Business UNIT 2

Mission Statement

It is a qualitative statement of an organisation’s aims. It is used by a company to explain, in simple terms, its purpose for being.

Corporate objectives

The goals of the organization that are created to provide a sense of direction and steer the actions of the organisation.

What is the use of mission statements?

• Focus- Helps to focus on involve all employees in the business

• Profitability- helps to motivate employees to become more effiecient which could have an impact on profitability

• Identity- helps to create an identity in a competitive marketplace

Limitations of mission statements

• Can be unrealistic and over optimistic

• Can be a waste of management time and resources

• Can lead to conflicts and inconsistencies when properly written

• Can be ambigious

• Can become obselete as the business develops but the mission statement remains the same.