Which of the following represents an organizations general purpose or reason for existence?

A mission statement defines what line of business a company is in, and why it exists or what purpose it serves. Every company should have a precise statement of purpose that gets people excited about what the company does and motivates them to become part of the organization. A mission statement should also define the company’s corporate strategyCorporate StrategyCorporate Strategy focuses on how to manage resources, risk and return across a firm, as opposed to looking at competitive advantages in business strategy and is generally a couple of sentences in length.

Índice

• Example of a Mission Statement
• Why is a Mission Statement Important?
• The Rise of a Purpose Statement
• More Resources
• What is an organizational mission?
• Why is an organizational mission important?
• How to create an organizational mission
• 1. Determine your purpose
• 2. Understand your purpose
• 3. Determine your plan
• 4. Condense your mission
• Examples of organizational missions

Example of a Mission Statement

Let’s look at Microsoft Corp.’s mission statement. Microsoft Corp. is an American multinational company that develops, manufactures, licenses, and sells technology products, including computer software, electronics, and personal computers. It is also one of the largest corporations in the world, alongside companies such as Apple, Inc. and Amazon.com, Inc.

Microsoft’s mission is:

The statement above is a good example of a mission statement because it provides a broad enough scale of scope to explain what the company can do, and it is also inspirational – it’s all about empowering people. It is the kind of statement that people can get excited about and can rally behind. It also defines Microsoft’s strategy, which is reaching out to the whole world and making an influence on all individuals and organizations.

Why is a Mission Statement Important?

As shown in the diagram above, the combination of a mission statement, vision,Vision StatementA vision statement describes what a company desires to achieve in the long-run, generally in a time frame of five to ten years, or sometimes even longer. It and values tells a full story about Microsoft’s businesses and points out the things that matter to the company. Being able to build an influential statement is the first step to business success because all strategies are developed and executed with a solid mission as the foundation. The statement guides the management team in implementing strategies that help reinforce the company’s identity and achieve its goals.

It is important for:

• Motivating employees
• Inspiring customers
• Strategic planning
• Setting values
• Understanding why a business exists

The Rise of a Purpose Statement

The mission statement, vision, and values are traditionally the three most common descriptions of a business that explain why a company exists. In recent years, another type of statement has also emerged in the business world and is gaining more popularity. This type of statement is called a purpose statement.

A purpose statement conveys a company’s reason for existence, just as the mission statement and vision do, but it also shows the connection between the brand identity and workplace culture of the company. It combines the components of a mission statement, vision, and values into a single statement.

More Resources

Thank you for visiting our resource on how companies can use a mission statement to help support their overall strategy. To learn more about business strategy, check out our Corporate & Business Strategy course, which covers all important terminologies and theories on strategy, and demonstrates the whole strategic analysis process.

Additional relevant CFI resources include:

• Strategic AnalysisStrategic AnalysisStrategic analysis refers to the process of conducting research on a company and its operating environment to formulate a strategy. The definition
• Vision StatementVision StatementA vision statement describes what a company desires to achieve in the long-run, generally in a time frame of five to ten years, or sometimes even longer. It
• SWOT AnalysisSWOT AnalysisA SWOT analysis is used to study the internal and external environments of a company and is part of a company’s strategic planning process. In addition, a
• All Strategy ResourcesStrategyCorporate and business strategy guides. Read all CFI articles and resources on business and corporate strategy, important concepts for financial analysts to incorporate in their financial modeling and analysis. First mover advantage, Porter's 5 Forces, SWOT, competitive advantage, bargaining power of suppliers

1. Career Development
2. What Is an Organizational Mission? Definition, Significance and Examples

By Indeed Editorial Team

May 13, 2021

An organization's purpose is its mission. Developing an organizational mission requires a deep understanding of what a company hopes to achieve and why. Though brief in format, an effective mission can communicate a lot about a company's values and ambitions. In this article, we discuss what an organizational mission is, explain their importance, show you how to write an organizational mission and provide examples of organizational missions.

What is an organizational mission?

An organizational mission, also known as a mission statement, is a brief, broad statement about an organization's goals and how it intends to meet those goals. It often addresses what the organization offers and how it hopes to serve its customers, community, employees, investors or other stakeholders. Some mission statements may also include explanations of the principles that the organization values and hopes to abide by throughout its existence.

An organizational mission also helps to guide the actions of an organization. A related but different organizational statement is the vision statement, a declaration of what the organization hopes to become. The difference between a mission and a vision is that the former addresses the organization's purpose, whereas the latter focuses on aspirations for the future based on its current purpose.

Related: Vision Statements: Tips, Example and Importance

Why is an organizational mission important?

An organizational mission is a statement directed both internally and externally, so it helps inform how stakeholders at all levels perceive the organization. Among the factors that an organizational mission can affect are:

Brand

Brand refers to how customers relate to an organization. Part of the function of an organizational mission can is to determine stakeholders, including customers, so it can serve as an invitation to the target audience to explore what the organization offers. The brand also helps distinguish the organization from competitors. There may be similarities in the products or services that other organizations sell, but the mission can establish a unique purpose that resonates with customers.

