Tuesday, August 21, 2012

Components Of The Company Mission.

What are the Components of the company Mission.

There are commonly six most popular Components of the company Mission.
Let us discuss them one by one:

1) Basic product or Services, Primary Market:
What is our basic product or service, mission should give a hint about product or services. Mission should also tell us in which market we want to sell our product or service.

2) Principal Technology:
Mission should tell us about what type of principal technology is being used for production rendering of services by organization.
Three indispensable components of the mission statements are specification of the basic product or services specification of the primary market and specification of the principal technology for production or delivery.

3) Company Goals:
Three economic goals guide the strategic direction of almost every business organization. Whether or not the mission statement explicitly states these goals, it reflects the firms intention to secure survival through growth and profitability.
There are three main types of company goals.

  • Survival
  • Growth
  • Profitability
  • Survival
A firm that is unable to survive will be incapable of satisfying the aims of any of its stakeholders. Unfortunately the goal of survival like the goals of growth and profitability, often is taken for granted to such extent that is neglected as a principal criterion strategic decision making.
  • Growth
A firms growth is tied inextricably to its survival and profitability. In this context, the meaning of growth must be broadly defined. Although product impact market studies have shown that growth in market share is correlated with profitability other important forms of growth do exist.
  • Profitability:
Profitability is the mainstay goal of a business organization. No matter how profit is measured or defined, profit over the long term is the clearest indication of firms ability to satisfy the principal claims and desires of employees and stakeholders.

4) Company Philosophy:
Basic beliefs and values. The statement of company philosophy often called the company creed, usually accompanies or appears within the mission statement. It reflects or specifies the basic beliefs, values, aspirations and philosophical priories to which strategic decision makers are committed in managing the company. Fortunately the philosophy varies little from one firm to another.

5) Public Image:
Both present and potential customers attribute certain qualities to particular business. And Johnson & Johnson make safe product, cross pen makes high quality writing instruments. On the other hand a negative public image often permits firms reemphasize the beneficial aspects of their mission.

6) Company Self Concept:
A major determinant of a firm's success is the extent to which the firm can relate functionally to its external environment. To achieve its proper place in a competitive situation firm realistically must evaluate its competitive strengths and weaknesses. This idea the firm must know itself is the essence of the company self concept. Both individuals and firms have crucial need to know themselves.


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