Edinburgh Napier University

MODULE

Strategic Management in a Global Context (SOP090101)

Assessment

“Mission Statements may play an important role in the strategic management process but the
creation of a ‘sense of mission’ is even more beneficial to organisations”

Submitted by Audrey Middleton 97110442

20th October 2010

1675 words

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The topic of this essay is to give an insight into “Mission Statements may play an important role in
the strategic management process but the creation of a ‘sense of mission’ is even more beneficial to
organisations” To evaluate this concept different aspects of strategic management will be
considered and the impacts of where mission statements and ‘sense of mission’ will be discussed.

Many businesses/organisations lay claim that their mission statement is a basis for their entire
existence, what they consider they stand for and what they consider the purpose of the
business/organisation is? Mission statements are often considered in isolation and viewed as a
separate entity to the actual business strategy.

“Above all else. We are committed to the care and improvement of human life. In recognition of this
commitment, we strive to deliver high quality, cost effective healthcare in the community we serve.
In pursuit of our mission, we believe the following value statements are essential and timeless. We
recognise and affirm the unique and intrinsic worth of each individual. We treat all those we serve
with compassion and kindness. We act with absolute Honesty, integrity and fairness in the way we
conduct our business and the way we live our lives. We trust our colleagues as valuable members of
our healthcare team and pledge to treat one another with loyalty respect and dignity” (HCA 2010
Hospital Corporation of America) Connie Curran Mary Totten Nursing Economics March/April 2010)

The above mission statement is an example of one that is looking to all of its stakeholders, the
community, the staff, and the patients but is also looking at finances. This allows for this
organisation to look good in corporate literature whilst allowing them to consider any changes to the
financial position to give them a get out clause. Anyone examining this perhaps prior to admission to
a facility would be delighted with what is detailed but is that the truth of the matter if as is the case
in America a person has no health insurance would that mission statement stand up to scrutiny?
Further into this publication there are two comparable mission statements from another two
hospitals, again very worthy if looked at in isolation looking after stakeholders is a key factor but can
they stand up to tight scrutiny factually? One would look great in a recruitment campaign for staff
where the other would probably influence patient choice. In the long run does it matter as long as
the treatment received is of a high standard? Many chief Executive Officers look to mission
statements as a public relation exercise, in some instances saying what they think the public expect,
within the co-operative movement they do not have specific mission statements instead they
adopted a set of universal values and principles which are adhered to across the globe. Words such
as ethical, equality, honesty, caring for others to mention a few, they also adopt programmes which
fit into the values and principles such a being the market leader in the sale of “Fairtrade” products,
this was something which was introduced 16 years ago and has grown exponentially since then so
much so organisations like Cadbury took the step to take over “ Green and Blacks” a well known
“Fairtrade” chocolate producer, they subsequently converted their own brand to that concept and
themselves have been acquired by Kraft. The co-operative example can also be considered as a
“sense of Mission” due to the fact it is so embedded in the organisation culture. It does not look at
whether these concepts bring in financial results, mainly because the main element of “Fairtrade” is
to give a fair price to the growers of the products rather than trying to rip them off ( unlike Nestle
whose aim when buying coffee beans is to get it at the lowest price. Make coffee out of the beans

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and maximise return) This would fit with the quote from Bose(2006) “developing a corporate
strategy is a necessary step for the company in defining who it is and where it fits in the market”

The co-operative model also fits with Burke and Logsdon’s (1996) where they quote “ under what
conditions does a firm jointly serve its own strategic business interests and the social interests of its
stakeholders” The co-operative undertook in 2000 a complete overhaul of how it existed, it
reviewed its business model, its governance ( optimum numbers of Directors) remunerations thereof
but key to all of this was the recommendation that a set amount of money 4% of profit be reinvested
into community projects. This was way ahead of the rest of the business community. It also was the
first in its banking division to refuse customers through its ethical stance and has won awards for
having these values.

In the last ten years other retail businesses have recognised these values and points of
differentiation as opportunities and have built these into their strategies. Tesco has made a call to
outstrip the co-op in “Fairtrade” sales in the next five years; showing that these areas matter to their
customers and subsequently when added to product range can increase sales. Marks and Spencer
has also undergone a huge shift into ethical retailing selling Fairtrade cotton, unbleached cotton as
well as a range in food. They have done this as a strategy to pull in retail customers who want to be
consumers of these products. Again this can be viewed as a “Sense of Mission.” This is key when the
value base of customers actually influences the business strategy of a company.

