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THE DEFINITION OF COMPANY MISSION
A fundamental purpose that sets a firm apart from other firms of its type and identifies the scope of its operations in product and market terms. THE VALUE OF MISSION STATEMENT The main value of the mission statement is its specification of the firms ultimate aims.
A firm gain a heightened sense of purpose when its board of directors and its top executives address the three issues: *What business are we in? -What customers do we serve? 4Why does this organization exist? THE NEED FOR AN EXPLICIT MISSION BY: KING & CLELAND * To ensure unity of purpose within the organization. - To provide a basis for motivating the use of the organizations resources 4 To develop a basis, or standard, for allocating organizational resources. ^ To establish a general tone or organizational climate. = To serve as a crucial point for those who can identify with the organizations purpose and direction and to deter those who cannot do so from participating further in its activities. = To facilitate the translation of objectives and goals into a work structure involving the assignment of tasks to responsible elements within the organization. To specify organizational purposes and the translation of these purposes into goals in such a way that cost, time, and performance parameters can be assessed and controlled. FORMULATING A MISSION An owner-managers sense of mission usually is based on the fundamental beliefs: *The product or service of the business can provide at least equal to its price. -The product or service can satisfy a customer need of specific market segments that is currently not being met adequately. 4The technology that is to be used in production will provide a cost- and quality-competitive product or service. ^With hard work and the support of others, the business cannot only survive but also grow and be profitable. =The management philosophy of business will result in a favorable public image and will provide financial and psychological rewards for those who are willing to invest their labor and money in helping the business to succeed. =The entrepreneurs self-concept of the business can be communicated to and adopted by employees and stockholders. A COMPILATION OF EXCERPTS FROM ACTUAL CORPORATE MISSION STATEMENT Customer-Market: pTo anticipate and meet market needs of farmers, ranchers, and rural communities within North America. ( CENEX )
Product-Service: pAmax's principal product are molybdenum, coal, iron ore, copper, lead, zinc, petroleum and natural gas, potash, phosphates, nickel, tungsten, silver, gold, and magnesium (AMAX)
Geographic Domain: p To anticipate and meet market needs of farmers, ranchers, and rural communities within North America. ( CENEX )
A COMPILATION OF EXCERPTS FROM ACTUAL CORPORATE MISSION STATEMENT (Continue) Technology: pThe common technology in these areas relates to discrete particle coatings ( NASHUA )
Concern for Survival: pIn this respect, the company will conduct its operation prudently, and will provide the profit and growth which will assure Hoovers ultimate success ( Hoover Universal )
Philosophy: p We are committed to improve health care throughout the world ( Baxter Travenol )
A COMPILATION OF EXCERPTS FROM ACTUAL CORPORATE MISSION STATEMENT (Continue) Self-Concept: pHoover Universal is a diversified, multi-industry corporation with strong manufacturing capabilities, entrepreneurial policies, and individual business unit autonomy ( Hoover Universal )
Concern for Public Image: pWe are responsible to the communities in which we live and work and to the world community as well. ( Johnson & Johnson ) THE NEWEST TRENDS IN MISSION COMPONENTS CUSTOMERS: p The Customer is our top priority is a slogan that would be claimed by the majority of business in USA and abroad.
QUALITY: p Quality is job one ! is a rallying point not only for Ford Motor Corporation but for resurging U.S. business as well. Inside stakeholders
Executive officers Board of Directors Stockholders Employees
Outside stakeholders
Customers Suppliers Creditors Governments Unions Competitors General public Company Mission INPUT TO THE DEVELOPMENT OF THE COMPANY MISSION