Elements of a Mission Statement

No one can deny the importance of a mission statement in motivating a business. Mission statement not only helps the business to remain on its track but also helps determining the very purpose of its existence. Finding a perfect mission statement is never possible. Mission statements are made, followed and updated continuously. Updates are made due to many reasons like change in business, change in business philosophy or any other major change that would result in substantial deviation for the organization from the earlier path it laid down in its mission statement. There are nine elements which involve in making a mission statement. Each good mission statement incorporates all of these elements in it. These elements are.

1.Customers
2.Products or Services
3.Markets
4.Technology
5.Concern for survival, growth and profitability
6.Philosophy
7.Self concept
8.Concern for public image
9.Concern for employees

Here is a glimpse of what each of these elements states about in a mission statement

1.Customers
In this element the organization mentions who are its customers or potential customers. What will it do to serve them and how will its customers find this organization different from the other organizations providing similar products or services in the market.

2.Products or Services
In mission statement a business has to mention the producer or service or both they are providing. By defining products or services the company distinguishes its offered products or services from competitive products or services of similar nature provided by other competitors in the market.

3.Markets
By defining markets, the company is declaring which types of customers it will target. Or who will be the intended audience for which it will produce products or services. For example, a luxury car maker like Rolls Royce has a potential market of only the richest of the rich in the world.

4.Technology
By defining technology, the company tells its current technology use in making of its products. It also tells about the unique ways in which its products or services are technologically more advanced then their alternates.

5.Concern for survival, growth and profitability
In this element of the mission statement business defines the means it seeks to survive in the longer run. It not merely lists them out but also defines the logic behind them and how will the company strive to achieve them.

6.Philosophy
Philosophy of a company is a much wider term to cover. By defining philosophy, the company defines its way of working, its culture, its beliefs and how it sees work to be carried out. It is also an analytical way of defining the norms on which it runs.

7.Self concept
By defining the self concept, the business is telling its heart out to the world. In this the company shows the outside world, its core strengths and the place it sees itself in the future.

8.Concern for public image
The buzz word is usually corporate social responsibility mixed with concern for public image. First of all these two terms are totally different and they can by no means be intermingled with each other. Corporate social responsibility points the ways in which the business wants to contribute towards the betterment of the society. Concern for public image is a much wider term and can include not only the corporate social responsibility but the overall impact of the actions taken by the company on its image. This may include from minor issues like installing manufacturing recycling plants by a company for pollution reduction to improve its packaging to enhance a better brand image for one of its top line brands.

9.Concern for employees
Earlier day corporations didn’t care much about their employees. Thankfully the trend has started shifting from no focus to a lot of concentration on working environment. In a mission statement a company also defines the ways in which it is beneficial for potential and currently working employees to work at a certain organization. This also includes the ways in which the company will treat its employees and how will it look towards this relation in a longer period of time.

Source:
UK Wholesalers

Alternative trading systems and organization

Fair trade is a relatively old phenomenon that presents an alternate trading system, which facilitates small scale producers and workers (mainly from undeveloped countries), so that they can sell their products in the developed markets without being duped by the middleman or the capitalist who pay these workers the smallest amount but sells the product to consumers at a hefty price. At the end of the day, it is the middlemen or industrialist, who takes home the larger profits while the real worker is left with little or no opportunities to grow, which is quite unfair. For that reason a fair trading system has been introduced that tends to be directed more by socialist viewpoint than the capitalist.

Alternative Trade Organizations:

Fair trade (also known as alternative trade) calls for market access for low level producers, so that they’ll be able to sell their products at reasonable price. This is what these alternative trade organizations (or fair trade organizations) works for. Fair trade movement, which was started back in 1940’s, was initially based on religious or ethical commandments. With the passage of time, as more and more people including NGO’s and students joined in the cause, it is now becoming more and more popular especially in Europe and North America. For the reason that it’s not only the worker who benefits, but the whole society, especially the consumers who will be paying fair price.

