As the controller of a division of TransGlobal Airlines, I understand the critical importance of a clear and compelling purpose statement in guiding strategic decisions, especially concerning potential acquisitions. A well-crafted purpose statement, along with a clear vision, forms the bedrock of an excellent strategic plan, akin to the vital role of clear objectives in the Battle of Cannae for Hannibal’s survival and victory.

Evaluation of McDonald’s Current Purpose Statement

Based on information from McDonald’s corporate website (e.g., “Our Purpose & Impact” and “Our Mission and Values” sections), McDonald’s current purpose statement is:

“Our purpose is to feed and foster communities.”

Let’s critique this statement against the nine desired components and ten recommended characteristics of an effective purpose/mission statement. For this analysis, I will use a commonly accepted framework for these components and characteristics.

Nine Desired Components of an Effective Mission Statement (Commonly cited categories):

1. Customers: Who are the firm’s target customers?
2. Products or Services: What are the firm’s major products or services?
3. Markets: Geographically, where does the firm compete?
4. Technology: Is the firm technologically current?
5. Concern for Survival, Growth, and Profitability: Is the firm committed to economic objectives?
6. Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. Self-Concept: What is the firm’s distinctive competence or major competitive advantage?
8. Concern for Public Image: Is the firm responsive to social, community, and environmental concerns?
9. Concern for Employees: Are employees a valuable asset of the firm?

Critique based on Components:

• Missing/Weakly Included Components:
  • Customers: While “communities” implies people, it doesn’t specifically define target customers as “diners,” “families,” “individuals seeking convenience,” or “fast-food consumers.” It’s indirect.
  • Products or Services: “Feed” implies food, but it doesn’t explicitly state “delicious food,” “burgers,” “fries,” or “beverages.” It’s too generic.
  • Markets: There is no explicit mention of geographical markets (e.g., “globally,” “in neighborhoods worldwide”).
  • Technology: There is no mention of technology or innovation in its core purpose.
  • Concern for Survival, Growth, and Profitability: This is entirely absent. There’s no hint of economic viability or growth aspirations within the core purpose statement itself.
  • Self-Concept: The statement doesn’t highlight any distinctive competence or competitive advantage (e.g., “speed,” “convenience,” “affordability”).
  • Concern for Employees: There’s no direct mention of valuing employees or their well-being within the purpose statement. (While their broader “Our Purpose & Impact” section does discuss “Jobs, Inclusion & Empowerment,” it’s not in the core purpose).

Ten Recommended Characteristics of a Good Mission Statement (Commonly cited traits):

1. Broad in Scope: Not too narrow to exclude viable growth.
2. Less than 250 words: Concise and easy to remember.
3. Inspiring: Motivates stakeholders.
4. Reconciles divergent views: Appeals to various stakeholders.
5. Enduring: Relevant for years to come.
6. Clear: Easy to understand.
7. Identifies Utility: Specifies the firm’s usefulness.
8. Reveals Social Responsibility: Addresses environmental, ethical, and community concerns.
9. Positive and Unique: Distinctive and optimistic.
10. Motivating for Employees: Encourages dedication and high performance.

Critique based on Characteristics:

• Strengths:
  • Concise: At four words, it is extremely concise.
  • Clear (to a degree): It’s easy to understand at a surface level.
  • Reveals Social Responsibility: “Foster communities” clearly points to social responsibility.
  • Positive: It has a positive sentiment.
• Weaknesses/Missing Characteristics:
  • Broad in Scope (potentially too broad): While “feed and foster communities” is broad, it might be too broad, failing to specifically differentiate McDonald’s or its core business. It could apply to many non-profits.
  • Inspiring (limited): While positive, it’s not particularly inspiring or emotionally evocative for diverse stakeholders (e.g., investors, employees beyond a general sense).
  • Reconciles divergent views (limited): It focuses heavily on external community impact, potentially overlooking the interests of shareholders or the need for profitability.
  • Identifies Utility (limited): While “feed” hints at food, it doesn’t clearly articulate the unique value or benefit McDonald’s provides to its customers beyond basic sustenance.
  • Unique (limited): The statement “feed and foster communities” is generic and could apply to numerous food-related businesses or community organizations. It doesn’t highlight McDonald’s distinctive attributes.
  • Motivating for Employees (limited): It doesn’t explicitly motivate employees by detailing their role or value within the company.

Conclusion of Critique: McDonald’s current purpose statement, “Our purpose is to feed and foster communities,” is admirably concise and conveys a sense of social responsibility. However, it falls short on providing a comprehensive strategic direction. It lacks specificity regarding its core products, target customers, market scope, and crucial economic objectives (survival, growth, profitability). It also doesn’t effectively articulate McDonald’s unique competitive advantages or its commitment to employees, which are vital components for an internal audience. While externally positive, its generality diminishes its ability to truly inspire and differentiate.

Proposed Improved Purpose Statement for McDonald’s

Drawing on the principles of effective mission statements, this proposed statement aims to be more comprehensive, inspiring, and strategically useful, incorporating the missing components and strengthening the desired characteristics.

Proposed Purpose Statement:

“To consistently serve billions of diverse customers globally with delicious, affordable, and convenient food and beverages, while championing innovation, fostering exceptional value, and enriching the communities where we operate, ensuring profitable growth and creating rewarding opportunities for our dedicated employees and partners.”

Analysis and How it Addresses the Criteria:

Let’s break down how this proposed statement addresses the nine desired components and 10 recommended characteristics:

Addressing Nine Desired Components:

1. Customers: “billions of diverse customers” – Clearly identifies the vast and varied customer base.
2. Products or Services: “delicious, affordable, and convenient food and beverages” – Specifies the core offerings and key value propositions (taste, price, accessibility).
3. Markets: “globally” – Clearly defines the worldwide geographical scope.
4. Technology: “championing innovation” – Highlights a commitment to being technologically current and forward-thinking in its operations, products, and customer experience.
5. Concern for Survival, Growth, and Profitability: “ensuring profitable growth” – Directly addresses the economic objective critical for long-term viability.
6. Philosophy: “fostering exceptional value, and enriching the communities where we operate, creating rewarding opportunities” – Implies a philosophy centered on value for customers, social responsibility, and employee well-being, reflecting core beliefs and ethical priorities.
7. Self-Concept: “consistently serve… convenient food” and “fostering exceptional value” – Points to its distinctive competence in consistent service, convenience, and value, which are key competitive advantages.
8. Concern for Public Image: “enriching the communities where we operate” – Directly addresses social and community responsibility.
9. Concern for Employees: “creating rewarding opportunities for our dedicated employees and partners” – Explicitly acknowledges employees and partners as valuable assets and highlights the company’s commitment to them.

Addressing Ten Recommended Characteristics:

1. Broad in Scope: “globally… championing innovation… enriching communities” – Is broad enough to allow for future growth and diversification beyond just fast food, while still being focused on its core.
2. Less than 250 words: The statement is well within the word limit, making it concise. (Approximately 40 words)
3. Inspiring: “consistently serve… delicious… championing innovation… enriching communities… rewarding opportunities” – Uses positive and action-oriented language designed to inspire customers, employees, and partners.
4. Reconciles divergent views: It balances customer satisfaction, community impact, employee well-being, and shareholder value (profitable growth), appealing to various stakeholders.
5. Enduring: The core principles (serving customers, value, community, growth, innovation) are timeless and will remain relevant as the company evolves.
6. Clear: Uses straightforward language, avoiding jargon, making it easy for all stakeholders to understand.