HARAMBEE UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT OF BUSINESS ADMINISTRATION
MBA Program

Assignment of Business policy and Strategic Management

Submitted to: Bogale Alemu (PhD)

Group Name ID.No.

1. Elfinesh Amante……………………………………………120
2. Zimam Tekle…………………………………………….….120547

Feb, 2021
Adama, Ethiopia
Introduction
An Overview of Mission Statements
Your Mission Statement is the foundation to good strategy. It is a statement of the company’s
purpose. A mission statement is a logical vantage point from which to look down the road.
Below are excerpts we’ve come across over the years, as well as, plenty of examples. For a quick
view, watch our video on Mission Statements

Criteria for Evaluating a Mission Statement

 Is our mission statement focused on satisfying customer needs rather than being focused
on the product?
 Does our mission statement tell who our customers are?
 Does our mission statement explain what customer needs our company is trying to
satisfy?
 Does our mission statement explain how our company will serve its customers?
 Does our mission statement fit the current market environment?
 Is our mission statement based on our core competencies? (A core competency is a
company strength.)
 Is our mission statement motivating and does it inspire employee commitment?
 Is our mission statement realistic?
 Is our mission statement specific, short, sharply focused and memorable?
 Is our mission statement clear and easily understood?
 Does our mission statement say what we want to be remembered for?
Defining Your Mission
“What is our business and what are we trying to accomplish on behalf of our customers?”
(Direction, umbrella statement, purpose statement, scope of operation)
Purpose Statement
what a company is currently seeking to do for its customers is often termed the company’s
mission. It answers the question “What is the company’s reason for existing?” A mission
statement is a statement of the company’s purpose. A mission statement is useful for putting the
spotlight on what business a company is presently in and the customer needs it is presently
endeavoring to serve. A mission statement deals with the present and answers the question
“What is our business and what are we trying to accomplish on behalf of our customers?”
A mission statement is a logical vantage point from which to look down the road. (Thomas
Strickland, p.4, 28)
A mission statement defines the company’s purpose. It is a single statement of why something or
someone exists. The question to ask to determine purpose is:
In light of all the needs we see, why do we exist as an organization?
A mission statement is like your North Star. A North Star, is not a place you go, it is a fixed
point giving you perspective on where you are going. Your mission statement keeps you headed
in the right general direction. A mission statement is a very specific umbrella statement
explaining why you do everything you do within your organization.(Bobb Beihl)
A mission statement is a statement of the organization’s reason for being, its purpose – what it
wants to accomplish in the larger environment. (Kotler p.49). It explains why the organization
does what it does. It says what, in the end, the organization wants to be remembered for.
(Drucker). A clear mission statement acts as an “invisible hand” that guides people in the
organization. (Kotler p.49).
An effective mission statement clearly defines who the customer is and what services and
products the business intends to provide. It also serves as a guide for day-to-day operations and
as the foundation for future decision-making.
Contemporary strategic marketing perspectives indicate that an organization should define a
business by the type of customers it wishes to serve, the particular needs of those customers
groups it wishes to satisfy, and the means or technology by which the organization will satisfy
these customer needs. Thus the firm will be perceived and act more customer & market-oriented.
(A customer-satisfying entity, not a product-producing entity.) (Kerin & Peterson, p.2).
A company’s Mission Statement acts as the company’s compass. The mission is the path. (The
vision is the end point.) The mission directs the company to its vision (dream). With it, anyone in
the organization can always judge the direction the company is moving in relation to its stated
purpose. With it, one can easily make adjustments to keep the company moving in the direction
intended.
Missions may need to be revised every few years in response to every new turn in the economy.
A company must redefine its mission if that mission has lost credibility or no longer defines an
optimal course for the company. (Kotler p.68)
Without the mission statement, a company is lost, and will drift according to the pressures of the
business environment. The fundamental problem, termed mission creep, has been a diffusion of
focus. There is the tendency of successful organizations to try to extend their influence beyond
the limits of their core expertise. So if you want to stay focused, develop a clear, concise mission
statement.
Writing a Mission Statement, Mission Statement = Define of company’s
business + Meeting customer needs
Questions to Ask in Writing a Mission Statement: (Bobb Beihl)
1. What single, solitary word is the focus for our organization? This is a single focus word
within our organization.
2. What would be the 2 or 3 words that would explain why we exist?
3. What one sentence would sum up what our organization is about, in a very simple, clear,
