May 2016 Q2 a.
One of the common threads many successful firms share is that they have a workable mission statement. Explain FIVE reasons a mission statement may contribute to a firm’s success. (10 marks)
View Solution
i) Provides Focus: A mission statements provides the organization with a focus for strategic decision. Successful companies use the mission statement to remind their employees about the direction of the firm.
ii) Basis for decision making: A clear mission statement outlines the borders which will enable the firm to delegate activities to employees because all the decisions will be made within the framework of the mission statement.
iii) Guidance for behavior: A mission statement helps to create a work environment where there is a sense of common purpose for all employees.
iv) Informs the public: Mission statements communicate the nature of the organization to outsiders. Mission statements communicate the goals of the organization and its importance to the outside world.
v) The mission statement also enables the communication of company culture throughout the whole organization.
vi) The mission statement stimulates debate as to how the mission can be realized. (Any 5)