Learn: Mission Statements - Purpose and Use

Welcome!You’ve already learned about vision statements, aims, objectives, and SMART objectives. Now, let’s build on that knowledge by diving into mission statements — their purpose and how businesses use them.

What is a Mission Statement?A mission statement is a short, clear declaration of a business's purpose. It explains why the business exists and what it aims to achieve, focusing on its values and goals.Mission statements are important because they provide direction and help stakeholders understand the business's priorities.

Purpose of Mission StatementsThe purpose of a mission statement is to communicate the business's purpose and values to employees, customers, and other stakeholders. It aligns everyone with the company's goals and ensures consistency in decision-making.For example, a mission statement can inspire employees to work towards shared objectives and attract customers who value similar ideals.

Key Features of Mission StatementsMission statements typically include the following features:Purpose: Explains why the business exists.Values: Highlights the ethical principles or beliefs the business prioritises.Stakeholder focus: Demonstrates how the business meets the needs of its stakeholders.

How Mission Statements are UsedBusinesses use mission statements in several ways:Guiding strategy: Helps the business make decisions consistent with its purpose and values.Motivating employees: Inspires staff by giving them a sense of purpose.Marketing tool: Attracts customers who share similar values.

Benefits of Mission StatementsA strong mission statement offers several benefits:Clarity: Ensures everyone understands the business's purpose.Alignment: Keeps employees and stakeholders working toward the same goals.Reputation: Builds trust and credibility with customers and stakeholders.

Review Time!Great work! You've learned about the purpose, features, uses, and benefits of mission statements. Let's test your understanding with a few final questions.