easy to understand way? Take your 2-3 words and put them into a single non-technical
sentence that anyone could easily understand.
Standards for a Worthy Mission Statement
Changing the mission or creating an organization’s first mission statement is a process of
gathering ideas and suggestions for the mission and honing them into a short, sharply focused
phrase that meets specific criteria.
An effective mission statement clearly defines who the customer is and what services and
products the business intends to provide. It also serves as a guide for day-to-day operations and
as the foundation for future decision-making. The following are criteria for a good mission
statement:
 The Mission Statement Focuses on Satisfying Customer Needs.
A mission statement should focused on satisfying customer needs rather than being
focused on the product. Products and technologies eventually become outdated, but basic
market needs may last forever. A market-oriented mission statement defines the business
in terms of satisfying basic customer needs. (Kotler p.49)
 The Mission Statement Tells “Who” Our Customers are. (Thompson Strickland,
p.30)
Who is being satisfied? A company should define the type of customers it wishes to
serve. Which customer groups it is targeting. Customer groups are relevant because they
indicate the market to be served, the geographic domain to be covered, and the types of
buyers the firm is going after
 The Mission Statement Explains “What” Customer Needs Our Company is trying
to Satisfy.
What customer needs is the company trying to satisfy? A company should define the
particular needs of those customers groups it wishes to satisfy. A product or service
becomes a business when it satisfies a need or a want.
 The Mission Statement Explains “How” Our Company will Serve its Customers.
How customers’ needs are satisfied? A company should define the means or technology
by which it will serve the target market and satisfy the customer’s needs. By
incorporating Who, What and How the firm will be perceived and act more customer &
market-oriented. It will be perceived as a customer-satisfying entity, not a product-
producing entity. (Kerin & Peterson, p.2.)
 The Mission Statement Fits the Current Market Environment.
Missions should fit the current market environment.(Kotler p.52) ” Girl Scouts would not
recruit successfully in today’s environment with their former mission: “to prepare young
girls for motherhood and wifely duties.”
 The Mission Statement is Based on Our Competitive Advantage.
Competitive advantage arises from leveraging a firm’s unique skills and resources to
implement value-creating strategy that competitors cannot implement as effectively. Your
company should base its mission on a competitively superior internal strength or resource
that the company performs well in comparison to its competitors.
 The Mission Statement is based on Our Distinctive Core Competencies.
The organization should base its mission on its distinctive competencies.(Kotler p.52) A
distinctive core competency is a competitively superior company resource that the
company performs well in comparison to its competitors.(Thompson Strickland) It needs
to stay focused on specific traits (i.e., quality, customer service) and on target or niche
 markets. McDonald’s core competence is providing low-cost food and fast service to
large groups of customers.
 The Mission Statement Motivates and Inspires Employee Commitment.
Mission statements should be motivating. It should not be stated as making more sales or
profits. A company’s employees need to feel that their work is significant and that it
contributes to people’s lives. Visionary companies set a purpose beyond making money.
Even though profits may not be part of these companies’ mission statements, they are the
inevitable results.(Kotler p.53).
 A company that says its mission is to make a profit begs the question “What will we
do to make a profit?”
To understand a company’s direction, we must answer “to make a profit doing what and
for whom?” (Thompson Strickland, p.29).
Focus on profit – IBM’s mission is “To become a $100 billion company by the end of the
century.” Focus on motivating – Microsoft’s mission is “information at your fingertips.”
 The Mission Statement is Realistic. The Mission Statement is Specific, Short and
Sharply Focused.
Mission statements should be realistic. The company should avoid making the mission
too narrow or too broad. (Kotler p.50)
Southwest Airlines would be deluding itself if it adopted the mission to become the
world’s largest airlines. Too broad – “providing society with superior products and
service – innovations and solutions that satisfy customer needs and improve the quality of
life.” Merck Too narrow – providing toys has proved too narrow a scope for Toys-R-Us
 The Mission Statement is Specific, Short and Sharply Focused.
Mission statements should be specific. Vague or generic mission statements lack
resonance and meaning. They won’t be remembered by anyone, and will likely be
dismissed as too difficult to understand. Many mission statements are written for public
relations purposes and lack specific, workable guidelines. It is a precise statement of
purpose. (Kotler p.51)
Too general – “We want to become the leading company in this industry by producing
the highest-quality products with the best service at the lowest prices.” Very specific –
Celestial Seasonings’ mission statement is “Our mission is to grow and dominate the U.S.
 specialty tea market by exceeding consumer expectations with: The best tasting, 100%
