Influences on the Mission of a Business

An effective mission statement:

• Differentiates the business from its competitors

• Defines the markets or business in which the business wants to operate

• Is relevant to all major stakeholders- not just shareholders and managers

• Excites, inspires, motivates and guides- particularly important for employees

Mission statements are often criticised because they are:

• Not always supported by actions of the business

• Often too vague and general or merely statements of the obvious

• Viewed as a public relations exercise

• Sometimes regarded cynically by employees

• Not supported wholeheartedly by senior management

Mission and vision statements:

• They communicate the purpose and values of an organisation to the stakeholders. Employees and other stakeholders need to understand the purpose and implementation.

• They inform the strategy adopted by an organisation

• They enable measurable goals and objectives to be identified which allows an organisation to gauge the success of its strategy

Factors influencing the mission:

• Size of the business

• Range of activities undertaken

• Who are the owners and major stakeholders?

• Changes over time in market conditions and customer needs

• Actual performance of the organisation

External factors outside the control of the business:

• Economic conditions

• Government regulation

• A business’s own strengths and opportunities

• Level of concern for environmental and social responsibilities