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Advantages
- A mission statement sets out what an
organisation is trying to achieve, i.e. the reason why
It exists.
- Motivational
for staff
- It
gives stakeholders a sense of common purpose so that all actions are geared towards
the same end. It is evident that employees are really involved in the business
- It
makes decisions easier by enabling options to be compared against the mission
statement. The firm can do this in terms of both
customer and employees promises outlined in its mission
statement
- It
serves as a basis for the firms organisational
objectives
and targets
- It
can be effective in setting/changing organisational culture. The firm may be concerned about its image and is very people orientated. This may
give it a competitive edge.
- A mission statement may help in
decision-making by enabling options to be compared with or referred to the
mission statement
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Disadvantages
- Mission
statements can be too vague and information is not quantifiable
- Mission
statements may be ignored by senior management causing workers to be cynical
- The benefits may be difficult to
quantify. However, these may be clearer in the firms aims and objectives
- Mission
statements may be used as a PR exercise
- Mission statements are often seen as a
marketing ploy rather than meaningful statements of intent. For example the firm
may be autocratic in its decision-making process rather than encouraging
“teamwork”
- Drawing up a mission statement may be
time consuming and may delay taking business decisions and result in the firm
missing out on opportunities such as being first to exploit a new market
- A mission statement may need to be
reviewed periodically in order to ensure relevancy and this may require time
and resources
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