An organisation exists to accomplish something. When management senses that the organisation is drifting, it is time to renew its search for purpose by asking:
* What is our business?
* Who is our customer?
* What do customers value?
* What should our business be?
According to Peter Drucker, every organisation must ask an important question "What business are we in?" and get the correct and meaningful answer. For example, Indian Railways will make a big mistake if they think they are in the business of moving trains and wagons; whereas they are actually in the business of transportation and material handling system.
The first step in the strategic planning process is defining the company mission.
* Mission statement is a statement of the organisation's purpose - what it wants to accomplish in the larger environment.
* A clear mission statement acts as an "invisible hand" that guides people in the organisation.
* Market definitions of a business are better than product or technological definitions. Products and technologies can become outdated, but basic market needs may last forever.
* A market-oriented mission statement defines the business in terms of satisfying basic customer needs.
The mission statement must avoid being too narrow or too broad. Mission statements must:
* Be realistic
* Be specific
* Fit the market environment
* Indicate distinctive competencies
* Be motivating
A strategic vision is a road map of the company's future - providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that management is trying to create.
An organisation's Mission states what customers it serves, what needs it satisfies, and what type of product it offers.
A company's mission statement is typically focused on its present business scope – "who we are and what we do"; mission statements boldly describe an organisation's present capabilities, customer focus, activities and business makeup.