To achieve their ultimate goal (which is to empower destitute workers towards economic prosperity), fair trade organizations works toward promoting this trade system, and spreading awareness among consumers. Such products are not easily available in all markets, so these organizations have to endorse the locations and stores where such merchandise is available. There is a type of certification known as Fair trade Certification, granted to businesses who meet the standards (works pretty much the same like ISO certification). Some of these standards are no gender discrimination, decent wages for workers, no child labor and safe working conditions. Though there’s no restraint but till now the fair-trade is normally limited to simple household stuff like tea and coffee, fruits, chocolate or handicrafts. 

Alternate trading systems:

Some people confuse alternative trade with alternate trading system, because of the similarity in the names. Alternate trading systems are actually unconventional trading system set up for the convenience of stocks buyers and sellers. These are not necessarily stock exchange, though a set of regulations made by SEC applies on them. Online trading system is an example of alternate trading.

Role of distributors & agents in exporting business

As a manufacturer or exporter who is willing to step into some foreign market, you should better be starting in a safe and calculated manner. One relatively safe and secure method is to start with indirect exports and see the response. There are many ways to start indirect exports, but the most widely used method is to hire the services of commission agents or get into a contract with some distributor. Although, their roles may sound a bit similar, both of them differ at some points. Let’s look into the role of these two in detail.

Agents:

Also known as commission agents, they are responsible for selling your products in foreign market. They are experienced campaigners and quite familiar with the market you are going to target. They know the customers and their needs. However, the thing to remember is that they are solely responsible for selling your products. They do not buy from you directly; neither do they involve themselves in delivery or after sale services in most cases. Their source of earning is the fixed commission on every sale (or gross sales, they will make for you).

Commission agents must be able to meet following requirements before you hire their services.

Should be having loads of experience

Check to see if the agent also deals in some of your competitive products

Past record of sales and the stats for business they have provided to other exporters in the past

How much of the market that agent can cover on his/her own and to what extent

Do they sell to end users or businesses?


Distributors:

Unlike commission agents, distributors normally purchase the product from you (at low rates) and then sell it in the market, all the time maintaining some inventory with them. Given, they also provide after sale services, they are more suited if your product needs some installation work or requires after sale services.

Distributors should be financially stable

They must be good in inventory stocking and warehouse management

Should be having technical information about the product (train them if needed)

Should be ready to work at price margins you are willing to offer

Be careful when going into a contract and think over the clauses many times before signing

Distributor should be capable of running or managing the advertising campaign if needed





Now, whether you should go for agents or distributors? The answer to this question will depend on your product and preferences. 

Globalization & making global strategies for your business

Globalization presents a whole new set of opportunities, a totally different type of threats and so many alternate options to do business. It is going to affect your business one-way or the other, that’s why the sooner you start thinking in a global perspective the better. Globalization has made the future even more uncertain for the businesses, raising the bar to a new level. If your business was somewhat secure in the old domestic setup, you should get ready for some competition coming from across the borders. Being the best in your country is not enough anymore. You need to look for improvement constantly, as a business and as an individual to be able to survive.

On the positive side globalization is not all about threats and insecurities; it also provides so many new lucrative markets and opportunities at the same time. But to avail these benefits you need to be proactive. Unlike most businesses that just go with the happenings; you should make a global strategy and then stick to it.

Internal & External Considerations:

Internal & external assessment is the first step towards making a global strategy. It starts from deciding if your product or service has got the potential to make it at international level. If the answer is in yes, then you must go for it. Other factors include available resources (capital, technology, and skills), environmental factors, global inflation, trade barriers or the alternates available worldwide. An example of these alternates is how globalization has made it so easy to outsource some of your tasks to a firm located in some low cost zone and save significant amounts.

Set Goals:

Keep in mind the availability of finance or the requisite like supplies in the host country, when setting goals. Don’t overlook the hurdles like host Government policies, political uncertainties or global inflation in your excitement of going global. Set priorities and the level of risk your business is capable of taking.

Long Term Planning

The formulation of long-term plan requires the managers to look into all departments, starting from entry method to diversification targets, product marketing and distribution. If you have been running or managing a business locally for some time, it may take time and effort before your mind can adapt an international approach while planning. It may be hard at first, but then that’s something you can hardly ignore in this age of globalization.