MZUMBE UNIVERSITY
SCHOOL OF BUSINESS (SoB)
COURSE; BACHELOR OF ACCOUNTING IN PUBLIC SECTOR ACCOUNTING
FINANCE AND INVESTIGATION (BACC- PSAFI)
SUBJECT; BUS 360 (BUSINESS STRATEGIC MANAGEMENT)
TASK; NDIVIDUAL ASSIGNMENT
DATE; 15TH MAY, 2014
NAME; SAID
K.
MSUYA
REGISTRATION NUMBER; 13613.T/11
QUESTION
Explain the major constituents of mission statement and in what ways on can formulate
the mission statement of a given business enterprise
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Table of Contents
1.0 INTRODUCTION ................................................................................................................. 3
2.0 Major components of an effective mission statement ............................................................ 3
3.0 Characteristics of an effective mission statement .................................................................. 5
3.1 Ways to formulate the mission statement of a given business enterprise .......................... 6
CONCLUSION ............................................................................................................................ 10
EXAMPLES OF MISSION STATEMENTS .............................................................................. 10
REFFERENCES .......................................................................................................................... 11
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1.0 INTRODUCTION
A mission is the practical implication, which helps to reach the vision that the enterprise
has for the long run. Therefore in order to remain focused and avoid any scope of
vagueness, a mission statement is a paramount determinant in ensuring smooth and
focused functioning of any organization. Mission statement is the chance to create a
compelling picture of the company for the rest of the world to see.
A mission statement defines the basic reason for the existence of that organization. Such
a statement reflects the corporate philosophy, identity, character, and image of an
organization. It may be defined explicitly (provides enlightenment to the insiders and
outsiders on what the organization stands for) or could be deduced from the
management’s actions, decisions, or the chief executive’s press statements.
2.0 Major components of an effective mission statement
Mission statements can and do vary in length, content, format and specificity. Most
practitioners and academicians of strategic management consider an effectively written
mission statement to exhibit nine characteristics or mission statement components.
Since a mission statement is often the most visible and public part of the strategic
management process, it is important that it include most, if not all, of these essential
components. Below are the components and corresponding questions that a mission
statement should answer.
 Customers: Who are the enterprise's customers? What can you do for them that
will enrich their lives and contribute to their success--now and in the future?
 Products or services: What are the firm's major products or services? What is the
nature of your products and services? What factors determine pricing and
quality? Consider how these relate to the reasons for your business's existence.
How will all this change over time?
 Markets: Where does the firm compete? What level of service do you
provide? Most companies believe they offer "the best service available," but do
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your customers agree? Don't be vague; define what makes your service so
extraordinary.
 Technology: What is the firm's basic technology? How will you use technology,
capital, processes, products and services to reach your goals? A description of
your strategy will keep your energies focused on your goals.
 Concern for survival, growth, and profitability: What is the firm's commitment
towards economic objectives? What kind of relationships will you maintain with
suppliers? Every business is in partnership with its suppliers. When you succeed,
so do they.
 Philosophy: What are the basic beliefs, core values, aspirations and philosophical
priorities of the firm? What underlying philosophies or values guided your
responses to the previous questions? Some businesses choose to list these
separately. Writing them down clarifies the "why" behind your mission.
 Self-concept: What are the firm's major strengths and competitive advantages?
How do you differ from your competitors? Many entrepreneurs forget they are
pursuing the same dollars as their competitors. What do you do better, cheaper or
faster than other competitors? How can you use competitors' weaknesses to your
advantage?
 Concern for public image: What is the firm's public image? What image of your
business do you want to convey? Customers, suppliers, employees and the public
will all have perceptions of your company. How will you create the desired
picture?
 Concern for employees: What is the firm's attitude/orientation towards
employees? Wise captains develop a leadership style that organizes, challenges
and recognizes employees.
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3.0 Characteristics of an effective mission statement
Before knowing the ways in which an effective mission can be formulated we must
know the characteristics of an effective mission statement. In order to be effective, a
mission statement should possess the following characteristics.
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.
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. For
instance, ‘Manufacturing bicycles’ is a narrow mission statement 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 the organization could operate.
It should be clear. A mission should be clear enough to lead to action. It should not 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. For example, Asian Paints stresses ‘leadership through excellence’, while
India Today sees itself as ‘the complete news magazine’. The Administrative Staff
College of India considers itself as ‘the college for practicing managers’ and Bajaj Auto
believes in ‘Providing, value for money, for years’. To be useful, a mission statement
should be clear enough to lead to action.
It should be motivating. A mission statement should be motivating for members of the
organization and of 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
clients. Customer service therefore is an important purpose for a banking institution.
It should be distinctive. A mission statement, which is indiscriminate, is likely to have
little impact. If all scooter manufacturers defined their mission in a similar fashion, there
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would not be much of a difference among them. But if one defines it as providing
scooters that would provide ‘value for money, for years’, like Bajaj, it will create an
important distinction in the public mind.
It should indicate major components of strategy. A mission statement along with the
organizational purpose should indicate the major components of the strategy to be
adopted.
It should indicate how objectives are to be accomplished. Besides indicating the broad
strategies to be adopted a mission statement should also provide clues regarding the
manner in which the objectives are to be accomplished.
3.1 Ways to formulate the mission statement of a given business enterprise
After knowing the characteristics of an effective mission statement the following are the
steps for building up an effective mission statement
1st step - Brainstorming
To get started, have a brainstorming session about what you want your statement to
include Ask yourself why you are in business. This is the core question that will
determine the tone and content of your mission statement. Why did you start this
business? What goals do you hope to achieve? Figure out the main purpose of your
business as a way to get the brainstorming session started. Here are a few related followup questions you can also ask yourself:
•
Who are your customers, or the people you aim to help?
•
What role do you play in the industry or field?
Figure out your company's defining characteristics. The tone of your mission
statement should reflect your company's style and culture - its personality, if you will.
Think about how you want your customers and other companies to perceive you, and
write down the traits you believe best represent your company. Think about the
following questions:
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
Is your company conservative and solid, or are you aiming to be groundbreaking
and cutting edge in terms of style?

