Question

What are the four major components of a Mission Statement?

Answer 1

Company's values and principle are taken into account for making the mission statement however it is not measurable or actionable. Drafting a company-wide 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 major components: -

• 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.

Companies communicate them with their subordinates because: -

• The profits, success, reputation, etc. of the organization 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.