Corporate Mission Statement and Business Performance: Through the Prism of Macedonian Companies
Abstract
This paper analyses the corporate mission statement as an essential step in the strategic planning process, based on its impact on companies’ business performance, i.e. market share. We underline the significance of early employment of mission statement, because it is a techniquethrough which the strategic intention of a company is defined and sustained. The study addresses two main research aspects: 1. the key components and terms by which a company can create a mission statement, and 2. the connection between detailed, highly comprehensive mission statement and market share. The methodology includes quantitative and qualitative research that explored the way in which 38% of the registered companies in the confectionery industry in Macedonia create their mission statements. Primary data was derived from questionnaires and semi-structured interviews and secondary data - from books, journals and academic articles. Data was analyzed with IBM Statistical Package for Social Sciences (SPSS) 19. Results suggest that highly comprehensive mission statement has significant correlation and directly influences companies’ market share, i.e. performance. The analysis has also shown that a model of key components and terms of a mission statement can be used as a guide in the process of mission statement creation. The limitations of the paper arise from sample’s size and the (one) chosen industry, but the findings are useful to entrepreneurs and managers, since they provide a more accurate perspective of the significance of mission statement and the way that it affects business.
Key words: Mission statement, business performance, market share, key components and terms.
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