THE RELATIONSHIP BETWEEN THE MISSION STATEMENTS AND PROFITABILITY OF THE COMPANIES THAT HAVE ANNOUNCED PROFITS FOR 20 YEARS

Abstract

Companies from the beginning of their lives in an intensely competitive environment and always faced with the change structures. It is of great importance to use strategic management elements in order to achieve long-term life expectancy and above average profitability. Thanks to strategic management, an area will be opened within a competitive environment. In this context, mission statements provide significant value to the enterprise in terms of creating strategic consciousness. The mission statement helps clarify information such as what the company actually is, where it starts and what is its real purpose. Companies have to turn to change with the pressure of the environment in which they are located. Strategic management elements make a great contribution to this change. Businesses are responsible for their internal and external stakeholders. The mission statement is an important value that helps the entity to clearly present its reason for the internal and external stakeholders. Internal and external stakeholders primarily expect a higher than average profitability and long life expectancy. The profitability levels of the firms that are trying to do business in the intense competition environment is an important evaluation element. Since profitability is one of the points that stakeholders give importance to, the profitability level provides important results while the performance of the enterprise is revealed. For this reason, it is of vital importance to clearly reveal the relationship between the strategies of enterprises and their profitability levels.
The aim of the study is to examine whether there is a relationship between the profitability of the enterprises and the mission statement in the literature. In this context, Pearce and David (1987), which were used in the literature for the last 20 years (Fortune, 2019), were used in the literature. According to the results of this evaluation, it can be concluded whether there is a relationship between the criteria of the mission statement and profitability.