Importance of a Mission Statement Essay
Importance of a Mission Statement
“The way people use and buy music has changed and HMV has failed to respond to these new market conditions. To what extent might any future success for HMV depend on a change in the strategic direction presented in a mission statement?”
The mission statement sets out the organisations aims and the general purpose of the business. To make a good mission statement you must use language that will motivate employees and convince customers, suppliers and everyone outside of the business that it is sincere and will show a commitment to its mission statement.
This essay will outline the importance of a mission statement and the role it plays in a business’s success, more specifically – how a new mission statement may lead to further failure for HMV.
The mission statement is a large part of a company’s brand image, the linking of branding and mission statement to be unified shows a strong image. Apple for example in 2013 released its mission statement via video, instead of writing it down somewhere. It was released initially as a YouTube video. This is a new way of doing your mission statement, much like Apple’s logo is the apple the Isaac Newton was struck on the head with, it signifies much like that very apple did, a shift in the way people think. I think that it is a deeper problem going past the mission statement. I feel it is a whole branding issue the actual logo, showing a dog a gramophone, this immediately as a customer gives you the feel that HMV isn’t the up to date technology and gadget shop it is and is mentioned in the mission statement, but instead a classic shop.
A possible re-branding should be thought about as it could attractive lots of new customers as HMV begin to move into the new age of technology sales. However rebranding could be a bad thing, as we already know HMV are failing, re-branding would be a huge cost, we have to ask ourselves is it worth the risk? Are your current loyal customers going to be happy with the re-brand? Or will HMV lose out big time on customers by losing more than they gain, rebranding and using a new mission statement could lead to a loss of backing from the current shareholders, if shareholders began backing out now it would lead to even greater failure for HMV. For example when Tropicana rebranded it was received very poorly and if Tropicana was Pepsi Co’s only product it would have certainly gone bust, however luckily for Pepsi the $137 million hit was covered by the other products they sell.