Mission of an Organisation

What is the Mission of an organisation?

Mission the purpose or reason for the organisations existence

what the company is providing to society, either as a service or as a product

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Mission statement
A well-conceived mission statement defines the fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of the companys operations in terms of products offered and markets served

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Mission statement
Maytag Corporation
To

improve the quality of home life by designing, building, marketing, and servicing the best appliances in the world
Washers Driers Refrigerators

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Mission statement
Newport Shipbuilding We shall build good ships here at a profit if we can at a loss if we must but always good ships
(unchanged since 1886)

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Mission statement
Broad Mission Statement
3M

"To solve unsolved problems innovatively

Merck "To preserve and improve human life

Wal-Mart

"To give ordinary folk the chance to buy the same thing as rich people"
Walt Disney "To make people happy" These are the 'one-liners', but each is supported by a set of values that set the performance standards and direct the implementation of the mission.

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Mission statement
Merck, a company that produces pharmaceutical products and provides insurance for pharmacy benefits, publicly states the following values:

Corporate social responsibility Unequivocal excellence in all aspects of the company Science-based innovation Honesty & integrity Profit, but profit from work that benefits humanity

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Mission statement
Walt Disney, an entertainment business states their values as follows.

No cynicism Nurturing and promulgation of "wholesome American values" Creativity, dreams and imagination Fanatical attention to consistency and detail Preservation and control of the Disney "magic"

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Mission statement
Narrow Mission Statement
Clearly states the organisations primary business
Maytag Corporation To improve the quality of home life by designing, building, marketing, and servicing the best appliances in the world

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Mission statement
Broad mission statement may be too broad to provide the focus needed to direct the companys activities Narrow mission statement, by emphasising on products, may exclude the notion of a business served through different products and technologies

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Vision
The

Vision of a firm is a picture of what it is intended to be in future

Long

term view of an image of the company

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Objectives Goals and Strategies

Objectives
End results of planned activity
Quantified

statements of what is to be accomplished and by when

E.g., double sales value over a specified number of years

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Goal
Open-ended

statement of what is to be accomplished with no quantification or time criteria E.g., increase profitability

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Objectives and Goals

Profitability (net profit) Efficiency (low costs, etc.) Growth (increase in total assets, sales, etc.) Shareholder wealth (dividends plus stock price appreciation) Utilization of resources (return on investment or equity)
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Objectives and Goals

Reputation (being considered top firm) Contribution to employees (employment security, wages, diversity) Contribution to society (taxes paid, participation in charities, providing a needed product or service)

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Objectives and Goals

Market leadership (market share) Technological leadership (innovations, creativity) Survival (avoid bankruptcy)

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Strategies
Strategy comprehensive master plan stating how the corporation will achieve its mission and its objectives

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