Hassan Ali Khan

MBA 1.5 (Sem 1)

Assignment 2

Subject: SM

Mission Statement:

A mission statement is a short statement of why an organization exists, what its

overall goal is, identifying the goal of its operations: what kind of product or
service it provides, its primary customers or market, and its geographical region of
operation.

However, a mission statement should be informative, inspiring, enduring, concise,

clear, and conducive to both employees and customers forming an emotional
bond with the firm. Most practitioners and academicians of strategic
management assert that an effective mission statement should include the nine
components which are suggested by Fred R. David. These are as under:
 Components of a comprehensive Mission Statement:

1. Customers
2. Products or Services
3. Market
4. Technology
5. Survival, Growth and Profitability
6. PHILOCOPY
7. Self-Concept
8. Concerns of public image
9. Concern of Employees

Customers:

Statement includes the consumer market organization is targeting,

there demographics etc.

Products or Services:

Providing information to customer regarding product or services

organization is offering.
Market:

Statement should include location of the organization and

geographically where does the firm compete?

Technology:

Technology adopted by the organization. How advance is the product

or service in current market.

Survival, Growth and Profitability:

The organization’s concern for survival, i.e., commitment to economic

objectives. Financial Potential and necessity in the existence of this
product or service.

PHILOCOPY:

The basic philosophy, beliefs, values and aspirations of the

organization. What benefit firm can and will provide to the positive
growth of a community.
Self-Concept:

Organizational strengths and competitive advantages. What’s unique in

this product or service which only we (Organization) is offering in
particular segment E.g. Quality, Price, after sale services etc.

Concerns of public image:

Organization’s present and prospective responsibilities towards public.

Corporate social responsibility towards community E.g. Environment,
Health, Food, Clean Water , Better Living , Affordability etc.

Concern of Employees:

Concern for employees by paying them adequate compensation

according to their abilities, skills and contribution towards
organizational operations.