The 2 Strategic Domains of a Corporate Mission
A mission statement captures two inter-woven strategic domains:
1. The BUSINESS SCOPE, which summarizes the company's competitive space (the industry) into opportunities and threats (the outcomes say, from using
Porter's 5 Forces Analysis).
2. The
CORE COMPETENCIES, which summarize the company's own strengths and weaknesses (the outcomes, say from
Porter's Value Chain Analysis), further strengthened by the
RESOURCE BASED VIEW THEORY, popularized by C. K. Pralahad and Gary Hamel.
A good mission should rightly prompt an understanding of these 2 connected strategic elements, the external" and internal environments, and also offer an idea of what must be valuable in its resources' capabilities and uniqueness.
Source: Arnoldo C. Hax & Dean L. Wilde II, "The Delta Project: Discovering New Sources of Profitability in a Networked Economy", Palgrave 2001
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