The Role of Mission Statements in the Strategic Management Process
Strategic Management
Coursework November 2012
Monday, 05 November 2012
Subject
“In writing mission statements, you are creating a brief description of what you want to focus on and what you want to accomplish.....”
‘The elements of success’, (internet website)
Discuss this statement and examine the role of mission statements in the Strategic Management process. (Your work should include examples to illustrate points made).
Table of content
Subject 2 Table of content 2
Introduction 3 I. Mission statement: the core of the company 4 II. The first strategy step 6 Summary / Conclusion 8 Bibliography 9 Books 9 Article 9
Introduction
Nowadays the creation of a company takes a lot of time and there are a lot of different steps to go through. Set-up a strategy is essential, the strategic management process exist to do so. One of the main first parts of this process is to make a mission statement; it’s a management concept which created a lot of disagreement between CEO’s, analysts and the human resource department. In their study, Bart and Baetz (1996) suggest that a well-crafted mission statement has to insure unanimity of the company purpose. It gives direction for all the stakeholders and provides a basis for objectives and strategies. A comprehensive mission statement will bring a clear business vision for all. According to a lot of studies (Alavi, Karami, 2009) or (Mullan 2002) the mission statement is an inseparable part of the corporate strategy and they maintain this statement based on the impact on performance. But Sufi and Lyons (2003) on their recent research said that there is no correlation between the mission statement and the annual turnover. There is a way to improve the company performances by managing their mission statement.
According to Welch and Welch (2005, p.14) an effective mission statement has to answer one and only one question: How do we intend to win this business?
Coursework November 2012
Monday, 05 November 2012
Subject
“In writing mission statements, you are creating a brief description of what you want to focus on and what you want to accomplish.....”
‘The elements of success’, (internet website)
Discuss this statement and examine the role of mission statements in the Strategic Management process. (Your work should include examples to illustrate points made).
Table of content
Subject 2 Table of content 2
Introduction 3 I. Mission statement: the core of the company 4 II. The first strategy step 6 Summary / Conclusion 8 Bibliography 9 Books 9 Article 9
Introduction
Nowadays the creation of a company takes a lot of time and there are a lot of different steps to go through. Set-up a strategy is essential, the strategic management process exist to do so. One of the main first parts of this process is to make a mission statement; it’s a management concept which created a lot of disagreement between CEO’s, analysts and the human resource department. In their study, Bart and Baetz (1996) suggest that a well-crafted mission statement has to insure unanimity of the company purpose. It gives direction for all the stakeholders and provides a basis for objectives and strategies. A comprehensive mission statement will bring a clear business vision for all. According to a lot of studies (Alavi, Karami, 2009) or (Mullan 2002) the mission statement is an inseparable part of the corporate strategy and they maintain this statement based on the impact on performance. But Sufi and Lyons (2003) on their recent research said that there is no correlation between the mission statement and the annual turnover. There is a way to improve the company performances by managing their mission statement.
According to Welch and Welch (2005, p.14) an effective mission statement has to answer one and only one question: How do we intend to win this business?
Bibliography: * Dessler G., (2007), Human Resource Management, 11th edition, pp. 78-81, USA – Upper Saddle River (NJ): Pearson Prentice Hall * Hill, C., Jones, G * David, F. David, F. (2003). It’s time to redraft your mission statement. Journal of Business Strategy [e-journal] 24(1), 11-14. Available through: Emerald [Accessed 05 November 2012]. * Karami, A., Taghi Alavi, M. (2009). Managers of small and medium enterprise: mission statement and enhanced organizational performance. Journal of Managemen Development [e-journal] 28(6), 555-562. Available through: Emerald [Accessed 05 November 2012]. * Simpson, D., Gordon, S., Marsh, B. (1994). Rethinking vision and mission. Strategy & Leadership [e-journal] 22(5), 9-11. Available through: Emerald [Accessed 05 November 2012]. * Denton, K. (2001). Mission statements miss the point. Leadership & Organization Development Journal [e-journal] 22(7), 309-314. Available through: Emerald [Accessed 05 November 2012]. * Sufi, T., Lyons, H. (2003). Mission statements exposed. International Journal of Contemporary Hospitality Management [e-journal] 15(5), 255-262. Available through: Emerald [Accessed 05 November 2012]. * Bart, C., Baetz, M. (1998). The relationship between mission statements and firm performance: an explosive study. Journal of Management study [e-journal] 35(6). Available through: Emerald [Accessed 05 November 2012]. * Mullane, J. (2002). The mission statement is a strategic toll: when used properly. Management decision [e-journal] 40(5), 448-455. Available through: Emerald [Accessed 05 November 2012].