An effective business mission statement is:
a. based on an analysis of anticipated environmental conditions.
b. defined in terms of the products and services the company produces.
c. based on short-term thinking and marketing myopia.
d. developed independently of the external business environment.
ANSWER: a
The way a firm defines its business mission profoundly affects the firm's long-run resource allocation, profitability, and survival. The mission statement is based on a careful analysis of benefits sought by present and potential customers, and an analysis of existing and anticipated environmental conditions.
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Indicate whether the statement is true or false.