NED University of Engineering Sciences & Technology

Dated: 26-Dec-2018

Assignment # 01

Strategic Planning & Decision Making

Name: Salman Amir

Batch: QM_Sem_1_Batch_2018
Date of submission: 31-Dec-2018
Instructor: Dr. Aqeel Ahmed

ASSIGNMENT QUESTION

Find the mission statement of any 2

companies/organizations, & brief main mission
components in mission statement and list out those
components which are not present in mission
statement.
 COMPONENTS OF AN EFFECTIVE MISSION STATEMENT

Mission statements can and do vary in length, content, format and specificity. Most
practitioners and academicians of strategic management consider an effectively
written mission statement to exhibit nine characteristics or mission statement
components. Since a mission statement is often the most visible and public part of
the strategic management process, it is important that it include most, if not all, of
these essential components. Components and corresponding questions that a
mission statement should answer are given here.

1. Customers: Who are the enterprise's customers?

2. Products or services: What are the firm's major products or services?
3. Markets: Where does the firm compete?
4. Technology: What is the firm's basic technology?
5. Concern for survival, growth, and profitability: What is the firm's commitment
towards economic objectives?
6. Philosophy: What are the basic beliefs, core values, aspirations and philosophical
priorities of the firm?
7. Self-concept: What are the firm's major strengths and competitive advantages?
8. Concern for public image: What is the firm's public image?
9. Concern for employees: What is the firm's attitude/orientation towards
employees?

There are 02 types of mission statements:

Customer-oriented missions. Customer-oriented missions define organization’s

purpose in terms of meeting customer needs or providing solutions for them. They
provide more flexibility than product-oriented missions and can be easily adapted to
changing environment.

Product-oriented missions. Product-oriented missions focus on what products or

services to serve rather than what solutions to provide for customers. These
statements provide less flexibility for the company because most products have
short life cycle and offer limited market expansion. The company that defines its
business as “providing best health insurance products” may struggle to grow to other
insurance product categories.
 STARBUCKS Mission Statement:

“To inspire and nurture the human spirit – one person,

one cup and one neighbourhood at a time”.

Organization Components
Product or Concern for Survival,
STARBUCKS Customer Market Technology
Service Growth & Profitability

YES YES YES YES NO

Conern for Public

STARBUCKS Philosophy Self-Concept Concern for Employees x
Image

YES YES YES NO

This is customer oriented mission statement which doesn’t willing to focus on technology
but meeting customer standards and providing best health insurance products.

Customer: This mission statement reflects what the company does to keep its
business running. It is clear that target consumers are given emphasis in this
corporate mission.

Product or Service: Coffee.

Market: Firm competition can be identified through their annual revenues & geographically
a sustainable position. Starbucks’s corporate mission focusing on leadership in the
industry. The company’s success in responding to its competitive environment
depends on the effectiveness of implementing these corporate statements.

Concern for Survival, Growth & Profitability: Starbucks already has presence in 65
countries around the world. To maximize revenues and growth in these current markets, the
company applies the market penetration intensive strategy by opening more company-
owned stores. Starbucks also applies this intensive strategy for growth through licensing for
merchandise and franchising in some countries, such as the Dominican Republic.

Technology: As this is customer oriented mission. They focus on customer need, health
rather than focusing on industrial revolutions.

Self-Concept: While competitors like McDonald’s and Dunkin Donuts emphasize low cost,
Starbucks Coffee emphasizes a warm friendly ambiance that people enjoy.
Philosophy: Starbucks is creating a culture of warmth and belonging, where everyone is
welcome. Acting with courage, challenging the status. Being present, connecting with
transparency, dignity and respect.

Conern of Public Image: Starbucks has a well-calculated brand image given that
they work hard and curate carefully the way they look human spirit’s linked with
social environmental concern.
 PSO Mission Statement:
“We are committed to leadership in energy market through
competitive advantage in providing the highest quality
petroleum products and services to our customers, based on:
•Professionally trained, high quality, motivated workforce,
working as a team in an environment, which recognizes and
rewards performance, innovation and creativity, and provides
for personal growth and development
•Lowest cost operations and assured access to long-term and
cost effective supply sources
•Sustained growth in earnings in real terms
•Highly ethical, safe environment friendly and socially
responsible business practices”

Organization Components
Product or Concern for Survival,
PSO Customer
Service
Market
Growth & Profitability
Technology

YES YES YES YES NO

Conern for Public

PSO Philosophy Self-Concept
Image
Concern for Employees x

YES NO YES YES

Customer: “…our customer based on…”.The term is quite vague and it does not identify the
target customers of the company

Product or Service: “…Providing the high quality petroleum products and services to…”.This
component is correctly defined in a mission statement.

Market: The geographic market is not specified in the mission statement.

Concern for Survival, Growth & Profitability: “Sustained growth in earnings in real terms”.
This component is specified in mission statement.

Technology: This component is not specified in the mission statement

Self-Concept: This component is not specified in the mission statement
Philosophy: “We are committed to leadership in the energy market through a competitive
advantage in providing…” this component is defined in a mission statement.

Conern of Public Image: “Highly ethical, safe environment-friendly & socially responsible
business practices”. This component is specified in the mission statement.

Concern of Employees: “A professionally trained, highly qualified…for personal growth and

development”. This component is specified in a mission statement.