OB+Comparison+LT+Draft[1]

Without a concrete statement of organizational

This preview shows page 5 - 7 out of 11 pages.

without a destination. Without a concrete statement of organizational mission, the values and beliefs of a small business must be interpreted from the actions and decisions of individual managers” (2004, p. 3). The writers add that businesses fail for many reasons, and cite several surveys that point company failures in the early year either to the lack of a mission statement or the lack of a clear, concise, and focused mission statement. According to a Dun & Bradstreet survey, 40% of small business failures occur between the first and fifth years of inception, 27% fail between the sixth and tenth year, and 33% fail by the time the businesses cross their tenth year. Although there are myriad potential causes for this failure, our hypothesis is that the lack of a well-written mission statement is one of the foremost contributors to this malady. A survey of 220 small businesses in the greater Washington, D.C. area with annual revenue was less than $2 million and each have fewer than 500 employees found 64% of small business did not have a written mission statement and operate on informal ethical and philosophical guidelines. Another 7% of companies had mission statements but it was only revealed to a few top executives. Only 29% of companies had a mission statement that was accessible to all employees. The effectiveness of a mission statement is both and internal and external force in the success of a business. If an employee does not know the mission statement, does not understand the mission statement, or does not know how their job fits in the overall success of the company,
Image of page 5

Subscribe to view the full document.

they may lack motivation to excel, perform, and produce the product or services. Internally, it is the company’s top management’s duties to provide a clear mission statement and communicate that mission to employees. Christine Andrews writes in HotelNetwork.com: “One of the most effective things top management can do is to demonstrate to the properties that mission statements and the accompanying core values are essential every day on the job, for everyone from the dishwasher to the president of the company” (2010, p. 13). Customer Demands While the mission statement defines the overall goal of the company’s mission, a critical factor in that mission statement must be how a company views its customers, plans to service it customers, and meet its customer demands. Specifically, meeting customer demands in today’s business environment must be based on teamwork and vision of the overall company. Schermerhorn, Hunt & Osborn (2008) write: “Organizations today are less vertical and more horizontal in focus; driven by complex environments and customer demands, work is increasingly team based with a focus on peer contributions.” In our team’s organizations while our services and products may be diverse, one constant theme is clear—customers want value, perfection, and more personal attention. In return, companies are downsizing to deal with the economic downturn while trying to attract new customers and keep a grip on existing customers. In the small garden décor company, its
Image of page 6
Image of page 7
You've reached the end of this preview.
  • Spring '12
  • ALL
  • Organizational studies

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern