COMPONENTS OF AN EFFECTIVE MISSION STATEMENT

Mission statements can and do vary in length, content, format and specificity. Most practitioners and academicians of strategic management consider an effectively written mission statement to exhibit nine characteristics or mission statement components. Since a mission statement is often the most visible and public part of the strategic management process, it is important that it include most, if not all, of these essential components. Components and corresponding questions that a mission statement should answer are given here.

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 Mission Statement Mission statements can and do very in length, content, format, and specificity. Most practitioners and academicians of strategic management feel that an effective statement exhibits nine characteristics or components. Because a mission statement is often the most visible and public part of the strategic-management process, it is important that it includes all of these essential components. 1. Customers: Who are the firm s customers? We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services. (Johnson & Johnson). To earn our customer s loyalty, we listen to them, anticipate their needs, and act to create value in their eyes (Lexmark International) Products or Services: What are the firm s major products or services? AMAX s principal products are molybdenum, coal, iron ore, copper, lead, zinc, petroleum and natural gas, potash, phosphate, nickel, tungsten, silver, gold, and magnesium. (AMAZ Engineering Company). Standard Oil Company (Indiana) is in business to find and produce crude oil, natural gas, and natural gas liquids; to manufacture high-quality products useful to society from these raw materials; and to distribute and market those products and to provide dependable related services to the consuming public at reasonable prices. (Standard Oil Company)

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Markets Geographically, where does the firm compete? We are dedicated to the total success of corning Glass Works as a worldwide competitor. (Corning Glass Works) Our emphasis is on North American markets, although global opportunities will be explored. (Blockway) Technology: Is the firm technologically current? Control Data is in the business of applying micro-electronics and computer technology in two general areas; computer-related hardware, and computing-enhancing services, which include computation, information, education, and finance. (Control data) We will continually strive to meet the preferences of adult smokers by developing technologies that have the potential to reduce the health risks associated with smoking. (RJ Reynolds) Concern for survival, growth, and profitability: In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assure Hoover s ultimate success. (Hoover Universal) To serve the worldwide need for knowledge at a fair profit by adhering, evaluating, producing, and distributing valuable information in a way that benefits our customers, employees, other investors, and our society. ( McGraw-Hill) Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm? Our world-class leadership is dedicated to a management philosophy that holds people above profits.(Kellogg). It s all part of the Mary Kay philosophy a philosophy based on the golden rule. A spirit of sharing and caring where people give cheerfully of their time, knowledge, and experience. (Mary Kay Cosmetics) Self-Concept-What is the firm s distinctive competence or major competitive advantage? Crown Zellerbach is committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies o f each of its employees. (Crown Zellerbach) Concern for public image: Is the firm responsive to social, community, and environmental cancers? To share the world s obligation for the protection of the environment. (Dow Chemical). To contribute the economic strength of society and function as a good corporate citizen on a local, state, and national basis in all countries in which we do business. (Pfizer) Concern for Employees: Are employees a valuable asset of the firm?. To recruit, develop, motivate, reward, and retain personnel of exceptional ability, character, and dedication by providing good working conditions, superior leadership, compensation on the basis of performance, an attractive benefit program, opportunity for growth, and a high degree of employment security. (The Wachovia Corporation). To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations.

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