Mission statement ✔️

Question 1

What is the purpose of a mission statement

Answer 1

It is to explain why a organisation exists and what positive contribution it can make to customers, service users, employees and society as a whole.

Question 2

Justify a suitable mission statement for a business

Answer 2

• concise
• persuasive
• helps customers to understand about the product
• help customers to understand the companys values

Question 3

Advantages to a business of having a mission statement

Answer 3

• charts a course
• defines relationships
• helps to resolve conflicts
• acts a communication tool
• a framework for decision making

Question 4

Impact of changing a mission statement on a business and its stakeholders

Answer 4

• less dividend for shareholders short term
• employees may need to learn new skills
• customers may have less choice
• may cause job creation / reduction

Question 5

Disadvantages to a business of having a mission statement

Answer 5

• can be ambiguous and worthless on its own
• focused more on short term issues and internal in nature
  -can sometimes lead to conflicts and inconsistency’s
• wastes managements time and resources
• can be unrealistic in reality