Business Strategy: Mission, Vision, Goals and Core Competencies

This presentation discusses the significance of mission, vision, goals and core competencies in developing a business strategy. It also explores the factors to consider while formulating strategic planning and evaluates the effectiveness of techniques like BCG growth share matrix and profit impact of market strategy. References are provided for further reading.

BUSINESS
STRATEGY
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Content
• Introduction
• Mission, vision, goals and Core competencies.
• Factors that needs to be considered while formulating
strategic planing
• Effectiveness of technique
• References
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Introduction
 Business strategy helps to achieve desired output from the
organisations operations.
 It refers to as means by which firms sets to achieve its
desired goals. It is long term business planning.
 Arcadio Motors is a small firm and has started its
business in 2015 and designs innovative outer body of
cars.
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Mission, vision, goals and Core
competencies
In order to develop effective business strategy for the
company, it is important to first define vision, mission,
core competencies, goals and objectives of the company.
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Mission for any firm helps it to provide destination citing
which strategic planning has to be made.
Mission : To become one of the leading company in
innovate design market in UK and supply parts to almost
every big auto mobile firm by implementing best
practices of operation in the sector.
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Vision for any firm provides the pathway that can be
followed while formulating strategic planning for
coming years of business.
 Vision: To become one of the best modifier in the UK
by 2020.
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Goals and objectives provides blue print of the strategic
plans. Any plan of Arcadio must be made citing this.
 Goals and objectives
 To fulfil clients expectations by making innovative
changes.
 Provide required modifications at the reasonable prices.
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Core competencies helps to formulate business plan and
strategies. By using these as a strength company can
tackle its upcoming challenges.
Core competencies
 Company is having good research and development
department that felicitates innovative design
development for different ranges of Auto mobiles.
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Factors that needs to be considered while
formulating strategic planing
Strategic planning is a procedure that defines the strategy
of the company and formulating decisions about allocation
of resources as per the requirement so that it can be utilised
in a suitable manner so as to accomplish goals. Planning
includes guidelines to implement these strategies. Factors
that needs to be considered are as follows:
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Industry: It is crucial to understand the condition of
industry while making strategic plans. There are several
factors that needs to considers while evaluating industry
such as new market entrants, market growth potential,
competitors profitability, market size, its growth
potential. This industry has a large potential as the
customers are in search for innovative design vehicles.
Size of the demand is also very large especially in UK.
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Competition: While formulating a plan it is essential for
organisation to analyse competition in the market from
both firm smaller and bigger firms. Any plan changes
must be based on strategic planning of its competitors.
Strength and weaknesses of rivals needs to be understood
while making a business plan. There are several firms that
are operating from years in UK in same industry and
hence competition is getting tougher.
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Strength and weaknesses: It is crucial for firm to know
its strength and weaknesses. It helps to make plans more
effective and hence they become achievable. SWOT
analysis can be done so as to find this. Arcadio strength
is its skilled workers and use of modern technology and
its weakness is its less popular brand name.
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Management and Resources: Any firm's development is
based on the factor that what quality of resources is
available with the firm and how properly it is managed.
Company needs to have skilled employees so as to make
optimum utilisation of other resources. It helps to make
cost savings and producing less amount of waste in
manufacturing purpose. Arcadio has skilled management
team that decides its strategies.
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Effectiveness of technique
There are two techniques that are suggested for developing
business plans:
BCG growth share matrix: Organisations has to face many
situations among them four type of them are faced by
Arcadio is explained By BCG matrix. They are as
follows:
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Stars: It indicates organisation's high market share and
growth. This suggests that in this situation company
needs huge amount of cash so as to make decisions
about achieving continuous growth in the market.
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Cash cows: It shows high market share and low growth. It
suggests that company is facing low growth but still
having high market share through which company can
generate profits.
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Dog: It suggests that company has low market share as
well as low growth. At this situation company needs to
make unnecessary costs to be reduced. It suggests that if
product stops making profit then it must be closed and
focus must be transferred to new products.
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Question mark: It
indicates that company
has high growth but low
market share. This is a
situation that poses risk
which can lead to losses.
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Profit impact of market strategy: This strategy assists to
sustain competitive advantages by analysing companies
procedures and policies. Hence it helps in implementation
of policies and procedures.
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This strategy considers facts that are as follows:
 Nature of Environment related to its business.
 Production process structure.
 Budget allocation.
 Operating activities.
 Competitive positioning of organisations business.
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Space Analysis: It is analysis of four key issues that balances
the internal (Competitive advantage and financial strength)
and external (Industry attractiveness and Environmental
stability) factors which identifies the general theme of the
strategy.
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References
 Woodcock, N., Green, A. and Starkey, M.,
2011. Social CRM as a business strategy.
Journal of Database Marketing & Customer
Strategy Management. 18(1). pp. 50-64.
 Zott, C., Amit, R. and Massa, L., 2011. The
business model: recent developments and
future research. Journal of management.
37(4). pp. 1019-1042.
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THANK YOU
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