This can also be considered to be part of strategy lens where within the co-op the experience lens
dictates their strategy, where within companies like Tesco Sainsbury and Waitrose this would be
developed as part of the idea lens to bring them into line. This sees them accelerate entry to
Fairtrade in order to match other retailers. It is also a huge business opportunity. This type of
evaluation is one type of strategy management that can be used to decide the business future whilst
all the time having a mission statement which incorporates these actions. This is evidence in the
article by Sufi (mission statements exposed) in the International Journal of Contemporary Hospitality
Management.

He states that “Mission statements are said to be an in separate part of corporate strategy because
they have an impact on performance,” it can also be said that mission statements now have a place
within company strategy that is key to the planning process. However a mission statement cannot
be written and files away it needs to be continually reviewed, this does not always happen. It can be
so time consuming to develop a mission statement that once done senior managers think that is that
however, as with business plans they need to be kept updated, stakeholder change, the market
changes, financial issues can affect how the business direction can and perhaps needs to be
reviewed.

Consider businesses like McDonald’s they have an excellent reputation for their burgers, and then
public perception on healthy eating came about. Their mission statement goes into great depth
about being the best employer, to deliver excellent customer service and alongside that to achieve
profitable growth. To address the changing market they now serve fruit snacks for children and have

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a salad range which is a choice for the health conscience amongst us. They also now make a
commitment to advise the sources of all the food content. Where the beef, chicken and eggs etc are
from is just a part of their strategy which is geared up to respond to customers concerns. But are
these all just window dressing that has no concern at all for customers and is only there to maximise
profitability?

It can therefore be concluded that a mission statement has been evidenced to contribute to
business success, and can be the starting point for strategy development. It is however key that
there is buy in and commitment to the whole strategy including the mission statement and whilst it
can be drawn down and used as a public relations tool it needs to be relevant and current to the
business, there is no point in it being outdated. Stakeholders have to be brought along with not only
the business strategy but also the mission statement and what it means to them, they do not need
to understand why it is there but there needs to be a level of awareness of its existence.

Sidhu (2003) argues that there are two potential problems that he has identified a lack of agreement
of the content. This can be the case when a mission statement is commissioned from and external
agency who is not fully understanding the business and who has perhaps not been briefed fully. The
second problem is that there is no proper consideration of the true business context which is being
incorporated.

Within Sex Lies and Mission Statements Christopher Bart writes in Bright Horizons that he considers
Mission Statements to form a cornerstone in todays business strategy and that consequently these
are followed by high performance results (evidenced by the Co-op Bank ethical stance, they have
gained many customers who want to be part of an organisation that makes that kind of stance) Avon
Cosmetics take the stance in their mission statement to include all sorts of targets, these include
turnover and real big ethical commitment to a health issue on Breast Cancer.

A Sense of Mission

This is the culmination of a brilliant mission statement which encompasses the emotional
commitment by the people involved in the business to the strategy which has been outlined.
However those people can also be sceptical of senior management’s capabilities and their
commitment to the company quite often with the implication that they do not match the employees
sense of mission.

The co-operative again would shine in this sense because of the way their value system runs right
through the business, individual members of staff from top to bottom sense this through the
company’s standard of behaviour and have pride in what is happening. The greater the link between
the individual’s values and that of the business creates the “Sense of Mission” but someone who is
committed to the strategy does not automatically feel that sense of mission it is a bit like a line all
the dots need to connect to complete the link.

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Andew Campbell and Sally Yeung 1991

Creating a Sense of Mission Long Range Planning 24 4 page 10-20

Christopher Bart Sex Lies and Mission Statements Business Horizons p9-18

Exploring Corporate Strategy Johnson Scholes and Whiitington 8 th Edition p165-168

Mission Strategy and Stakeholders, Curran and Totten 2010 Nursing Economics March-April 2010 Vol
28 no 2 P116-118

Mission Statements Exposed Tahir Sufi, Howard Lyons International Journal of COntemporay
Hospitality 2003