Marketing Process: Mission Statement
In today’s intense competition in business, a company needs to create products and target a market creatively. In this situation, the corporation defines its strategic direction that consists of corporate strategy, mission statement, and SWOT analysis to find out the potential of the company, and internationalization strategy in order to explore the company’s ability to expand its market.
Johnson G. and Scholes K (1999) in Exploring Corporate Strategy, says that corporate strategy is concerned with the overall purpose and scope of the organization to meet the expectations of owners or major stakeholders.
The above statement implies that successful companies are those having right directions and run towards them. Concerning this issue, as a major computer manufacturer, we realize the need to define our strategic direction in the form of mission statement. Prior to the creation of company’s mission statement, we will pore over others in order to give insight for the creation of out own statement.
There are three mission statements from three companies in different industry that we examine; they are Dell, our competitors in computer industry, Michelin, and AOL Time Warner. We investigate the three companies’ statements since they are now well-positioned in their respective market so it drives us what back up them.
II. Mission Statements
Mission statement is the statement that explains what action a company will do in order to achieve the company’s goals and mission. Considering the nature of a mission statement, therefore, a mission statement should be clear and concise and should avoid being verbose since it might lead to different implementation. However, the mission statement should clearly describe what will be done, by whom, for whom, and why (Answers Corporation, 2006).
The first company to be examined is Dell Inc., it is a company that employs more than 63,700 team employees worldwide and in the last quarter of 2004, corporate revenues totaled $54.2 billion (Dell, 2005b).
In my assessment, the incredible performance, despite recent bad news on Dell’s laptop batteries problems, is the results of their clear direction as stated in their mission statement “the most successful computer company in the world at delivering the best customer experience in markets they serve” (Dell, 2005a).
However, based on the definition of a company’s mission statement, what Dell says about its mission statement, in general, lacks of the sentence determining why the mission needs to be done. In addition, some of Dell’s market-oriented mission statement is also short of the description about who does the action whether top managements or all employees of Dell. However, the statement emphasis on one thing: “to please customers”.
Similarly, in the official website of Michelin, the company’s mission is “to make a sustainable contribution to progress in the mobility of goods and people by constantly enhancing freedom of movement, safety, efficiency and pleasure when on the move” (Michelin, 2006).
Like the Dell’s mission statement, Michelin’s statement also lacks of the explanation about why the mission is done so. In addition, the Michelin’s mission also lacks of the description about who does the action whether top managements or all employees of Michelin. However, unlike Dell, Michelin mission statement is more product-oriented since it states the characteristics of their products, tires.
The interesting mission statement comes from AOL Time Warner because they officially revealed the mission statement in special page of the company’s website (www.aol.com). In the website, AOL Time Warner mentions the company’s mission statement as following:
To build a global medium as central to people’s lives as the telephone or television…and even more valuable (AOL LLC, 2006 – Our Mission)
This market-oriented mission statement fulfills the criteria of being the good mission statement since it describes who perform the action and for what reasons. In addition, the company explains that this mission statement is the result of bottom-up approach as the representation of their commitment to help consumers lives better in information era by providing them an online experience that helps, informs, and delights them.
Considering the incompleteness of mission statement of first two companies (Dell and Michelin), one of them is our competitors; therefore, we suggest defining a clearer mission statement so that our employees and managements comprehend what to do in order to achieve our target. We proposes our mission statement is market-oriented since it defines a general picture for our company that in the future may expand to be the computer and solution provider instead of merely becoming computer manufacturer. The proposed mission statement is:
“Managements and staffs of [Our Company Name] are committed to pursue growth both domestically and internationally to increase revenue and enhance stakeholders’ benefits.”
Answers Corporation. (2006). Strategic Planning. Retrieved October 3, 2006 from http://www.answers.com/topic/strategic-planning
AOL LLC. (2006). Our Mission. Retrieved October 3, 2006 from http://www.corp.aol.com/whoweare/mission.shtml
Coulter, Mary K. (2002). Strategic Management in Action. Prentice Hall
Dell. (2005a). About Dell. Retrieved October 2, 2006 from http://www1.us.dell.com/content/topics/global.aspx/search
Dell. (2005b). Company Facts. Retrieved October 2, 2006 from http://www1.us.dell.com/content/topics/global.aspx/search
G., Johnson and Scholes K. (1999). Exploring Corporate Strategy. Prentice Hall
Michelin. (2006). Michelin Annual Report 2005. Retrieved October 2, 2006 from http://www.michelin.com/corporate/front/templates/affich.jsp?codeRubrique=50&lang=EN