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Strategic Management

Notes Company Self-concept
Both individuals and companies have a crucial need to know themselves. The ability of a company
to survive in a highly competitive environment depends on its realistic evaluation of its strengths
and weaknesses. Description of the firm’s self-concept provides a strong impression of the
firm’s self-image.

Public Image

Mission statements should reflect the public expectations of the firm since this makes achievement
of the firm’s goals more likely.

Example: “Johnson & Johnson make safe products” reflects the customer expectations of
the company in making safe products.

Sometimes, a negative public image can be corrected by emphasizing the beneficial aspects in
the mission statements.

Concern for Employees

Mission statements should also emphasize their concern for improvement of quality of work
life, equal opportunity for all, measures for employee welfare etc.

Customers
“The customer is our top priority” is a slogan that would be claimed by most of the businesses
the world over. A focus on customer satisfaction causes managers to realize the importance of
providing an excellent customer service. So, many companies have made customer service a key
component of their mission statement.

Quality

The emphasis on quality has received added importance in many corporate philosophies.

Example: Motorola’s mission statement contains a statement that “dedication to quality
is a way of life at our company, so much so that it goes beyond rhetorical slogans.”

3.5 Formulation of Mission Statements

There is no standard method for formulating mission statements. Different firms follow different
approaches. As indicated in the strategic management model, a clear mission statement is needed
before alternative strategies can be formulated and implemented. It is important to involve as
many managers as possible in the process of developing a mission statement, because through
involvement, people become committed to the mission of the organisation.
Mission statements are generally formulated as follows:

1. In many cases, the mission is inherited i.e. the founder establishes the mission which may
remain unchanged down the years or may be modified as the conditions change.
2. In some cases, the mission statement is drawn up by the CEO and board of directors or a
committee of strategists constituted for the purpose.

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