A mission statement then is subject to these influences and needs to
address their interests in a manner that allows it to satisfy their diverse
demands. In essence the mission statement ought to characterise the
organisation’s principles and priorities and define the broad product,
market and technologies that are core to the business. Missions can be
framed with a very narrow view of the business or be given a much
broader frame of reference.
● Narrow focus: Some organisations choose to frame a mission statement
with a very narrow focus. An example is Newport News Shipbuilding.
The advantage is that it gives a very clear description the organisation’s
primary business. However creating a narrow focus may set unneces-
sary constraints on the company’s activities in terms of the markets
served, the product/service offered or the technology employed.
Strategic intent 135We shall build good ships here – at a profit if we can – at a loss if we must – but always good
ships.
Source: Cosco, 1995.Newport News Shipbuilding
Mission statement – unchanged since the company was
founded in 1886
To be recognised as a highly rated utility-based company trading in electricity other utility
and related markets providing excellent quality and service to customers and above average
total returns to investors.The Scottish Power Mission statement
● Broad focus: The use of a broad mission statement is fairly common and
generally refers to all the various stakeholders in the business: share-
holders, customers and employees as well as the area of business to be
served. Scottish Power’s mission statement has this broader focus,
although it has a reasonably defined business scope. One noticeable
stakeholder group not referred to in this mission statement is, surpris-
ingly, the employees. In general, broad mission statements can address
the problem of giving too narrow a focus on the business’s area of
operation, but can fall into the trap of failing to clearly define the mar-
ket and product areas that are core to its operation. Richer Sounds is a
company that retails hi-fi equipment, however its mission statement
makes no reference to the product or market areas it is concerned with
as a business. It does however engender a clear vision on the way that
business should be undertaken.