Mission statement

Question 1

What is a mission statement?

Answer 1

• An organisation’s mission is ‘the most generalised type of objective
• written communication of mission to internal and external stakeholders.
• usually a brief statement set out in general terms which doesn’t include a timescale or commercial terms.

Question 2

What model should be followed for the features of an effective mission statement?

Answer 2

The Ashridge College Model

Question 3

What are the four features of an effective mission statement?

Answer 3

PURPOSE - Why does the organisation exist and what does it aim to achieve for its stakeholders?

STRATEGY - What resources, competencies or generic strategy give the company a competitive advantage?

POLICIES - What standards and behavioural patterns are adopted within the organisation?

VALUES - What beliefs do the managers and employees share?

Question 4

Advantages for mission statements

Answer 4

• Help resolve stakeholder conflict
• Set the direction of the organisation and so help formulate strategy.
• Help communicate the values and direction of the organisation to stakeholders.

Question 5

Criticisms of mission statements

Answer 5

• Often full of meaningless terms like ‘the best’, which give staff little idea of what to aim at.
• Often ignored by managers.
• Often considered to just be a public relations exercise.