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On the important role of enterprise purpose and mission and how to design it

corporate purpose and mission is the purpose and reason for the existence of an enterprise, and corporate purpose is fundamentally defined as the business that an enterprise is engaged in. Enterprise purpose is a statement about the purpose of enterprise existence or its contribution to a certain aspect of social development, sometimes called enterprise mission. The role of corporate purpose and mission is embodied in the following points: 1. It helps to locate the survival purpose of the enterprise. If an enterprise can't find a reasonable reason or the reason and purpose of its existence, even it doesn't know itself, or even it can't convince itself effectively, the problem of the enterprise will be big, and it may be said that the enterprise "has no need to exist". Just like people, they often ask themselves the truth of "why am I alive", and business operators should be more aware of it. 2, help to locate the concept of production and management of enterprises. The purpose and mission defined by an enterprise establishes a basic guiding ideology, principles, direction and management philosophy for the enterprise, which is not a specific strategic goal of the enterprise, or exists in the abstract, but affects the decision-making and thinking of the operators. This includes the philosophical orientation of enterprise management, the prominent values and the image orientation of the enterprise: what is the guiding ideology of our management? How do we know our cause? How do we view and evaluate the market, customers, employees, partners and rivals? Wait a minute. 3. It helps to locate the image of the enterprise's production and operation, which reflects the image that the enterprise is trying to establish for itself, such as "we are a company willing to take responsibility", "we are a healthy growing enterprise" and "we are a leading enterprise in the industry", etc. Under the guidance of clear image positioning, the business activities of the enterprise will always show this to the public, and will not "chop and change". 4. Internally, it is a general mobilization for all employees to fulfill their social responsibilities, and it is a powerful ideological weapon to guide and standardize the behavior of enterprises and employees. 5. Externally, it is a declaration issued by enterprises to the society, and it is a bright banner to guide consumers (users) and the public. 6. It can also promote the unity of the business purpose of the whole enterprise; Provide a basis or standard for the allocation of enterprise resources; Establish a unified corporate atmosphere and environment; Clear development direction and core business; Coordinate internal and external contradictions; Establish a user-oriented thinking; As we know, the purpose of the enterprise not only states the future task of the enterprise, but also clarifies why this task should be completed and what is the code of conduct for completing the task. That is to say, although the purpose statement of an enterprise varies widely, it has to answer two basic questions: ① What does our enterprise do and what principles do it follow? (2) what kind of social image should our enterprise establish to distinguish it from similar enterprises? Therefore, the purpose design of an enterprise should include the following basic contents: 1. The basic purpose of the formation and existence of an enterprise. This content puts forward the enterprise's value concept, and the basic social responsibility and expectation of the enterprise's contribution to society in a certain way. 2, in order to achieve the fundamental purpose should be engaged in the scope of business activities. This content stipulates the production scope and market scope of the enterprise in the strategic period. 3. Basic behavior rules and principles of enterprises in business activities. This content clarifies the management idea of the enterprise. The statement of business ideas is often reflected in the business policy of enterprises. Although not all enterprises have a written purpose or publicly publish their own purpose statement, more and more enterprises regard the purpose statement as an important part of their strategy. The importance of enterprise purpose statement can be summarized as the following three aspects: 1. Put forward enterprise value standards (values) to ensure that the main actions of the enterprise's purpose and suitable projects are recognized within the enterprise. The statement of the fundamental purpose of enterprise existence in the enterprise purpose sets a value standard for all employees to strive for. The value standard of an enterprise is the general norm and guidance for enterprises and all employees to choose their own behaviors. Whether the behavior and goals of individuals, departments and even the whole enterprise conform to the direction of enterprise development. At the same time, the enterprise value standard expressed by the fundamental purpose of enterprise existence also plays a role in motivating employees. 2. It provides directional guidance for strategy manager to determine its strategic objectives, choose strategies, formulate policies and effectively use resources. The exposition of the business scope or field of the enterprise and the statement of the development goal of the enterprise in the enterprise purpose provide the basis for the enterprise to choose the means to realize the goal, that is, the strategic plan. That is to say, the purpose of the enterprise determines the strategic objectives for the enterprise, which business activities should be carried out (which products to produce and which markets to enter) and how to carry out these activities (what policies to formulate and how to allocate resources) provide a clear direction and basis. 3. Establish an image different from other enterprises. The statement of the code of conduct of enterprise management thought in the enterprise purpose is conducive to the enterprise to establish a special, individual and different corporate image from other competitors. Because it reflects the focus and attitude of enterprises in dealing with their own and social relations, and reflects the views and attitudes of enterprises in dealing with various related interest groups and individuals. A good social image is a valuable intangible property of an enterprise. Generally speaking, the purpose of an enterprise has a historical formation process. At the beginning of a new enterprise, its purpose is vague or simple, which is roughly limited to the statement of business scope. With the development of the enterprise and the experience of the business process, its purpose will gradually mature and improve. Different enterprises have different statements of quota purpose and different expressions. However, the statement of corporate purpose is the most striking and easily understood part of corporate strategy, and it can also guide and motivate various stakeholders. Therefore, the main requirement for the purpose statement of an enterprise is to ensure that it can briefly include all the basic contents. How to express the enterprise's purpose briefly and properly in specific statements only depends on continuous exploration and research in practice. Generally speaking, however, the following issues should be paid attention to in the statement of enterprise's purpose: 1. The statement of enterprise's purpose should be relatively broad for two reasons: First, the broad statement of enterprise's purpose provides a choice for strategy manager's creativity, while the too narrow statement of purpose will limit this creativity, thus making the enterprise miss many opportunities in a changeable environment; Second, it is easy to reconcile the differences of various stakeholders, and it is vague and principled to show the importance attached to various interest groups, which can avoid unnecessary contradictions. 2, the purpose of the enterprise statement should be more comprehensive. Through the statement of purpose, an enterprise should not only define the enterprise from all aspects, but also comprehensively reflect the requirements of various interest groups of the enterprise, otherwise it will not provide effective guidance for formulating goals and strategies. 3. The purpose statement of an enterprise should not be too broad without limiting the strategic choice of the enterprise, because an overly broad purpose statement cannot unify the enterprise's understanding of the future. After the purpose of the enterprise is clear, it should be properly carried out. Personally, I think that the purpose of the enterprise should be stated in the following ten aspects: ① customers-who are the main customers of the enterprise? 2 products or services-what are the main products or services of the enterprise? (3) market-in which region or industry do enterprises mainly compete? ④ Technology-What is the dominant technology of the enterprise? ⑤ Concern for the survival, development and profit of enterprises-attitude towards the near, medium and far economic goals of enterprises. 6 philosophy-what are the basic beliefs, values and aspirations of enterprises? ⑦ Self-awareness-what are the strengths and competitive advantages of an enterprise? ⑧ Concern for public influence-What kind of corporate image does the enterprise expect to create for the public? The effectiveness of interest coordination-whether it effectively reflects the interests of customers, shareholders, company employees, communities, suppliers and sales manufacturers and other stakeholders. Attending the degree of motivation-can the enterprise purpose effectively motivate enterprise employees? In a word, the design of enterprise purpose should mainly clarify: the value-added activities of enterprises, the contributions of products or industries, customers or markets, and enterprises. First, organize managers to carry out training, clarify the importance of the purpose and the direction and content of the design purpose, then mobilize all employees, brainstorm, compile around the above elements, collect and sort out the representative ones, and then solicit the opinions of all employees. After that, middle and senior managers and shareholders discuss the final draft.