Evaluating Mission Statements

Evaluating Mission Statements

MGT 450 Strategic Planning for Organizations

Evaluating Mission Statements

For a business to be successful, they must have a purpose, plans and goals. They must know their reason for being, what they do and who they are doing it for. Developing a well thought out mission statement, is one of the most important parts of the strategic planning process . It will help align employees to a shared vision, a common goal and it will attract the desired customer base. The focus of this paper will be on two very different mission statements, Home Depot, a home improvement store and Nike, an apparel and sportswear company.

Home Depot’s Mission Statement

The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products, and the most competitive prices. We are a values-driven company and our eight core values include the following: excellent customer service, taking care of our people, giving back, doing the “right” thing, creating shareholder value, respect for all people, entrepreneurial spirit, building strong relationships.

Home Depot’s mission statement is very clear on who they are, what they are trying to accomplish and how they will serve their customer base. They are a home improvement business and their focus is on experience, options and competitive prices. This tells us who Home Depot’s customers are and that they are committed to fulfilling their customer’s needs.

Home Depot’s mission statement is realistic, current to the market environment, and based off the company’s core competencies. There is a large focus on core values, these values are behavioral based and very much in support of the three goals they identified. These goals are very relevant to the current market environment, there are a lot of home owners, do it your-selfers and contractors that need what Home Depot offers. There is competition, but the experience is what will push the consumer to return.

Home Depot’s mission statement is motivating and inspires employee commitment. It specifically mentions the entrepreneurial spirit, relationships, respect and taking care of their people. It encourages equality, creative thinking and success. This focus and mentality will absolutely drive employees to align with the company’s vision.

While Home Depot mission statement is clear and easy to understand, they do have some opportunity. It is specific and sharply focuses on goals and core values, but it is not short and does not mention how they want to be remembered, because of the length, it would be fairly easy to forget.

Nike’s Mission Statement

Our mission is to bring inspiration and innovation to every athlete in the world.

Nike’s mission statement is not very clear on who they are or how they will serve their customer base, there is no mention of product or satisfying needs. They do want to push innovation and inspire athletes, but there is no explanation of how. There is no description of what kind of business they are, and the approach narrowly characterizes their company to be only for athletes .

Nike’s mission statement is realistic, current to the market environment, and does include one of the company’s core competencies. Athletes aren’t going anywhere and strive on innovation and inspiration, so the inclusion of these words may be attractive to their target audience. Nike is known for its ability innovate, they don’t only design apparel, but they also develop wearables, apps, tech, data and services .

Nike’s mission statement is motivating but fails to inspire employee commitment, unless they are athletes, but then that makes them a consumer. Inspiration and innovation are powerful words and it sounds exciting, but there is nothing aligning the employees to the company’s vision.

Nike’s mission statement is clear and easy to understand. It is specific, short, sharply focused, and memorable. They don’t specifically mention how they want to be remembered, but I think it can be implied that they want to be remembered as a company that brought inspiration and innovation to every athlete in the world.

Conclusion

We know that for a business to find success, they must know their reason for being, what they do and who they are doing it for. A well-constructed mission statement will align employees to a shared vision and help attract the desired consumer. The focus of this paper was to evaluate two different mission statements, Home Depot and Nike. Both companies detail their purpose but have opportunity areas. Home Depot lists core values, this is a common mistake and should be avoided. Nike’s is short and memorable but fails to explain what they are, and their mission statement even characterizes themselves only for athlete’s . After reviewing their mission statements, we can see that they took very different approaches, but both are large companies and have experienced success.