DEFINING THE

CORPORATE MISSION STATEMENT

Manolo Medina Marin
Professorial Lecturer
 DEFINING THE
CORPORATE MISSION STATEMENT
 CORPORATE MISSION STATEMENT
The MISSION STATEMENT is a concise description of the
PURPOSE of the company, or its REASON FOR BEING.
 CORPORATE MISSION STATEMENT
The MISSION STATEMENT is a concise description of the
PURPOSE of the company, or its REASON FOR BEING.
It is the reason why the company exists.
 CORPORATE MISSION STATEMENT
The MISSION STATEMENT provides the context for:
 CORPORATE MISSION STATEMENT
The MISSION STATEMENT provides the context for:
1. The formulation of specific lines of business which the
organization will operate,
 CORPORATE MISSION STATEMENT
The MISSION STATEMENT provides the context for:
1. The formulation of specific lines of business which the
organization will operate,
2. The identification of the arena in which the organization will
compete in,
 CORPORATE MISSION STATEMENT
The MISSION STATEMENT provides the context for:
1. The formulation of specific lines of business which the
organization will operate,
2. The identification of the arena in which the organization will
compete in,
3. The determination of how the resources of the organization
will be allocated, and
 CORPORATE MISSION STATEMENT
The MISSION STATEMENT provides the context for:
1. The formulation of specific lines of business which the
organization will operate,
2. The identification of the arena in which the organization will
compete in,
3. The determination of how the resources of the organization
will be allocated, and
4. The identification of what general pattern of growth and
direction will be for the future.
 CORPORATE MISSION STATEMENT
By defining the corporate MISSION STATEMENT, the individual
members of the organization will be provided with a clear focus
on WHAT the organization is attempting to achieve, and an
understanding of how what they are doing are tied to a greater
purpose.
 CORPORATE MISSION STATEMENT
By defining the corporate MISSION STATEMENT, the individual
members of the organization will be provided with a clear focus
on WHAT the organization is attempting to achieve, and an
understanding of how what they are doing are tied to a greater
purpose.
As such, the focus of the MISSION STATEMENT is the
organization’s INTERNAL STAKEHOLDERS, i.e.:
 CORPORATE MISSION STATEMENT
By defining the corporate MISSION STATEMENT, the individual
members of the organization will be provided with a clear focus
on WHAT the organization is attempting to achieve, and an
understanding of how what they are doing are tied to a greater
purpose.
As such, the focus of the MISSION STATEMENT is the
organization’s INTERNAL STAKEHOLDERS, i.e.:
- Employees
 CORPORATE MISSION STATEMENT
By defining the corporate MISSION STATEMENT, the individual
members of the organization will be provided with a clear focus
on WHAT the organization is attempting to achieve, and an
understanding of how what they are doing are tied to a greater
purpose.
As such, the focus of the MISSION STATEMENT is the
organization’s INTERNAL STAKEHOLDERS, i.e.:
- Employees
- Shareholders
 CORPORATE MISSION STATEMENT
A well-defined MISSION STATEMENT should answer these four
primary questions:
 CORPORATE MISSION STATEMENT
A well-defined MISSION STATEMENT should answer these four
primary questions:
1. WHAT functions does the organization perform?
 CORPORATE MISSION STATEMENT
A well-defined MISSION STATEMENT should answer these four
primary questions:
1. WHAT functions does the organization perform?
2. For WHOM does the organization perform this function?
 CORPORATE MISSION STATEMENT
A well-defined MISSION STATEMENT should answer these four
primary questions:
1. WHAT functions does the organization perform?
2. For WHOM does the organization perform this function?
3. HOW does the organization go about fulfilling this
function? and
 CORPORATE MISSION STATEMENT
A well-defined MISSION STATEMENT should answer these four
primary questions:
1. WHAT functions does the organization perform?
2. For WHOM does the organization perform this function?
3. HOW does the organization go about fulfilling this
function? and
4. WHY does the organization exist?
 CORPORATE MISSION STATEMENT
In summary, an effective MISSION STATEMENT must be able
to explain to the members of the organization the following:
 CORPORATE MISSION STATEMENT
In summary, an effective MISSION STATEMENT must be able
to explain to the members of the organization the following:

“WHAT it does for WHOM, HOW they do it and WHY.”

