Questions for Discussion
1. Reread Nicor Inc.’s mission statement in Exhibit 2.1, Strategy in Action. List five insights into Nicor
that you feel you’ve gained from knowing its mission.
other related activities.
It operates primarily in the United States.
It recognizes that it has various stakeholders, each with their own interests. Thus, it
public.
It recognizes its ecological responsibilities by stating its concern for the optimum
utilization of natural resources.
2. Locate the mission statement of a company not mentioned in the chapter. Where did you find it?
What it presented as a consolidated statement, or were you forced to assemble it yourself from
The most common way today is to access the company’s website and obtain the mission
statement through that. In the case of most companies, the mission would be a consolidated
mentioned in the chapter.
3. Prepare a two-page typewritten mission statement for your school of business or for a firm selected
by your instructor.
develop their school’s mission) to develop mission statements. The instructor may design this as
an individual or a group exercise.
4. List five potentially vulnerable areas of a firm without a stated company mission.
A good way to approach this question is to look at each of the mission statement components
Without a mission, the following areas could be vulnerable:
identification of competitors because of lack of definition of basic product or service
5. Mission statements are often criticized for being lists of platitudes. What can strategic managers do to
prevent their statements from appearing to be simple statements of obvious truths?
A company’s philosophy is often stated in the company creed, which accompanies or appears
within the mission statement. Creeds are written statements regarding the company, and actually
vary little from one company to the next. This is one element of the mission statement that can be
6. What evidence do you see that mission statements are valuable?
Mission statements are a useful tool companies use to communicate with their employees, managers,
community, potential investors, and outside stakeholders. The mission statement can provide a clear
7. How can a mission statement be an enduring statement of values and simultaneously provide a basis
of competitive advantage?
The mission statement is designed to provide insight into a company’s values. Values are sustained
over the course of the company’s existence. They are long-term declarations of how the company and
8. If the goal of survival refers to ability to maintain a specific legal form, what are the comparative
advantages of sole proprietorships, partnerships, and corporations?
The advantages of sole proprietorships include: ease of establishment, independence, secrecy (your
plans do not have to be revealed to anyone), and tax advantages (pay taxes at personal income tax
rate). The advantages for partnerships include: easy to form and taxed at personal income tax rate,
greater profit potential due to pooled talents, can raise money quicker than proprietorships and
generally have higher credit ratings, and may have a longer life span. Both of these forms have
unlimited liabilities and limited resource issues. Also limited life and managerial problems may be an
9. In the 1990s many Nasdaq firms favored growth over profitability; in the 2000s the goal of
profitability is displacing growth. How might each preference be explained?
Profitability is the mainstay goal of a business. Profit over the long term is the clearest indication of a
firm’s ability to satisfy the principal claims and desires of employees and stockholders. The key to
One key point is that no matter what goals the company is measured by, it should be evaluated on the
10. Do you agree that a mission statement provides substantive guidance while a vision statement
provides inspirational guidance? Explain.
Students’ responses will vary. A mission statement is meant to provide long-term guidance regarding
what a firm does, what customers it serves, and what principles are most important to the company as
“Vision Statement,.”