What is the purpose of a mission statement?

The purpose of a mission statement is to summarize the company's business philosophy. It encapsulates the core values, purpose, and vision of the organization, serving as a guiding framework for decision-making and strategic planning. A well-crafted mission statement communicates the organization's fundamental goals and the role it aims to play in the market and society. This alignment helps employees understand how their individual roles contribute to the larger mission, fostering a sense of purpose and direction.

While specific marketing tactics, pricing strategies, and target market segments are important aspects of a company’s overall strategy, they are more tactical and operational in nature. The mission statement provides a broader context, establishing why the company exists and what it seeks to achieve in the long term, rather than detailing specific actions or demographics.