Q No 1 : What do you understand by ‘mission’? Explain why it is necessary at the starting point in the process of formulating a strategy? What do you understand by ‘mission’? As per Mintzberg – A mission describes the organisation’s basic function in society, in terms of the products and services it produces for its customers”. Mission defines the fundamental purpose of an oraganisation , describes why it exists and answers the question “Wha do we do? ”.
Mission statement creates a sense of direction and opportunity and it creates value for those who get exposed to the statement, and those prospects are managers, employees and sometimes even customers. Both of these are essential part of the strategy-making process. It has a direct bearing on the bottom line and success of the organization. Thus Mission statements plays (1) Communicate the purpose of the organization to stakeholders. (2) Inform strategy development. 3) Develop the measurable goals and objectives by which to gauge the success of the organization’s strategy. Explain why it is necessary at the starting point in the process of formulating a strategy? To reach any destination the knowledge of path is very important likewise for any organization to achieve its ultimate objectives and goals, a well defined mission is very important. A strategic plan starts with a clearly defined business mission. Mission statement provides a path to realize the vision in line with its values.
It informs us the desired level of performance and used to set out a ‘picture’ of the organization in the future For any new organization to be successful in achieving desired goals it has to formulate the strategy and mission is starting point in the process. Mission is necessary at the starting point in the process of formulating a strategy to know: (1) The purpose of the organization. Why does the business exist? Is it to create wealth for shareholders?
Does it exist to satisfy the needs of all stakeholders (including employees, and society at large? ). The mission at the starting point helps in answering above questions. (2) A mission statement at the starting point provides the commercial logic for the business and so defines two things: – The products or services it offers (and therefore its competitive position) – The competences through which it tries to succeed and its method of competing A business’ strategic scope defines the boundaries of its operations.
These are set by management. For example, these boundaries may be set in terms of geography, market, business method, product etc. The decisions management make about strategic scope define the nature of the business. (3) The mission at the starting point defines the Policies and Standards of Behaviour. A mission needs to be translated into everyday actions. For example, if the business mission includes delivering “outstanding customer service”, then policies and standards should be created and monitored that test delivery. 4) It defines the model of Values and Culture that will be followed by the organization durig the process of achieving its business goals. The values of a business are the basic, often un-stated, beliefs of the people who work in the business. These would include: • Business principles (e. g. social policy, commitments to customers) • Loyalty and commitment (e. g. are employees inspired to sacrifice their personal goals for the good of the business as a whole?
And does the business demonstrate a high level of commitment and loyalty to its staff? ) • Guidance on expected behaviour – a strong sense of mission helps create a work environment where there is a common purpose (5) A well defined mission statement also helps in marketing planning. It provides an outline of how the marketing plan should seek to fulfil the mission It provides a means of evaluating and screening the marketing plan; are marketing decisions consistent with the mission? • It provides an incentive to implement the marketing plan