3.7.1 (2) Mission Statements

Question 1

Mission statement

Answer 1

The overriding purpose of the business and the reason for its existence

Question 2

Where does the mission statement appear on the heirarchy?

Answer 2

2nd from the top

Question 3

What makes an effective mission statement?

Answer 3

1. Provides a clear sense of business purpose
2. Excite, inspire, motivate and guide the intended audience
3. Be easy to understand and remember
4. Help differentiate the business from competitors
5. Be designed for all relevant stakeholders - not just shareholders and managers

Question 4

Criticisms of mission statements

Answer 4

1. Always supported by actions of the business
2. Often too vague and general or merely statements of the blindingly obvious
3. They are created largely for public relations purpose rather than acting ad a focus for business strategy
4. Over time they are treated quite cynically by stakeholders, particularly employees