Learn: Mission Statements - Purpose and Use

Welcome!Welcome back! You've already learned about vision statements, aims, objectives, and SMART objectives. Today, we'll build on that knowledge by exploring mission statements—what they are, their purpose, and how businesses use them effectively.

What is a Mission Statement?A mission statement is a brief description of a business's purpose and the values it upholds while achieving its goals. It answers the question: Why does this business exist? A strong mission statement helps guide decision-making and communicates the business's identity to stakeholders.

Purpose of Mission StatementsThe main purpose of a mission statement is to provide clarity and focus. It explains what the business aims to achieve and how it plans to achieve it. This helps employees, customers, and other stakeholders understand the organisation's priorities.

Components of an Effective Mission StatementAn effective mission statement typically includes: 1) the business's purpose, 2) the values or principles guiding it, and 3) the target audience or beneficiaries. It should be concise, inspiring, and easy to understand.

How Businesses Use Mission StatementsBusinesses use mission statements to align employees with organisational goals, communicate their identity to customers, and make strategic decisions. For example, a business with a mission of sustainability might prioritise eco-friendly practices.

Examples of Mission StatementsLet’s look at some real-world examples to understand how mission statements reflect a business's purpose:

Example 1: TescoTesco’s mission is "Serving shoppers a little better every day." This shows its focus on customer satisfaction and continuous improvement.

Example 2: PatagoniaPatagonia’s mission is "We’re in business to save our home planet." This reflects its strong commitment to environmental sustainability.

Review Time!Great work! You've learned about the purpose, components, and use of mission statements. Now let’s test your understanding with a few final questions.