Influences on the mission of a business

Business must have a clear understanding of its overall purpose before setting objectives. This is expressed as a mission and is communicated via a mission statement. Mission and vision statements are important because: 

• They communicate the purpose and values of an organisation to its stakeholders
• They inform the strategy adopted by an organisation 
• They enable measurable goals and objectives to be identified

A range of factors can influence the mission of a business. These include 

• The size of a business e.g a small business may have a mission that reflects the interests of the owner 
• The range of activities undertaken by a business 
• The nature of owners and important stakeholders in a business 
• Changes over time e.g Microsoft originally supplied operating systems but now its activities has grown to encompass the internet. 
• The actual performance of an organisation - mission statements need to match what's happening
• External factors, such as the level of competition, economic conditions and possible regulation
• A business's strengths and opportunity e.g its strengths could be distinctive competences
• The extent to which a business demonstrates social responsibility in its actions 

Internal and external influences on corporate objectives and decisions: Corporate objectives…