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.
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.