Central University of Rajasthan Dept of Commerce Narendra kumar 2014-2016

1. Organisational Mission &
purposes
Presented By : Narendra kumar
M.com (4th sem)
Id : 2014mcom009

2. Meaning Of Organisation
Mission
An “organisation” is a group of individuals working
together to achieve one or more objectives .
Mission
A mission is a statement describes how the
business is going to accomplish it’s vision .
Purpose or reason for the organisation existence.
It is a statement which defines the role that an organisation plays
in a society also describes the product , market and
technological areas.
It is a written documents , foundational guidelines prepared at a
corporate level by a top managerial person for a establishment
of a company objectives and strategies.

3. Content
 Characteristics of mission statement.
 Importance of mission statements.
 Components of mission statements.
 Customer orientation .
 Examples.
 Benefits of mission statements.
 Purposes.

4. Characteristics of mission
statement
 Feasible
 Precise i.e. less than 250 words in length and never
include monetary amounts, numbers, %, ratio.
 Clear ,concise and well-written.
 Motivating , inspiring , distinctive.
 Major components of strategy.
 Identify the utility of firm products.
 Reveal that the firm is socially responsible.
 Long term in nature .
 Include nine components i.e. Customers ,product or
services, markets ,technology , concern for survival
growth and profitability , philosophy , self- concept
,concern for public image and concern for employees.

5. Importance of Mission
Statements
 It determines the company’s direction
 It focuses on company futures.
 It provides a template for decision making.
 Its forms the basis for alignment.
 It welcome helpful change.
 It shapes strategy.
 It facilitates evaluation and improvement.

6. Components of Mission
Statements
 Customers : Who are the firm’s customers ?
 Products or services : What are the firm’s major
products or services ?
 Markets : Geographically, where does the firm
complete?
 Technology : Is the firm technologically current ?
 Concern for survival growth and profitability : Is the
firm committed to growth and financial soundness ?

7. Cont...
• Philosophy : What are the basic beliefs , values ,
aspirations and ethical priorities of the firm ?
• Self-concept : What is the firm’s distinctive
competence or major competitive advantage ?
• Concern for public image : Is the firm responsive to
social , community and environmental concerns ?
• Concern for employees : Are employees are a
valuable asset of the firm ?

8. A customer orientation
A mission statements should :
• Define what the organisation is and what the
organisation aspires to be
• Be limited enough to exclude some ventures and
broad enough to allow for creative growth
• Distinguish a given organisation from all others
• Serve as a framework for evaluating both current
prospective activities
• Be stated in terms sufficiently clear to be widely
understood throughout the organisation
• A good mission statement reflects the anticipations of
customers
• The operating philosophy of organisations should be
to identify customers needs and then provide a
product or service to fulfil those needs

9. Examples
Infosys
“ To achieve our objectives in an environment
of fairness , honesty and courtesy towards
our clients , employees , vendors and
society at large”.
Wal-Mart
“ Is to help people save money so they can
live better”.
Google’s
“To organize the world’s information and
make it universally accessible and useful” .

10. Cont..
Toyota Motor
“Toyota seeks to create a more prosperous society
through automotive manufacturing” .
Mary Kay cosmetics
“To give unlimited opportunity to women” .
Face book
“To give people the power to share and make the
world more open and connected” .
Ford Motor Company
“One team ; one plan ; one goal ; one ford” .

11. Benefits of mission
 Encourages team work.
 Scope of efforts.
 Improves morale.
 Helps in strategy formulation .
 Resolve stakeholder conflict.
 Help in marketing process by communicating
with customers.

12. Purposes of organisation
 Profitability
 Growth & expansion
 Shareholder Value
 Customer Satisfaction
 Wealth Maximization
 Image reputation and social responsibility
 Increase in GDP
 Balance regional development
 Employment generation
 Full utilization of resources