2. Achievable: While the mission statement should stretch the organisation toward more effective performance. It should at the same time be realistic and achievable. In other words open a vision of new opportunities but should not lead the organisation into unrealistic ventures far beyond its competencies. Examples would be a pen manufacturer stating in the communications business or an antique car restorer viewing its mission at transportation.
3. Motivational: One of the side (but very important) benefits of a well defined mission is the guidance it provides employees and managers working either in geographically dispersed units or on independent tasks. A well-defined mission provides a shared sense of purpose outside of the various activities taking place within the organisation. Therefore, end results (sales, patients cared for, and reduction in violent crimes) are the product of careful pursuit and accomplishment of the mission, not as the mission itself.
4. Specific: As mentioned earlier, public relations should not be the primary purpose of a statement of mission. This statement must be specific and provide direction and guidelines for management's choices between alternative courses of action. In other words, 'tо produce the highest-quality products at the lowest possible cost sounds very good, but it does not provide direction for management
A mission statement reflects the role the organisation plays in its environment There are some examples of actual statements of various types of organisations. Review each one with respect to the four criteria just discussed.
Objectives
As with the statement of mission, organisational objectives are more than good intentions. In fact, if formulated properly, they:
1. Can be converted into specific actions.
2. Provide direction: serve as starting point for more specific and detailed objectives at lower levels in the organisation. Each manager then knows how his or her objectives relate to those at higher levels.
3. Establish long-run priorities for the organisation.
4. Facilitate management control, because they serve as standards for evaluating overall organisational performance.
Strategies
When an organisation has formulated its mission and developed its objectives, it knows where it wants to go. The next management task is to develop a grand design to get there. This grand design comprises the organisational strategies. The role of strategy in corporate planning is to identify the general approaches that the organisation utilises to achieve its organisational objectives.
Organisations achieve objectives in two ways: by better managing what the organisation is presently doing and/ or by finding new things to do. In choosing either or both of these paths, management must decide whether to concentrate on present customers, to seek new ones, or both. The following scheme presents the available strategic choices. Known as product-market matrix, it shows the strategic alternatives available to an organisation for achieving its objectives. It indicates that an organisation can grow in a variety of ways by concentrating on present or new products and on present or new customers. It helps to choose available strategies and develop the organisational portfolio plan.
Portfolio plan
The final phase of the strategic planning process is the formulation of the organisational portfolio plan. In reality, most organisations at a particular time are a portfolio of businesses. For example, an appliance manufacturer may have several product lines (e.g., televisions, washers and dryers, refrigerators, stereos), as well as two divisions (consumer appliances and industrial appliances). A college or university has numerous schools (e.g., education, business, law, and architecture) and several programs within each school. The YMCA has hotels, camps, spas, and schools. Some widely diversified organisations such as Philip Morris Companies are in numerous unrelated businesses, such as cigarettes, land development, paper products, and breweries.
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