Mission statement in business language is the statement of purpose for the business. It can also defined as the reason of existence for the business. Mission statement can be defined at corporate and business level, mission statement for corporate representing the entire umbrella of business units whereas mission statement at business unit level specifically define single business.
Mission statement is important for the business due to several reasons are mentioned below.
– The objectives for the business extracted from mission statement.
– Resolve difference of views among different stakeholders involve in decision making.
– Streamline the decision
– Show clear path to the stakeholders for current and future decisions.
Mission Statement Components
There are nine components which the strategist think are essential in mission statement. Nine components presence in the mission statement is not mandatory but business mission statement with these nine ingredients consider as the best mission statement.[sky]
Customer – Mission Statement should include answer the question ” Who are firm customers?”.
Products and Services – What are the firms major product and services?
Markets – Define the markets in which the firm competing.
Technology – Define the technology which the firm using for running their business.
Concern of survival, growth and profitability – Is the firm committed to growth and financial soundness?
Philosophy – The basic, belief, values, aspiration and ethical priorities of the firm.
Self concept – The firm distinctive competence or major competitive advantage.
Concern of public image = Is the firm responsive to social, community and environmental concerns?
Concern of employees – Are employees are valuable asset of the firm?
Examples of mission Statement
Following are the mission statements of some top class Companies.
Wells Fargo Mission Statement
“Our product: SERVICE. Our value-added: FINANCIAL ADVICE. Our competitive advantage: OUR PEOPLE”
Ford Motors Mission Statement
“To become the world’s leading consumer company for automotive products and services.”
Dell Mission Statement
“To be the most successful computer company in the world at delivering the best customer experience in markets we serve.”
Wikipedia Mission Statement
The mission of the Wikipedia Foundation is to empower and engage people around the world to collect and develop educational content under a free license or in the public domain, and to disseminate it effectively and globally. …the Foundation provides the essential infrastructure and an organizational framework for the support and development of multilingual wiki projects and other endeavors which serve this mission. The Foundation will make and keep useful information from its projects available on the Internet free of charge, in perpetuity.”[linkunit]
Mission VS Vision
The Vision describes a future identity and the Mission describes why it will be achieved. A Mission statement defines the purpose or broader goal for being in existence or in the business. It serves as an ongoing guide without time frame. The mission can remain the same for decades if crafted well. Vision is more specific in terms of objective and future state. Vision is related to some form of achievement if successful.