Unit:2

Mission Statement : A written declaration of an organization's core purpose and focus that normally remains unchanged over time. Properly crafted mission statements (1) serve as filters to separate what is important from what is not, (2) clearly state which markets will be served and how, and (3) communicate a sense of intended direction to the entire organization.A mission is different from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment.

A public declaration of an organization's purpose comprised of its guiding principles, core values and strategic goals much like a mission statement.

"The mission statement reflects every facet of your business: the range and nature of the products you offer,pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community.

It is important that a mission statement is not confused with a vision statement. As discussed earlier, the main purpose of a mission statement is to get across the ambitions of an organisation in a short and simple fashion, it is not necessary to go into detail for the mission statement which is evident in examples given. The reason why it is important that a mission statement and vision statement are not confused is because they both serve different purposes. Vision statements tend to be more related to strategic planning and lean more towards discussing where a company aims to be in the future.

What Is the Difference Between an Objective & Mission Statement?

The differences between an objective and a mission statement are vast, but subtle. While the mission statement expresses the big picture, the objective is more grounded and more attainable than the mission. The mission statement is supported by objectives. The objectives are designed to make the broad-minded mission statement an achievable one.

Mission

In business, the mission statement is a broad but simple statement that expresses the business’s defined vision. The vision is, in essence, the mission statement’s big picture. The mission statement puts the vision into words and sets the tone for the business’s goals. The mission statement also establishes the structure for the business’s core values and principles. These values and principles help to guide the actions and conduct of the business’s staff.

ObjectiveThe goals are a series of levels the business outlines to accomplish its mission. Each goal, or level, is separated by a series of stepping stones that the business must climb to reach each goal. The stepping stones are objectives. The objectives, unlike the mission statement, are actionable and measurable steps. There are usually multiple goals and objectives needed to achieve the business’s mission statement.

Hierarchy Of Objectives.

Objective have a hierarchy.They can be set at different levels of organization.They can be at following levels :

1. Corporate level objectives :They are strategic objective set by top management.They defined long-term desired outcomes.They consist of vision,mission and strategy.They are stated broadly.

• Vision :It states the reason for the existence of the organization.It defends the scope and boundaries of the present business of organization.It is the purpose of the organization.

• Strategy :It is a broad action plan for achieving objectives.It provide long-term direction and scope to an organization.

2. Business units level objective :They are set for each strategic business unit(SBU).They defined the business of the organization.They are desired outcomes for each SBUover long term in particular markets.They are set for key result areas,such as profit,market share,sales.They follow from corporate level organization.SBU level objectives deal with the following aspects for each SBU:

• Long-term profanity

• Market share growth

• product category scope:product line and items

• Positioning among competitive

• Now business opportunity,etc.

. Function level objective :They set specific targets for each function of SBU.The function can be operation,marketing,finance,human resources,research and development.They follow from SBU objectives.

• Lowering cost of production

• Market coverage in the chosen segment

• Level of customer satisfaction

• Fund generation

• Programmes for human resources development

• New products to be launched

• Advertising and sales promotion targets,etc.

4. Individuals level objective :They are related to daily or weekly perforation of each employee.They follow from functional objectives.They deal with :

• Level of output per employee

• Reject and waste

• Sales per salesperson

• Career planing and development,etc.