MISSION STATEMENT AND NATURE OF BUSINESS MISSION

WHAT IS OUR BUSINESS?

Current thought on mission statement is based largely on guides set in the mid 1970s by peter Drucker, often called, his pioneering studies.

Drucker says asking the question, what is our business? “It answers mission statement is essential for effectively establishment objectives and formulating strategies”.

Sometimes called a;

• Creed statement
• A statement of philosophy
• A statement of beliefs
• A statement of business principles
• A vision statement

WILLIAM F. GLUECK

“Mission statement defines the basic reason for the existence of an organization and helps legitimize its functions in society”.

A clear definition of mission can provide the basis of philosophy of what the firms is all about. The mission can be seen as a like between performing some social function and more specific targets or objectives of the organization. Thus, the mission can be used to legitimize the organization.

HALLMARK’S SELF DEFINES MISSION

“The social expression business”

FRED F. DAVID

“A business mission is the foundation for priorities, strategies, plans and work assignment. It is the starting point for the design of managerial jobs and above all for the design of managerial structures”.

Approximately 40% of large corporations in America have not yet developed a formal mission statement and formally communicated throughout the organization.

In such organization, mission statement are often found on annual reports & displayed throughout the firm’s premises, and a part of numerous internal reports. Such as, loan requests, supplier agreement, and labor relations constructs service agreements.

THE NATURE OF A BUSNESS MISSION

The nature of a business mission include following.

A DECLARATION OF ATTIUDE

A mission statement is a declaration of attitude and outlook more than a statement of specific details. It usually is broad in scope for at least two major reasons;

First: a good mission statement allows for the generation and consideration of a range of feasible alternatives.

Second: a mission statement needs to be broad to effectively appeal to an organization’s diverse stockholders, and stakeholders includes, managers, stockholders board of directors, customers, suppliers, distributors, creditors, governments, union, competitors, environmental group and general public.

An effective mission statement arouses positive feelings and emotions about an organization;

• It is inspiring in the sense that it motivates readers to action.
• An effective mission statement that generates the impression that a firm is successful has support, and investment.
• It reflects judgments about future growth directions looking external and internal analysis.
• A clear mission provides a basis for generating and screening strategic operations.
• The statement should dynamic in orientation, allowing judgment about the most promising growth direction.
• A statement provides a useful criterion for selecting among alternative strategies.

A CUSTOMER ORIENTATION

A good mission statement reflects the anticipations of customers. Rather than developing a product and than trying to find a market for the operating philosophy of organization.

Good mission statements identify the utility of firm’s products to its customer.

The following utility statements are relevant in developing a mission statement;

Don’t offer me things.

• Don’t offer me clothes. Offer me attractive looks.
• Don’t offer me shoes. Offer me comfort for my feet and the pleasure of walking.
• Don’t offer me a house. Offer me security, comfort and a place that is clean and happy.
• Don’t offer me books. Offer me hours of pleasure and the benefits of knowledge.
• Please’ do not offer me things.

A classic description of the purpose of a business reveals the relative importance of customers in a statement of mission.

A RESOLUTION OF DIVERGENT VIEWS

“What is our business or mission?”

is a genuine decision, and a genuine decision must be based on divergent view to have a change to be a right and effective decision. Developing a business mission is always a choice between alternative, each of which rests on different assumptions regarding the reality of the business and its environment.

It is always a high-risk decision to changes in objectives, strategies, organization and behavior.

Establishing a mission should never be made on plausibility, should never be made fast, should never be made painlessly. Considerable disagreement among purpose and mission can cause trouble if not resolved. For example, the main reason of bankruptcy and then liquidation of W.T GRANT was unsolved disagreement over the business mission.

A DECLARATION OF SOCIAL POLICY

The words of “Social policy” embrace managerial philosophy and thinking at the highest levels of an organization.

For this reason, social policy affects the development of a business mission statement. Social issues mandate also strategists consider not only what the organization owes its various stakeholders but also what responsibilities the firm has to;

• Customers
• Environments
• Minorities
• Communities
• Other groups

The impact of social on business and voce versa is become more pronounced each year. Social policies directly affect a firm’s

• Customers
• Products
• Services
• Markets
• Technology
• Profitability
• Self concept
• Public image

An organization, social policy should be integrated into all strategies management activities, including the development of a business mission

CONCLUSION

After discussion of the nature of business mission, it is concluded that main reason of mission & nature of business are;

• Motivating employees towards company’s objectives
• Healthy activities towards environment
• Healthy activities towards social ease
• Care of shareholder’s benefits