The Bottom Line
John A. Pearce II Fred David
George Mason University Auburn University
Developing a mission statement is an important first step in the strategic planning process, according to both practitioners and research scholars. Several recent books on strategic management include entire chapters on mission statements, which attest to their perceived importance in the strategy formulation process. Nevertheless, the components of mission statements are among the least empirically examined issues in strategic management. No reported empirical studies describe the composition of business mission statements, only a few conceptual articles suggest desirable component characteristics, and no reported attempts have been made to link mission statements to corporate performance.
This neglect is surprising since several studies have concluded that firms that engage in strategic planning outperform firms that do not. Thus, the research reported in this paper focused on the nature and role of mission statements in organizational processes; its goal was to improve our understanding of the link between strategic planning and firm performance.
The Mission Statement
An effective mission statement defines the fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business's operations in product and market terms. It is an enduring statement of purpose that reveals an organization's product or service, markets, customers, and philosophy. When prepared as a formal organizational document, a mission statement may be presented under a maze of labels, including "creed statement," "statement of purpose," "statement of philosophy," or a statement "defining our business." Yet regardless of the label, a mission statement provides the foundation for priorities, strategies, plans, and work assignments. It is the starting point for the design of managerial... [continues]
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(2011, 02). Corporate Mission Statements. StudyMode.com. Retrieved 02, 2011, from http://www.studymode.com/essays/Corporate-Mission-Statements-598222.html
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