1. Topic 2 Determining an organization’s business Using a Mission Statement Writing a Mission Statement Evaluating Mission Statements

2. A Mission Statement is needed to determine how to strategically manage. A Mission Statement is the first element determined in a comprehensive strategic management model.

3. Strategic Management Model Strategy Formulation Strategy Implementation Evaluation and Control Mission Objectives Strategies Feedback/Learning Environmental Scanning Societal Environment General Forces Task Environment Industry Analysis Structure Chain of Command Resources Assets, Skills Competencies, Knowledge Culture Beliefs, Expectations, Values Reason for existence What results to accomplish by when Plan to achieve the mission & objectives Programs Activities needed to accomplish a plan Budgets Cost of the programs Procedures Sequence of steps needed to do the job Process to monitor performance and take corrective action Performance External Internal Go through decision- making process and Determine alternative strategy To select

4. A Mission Statement is: An enduring statement or purpose distinguishing our organization from others.

5. Mission Statement are found in an organization’s literature such as in annual reports. Names associated with Mission Statements: Statement of Philosophy Statement of Purpose Vision Statement Statement of Business Principles As many as 1/3 of major companies don’t Have a Mission statement

6. Below are companies without a formal written Mission statement. Some are quite successful. The mission statement is usually implied in the corporate literature. In your cases you may have to assume a mission statement. Wal-Mart \Disney

7. 7 Why is a Mission Statement Important? - To Insure Unanimity of Purpose - To Provide a Basis for Allocating Resources - To Serve as a Focal Point for Individuals - To Reconcile Differences Among Stakeholders - To Resolve Divergent Views Among Managers - To Arouse Positive Feelings About the Firm - To Provide a Basis for Goals and Strategies - To Provide Direction ©1999 Prentice Hall

8. 8 Mission Statement Answers the Question “What is Our Business?” “What is Our Business?” Vision Statement Answers the Question “What Do We Want to Become?” “What Do We Want to Become?” Vision Versus Mission ©1999 Prentice Hall

9. A good Mission Statement has the elements described below according to McGinnis: 1Defines what the organization is and what the organization aspires to be. 2Is limited enough to exclude some ventures and broad enough to allow for creative growth. 3Distinguishes a given organization from all others. 4Serves as a framework for evaluating both current and prospective activities. 5Is stated in terms sufficiently clear to be widely understood throughout the organization.

10. 10 Components of a Mission Statement Customers Products or Services Markets Technology Concern for Survival and Growth Philosophy Self-Concept Concern for Public Image Concern for Employees