Strategic Plan: Mission, Vision, Goals, Objectives, Core Competencies

This essay provides an overview of business strategy, emphasizing strategic planning and the importance of mission statements, vision statements, goals, objectives, and core competencies. It discusses the factors to be considered in formulating a strategic plan, including setting targets, communication, innovation, and resource allocation. The effectiveness of techniques like the BCG matrix in developing strategic business plans is evaluated, highlighting the roles of stars, cash cows, question marks, and dogs in the matrix. The essay concludes by underscoring the significance of aligning strategic plans with organizational goals and objectives to achieve business success. Desklib is your go-to platform for accessing past papers and solved assignments to enhance your understanding.

Business Strategy

Introduction
• The process of defining
strategies of an organization
in which it will direct its works
and make decisions by using
available resources to
implement the current strategy
is known as strategic planning
• Strategy is required by every
company to achieve its targets
and objectives .

Assessment of missions, visions, objectives,
goals, core competencies
• Mission: Mission statement of the organization is identified before
planning any strategy. Objective of mission statement is to fulfill
goals of the organization.
• Mission statement is useful to identify market size of any company.
• Visions: Vision statement presents description about what company
would accomplish in the long term future.
• It also declares mid term goals of the company. Basically Vision is
the steps required to attain mission statement.

Continued..
• Goals: Goal represents something that you working on to achieve.
It includes planning for accomplishing targets.
• Goals can be classified into categories: short term goals and long
term goals.
• Short term goals contributes in achieving long term goals of the
organization. It involves challenges that are being faced on daily
basis. Long term goals includes attaining company's objectives in
order to achieve mission statement.

Continued..
• Objectives: For achieving goals successfully blueprint of the steps
involved are formulated. Basic objective of the VW are :
• Customer should be satisfied with the product.
• Usage of advanced technology to facilitate comfort.
• Revenue generation should get increased.
• Core competencies: It is useful in strategic planning which involves
utilization of resources in order to achieve target.

Factors to be considered in formulating
strategic plan
• For aching desired goals and objectives strategic planning is
required to be formulated.Factors involved in formulation of
strategic plan are described below.
• Targets: Top level management sets desired benchmark with the aim
of increasing profits to the organization.
• Analytical skills are required to set the targets.
• Logical skills are also involved in the process to encounter analysis
of profit and losses for the next year.
• The most important consideration during setting up of targets is
time.

Continued..
• Communication: For
successful implementation of
strategic plan communication
between management levels is
required.
• The process starts with
informing about the strategic
plan to the employees of the
organization.
• Input for the plan will be
provided by employees by
various means such as
meetings and group
discussions.

Continued..
• Innovation: Innovation is
required for business to be
successful.
• Innovative ideas brings
creative products .
• Risk factor is involved in
innovation.

• Resources: To achieve strategic plan resources are required by the
organization.
• Formulation of strategic plan is carried out by considering goals
and objectives of business.
• For the above purpose resources are required such as knowledge,
equipment and skills.
• Human capital and finance are also needed for fulfillment of
targets.
Continued..

Evaluation of the effectiveness of technique
in strategic plans
• BCG matrix: Boston Consulting Group Matrix can be used for
developing strategic business plans. Matrix constitutes four cells
(2*2) which is an effective analysis method.
• Graphical representation of the firm is provided by BCG so that
businesses can be examined considering market share and growth
rates of the organization
• According to the BCG matrix, high and low are the two categories
for classification of business that depends on market share and
growth rate.

Continued..
• BCG matrix consists of four
cells where:
• horizontal axis represents
relative market share
• vertical axis represents market
growth rate
• Mid point of relative market
share is set at 1.0. Average
growth rate comes into
existence if all the Strategic
Business Unit are working in
similar industry.

Continued..
• If Strategic Business Units are working with different industries ,at
that time mid point is put at the growth rate .
• Stars: Stars represents high market share and high growth rate of
the organization. They have capabilities to produce cash as a result
of growing and emerging market. Large amount of investments are
required for maintaining lead in the market.
• Cash Cows: It represents high market share and low growth rate.
Small amount of investments are required by cash cows. Cash
produced by it can be used for investing in other businesses.