business objectives and strategy - mission statement

Question 1

explain the nature and purpose of a mission statement?

Answer 1

• differentiates the business from its competitors
• defines the markets or business in which the business wants to operate
• is relevant to all major stakeholders - not just shareholders and managers
• excites, inspires, motivates and guides - important for employees

Question 2

why are mission statements often criticised?

Answer 2

• not always supported by actions of a business
• often too vague and general or merely statements of the obvious
• viewed as a public relations exercise
• sometimes regarded as cynical by employees
• not supported whole-heartedly by management