MODEL EXAMINATION

SEMESTER- 4

Submitted By,
Anandu S Pillai
MBA S4
1. CONTENTS:

- Introduction to mission and vision of an organization.

- Difference between mission and vision of an organization.

- Conclusion.

 INTRODUCTION TO MISSION OF AN ORGANIZATION

A mission statement is actually a concept that
explains why a particular organization exists. It actually mentions
the goal or aim of an organization.The purpose of a mission
statement is to communicate the organization’s purpose and
direction to its employees, customers, vendors, and other
stakeholders. A mission statement also creates a sense of identity
for its employees. Organizations normally do not change their
mission statements over time, since they define their continuous,
ongoing purpose and focus. A mission statement will always have a
clear statement of it’s purpose.  Having a clear purpose can
remove any potential ambiguities that may surround the existence
of a business. People who are interested in the progression of the
business, such as stakeholders, will want to know that the business
is making the right choices and progressing more towards
achieving their goals, which will help to remove any doubt the
stakeholders may have in the business.
A mission statement can act as a motivational tool within an
organization, and it can allow employees to all work towards one
common goal that benefits both the organization and themselves.
This can help with factors such as employee satisfaction and
productivity. It is important that employees feel a sense of purpose.
Giving them this sense of purpose will allow them to focus more on
their daily tasks and help them realize the goals of the organization
and their role.

 DIFFERENCE BETWEEN VISSION AND MISSION OF THE

ORGANIZATION:
Some of the major differences between the mission and vision of
the organization are as follows:
 MISSION OF AN ORGANIZATION:

 A Mission statement talks about HOW you will get something

and where you want to reach. Defines the purpose and primary
objectives related to all types of customer needs and wants.
 When taking the factor of time into consideration, a mission
statement talks about the present leading to its future.
 The following are the key functions of a common mission
statement of an organization:

It lists the broad goals for which the organization is formed. Its
prime function is internal; to define the key measure or measures of
the organization's success and its prime audience is the leadership,
team and stockholders.
 Sometimes there can be changes in the mission statement.
The mission statement may change according to the changing
period of time.But it should still tie back to your core values,
customer needs and satisfying their wants.
 In case of a mission of an organization there will always be a
development of statement which includes all the daily priorities and
chores that are to be done and finished by an organization.
 A mission statement will always be having different kinds of
features. It includes the purpose and responsibilities of an
organization, for what purpose it is being established, the ways and
methods to satisfy the needs and wants of a particular customer.

 VISION OF AN ORGANIZATION:

 A Vision statement outlines WHERE you want to be.

Communicates both the purpose and values of your business.
 While taking the factor of time into consideration, vision
statement of a particular organization explains how each and every
chores and responsibilities of the organization could be finished
and achieved in the future.
 It lists where you see yourself some years from now. It inspires
you to give your best. It shapes your understanding of why you are
working here. The above mentioned is the function of a mission
statement.
 As your organization evolves, you might feel tempted to
change your vision. However, mission or vision statements explain
your organization's foundation, so change should be kept to a
minimum.
 Clarity and lack of ambiguity: Describing a bright future (hope);
Memorable and engaging expression; realistic aspirations,
achievable; alignment with organizational values and culture.

CONCLUSION:
Hence, to conclude the above mentioned facts reveals the
difference between a vision and mission of an organization. It may
sound very similar when considering with an organization, but it is
entirely different from each other.
2. CONTENTS:

- INTRODUCTION TO STABILITY STRATEGY.

- CIRCUMSTANCES UNDER WHICH THESE STRATEGIES
CAN BE EMPLOYED.
- CONCLUSION.

 INTRODUCTION:
The Stability Strategy is adopted when the
organization attempts to maintain its current position and focuses
only on the incremental improvement by merely changing one or
more of its business operations in the perspective of customer
groups, customer functions and technology alternatives, either
individually or collectively.

Generally, the stability strategy is adopted by the firms that are risk
averse, usually the small scale businesses or if the market
conditions are not favourable, and the firm is satisfied with its
performance, then it will not make any significant changes in its
business operations. Also, the firms, which are slow and reluctant
to change finds the stability strategy safe and do not look for any
other options.
 CIRCUMSTANCES WERE THE STRATEGIES CAN BE
USED:
Some of the circumstances were the strategies that can be
used are as follows:
 When there is a stage of recovery that is importantly needed to
the organization.
 When in risks arises in the organization.
 When the company plans to consolidate its position in the
industry in which company is operating.

