Page 39 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 3: Defining Mission, Goals and Objectives

Introduction Notes

“A mission statement is an enduring statement of purpose”. A clear mission statement is essential
for effectively establishing objectives and formulating strategies.

A mission statement is the purpose or reason for the organisation’s existence. A well-conceived
mission statement defines the fundamental, unique purpose that sets it apart from other companies
of its type and identifies the scope of its operations in terms of products offered and markets
served. It also includes the firm’s philosophy about how it does business and treats its employees.
In short, the mission describes the company’s product, market and technological areas of emphasis
in a way that reflects the values and priorities of the strategic decision makers.
As Fred R. David observes, mission statement is also called a creed statement, a statement of
purpose, a statement of philosophy etc. It reveals what an organisation wants to be and whom
it wants to serve. It describes an organisation’s purpose, customers, products, markets, philosophy
and basic technology. In combination, these components of a mission statement answer a key
question about the enterprise: “What is our business?”

3.1 Defining Mission

Thompson defines mission as “The essential purpose of the organisation, concerning particularly
why it is in existence, the nature of the business it is in, and the customers it seeks to serve and
satisfy”. Hunger and Wheelen simply call the mission as the “purpose or reason for the
organisation’s existence”.

A mission can be defined as a sentence describing a company's function, markets and competitive
advantages. It is a short written statement of your business goals and philosophies. It defines
what an organisation is, why it exists and its reason for being. At a minimum, a mission statement
should define who are the primary customers of the company, identify the products and services
it produces, and describe the geographical location in which it operates.

Example:

l. Ranboxy Petrochemicals: To become a research based global company.
2. Reliance Industries: To become a major player in the global chemicals business and
simultaneously grow in other growth industries like infrastructure.

3. ONGC: To stimulate, continue and accelerate efforts to develop and maximize the
contribution of the energy sector to the economy of the country.
4. Cadbury India: To attain leadership position in the confectionery market and achieve a
strong national presence in the food drinks sector.
5. Hindustan Lever: Our purpose is to meet everyday needs of people everywhere – to
anticipate the aspirations of our consumers and customers, and to respond creatively and
competitively with branded products and services which raise the quality of life.
6. McDonald: To offer the customer fast food prepared in the same high quality worldwide,
tasty and reasonably priced, delivered in a consistent low key décor and friendly manner.
Most of the above mission statements set the direction of the business organisation by identifying
the key markets which they plan to serve.

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