Introduction
A mission statement services to explain the purpose of a particular company and it’s useful in defining how the business will benefit customers (Olsen & Olsen, 2005). Importantly, a mission statement should address the present and how the company seeks to accomplish its goals. It defines the road that the business should follow as it strives to make profits and its interaction with the customers. The characteristics of a mission statement include succinct, memorable, unique, realistic and current (Kazmi, 2002). However, some mission statements don’t meet these characteristics.
This paper evaluates mission statements of two companies, Home Depot and Nike based on the given criteria.
Mission statement evaluation
Customer satisfaction
Home Depot mission statement is focused on gratifying customers rather than the products. The company seeks to offer “highest level services” and “wide variety of products”. It’s clear that the firm endeavors to provide value to its clients as it strives to make profits. In the case of Nike, the company seeks to “inspire” athletes while allowing them to be innovative. Thus, Nike aims at satisfying athletes around the globe.
Target customer
Home Depot clearly defines its business as “home improvement”, so the clients are mainly homemakers. However, the company doesn’t identify clearly which particular segment it targets. Since the home improvement industry is broad, it’s not simple to know the target customers. On the other hand, Nike targets athletes. The mission statement implies that Nike targets the world market and not just a particular segment of athletes.
Specific customer needs
Home Depot mission statement doesn’t highlight the specific customer demands that the company will fulfill. The company doesn’t indicate the specific products or services that it offers. Nike seeks to meet the needs of athletes. The mission statement notes that Nike will bring “innovation” to athletes.
How the company will serve its clients
Nike seeks to help athletes by inspiring them. Also, the company strives make the customer innovative. Hence, Nike will serve its customers by offering creative and inspiring products. Home Depot seeks to provide excellent client service, offer a wide variety of goods, build relationships and respect its customers. Further, the company aims to serve its customers by giving back and caring for its people.
If the statements fit in the prevailing market environment
According to Olsen and Olsen (2005), a company’s mission should be drafted to suit the current market environment. Ideally, a mission that is not in line with the current market condition won't be viable. In the current market, a mission should aim at offering value to its customers. Also, a company should strive to provide excellent services with less focus on making profits.
Home Depot mission statement is suitable for the prevailing market condition. The mission notes that the company offers quality services, create relationships, and give back to the clients. Home Depot also respects all people and does the “right” thing. On the other hand, Nike mission statement suits the current market since it seeks to inspire athletes around the world.
If the mission statement is in line with the core competence
A good mission statement should be built on the company’s core competence. That way, the company upholds its values as it fulfills the mission. Home Depot mission focuses on the core competence which includes excellent client services, caring for its people, establishing relationships, respecting its customers and sticking to what is right. Nike doesn’t highlight its core competencies but strives to inspire its customers.
If the statement is motivating and inspirational to the employees
Nike mission is motivating and encourages workers commitment. The mission statement motivates employees to work hard so as to satisfy athletes around the world. Also, Home Depot mission is motivation and inspirational. Home Depot urges and inspires staff to offer excellent services to the customers. Also, the statement encourages workers to do the “right” thing and respect all the clients.
Realistic of the statement
A company should draft a realistic mission statement if it desires to achieve its goals (Dontigney, n. d.). A practical mission helps the business to achieve its objectives and make profits without straining. The Home Depot statement is realistic since the company is in a position to offer quality services and a broad range of products. Additionally, the company is in a position to respect all clients and stakeholders as well as build relationships. On the contrary, the Nike mission is not realistic. The company can’t inspire all athletes since athletes have different tastes and preferences. Essentially, Nike may not be a position to manufacture shoes for all athletes with plantar fasciitis and flat feet.
If the mission is precise, succinct, and memorable
The Home Depot mission doesn’t meet these conditions. The mission is very verbose, and a client can’t remember it easily. Contrary, the Nike mission is precise, succinct and easy to memorize.
If the statement is directly understood
According to Jacobsen (2011), a company should draft a mission statement that is easily understood by the employees and customers. The Home Depot mission statement is easily understood although it’s very verbose. The staff and clients can easily understand what the company seeks to do and how to do it. Home Depot aims to offer quality services and wide variety products. Also, Nike’s mission is easily understood. Importantly, the company endeavors to provide shoes that inspire athletes while making them innovative.
How the company wants to be remembered
Home Depot wants to be remembered for building relationships, establishing shareholder value and giving back to the community. Nike seeks to be recognized for inspiring and bring innovation to athletes around the world.
References
Dontigney, E. Realistic expectations in mission statements. Retrieved April 30, 2016, from <http://yourbusiness.azcentral.com/realistic-expectations-mission-statements-15777.html>
Jacobsen, J. J. (2011). Sustainable business and industry: Designing and operating for social and environmental responsibility. Milwaukee, WI: ASQ Quality Press.
Kazmi, A. (2002). Business policy and strategic management (2nd ed.). United States: McGraw-Hill Published.
Olsen, H. W., & Olsen, N. D. (2005). Strategic planning made easy for nonprofit organizationsM3 Planning.
