Page 42 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes 4. They project a sense of worth and intent that can be identified and assimilated by company
outsiders.
5. Finally, they affirm the company’s commitment to responsible action, in order to preserve
and protect the essential claims of insiders for sustained survival, growth and profitability
of the firm.
According to Fred R. David, a mission statement is more than a statement of purpose. It is

1. A declaration of attitude and outlook
2. A declaration of customer orientation
3. A declaration of social policy and responsibility

3.3 Characteristics of a Mission Statement

A good mission statement should be short, clear and easy to understand. It should therefore
possess the following characteristics:
1. Not lengthy: A mission statement should be brief.
2. Clearly articulated: It should be easy to understand so that the values, purposes, and goals
of the organisation are clear to everybody in the organisation and will be a guide to them.
3. Broad, but not too general: A mission statement should achieve a fine balance between
specificity and generality.
4. Inspiring: A mission statement should motivate readers to action. Employees should find
it worthwhile working for such an organisation.

5. It should arouse positive feelings and emotions of both employees and outsiders about
the organisation.
6. Reflect the firm’s worth: A mission statement should generate the impression that the
firm is successful, has direction and is worthy of support and investment.
7. Relevant: A mission statement should be appropriate to the organisation in terms of its
history, culture and shared values.
8. Current: A mission statement may become obsolete after some time. As Peter Drucker
points out, “Very few mission statements have anything like a life expectancy of thirty, let
alone, fifty years. To be good enough for ten years is probably all one can normally
expect”. Changes in environmental factors and organisational factors may necessitate
modification of the mission statement.
9. Unique: An organisation’s mission statement should establish the individuality and
uniqueness of the company.
10. Enduring: A mission statement should continually guide and inspire the pursuit of
organisational goals. It may not be fully achieved, but it should be challenging for managers
and employees of the organisation.
11. Dynamic: A mission statement should be dynamic in orientation allowing judgments
about the most promising growth directions and the less promising ones.
12. Basis for guidance: Mission statement should provide useful criteria for selecting a basis
for generating and screening strategic options.

13. Customer orientation: A good mission statement identifies the utility of a firm’s products
or services to its customers, and attracts customers to the firm.

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