Question

A company says: “Our mission is to maximize shareholder returns by selling fidget spinners.” Based on this information, why would we consider this to be an inadequate mission statement?

	a.	It does not communicate the company’s larger social purpose.
	b.	The mission is not being communicated by the company’s leaders.
	c.	It focuses on a narrow product rather than solving a customer problem.
	d.	Both a and c.
	e.	All: a, b, and c.

Answer 1

Correct answer is Option d. "Both a and c"

A mission statement is a formal summary that explains what you do, how you do it and why you do it. A mission statement should be inspiring for the mangement, staff and society at large. More importantly, it should be credible i.e. all statements should be able to believe it. It should be precise enough i.e. it should be neither too broad nor too narrow.

In the example shared - A company says: “Our mission is to maximize shareholder returns by selling fidget spinners.” This statement does not clearly communicates the large social purpose of the company product and services as it only refers to selling fidget spinners product and does not provide details on how shareholder value will be increased. Moreover, the statement focuses on a very narrow product rather than solving problems for the customers.

Hence, the said mission statement is inadequate due to point # a and c hence the correct answer is "option d".

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