 When the economy is in recession or there is a slowdown in

the economy than companies want to have more cash in their
balance sheet rather than investing that cash for expansion or other
such expenses.

 When company has too much debt in the balance sheet than
also company stops or postpones their expansion plans because if
company takes more debt for expansion than it would not able to
pay interest rate on such debt and it may create liquidity crunch for
the company.

 When the company is operating in an industry which has

reached maturity phase and there is no further scope for growth
than also company adopts stability strategy.

 When the gains from expansion plans are less than the costs
involved for such expansion than company follows the stability
strategy.
 CONCLUSION:

Hence, to conclude a stability strategy in simple words is a concept

that is been adopted by some of the organizations which cannot
survive more or whenever it is facing any risks or problems.
3. CONTENTS:

- INTRODUCTION TO THE IMPLEMENTATION OF

STRATEGIES
- CONTROLLING THE FORMULATION AND
IMPLEMENTATION OF STRATEGIES.
- CONCLUSION.

 INTRODUCTION TO STRATEGIES:

Strategic Management is all about identification and description of

the strategies that managers can carry so as to achieve better
performance and a competitive advantage for their organization. An
organization is said to have competitive advantage if its profitability
is higher than the average profitability for all companies in its
industry.
Strategic management can also be defined as a bundle of
decisions and acts which a manager undertakes and which decides
the result of the firm’s performance. The manager must have a
thorough knowledge and analysis of the general and competitive
organizational environment so as to take right decisions. They
should conduct a SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats), i.e., they should make best possible
utilization of strengths, minimize the organizational weaknesses,
make use of arising opportunities from the business environment
and shouldn’t ignore the threats.
Strategic management is nothing but planning for both predictable
as well as unfeasible contingencies. It is applicable to both small as
well as large organizations as even the smallest organization face
competition and, by formulating and implementing appropriate
strategies, they can attain sustainable competitive advantage.
It is a way in which strategists set the objectives and proceed about
attaining them. It deals with making and implementing decisions
about future direction of an organization. It helps us to identify the
direction in which an organization is moving.
Strategic management is a continuous process that evaluates and
controls the business and the industries in which an organization is
involved; evaluates its competitors and sets goals and strategies to
meet all existing and potential competitors; and then reevaluates
strategies on a regular basis to determine how it has been
implemented and whether it was successful or does it needs
replacement.
Strategic Management gives a broader perspective to the
employees of an organization and they can better understand how
their job fits into the entire organizational plan and how it is co-
related to other organizational members. It is nothing but the art of
managing employees in a manner which maximizes the ability of
achieving business objectives. The employees become more
trustworthy, more committed and more satisfied as they can co-
relate themselves very well with each organizational task. They can
understand the reaction of environmental changes on the
organization and the probable response of the organization with the
help of strategic management. Thus the employees can judge the
impact of such changes on their own job and can effectively face
the changes. The managers and employees must do appropriate
things in appropriate manner. They need to be both effective as
well as efficient.
One of the major role of strategic management is to incorporate
various functional areas of the organization completely, as well as,
to ensure these functional areas harmonize and get together well.
Another role of strategic management is to keep a continuous eye
on the goals and objectives of the organization.
Following are the important concepts of Strategic Management:
 CONTROLLING THE FORMULATION AND
IMPLEMENTATION OF STRATEGIES:

- STRATEGY FORMULATION:
Strategy formulation refers to the process of choosing
the most appropriate course of action for the realization of
organizational goals and objectives and thereby achieving the
organizational vision. The process of strategy formulation basically
involves six main steps. Though these steps do not follow a rigid
chronological order, however they are very rational and can be
easily followed in this order.
Strategy formulation is the process by which an organization
chooses the most appropriate courses of action to achieve its
defined goals. This process is essential to an organization’s
success, because it provides a framework for the actions that will
lead to the anticipated results.
Strategic plans should be communicated to all employees so that
they are aware of the organization’s objectives, mission, and
purpose. Strategy formulation forces an organization to carefully
look at the changing environment and to be prepared for the
possible changes that may occur. A strategic plan also enables an
organization to evaluate its resources, allocate budgets, and
determine the most effective plan for maximizing ROI (return on
investment). A company that has not taken the time to develop a
strategic plan will not be able to provide its employees with
direction or focus. Rather than being proactive in the face of
business conditions, an organization that does not have a set
strategy will find that it is being reactive; the organization will be
addressing unanticipated pressures as they arise; and the
organization will be at a competitive disadvantage.
Some of the basic steps are:

