Business Planning and Policy - the Process of Strategic Management Makes It Clear That a Strategy Is Formulated on the Basis of Several Assumptions

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BUSINESS PLANNING AND POLICY

CASE STUDY: 1

MISSION STATEMENT

A Mission Statement defines the basic reason for the existence of the Organization, it provides enlightenment to the insiders and outsiders about what the organization status for. In order to be effective, a mission statement should possess the following seven characteristics.

1) It should be feasible : A mission should always aim high but it should not be an impossible statement. It should be realistic and achievable-its followers must find it to be credible. But feasibility depends on the resources available to work towards a mission. In the 1960s, the U.S. National Aeronautics and Space Administration (NASA) had a mission to land on the moon. It was a feasible mission that was ultimately realized.

2) It should be Precise : A mission statement should not be so narrow as to restrict the organization’s activities, nor should it be too broad to make itself meaningless. ‘Manufacturing bicycles’ is a narrow mission since it severely limits the organization’s activities while ‘mobility business’ is too broad a term as it does not define the reasonable contour within which an organization could operate.

3) It should be Clear : A mission should be clear enough to lead to action. It should not just be a high-sounding set of platitudes meant for publicity purposes. Many organizations do adopt such statements but probably they do so for emphasizing their identity and character.

4) It should be Motivating : A mission statement should be motivating for members of the organization and of the society and they should feel it worthwhile working for such an organization or being its customers. A bank which lays great emphasis on customer service is likely to motivate its employees to serve its customers well and to attract...