General Merchandise Retailers consists of 11

companies. We can see at Table 3, there are only three

companies’ vision statement which are meet ideal

vision statement criteria, namely: Catur Sentosa

Adiprana, Ace Hardware Indonesia, and Rimo

International Lestari. Matahari Departement Store

does not meet Appealing criteria. Ramayana Lestari

Sentosa and Mitra Adiperkasa do not meet

Measurable criteria. Electronic City Indonesia and

Erajaya Swasembada do not meet Appealing and

Measurable criteria. Kokoh Inti Arebama does not

meet Appealing, Meaningful, and Measurable

criteria. Trikomsel Oke does not meet Clear and

Feasible criteria. While Golden Retailindo did not

publish their vision statement on its official website.

Table 4: Non-Store retailer’s category.

Companies’ Name

Vision Statement Criteria

Skybee Tbk.



Sona Topas

Tourism Industry

Tbk.



Global Teleshop

Tbk.



Centratama

Telekomunikasi

Indonesia Tbk.



Tiphone Mobile

Indonesia Tbk.



Non-Store Retailers category consists of five

companies. We can see at Table 4 there are only two

companies’ vision statement which are meet ideal

vision statement criteria, namely: Global Teleshop

and Tiphone Mobile Indonesia. Skybee does not meet

Appealing and Measurable criteria. While Sona

Topas Tourism Industry and Centratama

Telekomunikasi Indonesia do not meet Appealing

criteria.

Result of this study shows that from 21 retail

companies listed in Indonesia Stock Exchange, there

are only six companies that have vision statement

which are meet ideal vision statement criteria (Clear,

Appealing, Feasible, Meaningful, Measurable). From

food retailers category is Hero Supermarket. From

general merchandise retailers category are Catur

Sentosa Adiprana, Ace Hardware Indonesia, and

Rimo International Lestari. From non-store retailers

category are Global Teleshop, and Tiphone Mobile

Indonesia.

4 CONCLUSIONS

Vision statement analysis on this study shows that

from 21 retail companies listed in Indonesia Stock

Exchange, there are only six companies that have

vision statement which are meet ideal vision

statement criteria, namely: Hero Supermarket, Catur

Sentosa Adiprana, Ace Hardware Indonesia, Rimo

International Lestari, Global Teleshop, and Tiphone

Mobile Indonesia. It means there are companies that

its vision statement do not meet with the five ideal

criteria (Clear, Appealing, Feasible, Meaningful,

Measurable). This study suggests to each company to

create and consider a vision statement as a first step

in formulating management strategies. This is

important, because a vision statement will explain the

ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship

580

company's long-term goals. If the company has an

ideal vision statement, then investors will not hesitate

to invest in the company.

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