The focus of this report is to analyze the effectiveness of organizational mission statements of two firms that are of my personal admiration. It serves as a guide to different stakeholders on the organization’s activities and target beneficiaries or customers. It communicates the commitment by the organization’s executives to serving their clients or target beneficiaries. These two firms are Netflix and the Bill and Melinda Gates Foundation. It analyses each of these firms' mission statements, investigating the effectiveness of these statements in allowing the organization to adapt and evolve in the contemporary society marred with diversity. It outlines the statements' flexibility in case of a change in the business environment. It explains whether the statement would help me decide to myself, as a manager in the organizations, and the changes that I suggest the firms make to each of their mission statements.
A mission statement is a sentence or paragraph that pronounces the foundation of an organization's existence and guides the administrators and employees toward a common objective and informing the public of its philosophy. A good mission statement should also include the consumers, products or services, target markets, technology used by the organization, growth, profitability, concern for public reputation, and can also be used as a basis for planning and marketing (Braun et al. 2012). A clear mission statement gives a sense of direction for all the employees and shareholders to strive and deliver on the outlined targets (Cochran et al., 2008). These statements are often subject to an annual amendment or review. Still, when adequately outlined, they could require minor tweaks or unless the business undergoes a major shift affecting its core business.
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The mission statement for Netflix is " We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact" (Mission Statement Academy, 2020). The statement from a glance reverberates what the company exactly does. It also assures the customers of satisfaction and the investors of meeting their financial needs. An in-depth analysis of this statement reveals diverse components that serve as a basis for assessing the mission statement's effectiveness.
The mission statement components consist of the following; the customers who are vital to the operation of their business, their exemplary service, which is entertainment, their profitability, and growth, which is key to their operation and reassures the investors, the employees as a valuable asset to the firm. The mission statement allows the firm to adapt to the changing entertainment industry by assuring great content through its dynamic platform, which includes apps and online platforms readily available to the consumers. In case of a business environment change, this mission statement would still allow the company to adapt to these changes since it explicitly outlines that the balance of customer satisfaction with the financial needs of the investor remains balanced. Besides, their profitability also remains uncompromised, which is reassurance in case of any change in the business environment and outlines the expectations of the company to its employees (David et al., 2016). The brief and concise nature, though maintaining little abstraction, leaves room for creativity within its employees and does not limit its scope in the entertainment industry in which it still has a lot to offer.
Any future planning would also be based on this mission statement, thus giving a sense of direction to the managers and employees. I would ensure the employees understand the different and diverse clientele that uses the platform and try to tailor our services to each of them if I was a manager in this organization. The mission statement would also be effective in helping in the decision-making process since it is inspiring as it envisions future growth and expansion.
A proposed change to this mission statement would be the addition of the following components; public their distinction from other entertainment service providers and their public image in response to societal and community concerns. The statement would also be written from the customer's perspective to make it more appealing.
The foundation works in developing countries where it focuses on projects aimed at providing a chance for low-income families to transform their lives. It focuses on poverty alleviation programs in areas or countries where there is extreme poverty. The foundation operates on the understanding that life transformations are possible by ensuring equal values in life. Its dedication to improvements in individuals' quality of life is apparent from diverse perspectives. In America, Bill and Melinda Gates foundation focuses on maternal and child health, and education of students who need assistance. It focuses on expanding opportunities to individuals who have access to few, if any resources, to make a change in their lives. They focus on areas where individuals exhibit the greatest need to make the most significant impacts.
The Bill and Melinda Gates foundation's mission statement is "Guided by the belief that every life has equal value, the Bill & Melinda Gates Foundation works to help all people lead healthy, productive lives" (Foundation Fact Sheet, 2020). The statement from a glance gives a brief outline of their purpose, regions of operation, the services offered, philosophy, and social responsibility of this organization. Its broad scope covers all humanitarian activities that the organization undertakes in different regions throughout the world. Besides, it is clear to readers, including future donors, regarding their various causes.
The mission statement provides a basis for their actions and gives a sense of direction for the organization as a whole. It envisions the passion that the founders, Bill and Melinda Gates, have for the causes the non-profit organization is involved in, appealing to the donors.
The statement allows the foundation to adapt and evolve in each diverse region that it would operate in the future as it has clearly outlined its standards of conduct. It reveals the organization operates in the community and the policies or values that guide its operation (Herman, 1998). The commitment and dedication of the patrons of this organization are also outlined, which is important for any non-profit organization.
As a manager in this organization, the main job would be to ensure that with each action or proposal for future actions that the purpose outlined in the statement is fulfilled. The statement is sufficient, thereby making decision-making easier. I would propose a constant review of this mission statement to ensure that the patrons' strategy and values are well communicated and compatible with the employees.
In conclusion, a good mission statement reveals the following key components; the organizations' services or products, target market, the technology used, customers, profitability, philosophy, public image, and employees' concern. These components serve as a basis in the formulation and evaluation of a proper mission statement that can offer guidance in the organization's activities. When the mission-statement is customer-oriented, then it can serve as a basis for all marketing activities. The statements should always be reviewed to ensure that they are still in line with the organization's purpose of existence. Effective mission statements formulated can give the organization an edge over its competitors. Catch phrases should be avoided, as they do not give the organization any competitive edge. This report, therefore, analyses the implications of a good mission statement on the success and longevity of a business and its endurance to any future changes.
References
Braun, S., Wesche, J. S., Frey, D., Weisweiler, S., & Peus, C. (2012). Effectiveness of mission statements in organizations–A review. Journal of Management & Organization , 18 (4), 430-444.
Cochran, D. S., David, F. R., & Gibson, C. K. (2008). A framework for developing an effective mission statement. Journal of Business strategies , 25 (2), 27.
David, F. R., David, F. R., & David, M. E. (2016). Benefits, Characteristics, Components, And Examples Of Customer-Oriented Mission Statements. International Journal of Business, Marketing, & Decision Science , 9 (1).
Foundation Fact Sheet (2020). Gates Foundation . Retrieved 14 May 2020, from https://www.gatesfoundation.org/Who-We-Are/General-Information/Foundation-Factsheet.
Herman, R. D., & Renz, D. O. (1998) . Nonprofit organizational effectiveness: Contrasts between especially effective and less effective organizations . Nonprofit management and leadership, 9 (1) , 23-38.
Mission Statement Academy. (2020). Netflix Mission Statement 2020 | Netflix Mission & Vision Analysis . Retrieved 14 May 2020, from https://mission-statement.com/netflix/ .
