NAME: ALI AHMED KHAN

REG: L1F18BBAM0507

SECTION: D

BUSINESS STRATEGY PLANNING

MID TERM EXAM

SUBMITTED TO: SIR ABDUL WAHEED

 ANS 1

Mission statement is extremely useful to resolve divergent views among the

managers because at most times the views of the managers do no match among
themselves and they can be identified and revealed through this process. Mission
statement tells us that “What is our business?” which helps to understand the main
objective of our business and the views among the managers gets resolved.

Sometimes individuals who have worked for a so long time think that they know
each other very well finally ends up getting in dispute over this issue. It is a
genuine decision to understand what your mission is and it must be based on
divergent views to have an effective decision. Mission statement helps the
managers and employees to get on one page regarding the objectives and mission
of the organization which helps them to understand and pursue their work in a
better way. An organization can led to failure if the mindset of managers or
strategists don’t match over what the organization really wants to achieve so
mission statement provides them with a roadmap upon which they all agree and
can get to understand their objectives and goals. This mission statement provides
managers with a unity of direction and promotes sense of shared expectations
among all levels.

Now, we shall discuss a scenario which will help us in understanding

why mission statement helps in resolving divergent views. Suppose there is a unit
in army whose mission statement is not known and there is a different view among
the minds of the strategists whether their business mission is to defend their
position or attack the enemy. This thing can create a conflict among themselves so
a mission statement provides you with a roadmap and a pathway to walk on in
order to pursue and succeed. Similarly, in business mission statement works as a
pathway which helps us to understand our objectives and goals regarding that
business and the goals which fulfill our vision.

ANS 2

The company we have chosen to design our internal factor evaluation matrix is

Nestle.

Strengths Weight Rating Weighted score

Extensive product 0.15 4 0.60
portfolio.

Distribution system 0.15 4 0.60

is large.

Globally recognized 0.10 3 0.30

brand.

Weakness:
Water controversy 0.15 1 0.15

Price fluctuations by 0.10 1 0.10

giants of retail

Span of control 0.05 2 0.10

Total 1 1.85

The weights whom we have given 0.15 in the strengths section are the major
strengths of the company that’s why we have given them the ratings of 4 which
means that they are the major strengths of the company and the strength with
weight 0.10 is minor strength that’s why we have given this the rating of 3 which is
minor strength.

The weights whom we have given 0.15 in weaknesses is the major weakness of the
firm and we have given it 1 rating which is major weakness and the weight with
0.10 is given rating 1 which means also major weakness but the weight with 0.05 is
given the rating of 2 because it is a minor weakness of Nestle.

ANS 3.

If we have a resource whose substitute is not available and which is hard to imitate
we can sustain competitive advantage. The things we can do to sustain our
competitive advantage are that we have to continually adapt changes and bring
modification to the resources because in order to sustain competitive advantage it
necessary to adapt changes in your products or services. Secondly, we have to
formulate, implement and evaluate our strategies effectively in order to sustain that
advantage over its rivals. The resources which cannot be imitated or copied can get
us sustain competitive advantage in the market because our rivals cannot imitate it
and we will have the upper hand in the market as we are sole providers of that
product or service and it will be our innovation as well. This resource can lead us
to gain so much success because it is hard to imitate for the competitors or rivals

Moreover, its substitute is also not available which means that the
consumer is bound to buy your products or services because that is the only
option available to them. If a company has to sustain competitive advantage over
its rival it is necessary to have competitive advantage and then to sustain it. But
now, we have resources which cannot be imitated and whose substitute is not
available so we can easily sustain our competitive advantage. For example, there is
a single company providing electric cars and this cannot be done by any other
company and we have no options left then that company would have competitive
advantage and they can easily sustain it if any other company cannot produce
similar products or services.