A mission statement declares an organization's core purpose and focus, which generally remains constant over time. It states the sole reason the entity exists. Mission statements can play an important role in planning by outlining how the organization will fulfill its mission and act as a yardstick to evaluate plans. However, there are also limitations to mission statements, as they are sometimes ignored in practice, used merely for public relations, or contain vague generalizations instead of clear objectives.

1. • A mission statement is a
statement of the purpose of a
firm, organisation or person. It
states the sole reason for an
entity’s existence. A written
declaration of an organisations
core purpose and focus which
generally remains unchanged
over time.
• These objectives are
quantified and defined as
targets. The strategic
objectives for a commercial
organisation will include one
or more financial objectives.
2. Mission Statements

2. Firms like Tesco, that enjoy long-term
success, are focused businesses.
They have a core vision that remains
constant while the strategies and
practices adapt to a changing world.
2.1 Mission Statements – Tesco case study

3. Tesco’s vision consists of five elements which
outline the sort of company it aspires to
be:
1. Wanted and needed around the world
2. A growing business, full of opportunities
3. Modern, innovative and full of ideas
4. Winners locally whilst applying skills
globally
5. Inspiring, earning trust and loyalty from
customers, our colleagues and
communities.
The vision, mission statement and goals are
interrelated and state what an
organisation is seeking to achieve whereas
the strategies and tactics show how it will
achieve them.
Tesco case study

4. There is no standard format, but they should all
possess the following elements:
• Flexibility. - This is to accommodate change in
a dynamic business environment.
• Brevity. – Easy to understand. Straight to the
point.
• Distinctiveness. - To make the firm stand out
2.2 Mission Statements – Structure

5. Mission statements can play an
important role in the planning
process.
a) Plans should outline the
fulfilment of the organisation’s
mission
b) Evaluation and screening. The
mission acts as a yardstick by
which plans are judged.
c) Implementation of strategy.
Mission affects the
implementation of a planned
strategy in the culture and
business of the firm
2.3 Mission Planning – Structure

6. Problem Comment
Ignored in practice The inherent danger of a stated mission is
that it will be ignored, and an organisation
may pursue objectives that are not
consistent with its stated mission
Public relations Mission statements sometimes are merely
for public consumption, not for internal
decision making.
Post hoc' Missions are sometimes produced to
rationalise the existence of the organisation
to a particular audience. In this case what
an organisation actually does is assumed to
be a mission.
Full of generalisations Mission statements full of generalisations
such as 'great' 'big' and 'major' are in
danger of becoming nothing more than a
wish list.
2.4 Limitations of mission statements

7. Organisations can be
departmentalised on a
functional basis for
marketing, finance,
production etc, a
geographical basis, e.g.
Africa, EU, USA, a product
basis. Organisation
structures often feature a
variety of these types, as
hybrid structures
2.5 Organisation Structure