Mission and Vision Statements

Only available on StudyMode
  • Download(s) : 1939
  • Published : May 19, 2013
Open Document
Text Preview
Mission and Vision Statements - strategy, organization, examples, advantages, definition, company, disadvantages, business

5/19/13 2:42 PM

Reference for Business
Encyclopedia of Business, 2nd ed.
Powered by JRank

Search

Reference for Business » Encyclopedia of Business, 2nd ed. » Mar-No » Mission and Vision Statements

MISSION AND VISION STATEMENTS
Business Plan Template
BusinessPlanTemplate.Growthink.com With My Fill-In-The-Blanks Template Personalize, Print and You're Done!

An organizational mission is an organization's reason for existence. It often reflects the values and beliefs of top managers in an organization. A mission statement is the broad definition of the organizational mission. It is sometimes referred to as a creed, purpose, or statement of corporate philosophy and values. A good mission statement inspires employees and provides a focus and direction for setting lower level objectives. It should guide employees in making decisions and establish what the organization does. Mission statements are crucial for organizations to prosper and grow. While studies suggest that they have a positive impact on profitability and can increase shareholder equity, they also support that almost 40 percent of employees do not know or understand their company's mission. Not only large corporations benefit from creating mission statements but small businesses as Photo by: sellingpix

http://www.referenceforbusiness.com/management/Mar-No/Mission-and-Vision-Statements.html

Page 1 of 12

Mission and Vision Statements - strategy, organization, examples, advantages, definition, company, disadvantages, business

5/19/13 2:42 PM

well. Entrepreneurial businesses are driven by vision and high aspirations. Developing a mission statement will help the small business realize their vision. Its primary purpose is to guide the entrepreneur and assist in refining the planning process. By developing a strategic plan that incorporates the mission statement, entrepreneurs are more likely to be successful and stay focused on what is important. The mission statement encourages managers and small business owners alike to consider the nature and scope of the business. Business Week attributes 30 percent higher return on several key financial measure for companies with well-crafted mission statements.

COMMON ELEMENTS
While mission statements vary from organization to organization and represent the distinctness of each one, they all share similar components. Most statements include descriptions of the organization's target market, the geographic domain, their concern for survival, growth and profitability, the company philosophy, and the organization's desired public image. For example: Our mission is to become the favorite family dining restaurant in every neighborhood in which we operate. This will be accomplished by serving a variety of delicious tasting and generously portioned foods at moderate prices. Our restaurants will be clean, fun, and casual. Our guests will be served by friendly, knowledgeable people that are dedicated to providing excellent customer service. This mission statement describes the target market, which are families and the geographic domain of neighborhoods. It clearly states how it expects to be profitable by offering excellent customer service by friendly, knowledgeable people. When defining the mission statement it is important to take into account external influences such as the competition, labor conditions, economic conditions, and possible government regulation. It is important to remember however, that mission statements that try to be everything to everybody end up being nothing to anybody.

http://www.referenceforbusiness.com/management/Mar-No/Mission-and-Vision-Statements.html

Page 2 of 12

Mission and Vision Statements - strategy, organization, examples, advantages, definition, company, disadvantages, business

5/19/13 2:42 PM

Companies should have mission...
tracking img