2.  A Mission Statement is needed to
determine how to strategically manage.
 A Mission Statement is the first element
determined in a comprehensive strategic
management model.

3. Strategy
Formulation
Strategy
Implementation
Evaluation
and Control
Mission
Objectives
Strategies
Feedback/Learning
Environmental
Scanning
Societal
Environment
General Forces
Task
Environment
Industry Analysis
Structure
Chain of Command
Resources
Assets, Skills
Competencies,
Knowledge
Culture
Beliefs, Expectations,
Values
Reason for
existence
What results
to
accomplish
by when Plan to
achieve the
mission &
objectives
Programs
Activities
needed to
accomplish
a plan
Budgets
Cost of the
programs
Procedures
Sequence
of steps
needed to
do the job
Process
to monitor
performance
and take
corrective
action
Performance
External
Internal
Go through decision-
making process and
Determine
alternative
strategy To select

4.  An enduring statement or purpose
distinguishing our organization from
others.

5. Mission Statement are found in an
organization’s literature such as in annual
reports. Names associated with Mission
Statements:
Statement of Philosophy
Statement of Purpose
Vision Statement
Statement of Business Principles
As many as 1/3 of major companies don’t
Have a Mission statement

6. Below are companies without a formal
written Mission statement. Some are
quite successful. The mission statement is
usually implied in the corporate literature.
In your cases you may have to assume a
mission statement.
Wal-Mart
Disney

7. 7
Why is a Mission Statement Important?
- To Insure Unanimity of Purpose
- To Provide a Basis for Allocating Resources
- To Serve as a Focal Point for Individuals
- To Reconcile Differences Among Stakeholders
- To Resolve DivergentViews Among Managers
- To Arouse Positive Feelings About the Firm
- To Provide a Basis for Goals and Strategies
- To Provide Direction
©1999 Prentice Hall

8. 8
Mission Statement
Answers the Question
“What is Our
Business?”
Vision Statement
Answers the Question
“What DoWe Want
to Become?”
VisionVersus Mission
©1999 Prentice Hall

9. A good Mission Statement has the elements described
below according to McGinnis:
1 Defines what the organization is and what
the organization aspires to be.
2 Is limited enough to exclude some ventures
and broad enough to allow for creative growth.
3 Distinguishes a given organization from
all others.
4 Serves as a framework for evaluating both
current and prospective activities.
5 Is stated in terms sufficiently clear to be widely
understood throughout the organization.

10. 10
Components of a Mission Statement
Customers
Products or Services
Markets
Technology
Concern for Survival and Growth
Philosophy
Self-Concept
Concern for Public Image
Concern for Employees

11.  System: array of components that work
together to achieve goal or goals
 System
 Accepts input
 Processes input
 Produces output

12.  System may have multiple goals
 System may contain subsystems
 Subsystems have sub-goals that meet main
goal
 Subsystems transfer output to other
subsystems

13.  Closed system: has no connections with
other systems
 Open system: interfaces and interacts with
other systems
 Often a subsystem of a bigger system
 Information system: processes data and
produces information

14.  Systems thinking: thinking of an organization in
terms of subsystems
 Database: collection of electronic records
 Information systems automate exchange among
subsystems
 Information map: network of information
systems
 Information technology: technologies that
facilitate construction and maintenance of
information systems

15.  Humans are relatively slow and make
mistakes
 Computers cannot make decisions
 Synergy: combining resources to produce
greater output

17.  Computer-based Information system:
system with computer at centre
 Certain trends have made information
systems important in business
 Organisations lag behind if they do not use
information systems

19.  Input: collect and introduce data to system
 Transaction: a business event, usually entered as
input
 Data processing: perform calculations on input
 Output: what is produced by the information
system
 Storage: vast amounts of data stored on (for
example) optical discs

20.  Input devices: receive input
 Computer: process data
 Output: displays information
 Storage devices: store data
 Network devices: transfer data