Chapter 5, Problem 1DQ

Summary Introduction

To determine:

A mission statement is to be framed for a local business and the way in which this clear mission statement will help a small business.

Introduction:

A clear mission statement will help the organization to go a long way as a mission statement will state all the aims and values of the company. In short, this will help one to get to know the business better and work accordingly and be focused on the main aim without getting confused.

Explanation of Solution

A mission statement is a summarized description of the basic purpose of an organization and it answers to the questions such as what is the purpose of the business. A clear effective mission statement will describe the organization's present abilities, its activities, and its ability to motivate employees and providing an impetus for the organization to perform. A mission statement will be more appealing and clear if it has certain important elements such as: 1) describing what the company does in few words, 2) describe how the company produces its product or service and 3) including the aim or the purpose of the existence of the company.

A brief mission statement for a local bakery that sells all sorts of baked goods will be "Klassy is a friendly company that is oriented to provide high quality snacks and sweets in welcoming sitting arrangements with soothing ambience. The purpose is to generate enough profits to pay back to the investors and to expand along with maintaining to produce variety of quality home-made food".

A small organization can be benefited in various ways by stating a clear mission statement. A clear mission statement helps to determine the company's direction.

1) A clear mission statement will provide the employees and the other working members as to why the company exists and it will give them a clear path to everyone working in the organization. It concentrates on the future of the organization.

2) The mission statement will define how the actions done today will assist to take the company to the position where it wants to be in the future.

3) Helps to make effective decisions. A clear mission statement will aid the higher authorities to delegate responsibilities accordingly and provide a framework of how the duties should be completed, which will keep the members on the right track.

4) People will be more open to change if the mission statement is clear. Usually, members in an organization will be resistant and insecure about change, but with a clear mission the members will know the need for the change and will adapt to it without much hesitance.