What does a mission statement primarily serve to answer?

A mission statement primarily serves to answer the question of what business an organization is in. It defines the fundamental purpose of the organization, providing clarity about its scope of operations, the products or services it offers, and the overarching goals it aims to achieve. This serves as a guiding framework for decision-making and strategy development, aligning stakeholders and ensuring a common understanding of the organization’s direction.

While core competencies, competitors, and organizational goals are important considerations in strategic planning, they do not capture the essence of what a mission statement is meant to convey. The mission statement encapsulates the unique identity of the organization and clarifies its primary activities—essentially, it articulates "why" the organization exists and "what" it aims to accomplish within its chosen market or field. Thus, identifying "what business we are in" successfully reflects the core purpose and foundation of the organization as presented in its mission statement.