Vision And Mission Statement.docx

Vision and Mission statement Howard Schultz who is poor strategic leaders obtained an effective strategic leader that is separately from various of abilities and skills. Inspiring employees to work hard is the abilities that the effective strategic leaders play responsibilities to improve the employee’s organization performance. Moreover, effective strategic leaders are able to motivate employees to accept willingly lofty ambitions and move organization forward to meet customer expectations and needs. In contrast, poor strategic leaders are able to focus on their collective energy to be channelled to bring in a positive direction. Jack Welch suggests the quote that a vision is one of the key tool which measures a statement that strengthening the opportunities to the executives for the purpose of, to bring inspirational people to perform in the organization. Non - profit or governmental entities use the vision statements for their organisational objectives. The company set a defined direction for addressing the issues of company’s growth guiding initiatives transformation and indication on what the company wants to become. Vision statements are also formally written and referenced in company documents rather than, for example, general principles informally articulated by senior management. In addition, a mission statement is the term of explaining on the reasons of why the existing organisation developed in the company and played a key role and responsibilities in a society. Mission explained the reasons the stakeholders should support the organization that needs to be identified in a practical manner. Next is mission statement explains about the organization purpose where performs on the amount the people achieve overall operations’ goals, for example, the types of products and services the operation provides to be operated either in term of primary customers or market, and its geographical region of operation. Mission statement is also guiding an accurate and fair of short statement that contains such a fundamental matter. It includes organization values or philosophies, a business's main competitive advantages, or a desired future state as a concept of the vision. Besides guidance the accurate short statement of mission, the mission statement not only describes that external party organizes the operation’s goals but the organization’s leaders expressed their desires and intent for the leader’s organizations. The mission statements not changed by the organization for the purposes for long time since the leaders find the definition of their continuous, ongoing purposes and focus.

Long term objectives Long term objectives are the basis of the other activities which depend on the preparation of the accurate and valuable mission statement of organization. Long term objectives apply certain strategies emerge some of the consequences that expected. The long term objectives are guiding the implementation and formulation of the business organization strategies. The time framework would measure from two to five years for the long term objectives. They provide various levels in an organization separately such as corporate, divisional & functional levels. The levels should measure in the same direction. Managers are playing their roles and responsibilities to achieve the long term objectives, which is organizing to compare their actual performance in their works and efforts that complies with standard level of performance. Besides that, long term objectives defined the reasons on the organization should be clearly establish and communicate to achieve success for it. The first reason is the stakeholders meet and identify the functions and importance of their roles that makes the stakeholders to show in the future organizations. The differences between values and attitudes help the managers to make a consistent decision making in the organization. Managers involve in part of activities which formulate strategic process and gives opinion on the process that shapes final strategy for the organization. During strategy implementation stage, there are no element of conflict between the different managers when the consensus formulates the final strategy. Long term objectives regulate performance evaluation standard that the managers need to practice through the performance of various functional areas such as department, division and group that should evaluate effectively. The long term objectives of the organization require activities to design job functions for the managers that are directed towards the desired position.

Type of strategies Intensive strategies Intensive strategies are taking steps into more intensive efforts for the performance improvement of existing product and increase demand further in the market. We should consider on the different types of intensive strategies to draw a solution on the improvement of the competitive position with the current products. Intensive strategies include the following strategies. 1. Market penetration In this strategy, products and services present and standardizing the greater market efforts for the organization to enhance the fix market share in the market. This means that the organization does not change from existing product to a new product. Marketing penetration includes the effective marketing efforts which are as follow.  Enhancing the number of salespersons  The advertising expenditure is enhanced  Sales promotion items are extensively offered  The publicity efforts are enhanced

2. Market Development Market development strategy organizes the same existing products with not changing or introducing from new products but the existing products enter in new geographical areas. New regions and countries enter in the world to increase market share of the existing products in multinational company where they rapidly employed on international basis Further more airline industry must also consider proper market development in the international market for its survival. 3. Product Development Existing products modify and improve where the organization enhanced competitive position and sales. The products are improving and modifying with providing accurate and detailed research & development activities which the New Product Development Strategy are able to associate and formulate large portion of expenditures. Example of product development

strategy which is employed by US postal service that offers postage & stamps through Internet.

