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Chapter Two: The Business Mission

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11 views13 pages

Chapter Two: The Business Mission

Uploaded by

alemfikadu272
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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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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11/24/2024 15

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