Mission statement answers the question: Mission Statements Mission statement answers the question: “What is our business?” Source: Fred David’s 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 firm’s customers? 2. Products or services: What are the firm’s 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 firm’s 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 PepsiCo’s 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.

Concern for Survival, Growth, Profitability Evaluation Matrix of Mission Statements COMPONENTS   Organization Customers Products Services Markets Concern for Survival, Growth, Profitability Technology PepsiCo Yes No

Evaluation Matrix of Mission Statements COMPONENTS   Organization Philosophy Self-Concept Concern for Public Image Concern for Employees PepsiCo Yes No

Mission Statements Mission Statement: Enduring statement of purpose Distinguishes one organization from another in similar enterprises Declaration of an organization’s “reason for being”

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

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

Mission Components Customers Products or services Markets Technology Survival, growth, and profitability Philosophy Self-concept Concern for public image Concern for employees