One of the important objectives of a company’s mission is to provide a unifiable definition of the company’s purpose. Based on the clearly stated company’s purpose, strategic objectives are developed. In addition, all business decisions should be made within the context of the company’s mission. Hence, without the mission statement, a company would not have a goal-oriented strategy to further develop the organization. In addition, without unifiable definition of the company’s purpose, different stakeholders and related parties will make decisions addressing their personal concerns without looking at the company as a whole. It is likely that these decisions made by different parties will contradict with each other and stall the development and growth of the company.
Mission statements are used to communicate the company’s vision to external entities such as customers and society. As a result, it is used by the external entities to form a public image about the company. Customers are concerned with benefits they will receive and solutions offered to solve their problems. Society is concerned with the effect of the company on the environment, ethical management, and corporate citizenship. Without the mission statement, it would be difficult for the public to form an opinion about the company.
An effective mission statement also describes the company’s position in a marketplace. In addition, it should specify the primary target market the company is pursuing. Clearly, having the mission statement helps define a marketing strategy. Companies that do not create the mission statement may end up with ineffective marketing campaigns and would waste funds allocated for marketing.
Many valuable mission statements include a reference to the core technology utilized by the business. A core technology was identified as the third highest priority to be included in the mission statement based on the survey of CEOs as published in the Corporate Governance (vol 2, no 3, pg. 17). Without the stated mission statement, a company may have difficulties architecting an adequate technology platform to support its business offering.
Achieving customer satisfaction, addressing consumer needs, and ensuring customers receive the highest possible level of customer service is another objective. The mission statement contains a message on the benefits to customers regarding the solution to their problems, values they will receive, and satisfaction they will get. Having a clearly defined mission statement positively affects customers’ perceptions and increases loyalty. Companies that do not develop a mission statement may have difficulties attracting customers and form positive perceptions about the company.
About the author:
Isaac J. Gabriel, Ph.D. is the President and CEO of a New York-based start-up EZ Resort Vacations, Inc. Dr. Gabriel specializes in electronic commerce, marketing, and information technology management.