Do you want to be seen as a company with a sense of humor and a playful side,
or would that be too unprofessional?

What's your company culture like? Is there a strict dress code and a formality to
the place, or are people allowed to come to work in jeans?
Determine what makes your company stand out. Your mission statement doesn't have
to be shocking or "unique" as long as it clearly expresses your goals and style. However,
if you're attempting to do something out of the ordinary with your business, you should
put that in your mission statement. Is there anything that makes your company special?
Write it down.
Make a list of your company's concrete goals. Finally, your mission statement should
include one or more solid goals. What's your long-term plan for the company? What are
your short-term plans? What's the most important thing you're trying to do?
Your goals can be centered on customer service, dominating a certain market, helping
make people's lives better with your product, and so on.
Keep your company's personality in mind when you're writing down your goals. The
two should reflect one another.
2nd step - Crafting the Statement.
Define your company by way of an actionable goal. Now that you've brainstormed
plenty of ideas, it's time to narrow them down to the best and most interesting, to get at
the heart of your company and what it has to offer. Write a sentence that captures what
your company is and what it aims to do. Here are a few examples:
From Facebook: "Facebook’s mission is to give people the power to share and make the
world more open and connected."
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Add concrete, quantifiable elements. Steer away from writing a mission statement
with a big, idealistic vision that isn't rooted in anything concrete. Mission statements that
sound like they were spewed from a mission statement generator cause people's eyes to
glaze over and totally defeat the purpose’.

Instead of saying something like "We aim to make the world a better place," tell
which customers you're aiming to help. Look back at your brainstorming notes
for concrete ideas.