 CORPORATE MISSION STATEMENT
What functions does the organization perform?
 CORPORATE MISSION STATEMENT
What functions does the organization perform?
Most organizations tend to answer the “what” question in
terms of the goods or services produced for its
customers, e.g.: manufacturers of detergents see themselves
as being in the soap business or gasoline producers see
themselves in the oil business.
 CORPORATE MISSION STATEMENT
What functions does the organization perform?
Most organizations tend to answer the “what” question in
terms of the goods or services produced for its
customers, e.g.: manufacturers of detergents see themselves
as being in the soap business or gasoline producers see
themselves in the oil business.
Such a myopic view of the organizational purpose blocks
organizations from seeing new opportunities for growth
and expansion and from responding to threats and
challenges.
 CORPORATE MISSION STATEMENT
What functions does the organization perform?
The recommended alternative is to answer the question
in terms of the customer or client needs that the
organization attempts to meet.
 CORPORATE MISSION STATEMENT
What functions does the organization perform?
By defining its Mission Statement in the broader view of
fulfilling the needs of its customer instead of narrowly
focusing on product it manufactures or service that it
provides, the company will be:
 CORPORATE MISSION STATEMENT
What functions does the organization perform?
By defining its Mission Statement in the broader view of
fulfilling the needs of its customer instead of narrowly
focusing on product it manufactures or service that it
provides, the company will be:
1. More sensitive to identifying and responding to
the needs of its customers,
 CORPORATE MISSION STATEMENT
What functions does the organization perform?
By defining its Mission Statement in the broader view of
fulfilling the needs of its customer instead of narrowly
focusing on product it manufactures or service that it
provides, the company will be:
1. More sensitive to identifying and responding to
the needs of its customers,
2. More likely to develop new products and
services to meet those needs, and
 CORPORATE MISSION STATEMENT
What functions does the organization perform?
By defining its Mission Statement in the broader view of
fulfilling the needs of its customer instead of narrowly
focusing on product it manufactures or service that it
provides, the company will be:
3. Less likely to experience obsolescence and
decline.
CORPORATE MISSION STATEMENT
 CORPORATE MISSION STATEMENT
Founded in 1888, Eastman Kodak was the world’s most famous
name in photography and videography.
 CORPORATE MISSION STATEMENT
Founded in 1888, Eastman Kodak was the world’s most famous
name in photography and videography.
At the time when only big companies can access photographic
equipment, Kodak manufactured cameras for the consumer
market that were portable and affordable.
 CORPORATE MISSION STATEMENT
Founded in 1888, Eastman Kodak was the world’s most famous
name in photography and videography.
At the time when only big companies can access photographic
equipment, Kodak manufactured cameras for the consumer
market that were portable and affordable.
In the late 1960’s Kodak has acquired 80.0% of the global market
for photography and photographic supply.
 CORPORATE MISSION STATEMENT
Founded in 1888, Eastman Kodak was the world’s most famous
name in photography and videography.
At the time when only big companies can access photographic
equipment, Kodak manufactured cameras for the consumer
market that were portable and affordable.
In the late 1960’s Kodak has acquired 80.0% of the global market
for photography and photographic supply.
The company has defined its mission based on the product they
manufacture - photographic film, and not on the need of the
consumer to preserve images for posterity.
 CORPORATE MISSION STATEMENT
Despite the development of digital cameras that do not require
the use of photographic film, the company refused to pivot and
persisted in their focus of manufacturing photographic film.
 CORPORATE MISSION STATEMENT
Despite the development of digital cameras that do not require
the use of photographic film, the company refused to pivot and
persisted in their focus of manufacturing photographic film.
Because of turning a blind eye on technological development, the
company lost its market dominance and filed for bankruptcy in
2012.
 CORPORATE MISSION STATEMENT
Despite the development of digital cameras that do not require
the use of photographic film, the company refused to pivot and
persisted in their focus of manufacturing photographic film.
Because of turning a blind eye on technological development, the
company lost its market dominance and filed for bankruptcy in
2012.
By the way – the inventor of the digital camera was Steve
Sasson, an Electrical Engineer who was working for Kodak.
CORPORATE MISSION STATEMENT
CORPORATE MISSION STATEMENT
 CORPORATE MISSION STATEMENT
As recently as 2007, Nokia held 51.0% of the global market in
mobile phones.
 CORPORATE MISSION STATEMENT
As recently as 2007, Nokia held 51.0% of the global market in
mobile phones.
Nokia phones were valued because of its virtual indestructability
and multi-day battery life. The company likewise gained market
dominance with its interchangeable covers, making the mobile
phone a fashion accessory.
 CORPORATE MISSION STATEMENT
As recently as 2007, Nokia held 51.0% of the global market in
mobile phones.
Nokia phones were valued because of its virtual indestructability
and multi-day battery life. The company likewise gained market
dominance with its interchangeable covers, making the mobile
phone a fashion accessory.
Notwithstanding the introduction of smart phones by the mid-
2000’s the company was lulled into complacency and did not
make the shift to android technology.
CORPORATE MISSION STATEMENT
 CORPORATE MISSION STATEMENT
Founded in 1993, Yahoo was one of the early pioneers of the
internet era. In the early 2000’s, Yahoo was the most visited site
in the web.
 CORPORATE MISSION STATEMENT
Founded in 1993, Yahoo was one of the early pioneers of the
internet era. In the early 2000’s, Yahoo was the most visited site
in the web.
The problem with Yahoo was the fact that the company does not
have a clearly defined vision and mission.
 CORPORATE MISSION STATEMENT
Founded in 1993, Yahoo was one of the early pioneers of the
internet era. In the early 2000’s, Yahoo was the most visited site
in the web.
The problem with Yahoo was the fact that the company does not
