Mission statement

Question 1

What is a mission statement ?

Answer 1

A mission statement gives a general idea of what the business exists to do - the overriding purpose.

• It gives the reason for its existence (what it is trying to achieve).
• Supports the stated “vision” for the future - mission should support the vision.

Question 2

What is the purpose of a mission statement?

Answer 2

It’s purpose is to set down what the business aims to do for the benefit of all stakeholders.

Question 3

Is it a quantitative or qualitative statement?

Answer 3

It is a qualitative statement which contains no specific elements.

Question 4

What does a mission statement usually state?

Answer 4

It states the overall organisational or corporate aims of a business.

Question 5

What business department can a mission statement be used in?

Answer 5

The mission statement can be used as a form of marketing.

Question 6

Example - what is Cadbury U.K. Limited’s mission statement?

Answer 6

‘Our core purpose is working together to create brands people love’.

Question 7

Example - what is Ella’s Kitchen’s mission statement?

Answer 7

‘At Ella’s Kitchen our mission is to create healthy eating habits that will last a lifetime. With all our products we take simple, wholesome, organic ingredients that ooze goodness and have nothing else added at all’.

Question 8

Who is a mission statement intended to appeal to?

Answer 8

All stakeholders including employees and customers alike.

Question 9

Give three examples of objectives that might be included in a mission statement?

Answer 9

• Corporate objectives
• Social objectives
• Strategic objectives.

Question 10

Evaluate the impact of changing a mission statement on a business and its stakeholders?

Answer 10

This could result in a miscommunication about objectives which can have serious impacts - businesses need to ensure they communicate their objectives clearly to all stakeholders and adhere to their objectives (stated in the mission statement).
-Miscommunication from employer to employee can quickly escalate into industrial unrest and a lack of trust.

• If this is not done successfully and stakeholders don’t know the mission statement has changed or understand what it means then this can have negative effects, or positive if the change appeals more to stakeholders interests.
• For example, if there was an addition to the mission statement about growth, if employees feel that growth will be achieved at the cost of jobs, with workers replaced by capital equipment, this can result in serious unrest.
• People, like employees or customers (stakeholders), are likely to be resistant to change so new ideas will need to be explained carefully and there should be reasons for the change.

Question 11

What is the mission statement NOT?

Answer 11

• A statement of detailed goals/targets or objectives.
• A statement of core values or organisational culture.
• A statement of how (in terms of marketing) the business intends to complete or position itself (products) in the market.

Question 12

Who is the mission statement intended for?

Answer 12

All stakeholders, but also the key audiences include:

• Employees
• Customers
• Investors - reach out to potential investors
• Society - explain to society what the purpose of the business it

Question 13

What makes a good mission statement?

Answer 13

It is a qualitative judgement + matter of opinion if a mission statement is good or bad, but it should:

• Provide a clear sense of business purpose, brining stakeholders together
• Excites, inspires, motivates and guides (in business decision making)
• Simple, easy to understand and remember, distinctive
• Differentiate the business from competitors in the long term
• All encompassing - intended for all stakeholders, not just narrow groups like shareholders and managers.

Question 14

What are the criticisms of mission statements?

Answer 14

• There is a disconnect between the mission statement and what the business actually does and how it behaves and decisions it makes, so a mission statement that is not supported by the actions of a business is a worthless one.
• Could be said to just be for marketing purposes and PR and they don’t go beyond their intended marketing audience, and as a result regarded cynically by staff and other stakeholders
• Often too vague and general - a good mission statement should be distinctive and memorable to make it more effective
• For them to be effective and work, (the business needs to encourage and) everyone in the business has to “buy-in”, if it doesn’t then its not performing as well as it should do.
• Often merely statements of the obvious.