A companies’ mission statement is a brief statement of the companies’ objectives, values, and/or principles, which is designed to guide the company. A successful company should tie its mission statement in with its strategic, managerial, and operational activities in order to help ensure preservation of the organizations’ principles. The following are the mission statements that are used by Caterpillar and Kroger, two highly successful Fortune 500 companies:
Caterpillar: Value & Mission Statement
Vision: Be the global leader in customer value.
Mission: Caterpillar will be the leader in providing the best value in machines, engines and support services for customers dedicated to building the world's infrastructure and developing and transporting its resources. We provide the best value to customers.
Caterpillar people will increase shareholder value by aggressively pursuing growth and profit opportunities that leverage our engineering, manufacturing, distribution, information management and financial services expertise. We grow profitably.
Caterpillar will provide its worldwide workforce with an environment that stimulates diversity, innovation, teamwork, continuous learning and improvement and rewards individual performance. We develop and reward people.
Caterpillar is dedicated to improving the quality of life while sustaining the quality of our earth. We encourage social responsibility.
Kroger: Mission Statement
OUR MISSION is to be a leader in the distribution and merchandising of food, health, personal care, and related consumable products and services. By achieving this objective, we will satisfy our responsibilities to shareowners, associates, customers, suppliers, and the communities we serve.
We will conduct our business to produce financial returns that reward investment by shareowners and allow the Company to grow. Investments in retailing, distribution and food processing will be continually evaluated for their contribution to our corporate return objectives.
We will constantly strive to satisfy the needs of customers as well as, or better than, the best of our competitors. Operating procedures will increasingly reflect our belief that the organization levels closest to the customer are best positioned to serve changing consumer needs.
We will provide all associates and customers with a safe, friendly work and shopping environment and will treat each of them with respect, openness, honesty and fairness. We will solicit and respond to the ideas of our associates and reward their meaningful contributions to our success.
We value America’s diversity and will strive to reflect that diversity in our work force, the companies with which we do business, and the customers we serve. As a Company, we will convey respect and dignity to all individuals.
We will encourage our associates to be active and responsible citizens and will allocate resources for activities that enhance the quality of life for our customers, our associates and the communities we serve.
Mission Statements' Relation to Organizational Activities
The connection between the mission statement and the operational activities of the organization is the short-term day-to-day processes of the organization should emulate the companies’ values and goals illustrated in the mission statement. On the basic level of the business operation, structure and the implementation of values are integral for a company to achieve its desired stature. In Caterpillars mission statement, the company proposes that it wishes to create a “worldwide workforce with an environment that stimulates diversity, innovation, teamwork, continuous learning and improvement and rewards individual performance.” Caterpillar directly identifies the work environment that they wish to create including the way they are going to structure the organization and acquire the desired work ethic of employees. The implementation of the mission statement should create a standard of business practice within the organization for all employees to follow.
The mission statement should also directly correlate with the managerial activities of the business, or the middle-management tactical activities. As the activities that help determine the short-term future of the business, strict adherence to company values is very important. In Caterpillars’ mission statement, the direction of middle-management decisions are exclusively identified: “Caterpillar people will increase shareholder value by aggressively pursuing growth and profit opportunities that leverage our engineering, manufacturing, distribution, information management and financial services expertise.”
Most importantly, the mission statement should directly align with the strategic activities of the organization. The strategic activities of the organization are those that significantly change the manner in which business is done. These activities include the long-range planning of the business and can include such things as opening a new product line, investment in technologies, or the decision to expand globally. These activities should work to accomplish the future goals of the company. These future goals could include such things as maximizing customer value in an industry or providing the best customer service over competing firms. If future goals are not explicitly defined in the mission statement then strategic activities of the business should mimic established principles of the company. An example of the mission statement directed towards strategic activities comes from Kroger’s’ mission statement and is as follows: “OUR MISSION is to be a leader in the distribution and merchandising of food, health, personal care, and related consumable products and services. By achieving this objective, we will satisfy our responsibilities to shareowners, associates, customers, suppliers, and the communities we serve .We will conduct our business to produce financial returns that reward investment by shareowners and allow the Company to grow. Investments in retailing, distribution and food processing will be continually evaluated for their contribution to our corporate return objectives”
How can these activities be supported by specific Information Systems?
Many different types of information support systems are used to enhance organizational activities. An example of a specific information system tool that is used to help run operational activities of the organization is an Office Automation System (OAS). Office Automation Systems are designed to increase the productivity of all employees, especially office workers, by automating tasks. They include such applications as word processing which provides employees effective ways to accomplishing day-to-day operations of the organization. Another example of an information system that is used to enhance organization activities is the use of Communication and Collaboration Systems. Communication and Collaboration Systems essentially influence all levels of organizational activities. Through the use of email, voice mail, and instant messenger programs employees, partners, or management of an organization can more effectively communicate in matters regarding any activity level. The last example of an information system influencing organizational activities is Decision Support Systems (DSS). This information system affects decisions within managerial and strategic activities. This system utilizes the use of models and the input of information as well as extensive user involvement to solve decisions. An example would be the analyzation of a “make-or-buy decision” and the manipulation of variables within a model to determine the "make-or-buy" decision.
