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

This presentation focuses on the key elements of business strategy, including mission, vision, goals, objectives, and core competencies. It also discusses the factors to consider while formulating strategic plans and evaluates various techniques used in preparation, such as BCG matrix, Ansoff's product market mix, and space analysis.

BUSINESS STRATEGY
TASK 1

1.1 BUSINESS MISSION, VISION, GOALS, OBJECTIVES AND CORE
COMPETENCIES TO INFORM STRATEGIC PLANNING
• To support the answer let’s take an example of the Volkswagen AG. the mission statement of the
expresses that, its goal is to offer environmentally sound, safe and attractive vehicles that can
compete in an increasing tough market and to set high world standards. the vision of the
company expresses, the company is focusing on becoming a global economic and environmental
leader among auto-mobile industry around the globe. some examples of company's goals and
objectives are:
• Aims to increase its unit sales and profitability.
• To become more successful and sustainable auto-mobile manufacturer.
• To achieve a target of EBT at least 8%.
• To have an ability to sustain even in difficult market phase.
• To become the most attractive employer and to have the best team in the automobile industry.

1.2 FACTORS TO BE CONSIDERED WHILE FORMULATING STRATEGIC
PLANS
• Strategic planning is the process of organisation's management to define
their strategies and for directing and decision making for allocating their
resources in order to peruse strategies. it also involves the mechanism for
implementation of the strategies. Following are the contents of strategic
planning:
• Vision and mission statements
• Core values of the organisation
• Swot analysis of the company
• Short term and long-term goals
• Annual objectives

1.3 EVALUATION OF TECHNIQUES USED IN PREPARATION OF
STRATEGIC PLANS
• Various techniques and tools are used by management for the purpose of preparation of
strategic plans. following are some techniques:
• Boston consulting group (BCG)
• Directional policy matrix
• Ansoff's product market mix
• Space analysis
Few of the techniques are explained as below:
• Boston consulting group (BCG): Boston consulting group analysis also known as BCG-
matrix. it was developed to help organisations to analyse their business units.

CONT...

ANSOFF'S PRODUCT MARKET MIX:
• It is strategic planning tool that helps in providing framework to guide executives,
marketers and senior managers to strive at strategies for growth. it describes following
strategies:
• Market penetration: in this strategy, organisation tries to grow in existing market with
its existing products and services to increase its market share.
• Market development: in this strategy, organisation tries to expand in new market with
its existing products and services.
• Product development: in this strategy, organisation tries to diversify its products and
services to the existing market.
• Diversification: in this, organisation tries to introduce its new products and services in
new market.

SPACE ANALYSIS
• It is strategic planning and management tool and acronym for strategic position and action
evaluation. It allows formulating an idea regarding appropriate business strategy for any
organisation. it includes four key issues:
• Industry attractiveness
• Environmental stability
• Competitive advantage
• Financial strength
All the above techniques help the organisation in setting the benchmark performance for
example, if using BCG matrix, organisation can set its benchmark at cash cow stage and
strategic planning are then prepared accordingly.

REFERENCES
• Mittal, V.K. And Sangwan, K.S., 2014. Prioritizing Drivers For Green Manufacturing: Environmental, Social And Economic
Perspectives. Procedia CIRP. 15. pp.135-140.
• Mayer, C.H. And Tonelli, L., 2017. “Dream On—there Is No Salvation!”: Transforming Shame In The South African Workplace
Through Personal And Organisational Strategies. In The Value Of Shame (pp. 135-156). Springer International Publishing.
• Lienert, J., Schnetzer, F. And Ingold, K., 2013. Stakeholder Analysis Combined With Social Network Analysis Provides Fine-
grained Insights Into Water Infrastructure Planning Processes. Journal Of Environmental Management. 125. pp.134-148.
• Whitehead, J., 2015. BCG (Growth Share) Matrix. Wiley Encyclopedia Of Management.
• Eyvrigh, G.M., 2016. A Review Of Marketing Strategies. Kuwait Chapter Of Arabian Journal Of Business And Management
Review. 6(1). pp.77-83.

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