Mission Statement Characteristics and Examples

Strategic Planning and Mission Statement Foundations

  • Definition of a Mission Statement:

    • A mission statement is a concise affirmation of a firm's long-term purpose.
    • It formally describes the specific markets in which the firm will compete as well as the goods or services it will provide.
    • It serves as the foundational first step in creating a quality strategic plan, establishing what an organization wants to accomplish prior to broader strategic planning.

  • Organizational Impact and Purpose:

    • Provides employees with a shared sense of ambition, direction, and opportunity.
    • Drives subsequent decision-making throughout the firm, including the development of marketing strategies for goods and services.
    • Functions as a benchmark standard to ensure the business does not stray too far from its core goals and values over time amidst changing external environments.
    • Serves as the fundamental basis upon which the overall marketing plan is developed.

Core Questions for Mission Statement Development

  • Fundamental Questions for Organization Design:
    • To initiate the process of developing a mission statement, a firm must evaluate four fundamental questions:
    • What is our business?
    • Who is our customer?
    • What is our value to the customer?
    • What should our business be?
    • Answering these four basic questions represents one of the most challenging and critical analytical tasks an organization will ever undertake.

Primary Characteristics of an Effective Mission Statement

  • 1. Focus on a Limited Number of Goals:

    • A mission statement must remain broad enough to provide overarching purpose and direction to the whole organization without becoming bogged down in minor details.
    • Organizations with 10 or more goals in their mission statement typically focus on small, less-meaningful objectives rather than overarching direction.
    • Example/Case Study: Avon previously utilized a mission statement that spanned over 230 words and included multiple distinct goals. Although each individual goal was positive, the excessive length and clutter distracted employees from the primary factors defining organizational success.

  • 2. Customer Orientation and Focus on Basic Needs:

    • Mission statements must focus on satisfying fundamental, enduring customer needs and wants rather than specific physical goods or services.
    • Specific products and technological solutions change over time, whereas underlying human needs and desires persist across generations.
    • Historical Technology Context: Technological innovations such as the VCR, Blackberry phones, and Atari game systems were cutting-edge in past generations but are considered outdated today.
    • Enduring Customer Needs: While technologies like VCRs have become obsolete, the fundamental customer desire to watch movies at home or to capture and share photos with family and friends remains extremely strong.
    • Example/Case Study: Apple has successfully developed and marketed innovative products like the iPod, iPhone, and iPad. However, consumers 20 years in the future may view these devices similarly to how modern consumers view VCRs and Atari game systems. Therefore, Apple's mission statement must remain customer-oriented and focused on satisfying core needs rather than tied strictly to current product iterations.

  • 3. Shared Purpose and Employee Motivation:

    • Effective mission statements capture a collective operational vision and actively motivate the workforce.
    • They explicitly highlight and emphasize the core strengths of the business entity.
    • Example: Google's mission statement captures its core strength: "Google's mission is to organize the world's information and make it universally accessible and useful."

Market-Leading Corporate Mission Statements

  • Amazon:

    • "We seek to be Earth's most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators."

  • American Express:

    • "At American Express, we have a mission to be the world's most respected service brand. To do this, we have established a culture that supports our team members, so they can provide exceptional service to our customers."

  • Nordstrom:

    • "To give customers the most compelling shopping experience possible."

  • Panda Express:

    • "To deliver exceptional Asian dining experiences by building an organization where people are inspired to better their lives."

  • Urban One:

    • "Our mission is to be the most trusted source in the African-American community that informs, entertains and inspires our audience by providing culturally relevant integrated content through our radio, television, and digital platforms."

  • Tesla:

    • "To accelerate the world's transition to sustainable energy."