Mission statement

Definition

A mission statement is a brief description of an organization’s fundamental purpose and core values. It communicates the company's objectives and approach to reach those objectives to stakeholders.

5 Must Know Facts For Your Next Test

1. Mission statements provide direction and a sense of purpose for employees.
2. They are essential in strategic planning and setting goals.
3. Effective mission statements align with the company's long-term vision.
4. They help in decision-making processes by providing a framework for evaluating options.
5. Mission statements can enhance organizational culture and motivate employees.

Review Questions

• What is the primary purpose of a mission statement?
• How does a mission statement influence strategic planning?
• In what ways can a mission statement impact employee motivation?

Related terms

Vision Statement: A declaration of an organization's long-term goals and aspirations.

Strategic Planning: The process of defining strategy, making decisions on allocating resources, and taking actions to achieve organizational objectives.

Core Values: Fundamental beliefs or guiding principles that dictate behavior and action within an organization.