Chapter Two:
The Business Mission
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Chapter outline
The nature of business
mission
The importance of a clear
mission
Components of a mission
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Mission statement
A mission is the purpose or reason for the
organization’s existence.
It tells what the company is providing to society—
either a service or a product.
A well-conceived mission statement defines the
fundamental, unique purpose that sets a company
apart from other firms of its type
identifies the scope or domain of the company’s
operations in terms of products and services offered
and markets served.
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Mission Statements are essential for
effectively establishing objectives and
formulating strategies b/c they are:
An enduring statement of purpose
Distinguishes one firm from another in the same
business
A declaration of a firm’s reason for existence
Mission Statements are also known
as:
Creed statement
Statement of purpose
Statement of philosophy
Statement of business principles
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Vision Statement
A vision statement called a picture of your company
in the future but it’s so much more than that.
Your vision statement is your inspiration, the
framework for all your strategic planning.
It is critically essential that management and executive
agree on the basic vision, which the organization
endeavors to accomplish over a period of time
A lucid/Well articulated and clear vision lays down
a foundation on which a sound mission statement
can be built.
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Vision sta….
the vision statement answers the question,
“Where do we want to go?” and “What do we
want to become?”
What you are doing when creating a vision
statement is articulating your dreams and hopes
for your business.
It reminds you of what you are trying to build.
Unlike the mission statement, a vision statement
is for you and the other members of your
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Example of Madawalabu University’s mission
statement:
MWU’s mission is to produce competent
entrepreneurial graduates, provide need
based community services and demand
driven/problem solving research outputs
through relevant and quality education,
research, training and consultancy service to
foster socio-economic development in the
country.
MWU’s vision
MWU aspires to be one of the top five
societal problem solving universities in the
country by 2020.
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The importance of a clear mission
Unanimity/agreement/of purpose within the
organization
Basis for allocating resources
Establish organizational climate
Focal point for direction
Translate objectives into work structure
Cost, time and performance parameters assessed
and controlled
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Characteristics of good Mission Statements
Effective mission statements should be:
Not excessively specific or too Broad in scope
Finely balanced between specificity &
generality
Basis for generating & screening strategic
options
Provide criteria for selecting strategies
Reconcile interests among diverse
stakeholders
Arouse positive feelings and emotions
Motivate readers to action
Generate the impression that firm is
successful, has direction, and is worthy of
time, support, and investment
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Components of a mission statement
Components and corresponding questions
that a mission statement should answer are:
Customer: Who are the firm’s customers?
Products or services: What are the firm’s
major products or services?
Markets: Geographically, where does the firm
compete?
Technology: Is the firm technologically
current?
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Components of a mission statement…
Concern for survival, growth, and profitability: Is
the firm committed to growth and financial soundness?
Philosophy: What are the basic beliefs, values,
aspirations, and ethical priorities of the firm?
Self-concept: What is the firm’s distinctive
competence or major competitive advantage?
Concern for public image: Is the firm responsive to
social, community, and environmental concerns?
Concern for employees: Are employees a valuable
asset of the firm?
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Individual Assignment
Design your :
vision,
mission
objectives and
Strategy how to achieve them for the coming 10
years from now.
Submission date: after a week from
today
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