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What is Mission Statement?
A mission statement is a concise declaration of an organization’s core purpose, values, and reason for existing. It communicates what the organization does, who it serves, and the value it aims to create.
Definition
A mission statement is a short statement that defines an organization’s primary purpose and guides its strategic direction and day‑to‑day decision‑making.
Key Takeaways
- Describes the organization’s core purpose and goals.
- Guides strategy, culture, and internal decision‑making.
- Communicates value to stakeholders, employees, and customers.
Understanding Mission Statement
A mission statement serves as a foundational element of an organization’s identity. It provides clarity on what the organization stands for and what it aims to accomplish. Effective mission statements inspire employees, align teams, and set expectations for customers and partners.
Mission statements typically address what the organization does, who it serves, and how it creates value. They influence corporate culture, branding, and long‑term planning.
Strong mission statements are clear, memorable, and actionable—not generic or overly broad. They drive alignment across departments and help maintain focus through periods of change.
Formula (If Applicable)
A common structure for mission statements is:
Our mission is to [core purpose] for [target audience] by [how the organization delivers value].
Real-World Example
Google’s mission statement: “To organize the world’s information and make it universally accessible and useful.”
This clear and actionable statement has guided Google’s expansion from search to cloud, AI, and productivity tools.
Importance in Business or Economics
A mission statement ensures organizational alignment, strengthens culture, supports strategic decisions, and helps communicate identity to customers and investors. It also improves employee motivation by creating a shared sense of purpose.
Types or Variations
- Corporate Mission Statement: Organization-wide purpose.
- Departmental Mission Statement: Purpose of individual teams.
- Product Mission Statement: Purpose behind a product or service.
Related Terms
- Vision Statement
- Core Values
- Strategic Planning
Sources and Further Reading
- Harvard Business Review – Purpose & Strategy: https://hbr.org
- Forbes – Writing Effective Mission Statements: https://www.forbes.com
- Investopedia – Mission Statement: https://www.investopedia.com/terms/m/missionstatement.asp
Quick Reference
- Defines why an organization exists.
- Guides strategic and cultural direction.
- Should be concise, purposeful, and actionable.
Frequently Asked Questions (FAQs)
How long should a mission statement be?
One to three sentences, clear and concise.
Is a mission statement the same as a vision statement?
No. Mission focuses on the present; vision focuses on the future.
Should mission statements change over time?
Yes, when the business evolves, expands, or shifts direction.