have a clearly defined vision and mission.
The company’s problems started when they started acquiring
other dot com companies that were not part of their core
competencies and which they eventually could not turn around to
make a profit.
 CORPORATE MISSION STATEMENT
From a high of US$ 118.75 per share, the company’s shares of
stock went down to only US$ 8.11 per share.
 CORPORATE MISSION STATEMENT
From a high of US$ 118.75 per share, the company’s shares of
stock went down to only US$ 8.11 per share.
In 2017, Yahoo was acquired by Verizon for the paltry amount of
US$ 4.48 billion, considering that during its height in the mid-
2000s, the company was valued at US$ 44.6 billion.
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
A well defined Mission Statement should identify which
particular segment of its potential customer base will
serve as its primary target market.
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
A well defined Mission Statement should identify which
particular segment of its potential customer base will
serve as its primary target market.
No organization – no matter how large – call meet all the
needs of all possible clients or customers.
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
A well defined Mission Statement should identify which
particular segment of its potential customer base will
serve as its primary target market.
No organization – no matter how large – call meet all the
needs of all possible clients or customers.
The market is not homogeneous – it is heterogeneous. It
is composed of groups of people with different
behaviors, needs and preferences.
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
The process of sorting out the potential customer base and
identifying which portion should the company cater to is
called market segmentation.
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
The process of sorting out the potential customer base and
identifying which portion should the company cater to is
called market segmentation.
Market segmentation can be undertaken based on
geography or demographics, e.g., age, wealth, ethnicity,
lifestyle or a combination of the same.
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
These market segments have varying needs and an
organization can decide to serve only one segment of the
market.
 CORPORATE MISSION STATEMENT
For whom does the organization perform its function?
These market segments have varying needs and an
organization can decide to serve only one segment of the
market.
Large organizations may serve various market segments,
but this can only be effectively achieved if they develop
subunits to focus on the different market segments.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
Once the planning team has identified what the organization does
and for whom, the next step is deciding how the organization will
proceed to achieve these targets or the manner by which it will be
attaining its goals.
To answer the “how” question, organizations would normally
identify their driving force or distinctive competencies.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
1. Products Offered. The organization is committed primarily to
a product or service and limits its strategy to increasing the
quantity and quality of that product or service. The unique
product characteristics provide these organizations with their
competitive advantage.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
2. Markets Served. The market-served organization recognizes
that their strongest competitive advantage is their continuing
relationships with the customer and markets they serve. Such
organizations therefore continually survey their customers to
discover unfilled needs for goods and services. Once these
are identified, these organizations develop products or
services to fill those needs.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
3. Technology. Organizations that are technology driven
continually try to develop products and services that are
based on their technology. Bringing “cutting-edge” products
to the marketplace is seen as their competitive advantage and
thus is given a high priority.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
4. Low-Cost Production Capability. Low-cost capability
organizations strive to produce goods or services at a cost
lower than their competitor’s costs. They concentrate on
developing advanced process technology and cost control in
order to beat their competition and thus provide their
competitive advantage.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
5. Operations Capability. An organization with an operations
capability seeks maximum use of that capacity. Such
organizations have a primary commitment to keeping their
existing production capacity, e.g., to keep the continuous-
process plant from shutting down or a transport route from
being closed.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
6. Methods of Distribution or Sale. These methods of
distribution or sale, e.g., an elaborate network of warehouses
and vehicles for delivery, door-to-door selling, direct mail or
premiums and bonus programs dictate the strategy of these
organizations.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
7. Natural Resources. Certain organizations are strategically
driven by their ownership of natural resources such as coal,
timber, petroleum, land or metals. They must convert these
natural resources to products usable by their customers. The
competitive advantage of such organizations is in the quality,
quantity, location and form of these natural resources.
 CORPORATE MISSION STATEMENT
How does the organization go about fulfilling this function?
The eight basic categories of driving forces are as follows:
8. Profit or Return. Some organizations set their highest
priority on profit margins or returns on investment and make
strategic decisions in order to achieve these goals.
 CORPORATE MISSION STATEMENT
Why does the organization exist?
 CORPORATE MISSION STATEMENT
Why does the organization exist?
All organizations that are established for purposes of business has
only one basic reason for existence, and that is to earn a profit.
 CORPORATE MISSION STATEMENT
Why does the organization exist?
All organizations that are established for purposes of business has
only one basic reason for existence, and that is to earn a profit.
However, the “why” question being asked in this case should be
taken in the context of the company’s social responsibility – to
serve a higher purpose than merely monetary.
 CORPORATE MISSION STATEMENT

