This document discusses the definitions and purposes of mission statements and organizational purpose. It states that a mission statement defines an organization's role in society and flows from its overall purpose, which is about how the organization meets societal needs. The mission explains the organization's philosophy and what it aims to achieve, while purpose is about who benefits and why managers do more than the minimum. It also provides characteristics of effective mission statements and how they are formulated through formal and informal processes led by CEOs and consultants.

1. Mission and Purpose

2. Mission & Purpose
• Mission is a statement which defines the role
that an organization plays in the society. The
mission of an organization flows from its
overall purpose.
• While purpose talks about the organization
need to the society, the mission defines the
business of the organization (Any thing which
an organization strives for)

3. Mission and Purpose
• Mission Statement explains corporate
philosophy, identity, character and provides
enlightens to the insiders and outsiders as to
what the organization stands for
• Whereas Purpose talk about why does the
company exists, who should benefit from all
the effort that is put into the company and
why should a manager do more than the
minimum required

4. Mission and Purpose
• Mission talks about what is our business, what
will it be? And what should it be?
• Purpose talks about the dominant role the
society expected to play, i.e, the organization
uses society’s resources to produce needed
goods and services efficiently, effectively and
in a responsible manner.

5. How an organization define its
mission?
• An organization can define its mission in terms
of
• Products or services
• Markets or customer need. While defining an
enterprise mission in terms of products or
services, the firm should aims at specific
market segment having homogeneous set of
buyers like age, income, class geographical
location or religion.

6. Characteristics of Mission Statement
• A mission statement should be feasible,
realistic and achievable
• It should be precise
• It should be inspiring and enduring
• It should be motivating

7. • It should be distinctive
• It should indicate the major components of
strategy
• It should indicate how objectives are to be
accomplished

8. How are mission statement
formulated?
• It is formulated
• Formally and informally
• This done based on organization's purpose
and vision.
• Major strategies could also contribute to the
development of mission statement
• CEO plays an important role in formulating the
mission statement. He can also be guided by a
consultant

9. How are mission statement
formulated?
• Select an strategic focus point which must be
core for both the future strategy and the
current and future value system
• It should be easy to translate into standards of
behaviour
• It should have strong value associations that
are attractive to large sections of employees.
• It should be non-controversial and be able to
get a wide base of support

10. Mission, Goal and Business definition
Business Definition (Who are we?)
 scope of the organization’s operations
 customers served, needs satisfied,
means/technology used
Business Mission (What do we do?)
 the organization’s purpose
 customers, products/services, markets,
philosophy, technology
Business Goals (Where are we going?)
 problem-centered and future-oriented
 situation analysis

11. Examples of Mission statement
• Microsoft
• To empower people through great software,
any time, any place on any device.
• Polaroid
• Performing and marketing instant
photography to satisfy the needs of more
affluent US and West European families for
affection, friendship, fond memories and
humor

12. • The End