Page 46 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes

Caselet Mission of two Global Companies

Mission Statement of IBM
At IBM, we strive to lead in the invention, development and manufacture of the industry's
most advanced information technologies, including computer systems, software, storage
systems and microelectronics.
We translate these advanced technologies into value for our customers through our
professional solutions, services and consulting businesses worldwide
Mission Statement of FedEx
"FedEx is committed to our People-Service-Profit Philosophy. We will produce outstanding
financial returns by providing totally reliable, competitively superior, global, air-ground
transportation of high-priority goods and documents that require rapid, time-certain
delivery."
Source: ibm.com and fedex.com

3.6 Evaluating Mission Statements

For a mission statement to be effective, it should meet the following ten conditions:
1. The mission statement is clear and understandable to all parties involved. The organisation
can articulate and relate to it.
2. The mission statement is brief enough for most people to remember.
3. The mission statement clearly specifies the purpose of the organisation. This includes a
clear statement about:
(a) What needs the organisation is attempting to fill (not what products or services are
offered)?

(b) Who the organisation's target populations are?
(c) How the organisation plans to go about its business; that is, what its primary
technologies are?

4. The mission statement should have a primary focus on a single strategic thrust.
5. The mission statement should reflect the distinctive competence of the organisation
(e.g., what can it do best? What is its unique advantage?)

6. The mission statement should be broad enough to allow flexibility in implementation,
but not so broad as to permit lack of focus.
7. The mission statement should serve as a template and be the same means by which the
organisation can make decisions.
8. The mission statement must reflect the values, beliefs and philosophy of operations of the
organisation.
9. The mission statement should reflect attainable goals.
10. The mission statement should be worked so as to serve as an energy source and rallying
point for the organisation (i.e., it should reflect commitment to the vision).

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