ms-11 mba assignment july dec 2010 Question 1

1. What do you understand by ‘mission’? Explain why it is necessary at the starting point in the process of formulating a strategy?

MISSION

            The mission statements stage the role that organization plays in society. It is one of the popular philosophical issues which is being looked into business managers since last two decades.

Definition

            A few definitions of mission are as follows:

            Hynger and Wheelen “Purpose or reason for the organization’s existence. David F. Harvey states “A mission provides the basis of awareness of a sense of purpose, the competitive environment, degree to which the firm’s mission fits its capabilities and the opportunities which the government offers. Thompson states mission as the “Essential purpose of the organization, concerning Strategic Framework particularly why it is in existence, the nature of the business it is in, and the customers it seeks to serve and satisfy. The above definition reveals the following:

i) It is the essential purpose of organization.

ii) It answers “Why the organization is in existence”.

iii) It is the basis of awareness of a sense of purpose.

iv) It fits its capabilities and the opportunities which government offers.

Nature

            A few points regarding nature of mission statement are as follows:

·         It gives social reasoning. It specifies the role which the organization plays in society. It is the basic reason for existence.

·         It is philosophical and visionary and relates to top management values. It has long term perspective.

·         It legitimises societal existence. l It has stylistic objectives. It reflects corporate philosophy, identity, character and image of organization.

Characteristics

            In order to be effective, a mission statement should posses the following characteristics.

i) A mission statement should be realistic and achievable. Impossible statements do not motivate people. Aims should be developed in such a way so that may become feasible.

ii) It should neither be too broad nor be too narrow. If it is broad, it will become meaningless. A narrower mission statement restricts the activities of organization. The mission statement could be precise.

iii) A mission statement should not be ambiguous. It must be clear for action Highly  philosophical statements do not give clarity.

iv) A mission statement should be distinct. If it is not distinct, it will not have any impact. Copied mission statements do not create any impression.

v) It should have societal linkage. Linking the organization to society will build long term perspective in a better way.

vi) It should not be static. To cope up with ever changing environment, dynamic aspects be looked into.

vii) It should be motivating for members of the organization and of society. The employees of the organization may enthuse themselves with mission statement.

viii) The mission statement should indicate the process of accomplishing objectives. The clues to achieve the mission will be guiding force.

Examples of Mission Statement

            A few examples of mission statement (academically not accepted) are as follows:

                  India Today “The complete new magazine”.

                  Bajaj Auto, “Value for Money for Years”.

                  HCL, “To be a world class Competitor”.

                  HMT, “Timekeepers of the Nation”.

            Some experts argue that these are the publicity slogans. They are not mission statements. A few other examples are as follows: Ranbaxy Industries “To become a research based international Pharmaceuticals Company”. Eicher Consultancy “To make India an economic power in the lifetime, about 10 to 15 years, of its founding senior managers.”

Formulation of Mission Statements

            The mission statements are formulated from the following sources:

i) National Priorities projected in plan documents and industrial policy statements.

ii) Corporate philosophy as developed over the years.

iii) Major strategists have vision to develop mission statements.

iv) The services of consultants may be hired.

Mission vs Purpose

            The term purpose was used by some strategists. At some places, it was used as synonymous to mission. A few major points of distinction are as follows:

i) Mission is the societal reasoning while the purpose is the overall reason.

ii) Mission is external reasoning and relates to external environment. Purpose is internal reasoning and relates to internal environment.

iii) Mission is for outsiders while purpose is for its own employees.