Nov 2019 Q3 b.
Explain FOUR (4) reasons for developing a mission statement for the company. (10 marks)
View Solution
- Formulation of plans: A mission statement would facilitate the formulation of the company’s plans. A mission statement would serve as guideposts that would direct how the company’s plans should be formulated in order to achieve its objectives.
- Evaluation and screening: A mission statement would act as a benchmark by which the company’s plans are judged. The company would use the mission statement to assess whether its activities are in line with its ethical values, beliefs and general performance.
- Strategy implementation: The mission statement would affect the implementation of the planned strategies of Hard Leather Ltd. This is because the mission statement will determine how the company conducts its business.
- Unanimity of purpose: A mission statement would ensure unanimity of purpose within the company. The development of a mission statement will direct all employees towards the achievement of a single established purpose.
- Translation of objectives: A mission statement would facilitate the translation of objectives into work structure. This is because it is the mission statement that would determine the assignment of work responsibilities to individuals within the company.
- Allocation of resources: A mission statement would provide the basis and a standard for disbursing the company’s resources.
(Any 4 points)