Diversification strategies Diversification chooses for reasons, some more value – creating than others. Growth in organizational size is a reason that which implies on better profitability. Indeed, growth can be built on empire building in a public sector. Diversification decisions need to be approached sceptically. The dominant logic is a set of corporate level competencies on such of do not share resources at the operating unit level across the portfolio businesses. French luxury goods conglomerate, they valued in wide range of businesses which diversified from champagne through providing the fashion and perfumes to financial media. They do not share much of operational resources or business level competences. As a discussion of dominant logic at Berkshire Hathaway, they discuss about application of corporate level competences of the development classic brands as follows:  Exploiting superior internal processes where the external capital and labour market not function well that need to be consider more efficiently than the external processes in open market. In these circumstances well-managed conglomerates can make sense, even if their constituent businesses do not have operating relationships with each o

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 Increasing market power where there is increase power diversification via competitors in two ways, first is that competitors increased the potential for integrating mutual forbearance when they have same portfolio of products. The range of the portfolio are retaliating to act for discouraging the competitors from making unfairness across at all. The second way is by increasing subsidize one business from the profit of others which can support aggressive bids to drive competitors in a market. There are two types of diversification strategies which is related diversification strategy and unrelated diversification strategy. 1. Related diversification A strategy that expands and add based on modification of its existing product lines or markets. For example, a phone company modifies existing products that expands or adds its wireless

products and services by purchasing from another wireless company that related diversification engage in the wireless company. Diversification analysis analyse the issues that concerned on under-estimates cost such as change management, integrating two cultures, handling employees, layoffs and terminations, promotions, and even recruitment. On the other hand, the diversification analysis might overestimate the benefits that synergies gain. 2. Unrelated diversification The product lines or markets which the business adds new. Unrelated diversification diversifies that there is no direct fit to perform in desired position with the existing business such as the television business or into the radio business. Unrelated diversification engaged by a company that want to engage because there may be cost efficiencies. Or the profit needs a low risk investment, with high return to offset the cash flow during seasonal null. Integration strategies Integration strategy is a cohesive and synergetic entities which are from the component of business organization that are able to transform and combined gradually. Facilitate continuous alignment of business strategies within changes of environment may affect improvement of organizational performance in the integration strategies. Different level of operations of a firm use integration strategy to face up and deal with the major problems are bound to occur. There are three types of integration strategies that developed by integration strategies: 1. Forward Integration Forward integration is a form of vertical integration where expanding business activities practiced control of direct distribution or supply of company products. This type of vertical integration is where the company conducts to move forward in the supply chain for achieving the overall industry ownership. Standard industries are made up of five steps in the supply chain: raw materials, intermediate goods, manufacturing, marketing and sales, and after-sale service. For example, which the company still give importance of control maintenance at better place is Intel company which placing within Dell’s hardware that supports to the immediate goods

producing its processors that Dell supplied. If Intel wanted to move forward in the supply chain, the manufacturing industry portion offers opportunity which to be owned by having the supply chain conduct of a merger or acquisition of Dell in order to own the manufacturing portion of the industry. Additionally, if Dell wanted to engage in a forward integration, it could control of a marketing agency that used previously to end-product. 2. Backward Integration Backward integration is a form of vertical integration that expands such activities of the purchase of the direct products, or merger with, suppliers up the supply chain. Companies pursue the results of expectations on the improvement of efficiency and cost savings. Manufacturing and sale of product involves alignment of business activities as a part of supply chain which referred summation of individuals, organizations, resources, activities and technologies. The supply chain starts with the delivery of raw materials from a supplier to a manufacturer, and ends with the sale of a final product to an end-consumer. A general example of backward integration is when a bakery business integrated to align business strategies that involve a purchase of a manufacturing and sale product wheat processor and a wheat farm. In this scenario, a retail supplier is purchasing one of its manufacturers, therefore cutting out the middle man, and hindering competition. 3. Horizontal Integration Horizontal integration is a competitive strategy that manipulating the factors affected by firm’s competitors that the strategy seeks, one of the factors are, can create economies of scale, differentiate product to another product includes high in particular activities and help businesses expand their market or enter new markets initiating the market power over distributors and suppliers. By merging two businesses, they may be able generate more revenue to increase investment. However, when horizontal mergers succeed, customer expenses reduce the competition. If horizontal mergers within the same industry concentrate market share among a small number of companies, it creates an oligopoly. If one company ends up with a dominant market share, there is a gain of monopolistic gained characteristics without regulating standard of federal government and predict of the challenges the government has. Horizontal mergers are heavily scrutinized and comply with the rules and regulations conducting antitrust laws.

