Critical appraisal of mission statement / corporate aims 3.1.1
Mission Statement - is a short term statement of the company's vision and
values which helps to set aims and objectives and also detail the overall reason for its existence. This enables employees,
managers and customers and possible some suppliers to understand the
conduct of the business. It is a statement of purpose, such as 'grow our
market share in the UK'. Nike's mission statement is; "To bring
inspiration and innovation to every world athlete".
Corporate objectives - Measurable, clearly defined targets for how to achieve business aims. Effective objectives should be SMART (specific, measurable, achievable, realistic and time specific)
A good mission statement should differentiate the business from its competitors, be relevant to all major stakeholders, define the market in which the business wants to succeed, and inspire and motivate stakeholders, especially employees. It should also be brief, realistic, based on a consultation with stakeholders, be specific to the business and be supported by senior managers.
IKEA's mission statement to make everyday life better is based on a partnership between the business, employees, suppliers and customers and appears to meet all the criteria of a good mission statement.
A good mission statement can give a business a clear sense of direction and acts as a form of advertising. However, mission statements can often be too vague, too long-winded and state the obvious. They can sometimes only be created largely for public relations purposes rather than acting as a focus for business strategy. They may not reflect the reality of what the business values. Fine words mean nothing if a bullying manager gets promoted instead disciplined. As a consequence, employees can be cynical about the mission statement, which risks undermining its value. That in turn can affect the achievement of aims and objectives.
Mission statements need to be authentic and should evolve as the business and its market changes.
Corporate objectives - Measurable, clearly defined targets for how to achieve business aims. Effective objectives should be SMART (specific, measurable, achievable, realistic and time specific)
A good mission statement should differentiate the business from its competitors, be relevant to all major stakeholders, define the market in which the business wants to succeed, and inspire and motivate stakeholders, especially employees. It should also be brief, realistic, based on a consultation with stakeholders, be specific to the business and be supported by senior managers.
IKEA's mission statement to make everyday life better is based on a partnership between the business, employees, suppliers and customers and appears to meet all the criteria of a good mission statement.
A good mission statement can give a business a clear sense of direction and acts as a form of advertising. However, mission statements can often be too vague, too long-winded and state the obvious. They can sometimes only be created largely for public relations purposes rather than acting as a focus for business strategy. They may not reflect the reality of what the business values. Fine words mean nothing if a bullying manager gets promoted instead disciplined. As a consequence, employees can be cynical about the mission statement, which risks undermining its value. That in turn can affect the achievement of aims and objectives.
Mission statements need to be authentic and should evolve as the business and its market changes.
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