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After reading this article you will learn about:- 1. Meaning of Mission Statement of An Organization 2. Features of Mission Statement 3. Components.
Meaning of Mission Statement:
“A mission statement is a statement of the purpose of an organisation. The mission statement should guide the actions of the organisation, spell out its overall goal, provide a path and guide decision-making. It provides the framework or context within which the company’s strategies are formulated.”
Features of Mission Statement:
Mission statement is a document that communicates the corporate philosophy, identity and image to members of the organisation. It helps the society to know what the organisation is.
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A mission statement must, therefore, have the following features:
1. Mission should be clear so that it is easily understood.
2. It specifies purpose and goals of the organisation.
3. It should have achievable standards; neither too high nor too low.
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4. It should be precise; neither too narrow to limit organisation’s activities nor too broad to make it vague.
5. It does not look after interests of the shareholders only, but all its stakeholders; customers, employees, suppliers, distributors, competitors, labour unions, community at large. Mission of the organisation is achieved by framing goals of the organisation.
Components of Mission Statements:
“A good mission statement should accurately explain why your organisation exists and what it hopes to achieve in the future.”
A study revealed the following components of the mission statements (all or some):
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1. Customers of the organisation.
2. Products or services provided by the organisation.
3. Location of the organisation.
4. Technology adopted by the organisation.
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5. The organisation’s concern for survival, i.e., commitment to economic objectives.
6. The basic philosophy, beliefs, values and aspirations of the organisation.
7. Self-concept, organisational strengths and competitive advantages.
8. Concern for public image i.e., organisation’s present and prospective responsibilities towards public.
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9. Concern for employees by paying them adequate compensation according to their abilities, skills and contribution towards organisational operations.
According to Bart, commercial mission statement of an organisation consists of 3 components:
1. Key market:
Who is your target client/customer?
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2. Contribution:
What product or service do you provide to that client?
3. Distinction:
What makes your product or service unique so that the client would choose you?
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The mission statement of McDonalds is:
“To provide the fast food customer food prepared in the same high-quality manner world-wide that is tasty, reasonably priced & delivered consistently in a low-key decor and friendly atmosphere.”
The three components in this statement are as follows:
1. Key market:
Fast-food customers across the world.
2. Contribution:
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High quality food that is tasty and reasonably priced.
3. Distinction:
Consistent delivery of food is a low-key decor and friendly atmosphere.