Understanding Business Strategy: Mission, Vision, Objectives, and Core Competencies

This presentation explains the importance of business mission, vision, objectives, and core competencies in strategic planning. It also discusses the factors to consider when formulating strategic plans and the effectiveness of techniques like the BCG matrix. References are provided for further reading.

Business Strategy
(Understand the process of strategic planning)
Task 1

Table of contents
• Introduction
• Business missions, visions,objectives and core
competencies
• Factors that have to be considered when formulating
strategic plans
• Effectiveness of techniques used when developing
strategic business plans
• References

Introduction
• This presentation is explaining about the business
mission, vision, objectives and core competencies. The
factors that are essential while formulating strategy are
also described. Additionally, effectiveness of BCG matrix
is explained that aids in formulating strategies.

Business missions, visions,objectives and
core competencies
• Missions statements are set of purposes that an enterprise
wishes to fulfil the expectation of their stakeholders. It
assist in recognising how business is running and
providing range of quality services and products to their
potential customers.

Cont..
Mission statement of UK motors that are dealing with
manufacturing of auto-mobiles are given below:
• Creating value for their users
• Gaining loyalty
• Expanding market sharing

Cont..
Vision statements states the future expectation or outlook
of the corporation. It aids in identifying possible gain and
growth of enterprise. Vision statements of UK motors are
listed below:
• To become most valuable in the eyes of customers,
employees and stockholders
• To become most growing firm

Cont..
Goal and objectives are nothing but common guidelines that
an enterprise wishes to attain within a certain period of time.
Objectives are processes or stages to achieve those goals.
They actually refers to short term plan while goals are long
terms plans of the company.

Cont..
Goals and objectives of UK motors are following:
• To be at the top level of auto-mobiles marketing
• To expand their core business
• To gain more and more profitability

Cont..
Core competences are some extraordinary ability and
qualities that assist in making the business exceptional in
comparison to their competitors. It also aids in creating a
popular brand image for users and attain their blind reliance
on their business.

Factors that have to be considered when
formulating strategic plans
Strategic planning is the method through which an
enterprise can define or describe its strategies and making
decisions about how resource are distributed it resources in
order to follow their strategies.

Cont..
There are commonly three factors that are considered while
developing strategic planning that are described below:
• Industry
• Competition
• Strength and weaknesses

Effectiveness of techniques used when
developing strategic business plans
BCG matrix can be used a best technique for developing
their strategic plans. This matrix represents four kind of
situations that are faced by the UK motors that are described
below:
• Stars
• Cash cows
• Dogs
• Question marks

Cont..
Advantages of BCG matrix are listed below. This matrix
assists corporation to understand:
• When they have to invest
• when to concentrate on the new businesses
• It also aids in assessing company present portfolio
balance.

Cont..
Some of the disadvantage of BCG matrix are also
explained below:
• Success of corporate cannot be decided only by high
sharing in market. It also depends on certain other
factors.
• It is very difficult to attain information about market
growth and share.

References
Spender, J. C., 2014. Business strategy: Managing
uncertainty, opportunity, and enterprise. OUP Oxford.
Teece, D. J., 2010. Business models, business strategy and
innovation. Long range planning. 43(2). pp.172-194.
Verbeke, A., 2013. International business strategy.
Cambridge University Press.

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