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Mission Statements
Mission statement answers the question:


What is our business?


Source: Fred Davids Strategic Management textbook published by Prentice Hall


Mission Statement
The mission statement is very important:
Identifies and responds to various stakeholders.
Helps the firm present itself favorably to its
stakeholders.
Forms the foundation for all the other objectives
and strategies.
What is the business of the firm?
Whom does the firm want to serve?
What does the firm want to become?
Has performance implications - High performers
have more comprehensive mission statements
than low performers.

Nine Essential Components of a Mission
Statement
1. Customers: Who are the firms customers?
2. Products or services: What are the firms
major products or services?
3. Markets: Geographically, where does the
firm operate?
4. Technology: Is the firm technologically
current?
5. Concern for survival, growth, and
profitability: Is the firm committed to growth
and financial soundness?
Nine Essential Components of a Mission
Statement
6. Philosophy: What are the basic beliefs, values,
aspirations, and ethical priorities of the firm?
7. Self-concept: What is the firms distinctive
competence or major competitive advantage?
8. Concern for public image: Is the firm
responsive social, community, and
environmental concerns?
9. Concern for employees: Are employees a
valuable asset of the firm?


Evaluating Mission Statements
Evaluation Matrix
To determine whether a component is satisfactorily
included in a mission statement, ask yourself:
Does the mission statement answer the key question
associated with this component?
Can I/we communicate this component better?
Simple inclusion of the word customers or employees or
technology is not adequately informative or inspiring.
Other criteria - clear, informative, inspiring, less than
or equal to 200 words.
Developing a mission statement is not a once-and-for
all job.
PepsiCo Mission Statement
PepsiCos mission is to increase the value of
our shareholders investment. We do this
through sales growth, cost controls, and
wise investment resources. We believe our
commercial success depends upon offering
quality and value to our consumers and
customers; providing products that are safe,
wholesome, economically efficient and
environmentally sound; and providing a fair
return to our investors while adhering to the
highest standards of integrity.
COMPONENTS
Organization Customers
Products
Services Markets
Concern for
Survival,
Growth,
Profitability Technology

PepsiCo Yes No No Yes No

Evaluation Matrix of Mission Statements
Evaluation Matrix of Mission Statements
COMPONENTS
Organization Philosophy
Self-
Concept
Concern for
Public Image
Concern for
Employees

PepsiCo Yes No No No

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Mission Statements
Mission Statement:

Enduring statement of purpose
Distinguishes one organization from
another in similar enterprises
Declaration of an organizations
reason for being

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Mission Statements
Mission Statements

Reveal what an organization wants to
be and whom it wants to serve
Essential for effectively establishing
objectives and formulating strategies


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Mission Characteristics
Effective mission statements:
Broad in scope
Generate range of feasible
strategic alternatives
Not excessively specific
Reconcile interests among
diverse stakeholders

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1. Customers
2. Products or services
3. Markets
4. Technology
5. Survival, growth, and profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees
Mission Components