What is the purpose of a mission statement?

A mission statement serves to outline a company's goals and strategic focus, clarifying the organization’s purpose and what it seeks to achieve in the long run. It communicates the values, direction, and overall intention of the company, guiding decision-making and aligning the efforts of all employees towards a common goal. By having a clear mission statement, a company can establish its identity in the marketplace and connect with customers, employees, and stakeholders on a meaningful level.

While other options mention important aspects of business operations, they do not capture the essence of what a mission statement is designed to accomplish. Defining market strategies, presenting financial forecasts, or advertising serve different functions and are not the primary role of a mission statement.