What is the primary purpose of a mission statement?

The primary purpose of a mission statement is to describe the firm's objectives and values. A mission statement articulates the organization's fundamental purpose, outlining what it stands for and what it seeks to achieve. This definition encompasses the core reasons for the company's existence and offers insight into its fundamental values, guiding principles, and aspirations.

In contrast to competitive strategies or marketing tactics, which are more focused on the "how" aspects of operations, the mission statement zeroes in on the "why". It lays the foundation for decision-making and strategic planning within the organization, ensuring that employees understand the overall direction and principles guiding their work. By clearly stating its mission, an organization can effectively communicate its priorities and foster a sense of unity around its core principles among employees, customers, and other stakeholders.