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1.

A Declaration of Attitude
A mission statement is more than a statement of specific details: it is a declaration of attitudes and outlook.
It usually is broad in scope for at least 2 major reasons.
First, a good mission statement allows for the generation and consideration of a range of feasible alternative
objectives and strategies without unduly stifling management creativity.
Second, a mission statement needs to be broad to reconcile differences effectively among and appeal to an
organization diverse stakeholders, the individuals and groups of individuals who have a special stake or claim
on the company.
The fine balance between specify and generality is difficult to achieve, but it is well worth the effort.
An effective mission statement should not be too lengthy; recommended length is less than 250 words.
An effective mission statement should arouse positive feelings and emotions about an organization; it should
be inspiring in the sense that it motivates readers to action.
An effective statement generates the impression that a firm is successful, has direction and is worthy of time,
support and investment- from all socioeconomic group of people.
It reflects judgments about future growth directions and strategies that are based on forward-looking external
and internal analysis.
A business mission should provide useful criteria for selecting among alternative strategies.
A clear mission statement provides a basis for generating and screening strategic option.
The statement of mission should be dynamic in orientation, allowing judgments about the most promising
growth directions and those considered less promising.

2. A Customer Orientation Vern McGinnis
A good mission statement describes an organizations purpose, customers, products or services, markets,
philosophy and basic technology.
A mission statement should:
1. Define what the organization is and what the organization aspires to be.
2. Be limited enough to exclude some venture and broad enough to allow for creative growth.
3. Distinguish a given organization from others.
4. Serve as a framework for evaluating both current and prospective activities.
5. Be stated in terms sufficiently clear to be widely understood throughout the organization.
A good mission statement reflects the anticipations of customers.
Rather than developing a product and then trying to find a market, the operating philosophy of organizations
should be to identify customers needs and then provide a product or service to fulfill those needs.
Good mission statements identify the utility of a firms product to its customers.



3. Mission Components
Mission statement can and do vary in length, content, format and specify.
Most practitioners and academicians of strategic management feel that an effective statement should include
9 components.
Because a mission statement is often the most visible and public part of the strategic management process. It
is important that is includes the 9 characteristic.
1. Customers who are the firms customers?
2. Product or services what are the firms major products or services?
3. Markets geographically, where does the firm compete?
4. Technology is the firm technologically current?
5. Concern for survival growth and profitability is the firm committed to growth and financial soundness
6. Philosophy what are the basic beliefs, values, aspirations and ethical priorities of the firm?
7. Self-concept what is the firms distinctive competence or major competitive advantage?
8. Concern for public image - is the firm responsive to social, community and environmental concerns?
9. Concern for employees are employees a valuable asset of the firm?


COMPONENTS

1. Customers Target Consumers
Who are the firms customers?
An effective mission statement sets out, in broad terms, the target market. A manufacturer that makes nuts
and bolts might set its target market as retail hardware stores, machine manufacturers, or both.
E.g: We believe our first responsibility is to the doctors, nurses, patients, mothers and all others who use our
products and services. (Johnson & Johnson)

2. Product or services Function
What are the firms major products or services?
The mission statement needs to include some description of the function of the business. For example, "to
promote industrial excellence," tells customers and employees nothing. A more effective description would be
"To provide management consulting services."
E.g: AMAXS principal products are molybdenum, coal, iron ore, copper, lead, zinc, petroleum and natural gas,
potash, phosphates, nickel, tungsten, silver, gold and magnesium. (AMAX Engineering Company)

3. Markets - Target Region
Geographically, where does the firm compete?
The business must determine what region it serves best and relay that information by way of the mission
statement. A garage, for example, might limit its target region to the community while a magazine company
might target an entire country.
E.g: We are dedicated to the total success of Corning Glass Works as a worldwide competitor. (Corning Glass
Works)

4. Technology
Is the firm technologically current?
For businesses that rely heavily on technology, the mission statement should include a description of the
essential technology the company does or plans to employ. If nothing else, this directs purchasing agents
toward the appropriate vendors for goods and services.
E.g: we will continually strive to meet the preferences of adult smokers by developing technologies that have
the potential to reduce the health risks associated with smoking. (RJ Reynolds)


5. Concern for survival growth and profitability Financial Objectives
Is the firm committed to growth and financial soundness
For for-profit ventures, businesses require clear financial objectives. A start-up company might set one of its
financial objectives as making an initial public offering of common stock within two years. This lets the
employees and potential investors know the company intends to go public, with all of the legal and record
keeping ramifications that entails.
E.g: to serve the worldwide need for knowledge at a fair profit by adhering, evaluating, producing and
distributing valuable information in a way that benefit our customers, employees, other investors and our
society. (McGraw-Hill)

6. Philosophy Values
What are the basic beliefs, values, aspirations and ethical priorities of the firm?
Mission statements typically include a statement of company values. Values such as customer service,
efficiency and eco-consciousness often appear on lists of company values. At their best, company values
should express principles the company explicitly tries to affirm in day-to-day operations.
E.g: our world-class leadership is dedicated to a management philosophy that holds people above profits.
(Kellogg)

7. Self-concept - Strategic Positioning
What is the firms distinctive competence or major competitive advantage?
Effective mission statements also include a brief description of the business's strategic position within the
market. For example, the company might excel at serving residential clients and seek to maximize that
strategic advantage.
E.g: Crown Zellerbach is committed to leapfrogging ongoing competition within 1000 days by unleashing the
constructive and creative abilities and energies of each of its employees. (Crown Zellerbach)

8. Concern for public image
Is the firm responsive to social, community and environmental concerns?
Like people, companies develop public images. Careful companies craft the public image they want to
establish and lay out the major features of it in the mission statement. This helps managers direct employees
that stray from the sanctioned public image.
E.g: To share the worlds obligation for the protection of the environment. (Dow Chemical)

9. Concern for employees
Are employees a valuable asset of the firm?
Every company has a policy regarding its relationship with employees. A mission statement provides an
opportunity to describe that policy in brief so employees know the essentials of where they stand.
E.g: To develop, recruit, motivate, reward and retain personnel of exceptional ability, character and dedication
by providing good working conditions, superior leadership, and compensation on the basis of performance, an
attractive benefit program, opportunity for growth and a high degree of employment security. (The Wachovia
Corporation)
Copy right Strategic management Fred R. David 14
th
ed Pearson