Mission Statment

Topics: Mission statement, Statements, Initial public offering Pages: 5 (1281 words) Published: September 18, 2013
Component of mission statment
The mission statement needs to include some description of the function of the business. For example, "to promote industrial excellence," tells customers and employees nothing. A more effective description would be "To provide management consulting services." Target Consumers

An effective mission statement sets out, in broad terms, the target market. A manufacturer that makes nuts and bolts might set its target market as retail hardware stores, machine manufacturers, or both. Target Region

The business must determine what region it serves best and relay that information by way of the mission statement. A garage, for example, might limit its target region to the community while a magazine company might target an entire country. Values

Mission statements typically include a statement of company values. Values such as customer service, efficiency and eco-consciousness often appear on lists of company values. At their best, company values should express principles the company explicitly tries to affirm in day-to-day operations. Technology

For businesses that rely heavily on technology, the mission statement should include a description of the essential technology the company does or plans to employ. If nothing else, this directs purchasing agents toward the appropriate vendors for goods and services. Employees

Every company has a policy regarding its relationship with employees. A mission statement provides an opportunity to describe that policy in brief so employees know the essentials of where they stand. Strategic Positioning

Effective mission statements also include a brief description of the business's strategic position within the market. For example, the company might excel at serving residential clients and seek to maximize that strategic advantage. Financial Objectives

For for-profit ventures, businesses require clear financial objectives. A start-up company might set one of its financial objectives as making an initial public offering of common stock within two years. This lets the employees and potential investors know the company intends to go public, with all of the legal and record keeping ramifications that entails. Image

Like people, companies develop public images. Careful companies craft the public image they want to establish and lay out the major features of it in the mission statement. This helps managers direct employees that stray from the sanctioned public image. COMPONENTS OF AN EFFECTIVE MISSION STATEMENT

1. Customers:  Who are the enterprise's customers?
2.  Products or services: What are the firm's major products or services? 3. Markets: Where does the firm compete?
4. Technology: What is the firm's basic technology?
5. Concern for survival, growth, and profitability:  What is the firm's commitment towards economic objectives? 6. Philosophy: What are the basic beliefs, core values, aspirations and philosophical priorities of the firm? 7. Self-concept: What are the firm's major strengths and competitive advantages? 8. Concern for public image: What is the firm's public image? 9. Concern for employees: What is the firm's attitude/orientation towards employees? COMPONENTS OF AN EFFECTIVE MISSION STATEMENT

Customer – Mission Statements should answer the question ” Who are your customers?” Products and Services – What are your major products/services? Markets – Define the markets in which you are competing.

Technology - Define the technology which you use in running your business Concern of survival, growth and profitability – How are you committed to growth and financial soundness? Philosophy – What are your basic, belief, values, aspiration and ethical priorities. Self concept – What is your distinctive competence or major competitive advantage. Concern of public image – How are you responsive to social, community and environmental concerns? Concern of employees – Are employees valuable assets of the firm? COMPONENTS OF AN...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • the mission Essay
  • Essay about Comparison Between the Sparrow and the Mission
  • Vision and Mission Essay
  • Mission Statement Essay
  • Essay about Importance of Mission
  • Mission, Vision and Values Paper
  • Mission & Vision Essay

Become a StudyMode Member

Sign Up - It's Free