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.
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.
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):
1. Customers of the organisation.
2. Products or services provided by the organisation.
3. Location of the organisation.
4. Technology adopted by the organisation.
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.
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?
What product or service do you provide to that client?
What makes your product or service unique so that the client would choose you?
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.
High quality food that is tasty and reasonably priced.
Consistent delivery of food is a low-key decor and friendly atmosphere.