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A Purpose and Mission Statement

31December

A Purpose and Mission Statement

Purpose and mission Statement

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The vision statement provides the core foundation for developing the organization purpose and mission statement, which describes the general purpose of the organization. The purpose and mission statement is the organization’s core broad purpose and reason for existence. The two components that are often featured in the purpose and mission statement are the care values and the core proposes. The core values outline the guiding principles and ethical standards by which the organization will conduct itself, no mater the circumstances.

Purpose and mission statements identify the underlying design, aim, or thrust of a company. They may be expressed at different levels of abstraction. For example, they may be expressed as a grand design such as “Our business is service,” which was for a long time the dominant expressed aim of American Telephone and Telegraph Company. Another is Du Pont’s “Better things for better living through chemistry.” When Vincent Learson was president of IBM his expressed grand purpose and mission was worded thus: “Our goal is simply stated. We want to be the best service organization in the world.”5 Voiced in this way such aims can be considered basic purposes or philosophies. They also may be considered public relations and/or advertising slogans. When taken seriously by management, how- ever, they can be very significant. There are many people, for example, who believe that the grand design voiced by Learson was a primary reason for the great success of IBM.

Purpose and missions tend to be stated in product and market terms. For example, “maintain a viable, growing business by developing, producing, and marketing engineered products and services to satisfy selected needs of utility, construction, and manufacturing industries.’ Purpose and missions should be stated at least in both product and market terms. The reason is that specification of a product line of business without designation of market may result in too wide a purpose and mission scope. For example, to say that “we are manufacturers of airplanes” is virtually meaningless. A firm is in a very different business if it is a producer of commercial planes as compared with general aviation airplanes, or toy airplanes, or fighter aircraft. There is much more directive power to linking products and markets, such as “We are manufacturers of air conditioners for transportation vehicles.”

Some companies ask their divisions to prepare purpose and mission statements with more content than this. Pillsbury, for instance, asks its divisions to prepare “charter” statements that include product and market, distribution systems, processing systems and technologies, relationships with other Pillsbury businesses, and anything unique about the division’s business.

Purpose and mission statements establish a sense of purpose. Purpose and mission statements, aside from providing general guides for strategic planning, have specific relevance to the formulation of program strategies and the nature of a business. Purpose and mission statements demonstrate the need for defining the competitive arena in which a business operates. They determine how resources will be allocated to different demands. They determine the size of the company. They make much easier the task of identifying the opportunities and threats that must be addressed in the planning process. They open up new opportunities, as well as new threats, when changed. They prevent people from “spinning their wheels” in working on strategies and plans that may be considered completely inappropriate by top management.

If devised appropriately, purpose and missions or revisions of purpose and missions can turn a company around. To illustrate from the past, I am convinced that the Baldwin Locomotive Works would still be alive and strong today had it said that its purpose and mission was to make tractive power for railroads, instead of steam locomotives. Buggy whip manufacturers might still be around if they had said their business was not making buggy whips but self-starters for carriages!

The D. H. Baldwin Company was a manufacturer of pianos from the 1890s to the 1960s. As a result of growing competition, especially from Japan, the company found itself in trouble. It discovered, however, that one lucrative part of its business was financing retail sales. This led the company to look at financial institutions as a new line of business. In 1968 it bought Empire Savings, Building & Loan Association, based in Denver. Today D. H. Baldwin is “a multi-bank music company” -and very prosperous. Refer G Steiner

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Posted by ZuzukiSX4  Posted on 31 Dec 
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