Business Strategy: How Business Missions and Core Competencies Inform Strategic Planning

This presentation discusses the role of business missions and core competencies in informing strategic planning. It also explores the factors considered when formulating strategic plans and the effectiveness of techniques used in developing strategic business plans.

Table of Content
●Introduction
●1.1 How business missions and core competencies
inform strategic planning while preparing strategic
plans.
●1.2 Factors considered when formulating strategic
plans.
●1.3 Effectiveness of techniques used when
developing strategic business plans.
●References

INTRODUCTION
Business Strategy
●Action plan for any business;
●How a company will operate its activities;
●Include purpose, structure and functions.

1.1 How business missions and core competencies
inform strategic planning while preparing
strategic plans.
●Strategic planning is an activity which defines the company's
strategy and resource allocation.
●Should know what is the current situation of their company.
●Has various elements which are included in it.

Continued...
Mission:- It is the aim of the company that it desire to
meet in a particular period and it also gives answers of
the some basic questions like why it exists and what
work it do to achieve their goals.

Continued...
Vision:-
● To introduce more modern car technology;
● To expand their market in all developing countries;
● To fulfil the requirements of the customer.

Continued...
Goals and Objective:-
● To be one of the world's leading car
manufacturing company;
● To develop service centres in almost all major
cities of the world;
● To grow the core business.

Continued...
Core Competence:-
●Strengths of a business over competitors;
●Create a positive image in the eyes of customers;
●TDI is one of the Volkswagen's core competencies.

1.2 Factors considered when formulating
strategic plans.
●Organisation can explain its strategy;
●How they could distribute the resource;
●Factors like competition, industry & strengths and
weakness.

Continued...
Competition:- To know the rank or the position of
company they could analysis the position of the
competitors.
Industry:- Volkswagen should conduct deep research
on the market while formulating the strategic plans.

Continued...
Strengths and Weakness:-
Assets of the company can be the strengths of it
and are considered as the internal growth factors.
Volkswagen should try to maintain and increase those
strengths.

1.3 Effectiveness of techniques used when
developing strategic business plans.
BCG Growth Share Matrix
Stars:- Highlights high growth and high market share.
In this situation, if the Volkswagen wants to make any
decision related to growth in the market and high market
share they will need a big amount of money for it.

Continued...
Question Mark:-
●High growth but low market share;
●Risk is involved;
●Market share shows loss to the company.
Cash Flows:-
●Low growth but high market share;
●They could generate revenues through their high
market share.

●BCG Growth Matrix

Continued...
Dog:-
●Symbolises low growth and low market share.
●Volkswagen could cut the unnecessary costs.
There are lots of advantage of using this matrix as it help them
to understand on things like at what time they need to focus on
the new business, when to invest, assist them in knowing the
current status of that company and helps them in decision
making process.

Continued...
Profit Impact of Market Strategy
●Providing evidence to assist policies and procedures.
●Includes facts like nature of the business market,
budget allocation, activities and business competitive
position.

REFERENCES
Slater, S.F., Olson, E.M and Finnegan, C., 2011. Business
strategy, marketing organization culture, and performance.
Marketing letters. 22(3). pp.227-242.
Woodard and et. al. 2012. Design capital and design moves: the
logic of digital business strategy.
Acquaah, M., 2011. Business strategy and competitive
advantage in family businesses in Ghana: The role of social
networking relationships. Journal of Developmental
Entrepreneurship. 16(01). pp.103-126.