INFLUENCES ON MISSION STATEMENTS Flashcards
What is a mission statement
Mission Statement: A statement of an organisation’s overall purpose or long term intentions.
Who have mission statements
Schools have them
Businesses have them
Charities have them
And most other organisations
Most organisations will have some sort of mission statement
Why are mission statments so important
To provide a clear goal, purpose and sense of direction - This is great for people inside the business. It also makes decision making easier and more effective
To communicate with stakeholders - For example, customers can identify if they want to do business with an organisation. Another example is with potential shareholders being able to identify if they want to be a part owner inside the organisation.
Mission statements create a sense of identity and a USP
To enable a business to set clear goals to help it achieve its mission
Review if the business habs achieved its goals
What is the process of getting a mission statment to functional objectives
Mission statement - The overall goals and or purpose of a business
From a mission statement you get:
Corporate objectives - The very specific goals to be achieved (tend to be shorter term)
From corporate objectives you get:
Corporate Strategy - The plan for achieving an organisation’s objectives
From corporate strategy you get:
Functional Objectives - Departmental goals linked to the strategy - They help with the corporate strategy
Who tends to set and use the mission statement the most
The mission statement, corporate objectives and corporate strategy are usually set and used most by the board. The functional objectives are usually used mostly by the department below the board like: Marketing, operations, finance, people
EXAMPLE MISSION STATMENT
Pure Gym: “We believe everyone should have the opportunity to enjoy a fit and healthy lifestyle. So we have made it simple, affordable and convenient for everyone to achieve their personal health goals. Whether you;re a beginner or a pro, young or old, we’re here for everyone.”
David Lloyd - ‘Our expertise within the health and fitness sector is unrivalled. David Lloyds has been operating successful clubs within the UK for nearly twenty years, gaining knowledge and experience over this time to produce experts who are trusted by our members to care for their health, fitness and relaxation needs.
These companies are both in the same industry, but you can clearly see which one is higher end, and is going to charge you more.
What are some influences on the mission statement
Ownership - PLC vs sole trader & LTD (As the owners want their money to grow as much as possible, so they will have a big say in what goes on inside of the business)
Core competencies - Pure gyms core competence may be economies of scale, because they are buying big batches of gym equipment. Whereas david lloyds core competence may be in customer service.
Business size: Different business sizes might have different mission statements in a niche market
Corporate culture: Google’s mission statement is different to apples and microsofts, even though they are in similar industries, and their own unique cultures are shown in their mission statement.
Past performance: What’s realistic for the organisation
Attitude to risk: One company might be open to risk, and take risky moves, and another might be against risk
Market conditions and opportunities
Competitors’ actions
Ethical/ environmental considerations
