Friday, January 24, 2014

CORPORATE MISSION

 The corporate mission statement is the first key indicator of how an organization views the claims of its stakeholders. The mission statement aims to establish the organizational context within which strategic decisions will be made. All strategic decisions flow from the mission statement.  The mission statement determines the organization’s business, states its vision and goals, and articulates its main philosophical values
The mission of a company is an important element in establishing the strategy of the organization The mission is an expression of the growth ambition, future visualized and a dramatic picture of what the company wants to become. It is the firm’s dream crystallized and a colorful sketch of how the firms want their future to look, irrespective of the current position. It serves as a justification for the firm’s very presence and existence; it legitimizes the firm’s presence. A mission statement reveals the long term vision of an organization in terms of what it wants to be and whom it wants to serve. It describes an organization’s purpose, customers, products or services, markets, philosophy, and basic technology. In combination, these components of a mission statement answer a key question about an enterprise: “What is our Business?”   Mission is also an expression of the vision of the corporation, its founder or leader. To make the vision come true and become relevant, it needs to be spelt out. It is through the mission that the firm spells out its vision.Mission statements need to be communicated throughout the organization. Top management must also demonstrate their importance by “living” them as an example. A clear mission statement can become an important inspiration to employees and can lead to commitment and loyalty to the corporation. The mission represents the common purpose that the entire firm shares and pursues. It has to be open to the entire company.  All people are supposed to draw meaning, direction and commitment.    A mission statement should not be so narrow as to restrict the organization’s activities nor should it be so broad as to loose its meaning. A good statement of the mission of the firm should be as precise as possible and indicate major components of strategy. A mission statement may loose its significant after some time due to changed business conditions. Therefore modifications may be required. Environmental factors and organizational factors may require modifications of the mission.

A well-developed mission statement helps top management in a number of ways: It crystallizes top management’s own view of the long-term strategic position of the firm.  It helps to insure that the behavior of lower-order personnel is directed toward achievement of the corporate mission. It conveys a message to external stakeholders, such as financial institutions that may influence their investment strategies. It insures organizational confidence, in that top management knows where it wishes to drive the corporation. It provides a pathway for establishing longer-term strategy.

The mission directs the entire planning endeavor of the corporation. It particular, it directs the formulation of the growth plan; and guides the nature and pace of growth. The mission is the reference point and guiding spirit for the growth plan of a firm. It brings the corporate purpose or the long-term objective of the firm into focus. In evolving the strategies too, the mission plays a guiding role.Mission communicates the corporate vision and purpose to everyone in the firm Without a vision of the future, people fall into the activity trap. People at all levels in the organization become immersed in activities without understanding the purpose behind them. The purpose and priorities of the organization are lost sight of. The mission provides the required vision and prevents people falling into such a trap.

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