Related: 4 Steps To Building a Brand

Culture

Organizational culture refers to the working environment in relation to an organization's stated values and goals. Culture can influence how members of an organization interact and function within its system, as it typically involves how the organization treats its stakeholders and how information flows through the organization. The factors that determine culture, such as organizational values and norms, stem from the mission.

Related: What Is Organizational Culture?

Morale

The organizational mission can also affect how employees relate to their duties by conveying purpose in the work they do. The mission can show that their responsibilities and actions are part of a larger ambition and help them see the value in their contributions are valuable. When employees see they serve a meaningful purpose, they are more likely to be satisfied in their work and remain with the organization for the long term.

Related: How To Boost Employee Morale

Standards

By declaring the organization's goals and plans for development, an organizational mission can create standards to which its members can aspire to meet. Employees can ask themselves whether their actions and output align with the values stated in the mission.

How to create an organizational mission

Although a mission should be unique to the organization that creates it, there are certain components that a successful organizational mission should include, such as the organization's purpose, values and goals.

You can follow these steps to write an organizational mission:

1. Determine your purpose

Purpose is the reason that an organization exists. Many businesses serve similar general purposes, so it's important to be as specific as possible when declaring your organization's purpose. For example, a coffee company's general purpose would be to sell coffee, but it's specific purpose as it relates to its mission should distinguish it from competitors, such as fostering an appreciation for coffee and the people who grow them.

2. Understand your purpose

Knowing the reasoning behind your purpose can help you write a clear, succinct mission, and including the reasoning in the emission can persuade stakeholders to support your cause and your business. In the above example of the coffee company, the founders might wish to highlight the hard work that goes into making coffee and to contribute to the everyday happiness of members of the community.

3. Determine your plan

Your plan refers to how you aim to fulfill your purpose and the long-term goals that align with it. This can be a general statement of what the organization does in relation to its values. The coffee company might state that they hope to accomplish their goals by selling high-quality fair-trade coffee at reasonable prices to its customers. The plan of selling "high-quality fair-trade coffee at reasonable prices to its customers" defines the company's objectives, which informs its daily operations and can function as an outline for future business developments.

4. Condense your mission

Organizational missions are typically only a few sentences, and some are only a phrase, so a lot of information must fit in a small package. Try writing out a longer version of your mission that incorporates your purpose, reasoning and plan. Then see where you can cut down on words and combine sentences to produce the most concise statement you can achieve.

For example, the coffee company's mission includes several complicated details:

• Its purpose is to foster an appreciation for coffee and coffee growers.

• It wants to show the hard work involved with coffee growing and to serve their community.

• It plans to fulfill its mission by selling a specific type of coffee at an affordable price point.

One might see that the first and third statements imply the ideas expressed in the second. Removing the second statement leaves only two statements, which can combine to express the organizational mission: "to foster an appreciation for coffee and its growers by selling high-quality fair-trade coffee at reasonable prices to our valued customers."

Related: How To Write an Effective Mission Statement

Examples of organizational missions

Seeing examples of organizational missions can give you an idea of how to write one yourself. Consider these examples of organizational missions, noting the varying lengths and formats:

Example 1

• Company: A restaurant

• *Purpose: Serving tasty home-style meals in a family-friendly environment*

• *Plan: Providing large portions and a welcoming experience*

• *Organizational mission: "To provide you with an experience that leaves your belly and heart full."*

This restaurant's organizational mission suggests that dining with them is both physically satisfying and emotionally pleasant.

Example 2

• Company: A business application developer

• *Purpose: Improving workplace communication*

• *Plan: Providing a format that is attractive, easy to use and streamlined*

• *Organizational mission: "Dedicated to making a platform that speaks to you and for you."*

This example employs abstract language that plays off the concept of communication to imply that the developer aims to produce applications that both appeals to users and simplifies workplace communication.

Example 3

• Company: An outerwear company

• *Purpose: Creating durable, comfortable outerwear for all*

• *Plan: Donating a coat to charity for every coat bought*

• *Organizational mission: "With every purchase of our outerwear, we provide a warm coat for fellow humans in need."*

Here, the organizational mission directly states how the company operates and also expresses its value of providing necessary items to the people who need them.

Example 4

• Company: An international charity

• *Purpose: Establishing education infrastructure in underdeveloped areas of the world*

• *Plan: Building and staffing schools*

• *Organizational mission: "Our mission is to bring knowledge to the world."*

This charity's mission encompasses the ambitiousness of their purpose and also elevates it to be a much larger idea. It speaks to the importance of the organization's mission.

Example 5

• Company: A ride-hailing service and application

• *Purpose: Providing enjoyable and reliable transport to app users*

• *Plan: Emphasizing customer service as a key skill for their drivers*

• *Organizational mission: "It's our privilege to get you where you want to be."*

This organizational mission communicates that the company wants its users to be pleased with their experience.

Please note that none of the companies mentioned in this article are affiliated with Indeed.

What is an organization's general purpose?

Which organizational element is the reason for an organization to exist?