Under both UK and EU law, a company must state what it is in business to do - this is known as its overall aimand it can be embodied in a mission statement. This is often a simple and memorable sentence which explains what the organisation is in business to do and what it wants to achieve. A mission statement can often be found in the front of a company's annual report and it is, effectively, a summary of its day-to-day activities and long-term objectives, showing a sense of underlying purpose and direction.
It is often argued that mission statements are best when they are simple and informal. For example:
Ford Motor Company PLC "...is a worldwide leader in automative products and services, as well as in newer industries such as aerospace and communications. Our mission is to improve continually and meet our customers' needs, allowing us to prosper as a business and to provide a reasonable return for our shareholders."
Cadbury Schweppes PLC "...is a major international company with a clear focus on its two core businesses - confectionery and beverages. Our quality brands are bought and enjoyed in more than 110 countries around the world..."
The Body Shop PLC "...to dedicate our business to the pursuit of social and environmental change..."
A good mission statement should be clearly defined, realistic and achievable, and at the same time it should ensure that the employees' attention is focussed towards the overall company aim.
Mission statements normally express the organisation's objectives in qualitative terms, (as opposed to quantitative, that is, facts and figures) and many businesses include the following variables in their mission statement: their number one priority, their product definitions, their non-financial objectives and their overall values and beliefs.
Although many people view mission statements as a focus for employees and for other stakeholders, they are still viewed by their critics as nothing more than a publicity seeking exercise.
It is important to understand how business ojectives 'fit in' with business aims and strategies.
-An aim states what you want
-An objectives set out what you need to have achieved to get what you want
-A strategy is a course of action which enables you to meet your objectives.
In order for objectives to be effective, they must:
1.provide detail about what specifically needs to be…