natural hot and iced teas, packaged with Celestial art and philosophy, creating the most
valued tea experience.”
 It should be memorable.
Describe the essence of the business in words your employees and customers can
remember you by. Peter Drucker says the mission should “fit on a T-shirt,” yet not be a
slogan.. Don’t use the mission statement as an essay or a vehicle for abstract philosophy.
Words should be chosen for their meaning rather than beauty, for clarity over cleverness.
The best mission statements are plan speech with no technical jargon and no adornments.
International Red Cross – “To serve the most vulnerable”
 The Mission Statement is Clear and Easily Understood.
Develop your mission statement to a “party level.” A simple, clear, “party level” mission
statement can be used to tell people you meet at a party or on airplanes why your
company exists. At the same time it needs to give your company team as a profoundly
simple focus for everything it does as a firm. (Bobb Beihl)
 The Mission Statement says What We Want to be remembered for.
A mission statement says what, in the end, you want to be remembered for. It is actually
an epitaph in present tense. What would you want your epitaph to read some day? Your
ideal can provide a profoundly simple insight into your purpose for existing today. (Bobb
Beihl)
To develop a mission statement at the corporate level the following steps are
suggested: (Drucker)
Step 1: Establish a mission-writing group.
The writing group must be able to identify the company’s reason for existing, the primary
customer, and what the goals and results should be. Members should include the chief executive,
the board chairman or another representative of the board, a writer, a manageable number of
additional members who represent different parts of the organization, and a facilitator.
Step 2: Adopt criteria for an effective mission statement.
Gather ideas and suggestions for first drafts. The writing group should adopt the criteria they will
use to judge the effectiveness of the mission they are about to develop. Following the adoption of
criteria, the group moves on to ideas and suggestions for the mission statement. Idea-generating
techniques include:
 Open brainstorming: any thought or idea is welcome.
 Each group member finishes the sentence, “The mission should be…”
 Small teams “complete” in a very short time span to draft and nominate the “best” new
mission statement
 Go around the group two or three times asking for the one word that must be in the
mission statement.
 Each person quickly draws a picture of the mission, then “shows and tells.”
To conclude the exercise, the group:
 Posts and reviews all ideas and suggestions. The facilitator draws a circle around the
words or phrases that appear most often.
 Discusses key ideas or themes the must be captured in the new statement.
 Discusses key ideas or themes that must not be part of the new mission statement.
Step 3: Develop one or more draft statements.
The writers along or with a small group develops drafts of at least two possible new mission
statements.
Step 4: Judge initial drafts against criteria and suggest revisions or new options.
To judge drafts and make suggestions:
 The groups reviews the criteria for an effective mission statement.
 The first draft statement is posted in front of the group.
 Group members individually rate the draft for each criteria using the worksheet.
 The facilitator polls and records the group’s response for each criteria to determine the
overall strengths and we4aknesses of the draft.
 The group discusses the merits of the draft and makes specific suggestions for how it
might be improved. All suggestions are encouraged and recorded.
 The second draft statement is posted and steps are repeated.
 The facilitator instructs each group member to individually write their recommended
mission statement. Members read their statement aloud, and give it to the writer.
 The group discusses whether it has developed an effective statement or whether the
writer should develop a second set of drafts.
Step 5: Develop second drafts.
The writer or small subgroup develops a second draft of one or more possible new mission
statements.
Step 6: Gain feedback from outside the writing groups.
The board chairman and chief executive decide who outside the writing group will be asked to
give feedback. This may include organization wide input or a few key people inside or outside
the organization. Each individual group being contacted for their response is:
 Shown the criteria for an effective mission statement.
 Asked for a rating of each draft, based on the criteria.
 Asked for comments on the merits and weaknesses of the draft(s).
 Asked for ideas or recommendations for improvement.
Step 7: Summarize feedback and distribute second drafts and summary to writing group.
Step 8: Propose a draft mission statement.
The writing group meets:
 Reviews the second draft(s).
 Discusses a summary of feedback from outside the writing group.
 Rates the draft(s) against criteria and cites merits and weaknesses
 Attempts group editing or rewriting.
 Approves its proposed mission statement..
Step 9: Present the proposed mission statement for board approval.
Evaluation of mission statement on the respective organization
From the reference points of the above discussion, one can evaluate mission statement.
Five organization have been considered for the case, however three of them are not available to
respond the telephone. Thus, let’s first see what their mission statements of the two organization,
A. Belayneh Kinde Import Export and
B. Alsam PLC):

