Difference Between Business Definition and Mission Statement

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yusuf

Difference Between Business Definition and Mission Statement

🔥NEW In "Principles of Marketing", the Book by Kotler, he says that a mission statement should answer the following questions:
What is our business? Who is the customer? What do consumers value? What should our business be?
Whereas according Abell Business Definition is a unique offer that answers what services to provide to whom, how and why?

Can we say that Business Definition and Mission Statement are the same? The difference is that it includes the three dimensions, right?

  Jaap de Jonge
Editor, Netherlands
 

What to Include in a Business Definition

Good question... A point of contention is is Abell's 3rd dimension; the "Technologies Utilized" (the HOW). Does "how you solve the customer problem" belong in the scope of a business definition or not?
There could be PROs and Cons for both opinions. I think the answer depends on factors like the market and the company (e.g., a high tech innovation startup or a traditional manufacturing company). Note that even if you do not include it in the business definition, it is nowadays probably anyhow of strategic significance to consider main technological choices in your strategy.
A mission statement is an articulation of a company's mission. Neither one of them is the same as the business definition. Go here for more information about corporate missions and mission statements.

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