Page 51 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 3: Defining Mission, Goals and Objectives

Network of Objectives Notes

Objectives form an interlocking network. They are inter-related and inter-dependent. The
implementation of one may impact the implementation of the other. If there is no consistency
between company objectives, people may pursue goals that may be good for their own function
but detrimental to the company as a whole. Therefore, objectives should not only “fit” but also
reinforce each other. As observed by Koontz et al., “it is bad enough when goals do not support
and interlock with one another. It may be catastrophic when they interfere with one another.”

3.9 Summary

A mission can be defined as a sentence describing a company's function, markets and
competitive advantages.
Developing your mission statement is the step which moves your strategic planning
process from the present to the future.
The mission should be broad enough to allow for the diversity (new products, new services,
new markets) one requires for one's business.
The mission statement should also be specific enough to provide the focus necessary to the
success of your business.
Once a mission statement has been set, every organisation needs to periodically review
and possibly revise it to make sure it accurately reflects its goals and the business and
economic climates evolve.

3.10 Keywords

Company philosophy: It is a set of beliefs, principles, or aims, underlying a company's practice
or conduct.
Company self concept: how much does the company knows itself
Goals: It is an open ended statement of what one wants to achieve with no quantification of
outcomes or time limit.
Mission: A statement that declares what business a company is in and who its customers are.
Objectives: The results an organisation wants to achieve in pursuing its basic mission.

3.11 Self Assessment

Fill in the blanks:

1. The mission statement should have a primary focus on a ..................... strategic thrust.
2. The mission statement should reflect ..................... goals.
3. A mission can be defined as a sentence describing a company's ................., ................. and
.................
4. It is more important to communicate the mission statement to .................than to .................
5. A mission statement should be appropriate to the organisation in terms of its .................,
................. and .................
6. Every firm has to secure its survival through ................. and .................

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