A. Belayneh Kinde Import Export Vision, Mission & Values

Vision
Our vision is to become one of the best business companies in Africa by the year 2025.
Mission
The mission of Belayneh Kindie Import, Export and Associates is to provide competitive high
quality products and services for customers with highly skilled business professionals and staff
who are equipped with Information Technologies (IT). BKIEA is established to:
 Export value added agricultural commodities like sesame seeds, pulses and coffee to the
international market;
 Assemble heavy duty trucks, luxury public transport buses and automobiles in its own
assembly plant and sell the products in domestic markets;
 Produce edible cooking oil and detergents by creating market linkage between oil seeds
grower farmers and the edible oil factory; distribute the products of the factory  to domestic
and international market;  
 Produce coffee, oil seeds and other seasonal crops in its own commercial farm;
 Deliver dry cargo, fuel cargo and public transport services to users;
 Provide excellent and preferred guest service with internationally branded hotels for local
& international customers;
 Build standardized all weather roads and modern houses;
 Provide construction machineries rental service.
Values
1. Integrity

2. Customer Focused

3. Quality and Safety

4. Employee Oriented

5. Respect

6. Team Work

7. Continuous Improvement

8. Social Responsibility
BK Business Group is one of Ethiopia's leading corporate groups, with interests include Import,
export, transport, hotel, rental of construction materials, domestic business Investment and sales
of a variety of products and services within and abroad,

B. Alsam PLC
Vision, Mission & Goal
Vision
To become the most preferred and transcending company in providing quality products and
services.
Mission Statement
We strive to achieve excellence in every facet of our operations by ensuring synergy among our
subsidiaries and providing high quality products and services that exceed the expectations of our
constituencies.
Our Core Values
 Integrity
 Excellence
 Equity
 Team work (Collaboration)
 Create value.
Objectives
 Building and enhancing manufacturing capability to produce goods for both local and
foreign markets
 To engage in Real Estate business.
 To engage in Import business.
 To engage in Export business.
 To engage in Agri-business.
 To engage in health care & education services delivery business.
 To engage in domestic trading business
 To engage in Transportation Service.
Conclusion
As a summary we conclude that both company have been using strategic plan
Which outshines the organization and it in turn helps as stepping stone for promotion.
Both companies did not change their mission once it was developed.