When converting from a Word document, you'd be best to save as RTF, load into Wordpad, resave as RTF, convert the RTF to ePub, use Sigil to clean up to the ePub and then use Calibre to convert the final ePub to Mobi.
The problem is that Word documents are a heck of a mess and once converted to an eBook format, they will need cleaning up. ePub is the best format for this and it can be converted to Mobi.
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