Instead of saying something like "We'll continue to innovate to make our product
the best it can be," say something real about what you're developing. What
constitutes "best" in your field?
Add some personality. Play with the language so that it reflects your company's
personality and style. If your company is formal and conservative, your language should
be formulated to match. If your company is playful and fun, you can get creative with
the language to emphasize that side of your company. Look back at your brainstorming
notes for ideas.

World choice is important, but the structure of your mission statement can also
help you make a point. Some companies start with one word that totally
encapsulates the mission of the company, then write a sentence or two
elaborating.

Consider breaking it down into several smaller mission statements. What's your
mission in terms of your product? How about your customer service mission? If
you want to elaborate on a certain area that's important to your company's image,
go ahead.
Leave out the fluff. A statement with too many adjectives can end up seeming totally
meaningless. "We collectively aim to synergistically customize multimedia based, nextgeneration tools of empowerment." What? As you write your mission statement,
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carefully choose words that actually mean something to you and your company.
Remember that the point of a mission statement is to communicate the truth about your
company. Write what you know
Make sure it's not too long. Your mission statement should be clear and concise, and in
most cases, no longer than a short paragraph. This makes it easier to repeat, copy, and
showcase for the world to see. Do not get muddled up in a wordy mission statement you
won't be able to describe to someone when they ask what your mission is. Best case
scenario, your mission statement will become your slogan.
3rd step - Finalizing the Statement
Get other company members involved. If your company has other employees, they
should have a say in the mission statement, too. Make sure it accurately reflects people's
vision for the company. If you read it to other employees and they stare at you blankly,
you might be off track. Have someone proofread your mission statement to clean up
spelling and grammatical errors.
Test it out. Put your mission statement on your website, print it on brochures, and find
other ways to share it with those who are interested. What reactions does it elicit? If you
like the feedback you're getting, your mission statement is serving its purpose. If it
seems to confuse people, you might need to revisit it.
A mission statement should lead people to ask intelligent questions. People should want
to know more.
Revise it when necessary. As your company evolves, so should your mission statement.
Never let it seem dated or full of information that's no longer relevant to your company's
situation. You should revise it about once a year to keep it fresh. There's no need to start
from scratch, but it's a good idea to continually evaluate whether the statement still
reveals the heart and soul of your company.
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CONCLUSION
As far as explained above, an effective mission statement is very crucial for the
development of any enterprise. In order for you to develop an effective mission you can
have a look at other companies for inspiration but do not copy theirs since the statement
should be about your company, not someone else's. Make sure you believe in your own
statement. If you do not, your colleagues and customers will soon pick up on that. As a
strategic manager you have to be sure that the statement is not limiting or too expansive
in what it portrays. It should be realistic but instill a sense of purpose while having a
leading edge toward tomorrow's vision. Try not to state the obvious or boast about how
great your company is. And make sure that it possesses the main four tips being Value,
Inspiration, Plausibility, and Specificity
EXAMPLES OF MISSION STATEMENTS
For Business organization
The Great Cough Drop Company's mission is to provide our customers with greattasting, long-lasting throat lozenges that can soothe even the driest and itchiest of
throats. We are constantly working to create innovative, all-natural ways of soothing
scratchy throats brought about by allergies, colds, and other sinus-related ailments. Our
products meet the highest quality standards and are 100% organic.
For Non Profit Organizations
Established in 2006, the Pet Supplies Helpline is a non-profit initiative aimed at
providing basic pet supplies on a short-term basis to those who are unable to afford
them. We at PSH understand how hard it can be to give up a beloved pet when times are
tough and money is tight, and we hope to reduce the number of such separations by
providing food, flea medications, and other necessities to pet owners in need.
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REFFERENCES
Hill, Charles; Jones, Gareth (2008). Strategic Management: An Integrated Approach
(8th Revised edition)
Bart, Christopher (July 1997). "Industrial Firms and the Power of Mission
McGinnis, V. (1981). The Mission Statement
Internet sources
 http://www.entrepreneur.com/article/65230
 http://www.fastcompany.com/1400930/how-write-mission-statement
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