Meaning of Mission

Mission statement is typically focused on its present business scope– “who we are and what we do”; Mission is the reason to exist. It is an expression of the growth ambition of the organization. Mission states what customers it serves, what need it satisfies and what type of product it offers. Sometimes firms fail to conceptualize and articulate the mission and business definition with the required clarity and fails miserably, Mission statement is always intended to answer the basic question ‘what business are we in and what we do’.

Mission focus on organizationspresent capabilities, customer focus, activities and business makeup.

Not possible to lax in the matter of mission and business definition, as the two ideas are absolutely central to strategic planning and mission ensures that these two central points of mission is achieved.

 

Why an organization should have a mission?

There are following reason for having mission of the organization -

1. For resource allocation basis and motivation for optimum use of resources
2. To ensure unanimity of purpose within the organization.
3. To establish a general tone or organizational climate, for example, to suggest a business like operation.
4. To serve as a focal point for those who can identify with the organization’s purpose and direction.
5. To setobjective and goals translation facilitates them into a work structure involving the assignment of tasks to responsible elements within the organization.
6. For Not only cost but time, and performance parameters can be assessed and controlled for organizational purposes and the translation of these purposes into goals
7. Standard for allocating organizational resources.

 

Guidelines for Formulation of  Mission Statement

A company’s mission statement is typically focused on its present business scope––”who we are and what we do”. Mission statements broadly describe an organization’s present capabilities, Customers, Community, Employees, and Partners –Vendor, Channel Partners, suppliers, and Share-holders.

Following points are useful while writing a mission of a company:

1. Profit is not the only motive behind the business
2. Personalized-Good mission statements are personalized and unique to the organization for which they are developed.
3. Reason to exist-Mission statement should be a reason to exist. Like TATA motors is to exist for customers and community.
4. Optimization of priority-A company’s business is defined by what needs it is trying to satisfy, which customergroupsitistargetingandthetechnologiesandcompetenciesituses and the activities it performs.
5. Future oriented-A good mission statement must be future in its present action
6. Identity Special- One of the roles of a mission statement is to give the organization its own special identity, business emphasis and path for development – one that typically sets it apart from other similarly positioned companies.
7. Transparency- A good mission statement should be transparent and clear.

 

Some Examples of Mission are:

Mission: Mission is the map of the firm’s business, its goals and ways to reach the goals. It explains the reason for the existence of the firm in the society. It helps potential share holders and investors understand the purpose of the company. A mission statement helps to identify, ‘what business the company undertakes. ’It defines the present capabilities, activities, customer focus and role in society.

Mission of ICAI

ICAI: Leverage technology and infrastructure and partner with its stakeholders to impart world class education, training and professional development opportunities to create global professionals.

Develop an independent and transparent regulatory mechanism that keeps pace with the changing times. Ensure adherence to highest ethical standards. Conduct  cutting  edge  research  and  development  in  the  areas  of  accounting, assurance, taxation, finance and business advisory services

Mission of Reliance        

Reliance Industries: Create value for all stakeholders .Grow through innovation .Lead in good governance practices .Use sustainability to drive product development. Enhance operational efficiencies .Ensure energy and security of the nation. Foster rural prosperity.

Mission of TATA Power

TATA Power:  We will become the most admired and responsible Power Company delivering sustainable value by:

-              Operating our assets at benchmark levels.

-              Executing projects safely, with predictable benchmark quality, cost and time.

-              Driving organizational transformation that will make us has the conviction and capabilities to deliver on our strategic intent.

-              Achieving our sustainability intent of ‘Leadership with Care’, by having leading and best practices on Care for the Environment, Care for the Community, Care for the Customers and Shareholders, and Care for the People.

TATA Motors:

Customers: To strengthen the Tata brand and create lasting relationships with the customers by working closely with business partners to provide superior value for money over the lifecycle.

Community: To proactively participate in reshaping the country’s economic growth. To take a holistic approach towards environmental protection.

Employees: To create a seamless organization that incubates and promotes innovation, excellence and the Tata core valuesequal to Weighted Average Cost of Capital (WACC) during the downturn of the business cycle.

Partners- Vendor and Channel Partners: To foster a long-term relationship so as to introduce a broad range of innovative products and services that would benefit our customers and other stakeholders.

Shareholders: To consistently create shareholder value by generating returns in excess of Weighted. Average Cost of Capital (WACC) during the upturn and at least.

 

What is our Mission and What Business are We In?

The firm should raise and answer certain basic questions concerning its business, such as:

— What is our mission?

— What is our ultimate purpose?

— What do we want to become?

— What kind of growth do we seek?

— What business are we in?

Mission in Respect of External perspective or Marketing Perspective

In the retail outlet, we sell hope

According to Peter Ducker, every organization must ask an important question— “What business are we in?” and get the correct and meaningful answer. The answer should have marketing or external perspective and should not be restated to the production or generic activities of business. The table given below will clarify and highlight the importance of external perspective.

Company	Production-oriented answer	Marketing-oriented answer
Indian Oil	We produce oil and gasoline products.	We provide various types of safe and cost-effective energy.
Indian Railways	We run a railroad	We offer a transportation and material-handling system.
Revlon	In the factory, we make cosmetic	In the retail outlet, we sell hope.