Mission statements exposed

In the strategic management literature mission statements are said to be an inseparable part of corporate strategy. It has been argued that they have an impact on the performance of the organization, yet the evidence is unclear. This study is an investigation into the relationship between the financial success of hospitality enterprises and their mission statements. Mission statements of 30 top hospitality enterprises were evaluated. This sample is of significance as it represents some of the largest corporations, and about 200 of the largest brands in the hospitality industry. The mission statements were scored and these scores were tested for correlation with three financial performance indicators. The results indicated that while there was a statistically significant correlation between the mission statements and the annual turnover, there was no significant correlation with the net profit margin or the return on equity. The article concludes by considering how firms may improve their performance by better managing their mission statements.