The mission statement can be used to resolve trade-offs between different business stakeholders. Stakeholders include: managers and executives, non-management employees, shareholders, board of directors, customers, suppliers, distributors, creditors/bankers, governments (local, state, federal etc.), labour unions, competitors, NGOs, and the community or general public. By definition, stakeholders affect or are affected by the organisation’s decisions and activities.
According to Vern McGinis, a mission should:
(1) define what the company is.
(2) limited to exclude some ventures.
(3) broad enough to allow for creative growth.
(4) distinguish the company from all others companies.
(5) serve as a framework to evaluate current activities.
(6) stated dearly so that it is understood by all.
The mission statement ultimately seeks to justi1r the organisation’s reason for existence.
Q.2. What do you understand by the term corporate excellence? Why it is considered as a significant factor in business ethics?
Or Define corporate excellence. (2012)
Ans. Corporate Excellence: Merely the ability of a company to provide a better offer than the competitors time and again over a long period of time can no more be described as corporate excellence.
Corporate excellence is defined as the ability of the company to outsmart competitors consistently over a long period of time. In this context, successful organisations are different from excellent organisations. Success may be of one dimension but excellence is multiple dimensional in the company. In the ever-changing business environment, following are the critical areas tjiat facilitate the company to achieve excellence.
(1) Business Process Reengineering (BPR) : As the business scenario is fast changing day by day, to meet the ever-changing demands of the market, organisation needs to restructure and redesign its business processes. The BPR facilitates sweeping changes in all the functional areas of the organisation. It reinvents the way the business is carried out, and ujtimately helps the company to engender corporate excellence. As, striving to become excellent is a continuous process, corporate excellence is a continuous journey and not a destimation.
(2) Growth — Sustainable Development: The corporate objective of mere growth may just lead to maximization of sales revenue or profits, which don’t help the organisation to become excellent. Many organisations are growing at a rapid speed, but they failed to develop consistently. Hence the companies need to redefine their objectives towards sustainable development.
(3) Core—Competence A unique strength either in technology or in the processing of functional areas, that an organisation enjoys exclusively and which can’t be copied by the competitors is called core competence. This unique strength helps the company to get competitive advantage over a long period of time, which in turn facilitates the company to excel.
Core competencies contribute significantly to customer benefits and satisfaction, which is a primary aim of any business. Core competencies hl\Jie firm in a multifaceted manner. A company can achieve competence superiority and market leadership only by means of core-competence, and it will lead to corporate excellence.
e.g., Honda has got its core competence in the design and manufacturing of automobile engines.
(4) Resource Utilisation: Excellence in organisation can be achieved through proper utilisation of the basic human, physical and financial resources. New and advanced technologies have to be adopted in all the functional areas like production, marketing, finance HRD of the organisation Organisations need to strengthen their research and development departments in order to embrace latest technologies