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DEFINING THE COMPANYS MISSION

AND SOCIAL RESPONSIBILITY


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THE DEFINITION OF COMPANY
MISSION

A fundamental purpose that sets a firm
apart from other firms of its type and
identifies the scope of its operations in
product and market terms.
THE VALUE OF MISSION STATEMENT
The main value of the mission statement is its
specification of the firms ultimate aims.

A firm gain a heightened sense of purpose when
its board of directors and its top executives
address the three issues:
*What business are we in?
-What customers do we serve?
4Why does this organization exist?
THE NEED FOR AN EXPLICIT MISSION
BY: KING & CLELAND
* To ensure unity of purpose within the organization.
- To provide a basis for motivating the use of the organizations
resources
4 To develop a basis, or standard, for allocating organizational resources.
^ To establish a general tone or organizational climate.
= To serve as a crucial point for those who can identify with the
organizations purpose and direction and to deter those who cannot do
so from participating further in its activities.
= To facilitate the translation of objectives and goals into a work structure
involving the assignment of tasks to responsible elements within the
organization.
To specify organizational purposes and the translation of these
purposes into goals in such a way that cost, time, and performance
parameters can be assessed and controlled.
FORMULATING A MISSION
An owner-managers sense of mission usually is based on
the fundamental beliefs:
*The product or service of the business can provide at least equal to
its price.
-The product or service can satisfy a customer need of specific
market segments that is currently not being met adequately.
4The technology that is to be used in production will provide a cost-
and quality-competitive product or service.
^With hard work and the support of others, the business cannot only
survive but also grow and be profitable.
=The management philosophy of business will result in a favorable
public image and will provide financial and psychological rewards
for those who are willing to invest their labor and money in helping
the business to succeed.
=The entrepreneurs self-concept of the business can be
communicated to and adopted by employees and stockholders.
A COMPILATION OF EXCERPTS
FROM ACTUAL CORPORATE MISSION STATEMENT
Customer-Market:
pTo anticipate and meet market needs of farmers, ranchers,
and rural communities within North America. ( CENEX )

Product-Service:
pAmax's principal product are molybdenum, coal, iron ore,
copper, lead, zinc, petroleum and natural gas, potash,
phosphates, nickel, tungsten, silver, gold, and magnesium
(AMAX)

Geographic Domain:
p To anticipate and meet market needs of farmers, ranchers,
and rural communities within North America. ( CENEX )


A COMPILATION OF EXCERPTS
FROM ACTUAL CORPORATE MISSION STATEMENT
(Continue)
Technology:
pThe common technology in these areas relates to discrete
particle coatings ( NASHUA )

Concern for Survival:
pIn this respect, the company will conduct its operation
prudently, and will provide the profit and growth which will
assure Hoovers ultimate success ( Hoover Universal )

Philosophy:
p We are committed to improve health care throughout the
world ( Baxter Travenol )

A COMPILATION OF EXCERPTS
FROM ACTUAL CORPORATE MISSION STATEMENT
(Continue)
Self-Concept:
pHoover Universal is a diversified, multi-industry corporation
with strong manufacturing capabilities, entrepreneurial
policies, and individual business unit autonomy ( Hoover
Universal )

Concern for Public Image:
pWe are responsible to the communities in which we live and
work and to the world community as well. ( Johnson &
Johnson )
THE NEWEST TRENDS IN MISSION COMPONENTS
CUSTOMERS:
p The Customer is our top priority is a slogan that
would be claimed by the majority of business in USA
and abroad.

QUALITY:
p Quality is job one ! is a rallying point not only for
Ford Motor Corporation but for resurging U.S. business
as well.
Inside
stakeholders



Executive officers
Board of Directors
Stockholders
Employees

Outside
stakeholders

Customers
Suppliers
Creditors
Governments
Unions
Competitors
General public
Company
Mission
INPUT TO THE DEVELOPMENT OF THE COMPANY MISSION