CASE STUDY:
SM PRIME HOLDINGS CORPORATION
 CORPORATE MISSION STATEMENT
CASE STUDY: SM PRIME HOLDINGS CORPORATION
 CORPORATE MISSION STATEMENT
CASE STUDY: SM PRIME HOLDINGS CORPORATION

Download the attached copy of the CORPORATE CREDO of

SM PRIME HOLDINGS CORPORATION.
 CORPORATE MISSION STATEMENT
CASE STUDY: SM PRIME HOLDINGS CORPORATION

Download the attached copy of the CORPORATE CREDO of

SM PRIME HOLDINGS CORPORATION.
You are given fifteen minutes to review, dissect and analyze the
document for purposes of the class discussion that will follow
right after.
 CORPORATE MISSION STATEMENT
CASE STUDY: SM PRIME HOLDINGS CORPORATION

SM Prime Corporation is a wholly-owned affiliate of SM

Investments Corporation – the holding company of the Sy family.

A review of the company’s vision and mission statement as

articulated in its organizational credo reveals a clarity of focus as
to what the company is supposed to do for whom, and how their
as supposed to do it.
 CORPORATE MISSION STATEMENT
CASE STUDY: SM PRIME HOLDINGS CORPORATION

SM Prime will provide one-stop shopping, dining, amusement,

and entertainment convenience to meet the needs of a broad
range of consumers in the Philippines. Thus, consumers will
enjoy a wide selection of carefully selected specialty retail
outlets, restaurants, and leisure facilities in the malls.
SM Prime will continue to acquire strategically located tracts of
land for mall development purposes. Such acquisition will be
made based on opportunities for attractive asset appreciation
and revenue streams, and local area development.
 CORPORATE MISSION STATEMENT
CASE STUDY: SM PRIME HOLDINGS CORPORATION

As a corporate citizen, SM Prime commits itself to contributing

to national development. It will develop high value-added
shopping malls that can enhance the quality of life in the malls'
localities.
In addition to striving toward continuous customer satisfaction, it
will work toward shoppers' education in the malls. It will keep on
providing employment opportunities to thousands of Filipinos as
well as entrepreneurial opportunities to its many tenants,
suppliers, developers, and designers of world-class distinctly
Philippine products.
 CORPORATE MISSION STATEMENT
CASE STUDY: SM PRIME HOLDINGS CORPORATION

Furthermore, it will continue to contribute to the development of

merchandising expertise and professional management in the
country.
Finally, SM Prime commits itself to maintaining its leadership in
the shopping mall industry.
CORPORATE MISSION STATEMENT

- END OF PRESENTATION -
Assignment
Attached are the corporate Mission Statements of both
Philippine Air Lines and Cebu Pacific.
Write a 750 word reaction paper comparing the two,
indicating thereat which Mission Statement is better
defined and why.
Answer in the context of what a properly defined
Mission Statement should be.
Please upload your reaction papers to the Assignment
Section of the eBedan no later than 12:00 noon of the
day prior to our next class session.
Assignment
“Why everyone flies”
Cebu Pacific brings people together
through safe, affordable, and fun-filled air
travel.
We are committed to innovation and
excellence in everything we do.

We are an employer of choice providing opportunities for

professional and personal growth.
We have a deep sense of family values throughout our airline.
We enhance the quality of life of the communities we serve and are
an active partner in our nation’s progress.
We offer our shareholders with a fair return on their investments.
Assignment
To meet the needs of the public for moving
people, goods and information, and in
particular for safe and reliable travel,
transport, communications, distribution,
and related services (president’s flights,
transportation and cargo services);

To offer such services of reasonable competitive prices and at the

highest level of quality consistent with such prices;
To provide satisfying career to its employees;
To provide adequate return to its stockholders; and
To represent the best of the Philippines and the Filipino to the
world.