A mission statement describes the basic objectives of an organisation in society in terms of the products and services it produces for its customers. It defines the present state or purpose of an organisation. It should be a clear and short statement. Drucker suggested that it should answer the following fundamental questions:

• What is our business?
• What is our value to the customer?
• What will our business be?
• What should our business be?

Objectives/Relevance of a Mission Statement:

A mission statement can have several different purposes which include:

1. Provide a Basis for Strategic Planning Decisions: It helps guide consistent strategic decisions across the organisation.
2. Translate Broad Intentions into Corporate Objectives: A mission statement breaks down high-level goals into actionable objectives.
3. Common Purpose: It provides a shared sense of purpose for all groups and individuals within the organisation.
4. Inspire Employees: The mission statement can motivate employees by giving them a clear understanding of the company’s values and direction.
5. Establish Goals and Ethics: It helps set the organisation’s goals and ethical standards.
6. Stakeholder Understanding and Support: It improves understanding and support from external stakeholders, enhancing the organisation’s relationship with the public.