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Business scholarship is consistent that mission statements not only help focus the organization on what really matters to itself as well as its stakeholders, but also define the firm’s core business, its objectives and its strategy to reach those objectives (Abraham, 2012; Rigby, 2015).
Research also underscores the importance of undertaking regular evaluations of mission statements to align them with existing environmental considerations and also to proclaim the uniqueness of the organization within the context of corporate purpose and scope of operations (Sevier, 2003). The present paper assesses the mission statements of two internationally recognized business enterprises with the view to explaining the extent to which these statements have succeeded in meeting the set criteria for assessment.
Evaluation of Home Depot’s Mission Statement
Home Depot’s mission statement underscores the main purpose of the organization as well as the primary objectives that drive the company. The mission statement seems oriented to satisfying the needs of customers by providing them with the highest level of service, the widest selection of products, as well as the most competitive prices. Consequently, although the mission statement is silent on the company’s targeted customers, it nevertheless identifies their needs as indicated above.
Additionally, the mission statement indicates how the company plans to serve its customers by suggesting that Home Depot is a values-driven company that achieves satisfaction by providing excellent customer service and building strong relationships with customers and other stakeholders. Such value propositions drive customer interest in Home Depot’s product offerings and also enhance the firm’s competitive advantage (Abraham, 2012; Harmon, 2006).
It can be argued that Home Depot’s mission statement is based on the company’s core competencies of broad product differentiation, customer service, as well as low prices. These core competencies fit well into a market environment that is characteristically driven by stiff competition for market share and profitability. Furthermore, Home Depot’s mission statement inspires and motivates its employees as it underscores the importance of doing the right thing and taking care of staff members in the best possible way.
Home Depot’s mission statement is quite realistic; however, it is neither concise nor sharply focused. Such an orientation implies that it may be impossible for some stakeholders to have a clear comprehension of the goals and objectives of the mission statement.
Although the mission statement is suggestive of how the company wants to be remembered (e.g., by giving back to society and respecting all people), available literature demonstrates that communicating the mission statement in a clear, simple and precise language is important in emboldening an organization’s corporate culture, values, strategy and view of the future (Rigby, 2015). Consequently, Home Depot needs to shorten and focus its mission statement with the view to achieving clarity of objectives and ease of understanding.
Evaluation of Nike’s Mission Statement
Nike’s mission statement is not only specific and sharply focused, but is also quite unforgettable to target customers and other stakeholders due to its succinctness, simplicity, and intelligibility. Such clarity and ease of understanding helps Nike to define its major objectives of bringing inspiration and innovation to every sports personality who uses the company’s products (Rigby, 2015).
The “inspiration” and “innovation” catchwords demonstrate that the mission statement is focused on satisfying customer needs by supplying them with high-level products. Although the mission statement does not explain the particular customer needs the company is attempting to satisfy, it nevertheless demonstrates that most of Nike’s customers are athletes. However, it is important for the company to work on identifying and stating the needs of its customers in the mission statement.
The mission statement is also clear that it will serve the company’s customers through the use of inspiration and innovation. These principles fit into the current market environment which requires companies to be increasingly innovative and to develop highly differentiated products if they are to retain their market share and penetrate new markets (Sevier, 2003).
Additionally, the principles of inspiration and innovation help the company to not only define performance standards, but also to establish a framework for ethical behavior (Rigby, 2015). Nike’s mission statement is based on the company’s core competencies of design, innovation and credibility with suppliers, implying that the statement resonates well with its purpose, business objectives and goals.
This also implies that the company wants to be remembered for improving the quality of life of athletes by supplying them with innovative and highly differentiated products. Although the mission statement does not mention the company’s employees, it nonetheless motivates and inspires employee commitment going by the fact that the multinational company is one of the most attractive and sought after employers in the world. However, it would have been advantageous for Nike to include a short statement on its relationship with employees and how it gives back to society through corporate social responsibility (CSR) programs.
This paper has evaluated the mission statements of Home Depot and Nike with the view to bringing out the strong and weak points in the statements in accordance with the set criteria.
From the evaluation and analysis, it is evident that both companies have strong mission statements that serve to focus them to their respective purposes, business goals, as well as objectives. However, these companies need to work on the indentified weaknesses to make them more competitive in a business environment that is characterized by turbulence and stiff competition.
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Abraham, S.C. (2012). Strategic management for organizations. San Diego, CA: Bridgepoint Education.
Harmon, R. (2006). Getting a business off the ground requires soul-searching and intensive research. NJBIZ: Finance and Growth Journal, 19(1), 6-7.
Rigby, D.K. (2015). Management tools 2015: An executive’s guide.
Sevier, R.A. (2003). Fine-tuning your mission. University Business, 6(6), 21-22.