1. Setting Organizations’ objectives - The key component of any

strategy statement is to set the long-term objectives of the
organization. It is known that strategy is generally a medium for
realization of organizational objectives. Objectives stress the state
of being there whereas Strategy stresses upon the process of
reaching there. Strategy includes both the fixation of objectives as
well the medium to be used to realize those objectives. Thus,
strategy is a wider term which believes in the manner of
deployment of resources so as to achieve the objectives.
While fixing the organizational objectives, it is essential that the
factors which influence the selection of objectives must be
analyzed before the selection of objectives. Once the objectives
and the factors influencing strategic decisions have been
determined, it is easy to take strategic decisions.
2. Evaluating the Organizational Environment - The next step is
to evaluate the general economic and industrial environment in
which the organization operates. This includes a review of the
organizations competitive position. It is essential to conduct a
qualitative and quantitative review of an organizations existing
product line. The purpose of such a review is to make sure that the
factors important for competitive success in the market can be
discovered so that the management can identify their own
strengths and weaknesses as well as their competitors’ strengths
and weaknesses.
After identifying its strengths and weaknesses, an organization
must keep a track of competitors’ moves and actions so as to
discover probable opportunities of threats to its market or supply
sources.
3. Setting Quantitative Targets - In this step, an organization must
practically fix the quantitative target values for some of the
organizational objectives. The idea behind this is to compare with
long term customers, so as to evaluate the contribution that might
be made by various product zones or operating departments.
4. Aiming in context with the divisional plans - In this step, the
contributions made by each department or division or product
category within the organization is identified and accordingly
strategic planning is done for each sub-unit. This requires a careful
analysis of macroeconomic trends.
5. Performance Analysis - Performance analysis includes
discovering and analyzing the gap between the planned or desired
performance. A critical evaluation of the organizations past
performance, present condition and the desired future conditions
must be done by the organization. This critical evaluation identifies
the degree of gap that persists between the actual reality and the
long-term aspirations of the organization. An attempt is made by
the organization to estimate its probable future condition if the
current trends persist.
6. Choice of Strategy - This is the ultimate step in Strategy
Formulation. The best course of action is actually chosen after
considering organizational goals, organizational strengths, potential
and limitations as well as the external opportunities.

- STRATEGIC IMPLEMENTATION:
Strategy implementation is the translation of chosen
strategy into organizational action so as to achieve strategic goals
and objectives. Strategy implementation is also defined as the
manner in which an organization should develop, utilize, and
amalgamate organizational structure, control systems, and culture
to follow strategies that lead to competitive advantage and a better
performance. Organizational structure allocates special value
developing tasks and roles to the employees and states how these
tasks and roles can be correlated so as maximize efficiency,
quality, and customer satisfaction-the pillars of competitive
advantage. But, organizational structure is not sufficient in itself to
motivate the employees.
An organizational control system is also required. This control
system equips managers with motivational incentives for
employees as well as feedback on employees and organizational
performance. Organizational culture refers to the specialized
collection of values, attitudes, norms and beliefs shared by
organizational members and groups.
- CONCLUSION:
Hence, to conclude the above mentioned are the factors that
explains the process or steps to successfully control the formulation
and implementation of strategies.
4. CONTENTS:

- INTRODUCTION TO SOCIAL RESPONSIBILITY OF

WITNESS

- REASON FOR THE BUSINESS TO RENDER

RESPONSIBILITY TOWARDS THE SOCIETY.

- CONCLUSION.