Defensive strategy A strategy is defined a company helped as a development of a marketing tool to retain valuable customers that removed by competitors. Competitors are defining the similar segment of people that categorized and entered in the market or sold similar products by other firms they locate. When this rivalry exist, maintenance of competitive advantage and other brands reputation are to be protected and practised the applications of brand, growth expectations, and profitability. 1. Divestiture In divestiture’s simplest form, a company sells and manage a part of the organization as portfolio assets to raise capital. As companies grow, they must focus on profitable lines that need to operate in operational units. Many conglomerates face this problem. Financial duress causes the companies to sell the various business lines. For example, an automobile manufacturer that sees a significant fact that the company performed a poor performance in an overall organization and prolonged drop in competitiveness which the company is able to sell financing division to pay for increase the value of a new line of vehicles. 2. Retrenchment The entire organizational size operations of the company are used by strategy to regroup through cost and asset reduction to recover from sales declining and profit. The strategy uses to cut expenses with a goal for stabilization business of financial operations as a part of division. Strategically, retrenchment involves the benefit turnaround which is giving on the withdrawal from certain markets or discontinuing the products or services that sells off. An organization that organized to achieve business objectives at a contraction activity through substantial strengths of the scopes of the factors that affects the corporate strategies which in terms of customer groups and functions, or alternative technologies that improves overall performance from determining whether it singly or jointly performed. Turnaround as a type of retrenchment strategy derived a negative trend of their name and certain conditions or indicators that turnaround need to consider about the survival organizations from they face a lot of issues referred to as ‘sick company’. A divestment

strategy involves the business activities of sale or liquidation retrenched from portion of business or a major division. Liquidation strategy involves the unattraction and extreme of impacts among the organizations are closing down a firm and selling its assets. Liquidation strategy leads to major issues that need to be considered is loss of employment for workers and termination of firm’s activities that pursue in the future. 3. Liquidation strategies A strategy is the organization that adopts on the effects of the company strategies selling off its assets and the final closure or winding up of the business operations. It is the most crucial and initiated to a serious consequence such as a sense of failure, loss of future opportunities, spoiled market image and loss of employment for employees. The liquidation strategy finds difficulties that effects on selling assets adopted by firm because of the non-availability of buyers and inadequate compensation. The following are the indicators that a firm impacted:  Failure of corporate strategy  Continuous losses  Obsolete technology  Outdated products/processes  Business becoming unprofitable  Poor management  Lack of integration between the divisions Generally, small sized firms, proprietorship firms and the partnership firms always follow and manage the liquidation strategy to sell the assets of the company in a way of intangible worth. The liquidation strategy is unpleasant, but optimum decision is defined as closing a venture may cause that in account for losses rather than operations continuation. Porter's five generic strategies Porter’s approach is gaining competitive advantage from the overall business strategies that they follow and affecting the differentiation and low cost effectively. Competitive advantage means offer a greater value that gains indicating a justification of higher prices when provide product and services to consumers.

Low cost as a term of competitive advantage provides and aligning objectives to become low cost operator. Low cost includes the consequences that may happen in the company which is enabling the economics scale exploitation from producing in the large scale. To become low cost operator, should offer in the lowest cost price when the market share gained. To recover the impacts on the price, the strategy indicates a suitable market by providing standard product, differentiating from a little product and branding relatively unimportant. Differentiation is classified as a source of competitive advantage that bring the purposes of offering product that differentiate between the competition with the customer valuation