- 10 Marks
BMIS – L1 – QD4 – Mission Statements
Question
(a) A low-cost airline ‘SkyFast’ has published its mission statement on its website:
‘To provide our customers with safe, good value, point-to-point services. To effect and to offer reliable and consistent product and fares agreeable to business and leisure markets on a range of African routes. To achieve this we will develop our staff and establish long-term relationships with our key suppliers.’
Required:
State the purpose of a mission statement, and suggest how the mission statement of SkyFast meets this purpose.
(b) The Royal Institute of Nigeria Cake-makers (RINC) is a professional association for cake makers in Nigeria. Its mission statement is as follows: ‘To advance cake making by demonstrating benefit to society and promoting excellence in the profession.’
The RINC was concerned about the lack of understanding amongst the general public about the benefits of good cake making. It was also concerned that the standards of professional ability amongst chefs might not be as high as it should be, and that public criticisms of some new types of cake were possibly justified.
The RINC identified a number of strategic objectives, consistent with its mission statement.
Required:
On the basis of this information, suggest three strategic objectives that the RINC might have identified, that are consistent with its mission statement.
Answer
(a)
| Purpose of mission statement | In the SkyFast mission statement |
|---|---|
| To state the purpose of the entity and the business it is in (and will be in) | The mission statement makes it clear that SkyFast is a low-cost airline, competing in the African aviation market, offering point-to-point services for the business and leisure market. |
| To express the values and beliefs of the entity, to influence the views of key stakeholder groups inside and outside the firm | The mission statement refers to values such as safety, reliability and good value. |
| To provide a guide for strategic decisions | By stating that the company will develop its staff and establish long-term relationships with suppliers, the mission statement provides a guide to some of the strategic decisions that the company will take. |
(b). These strategic objectives were then used to formulate strategies to achieve the objectives.
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