 INTRODUCTION TO SOCIAL RESPONSIBILITY OF

WITNESS:

Social responsibility is an ethical framework and suggests

that an entity, be it an organization or individual, has an obligation
to act for the benefit of society at large. Social responsibility is a
duty every individual has to perform so as to maintain a balance
between the economy and the ecosystems. A trade-off may exist
between economic development, in the material sense, and the
welfare of the society and environment, though this has been
challenged by many reports over the past decade.Social
responsibility means sustaining the equilibrium between the two. It
pertains not only to business organizations but also to everyone
whose any action impacts the environment. It is a concept that
aims to ensure secure healthcare for the people living in rural areas
and eliminate all barriers like distance, financial condition, etc.  This
responsibility can be passive, by avoiding engaging in socially
harmful acts, or active, by performing activities that directly
advance social goals. Social responsibility must be
intergenerational since the actions of one generation have
consequences on those following.

A witness is someone who has knowledge about a matter. In law a

witness is someone who, either voluntarily or under compulsion,
provides testimonial evidence, either oral or written, of what he or
she knows or claims to know.

 REASONS FOR THE BUSINESS TO RENDER SOCIAL

RESPONSIBILITY TOWARDS THE SOCIETY:
Some of the reasons are as follows:
1. They should supply goods or services to the consumers at
reasonable prices and do not try to exploit them by forming cartels.
This is more relevant in case of business enterprises producing
essential goods such as life-saving drugs, vegetable oil and
essential’ services such as electricity supply and telephone
services.
2. They should not supply to the consumers’ shoddy and unsafe
products which may do harm to them.
3. They should provide the consumers the required after-sales
services.
4. They should not misinform the consumers through inappropriate
and misleading advertisements.
5. They should make arrangements for proper distribution system
of their products so as to ensure that black-marketing and
profiteering by traders do not occur.
6. They should acknowledge the rights of consumers to be heard
and take necessary measures to redress their genuine grievances.
Business enterprises function by public consent with
the basic objective of producing goods and services to meet the
needs of the society and provide employment to the people. The
traditional view is that in performing this function businesses
maximize profits or shareholders’ value and doing so they do not
behave in any socially irresponsible way.
In the present world where there are monopolies,
oligopolies in product and factor markets and also there are
externalities, especially detrimental externalities such as
environment pollution by the activities of business enterprises
maximization of private profits does not always lead to the
maximization of social benefit.
 CONCLUSION:
Hence, to conclude, the above mentioned are the main
reasons for the business organizations to render a kind of
responsibility towards the entire society.
5. CONTENTS:

- INTRODUCTION TO BLUE OCEAN STRATEGY AND RED

OCEAN STRATEGY.

- DIFFERENCE BETWEEN BOTH

- CONCLUSION.

 INTRODUCTION:

Blue ocean strategy is the simultaneous pursuit of

differentiation and low cost to open up a new market space and
create new demand. It is about creating and capturing uncontested
market space, thereby making the competition irrelevant. It is
based on the view that market boundaries and industry structure
are not a given and can be reconstructed by the actions and beliefs
of industry players.
In blue oceans, competition is irrelevant because the rules
of the game are waiting to be set. A blue ocean is an analogy to
describe the wider, deeper potential to be found in unexplored
market space. A blue ocean is vast, deep, and powerful in terms of
profitable growth.
INTRODUCTION TO RED OCEAN STRATEGY:

Red oceans are all the industries in existence today – the

known market space. In red oceans, industry boundaries are
defined and accepted, and the competitive rules of the game are
known.
Here, companies try to outperform their rivals to grab a greater
share of existing demand. As the market space gets crowded,
profits and growth are reduced. Products become commodities,
leading to cutthroat or ‘bloody’ competition. Hence the term red
oceans.
A red ocean strategy involves competing in industries that are
currently in existence. This often requires overcoming an intense
level of competition and can often involve the commoditization of
the industry where companies are competing mainly on price. For
this strategy, the key goals are to beat the competition and exploit
existing demand.

 DIFFERENCE BETWEEN BOTH:

Some of the major differences between both of them

are as follows:
BLUE OCEAN STRATEGY:
 Create an uncontested market space.
 Make the competition irrelevant.
 Create and capture new demand.
 Break the value cost trade-off.
 Align the whole system of a firm’s activities in pursuit of
differentiation and low cost.

RED OCEAN STRATEGY:

 Compete in existing market space.
 Beat the competition.
 Exploit existing demand.
 Make the value cost trase-off.

CONCLUSION:
Hence, to conclude, the above mentioned factors of blue
ocean and red ocean strategies highlights the differences between
them.