Chapter 2 focuses on the concepts and tools needed to evaluate and write business mission statements.
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What Do We Want to Become?
What is Our Business?
Importance of Vision and Mission Statement
Characteristics of a Mission Statement
Components of a Mission Statement
Writing and Evaluating Mission Statements
NINE (9) COMPONENTS OF A MISSION STATEMENT
A. Components and Questions That a Mission Statement Should Answer
1. Customers: Who are the firm’s customers?
2. Products or services: What are the firm’s major products?
3. Markets: Geographically, where does the firm compete?
4. Technology: Is the firm technologically current?
5. Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness?
6. Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. Self-concept: What is the firm’s distinctive competence or major competitive advantage?
8. Concern for public image: Is the firm responsive to social, community, and environmental concerns?
9. Concern for employees: Are employees a valuable asset of the firm?
ISSUES FOR REVIEW AND DISCUSSION
1. Compare and contrast vision statements with mission statements in terms of composition and importance.
Many organizations develop both a mission statement and a vision statement. Whereas the mission statement answers the question, “What is our business?” the vision statement answers the question, “What do we want to become?” Both statements are essential for firm success.
2. Do local service stations need to have written vision and mission statements? Why or why not?
Less formality and detail characterize strategic management in small businesses such as a local service station. However, local service stations are not immune to competitive pressures, changes in technology, changes in demographic factors, and resistance to change. Therefore, it is recommended that even the smallest organization develop a written mission statement. Such a formal statement indicates vision and good management, which could enhance a small business's efforts to secure bank financing and to develop good supplier, customer, and employee relationships.
