A company’s mission statement typically addresses which of the following questions?
A Who are we and what do we do?
B What objectives and level of performance do we want to achieve?
C Where are we going and what should our strategy be?
D What approach should we take to achieve sustainable competitive advantage?
E What business model should we employ to achieve our objectives and our vision?
The correct answer and explanation is :
Correct Answer: A) Who are we and what do we do?
Explanation:
A mission statement is a fundamental component of a company’s strategic framework. It defines the core purpose, identity, and scope of the organization’s operations. Essentially, it answers the question: “Who are we and what do we do?”
Mission statements typically describe:
- The nature of the business the company is in.
- The products or services it offers.
- The target customers or markets it serves.
- The values or principles that guide its operations.
For example, Google’s mission is “to organize the world’s information and make it universally accessible and useful.” This clearly states what the company does and for whom, encapsulating the essence of a mission statement.
Other options listed in the question refer to different strategic elements:
- B (What objectives and level of performance do we want to achieve?) refers to goals or strategic objectives, which are derived from but separate from the mission.
- C (Where are we going and what should our strategy be?) relates to the vision statement and strategic planning, which outline the future direction of the company.
- D (What approach should we take to achieve sustainable competitive advantage?) pertains to the strategy itself — how the company will position itself in the market and gain an edge over competitors.
- E (What business model should we employ…) addresses how the company creates, delivers, and captures value — a business model is more operational and financial in nature.
In summary, a mission statement is about the present — it defines the company’s identity and purpose, laying the groundwork for its strategic decisions and future vision.