why having a mission statment for a company is important

Expert Answer

Mission statement is nothing but the bigger picture of the company’s vision. Mission statement helps in setting business goals. Mission statement gives clear picture of company’s values and principles. Mission are not actionable or measurable. Every company has mission based on the vision.

Company’s values and principle are taken into account for making the mission statement however it is not measurable or actionable. Drafting a companywide mission statement is important for the organization because it helps the company to make strategic plans to meet the goals. Mission statement should be formulated keeping in mind the following business aspects. They are: –

• The goal of the organization and the underlying philosophies.
• Who the company is because mission statement gives clear picture about the customers, employees, suppliers, competitors, etc.
• It should be formulated keeping in mind the business processes and activities and what is exactly done by the business.
• It also involves the value the business is bringing to the customers, stakeholders, community, etc. and what is the reason behind this.

Mission of an organization describes the function of organization and what exactly the organization is trying to achieve. Mission is considered as the path which helps in meeting the goal. Strategy is nothing but the plan of action made to meet the overall goal of an organization Strategy provides proper direction to business in meeting the goals. Strategic planning is nothing but the process by which the organization define its strategy and allocate its resources appropriately to proceed with the strategy.

Mission statement is very important in guiding an organization’s strategy. Strategic planning is done based on the following: –

• The current status of the organization in terms of profits, success, reputation, etc. which is supported by the mission statement.
• The long term goals of the organization based on the mission statement.
• How to achieve the long term goals and short term goals.
• Mission statement guides the leaders of the organization to make strategic decision and define the primary purpose of the organization.