Mission Statement
- Difficult to define accurately
- A generalised statement of where you are heading from which objectives can be set
- A more ambiguous and passionate way of expressing an aim
The mission statement is
- the overriding purpose of the business
- the reason for its existence
- a strategic perspective
- supports the stated “vision” for the future
The mission statement is not
- a statement of goals or objectives
- statement of core values
- how the business intends to compete in the marketplace
Key audiences for a mission statement
- Employees
- Customers
- Investors
- Society
Purpose, Values, Standards, Strategy
- Make up core values
- Often included in the mission statements, or longer term plans
What makes a good mission?
- A clear sense of business purpose
- Excites, inspires, motivates, guides
- Easy to understand and remember
- Differentiates business from competitors
- For all stakeholders, not just shareholders and managers
Frequent criticisms of mission statements
- Not always supported by actions of the business
- Often too vague or general
- Could just be for good PR
Internal influences on objectives and decisions
- Business ownership – profit or non-profit?
- The relative power of stakeholders
- Ethics - decisions made on ethical grounds might reject the most profitable options
- Business culture – “the way we do things around here”
- Resource Constraints – everyday decisions about deploying limited resources
External influences on objectives and decisions
- Pressure for short-termism – businesses focus on short-term profit objectives rather than long-term performance objectives due to shareholders demand for return on investment
- Private limited companies have an easier time focusing on long-term goals than public limited companies, because Ltds typically have closer relationships with their shareholders