MODULE ACTIVITY NO.

In your Own Words, Answer the Following Questions:

1 Discuss the relationship between the organization’s Vision and Mission

Statements and the strategic formulation process.

A business to be successful should have a vision, mission, and strategic formulation

process because this will help them to set a direction for its goal and to create different
strategies if there are circumstances that it will encounter along the way. Vision is defined as
what you want to accomplish in the future for your company while the mission is the general
statement on how to achieve the vision. Vision takes a glimpse of what the organization will be
like in a certain period while mission help to create an organizational strategy. Both vision and
mission provide the direction for the business. They reflect how they do business, who are their
customers, and what direction they need to go to achieve the company goals. For example, the
vision statement: To be an internationally the most customer-centric company, where customers
satisfied their needs and want at a lower cost with high-quality products. The mission statement:
We strive to offer to our valued customers the lowest possible prices with high-quality products,
the best for their taste, and the utmost convenience.

Moreover, vision and mission help to define the parameters used by the managers to
formulate a strategic plan. To strategize meaning to be competitor-oriented whereas the
organization should be aware of what the competitors are doing. This process is called strategy
formulation, defined as using available knowledge create different ways that will direct the
business and make an actionable steps to reach its go of the business. The formulation will
allow the organization to share a clear vision, catch biases and track business and employee
performance. It could be resources allocation, organization-wide alignment, and prioritization of
business needs.

Therefore, in order to set out to create a winning strategy, organizations need a clear
understanding of their mission and vision. If the company are aware of what are their mission
and vision this will help them to formulate better strategy such as considering current events,
using data such as financial statements to examine the performance of the business, and
setting and effectively communicating the goal. This will help the management to create a good
decision by knowing if the business performance is aligned with the set mission and vision. In
this way, they can evaluate the factors that affect it, then set a better control by strategizing
through the information gathered. In this way, the business could attain success rather than
failure.
 2 Briefly explain the three Generic Strategies set by Porter and give
examples (specific and actual brands/companies/products) under each
strategy.

There are different businesses that are booming currently and one of the problems of
some companies is how they can able to attain a competitive advantage despite the high
competition in the market. So, Michael E. Porters, an economist professor at Havard introduce
the Porter’s Generic Strategy also known as the Generic Competitive Strategies. This is useful
tool that and will assist with the management, growth, profitability of entities towards the
creation of sustainable competitive advantage in the future. Porter classified it to three
approaches.
First, cost leadership strategy. It is minimizing the cost incurred in producing value to a
customers in a large scope of market. It could be lessening the in direct, indirect, labor costs or
manufacturing overhead that are unnecessary in the production. In this way, the cost of the
product will be lessened and could afford by the customer. In order to generate enough profit,
the company using this strategy will produce a high volume of products so that there will be a
high sales in a particular set of period such as monthly, quarterly or annually sales. Example of
this are the Walmarts having the slogan stating “Always Low Prices” and “Save Money. Live
Better”.
Second, differentiation strategy. This is making one product unique or special,
compared other competitors or substitute product in the market. This is for non-price sensitive
market and are not applicable to small business. By producing high quality product at a high
prices the company will generate sales as the customer are willing to buy the products as long
as it satisfy their taste based on its quality, uniqueness, and distinct appeal or feature. One of
the best example of this are the Apple that are known for delivering high quality products and
are unique compared to its competitors such as android phone. Although, its price are too high
compared to other cell phone brand, people are tend to buy the product because it has unique
quality and a high brand image that are establish.
Third is the, focus strategy that are classified into cost focus strategy and differentiation
focus strategy. This is concentrated on a narrow segment and within that segment attempts to
achieve either a cost advantage or differentiation. Cost focus strategy does not mean focusing
on cost but it means of minimizing cost in a focused market. Coca-cola is one of the company
using this strategy whereas they offer the different flavour in accordance to their target maket
such as Coca-cola diet for those people who want a lighter taste and Coca-cola zero sugar who
avoid too much sugar and like Coca-cola original taste . Differentiation focus strategy does not
mean focus on differentiation but means an orientation toward differentiation from other
competitors or products within the focus market. It could be a luxury vehicle that are offer a
unique products at a high prices in the specific market. Example, it could be for a customer who
want a to travel which take a long time to go so that the company will offer a unique car that can
able to handle those things unique compared to the competitor such as a high quality wheel that
can carry their baggage.Therefore, Porters’ generic strategy are essential to gain a competitive
advantage by increasing the market share, decreased cost, generate high profits and protection
against increase in supplies price.
 3 How can you say a commodity has potential to be the top brand in the
future? Answer this by briefly discussing the five Essential Potential
Strategies.

Every product or service of the company had the potential to be the top brand in the
future if it possesses the five essential potential strategies. These characteristics are
transferability, competitive dominance, uniqueness, substitutability, and durability. If the
company had it all, it is a greater advantage in the market that the product will be known and
patronized as the number one brand for the customers.
Transferability means that the company’s product or services offered in the market are
flexible and can be transformed into something that the customer considered highly valued .
Transferable will help the product on top in the competition because it is where what your
business is worth to someone else without you. Competitive dominance is the ability of a
product or service to stand out among other. This is where the company can able to maintain
effective competition by having the power to influence the customers. It seems that your
company is like the light upon the dark where people tend to come because they want to see
the brightness.
Moreover, uniqueness means that the product or service cannot easily be copied by
competitors. Because of its unique quality, most of the customers are attracted to buy it. So,
this will help to create long-term customer relationships. Substitutability means that the product
or services cannot be replaced by other product. Whereas, despite of the more products or
services customers will tend to buy and buy because they want the quality of the products and
they find way to have it. Meanwhile, durability is where the product or services does not
deteriorate or depreciate quickly. It give a long lasting benefits to the customer.
Therefore, it is essential that the company possess this five essential potential strategies
because offering a product and services with transferability, competitive dominance,
uniqueness, substitutability and durability will satisfied the customer needs and wants. And, if
the customer are satisfied they will tend to buy and buy and they can be the free marketer who
promote it to other potential buyers. In this way, they can create a long term relationship and a
high generating income that will really help a company to operate continually and successfully
as a top brand.
 4 Explain the importance of proper timing and level of intensity when
executing strategies (Pace).
One of the problems in management is that we never knew what will be happened in the
future. How accurate is our understanding of where we are now? Are we being ambitious
enough or too ambitious? Based on the study, ninety percent of businesses fail to reach their
strategic goals, which researchers believe is due to a gap between strategic planning and
execution. So that, we should need have a better understand on the proper timing and level of
intensity in executing our strategies because even the best strategic plans can fall without the
right execution.
Strategy execution is defined as the implementation of a strategic plan in an effort to
reach organizational goals. In order to make a business organization successful it comprises the
daily structures, systems, and operational goals. Also, the timing of the strategic move can
make the difference between success and failure. It is critical factors to understand both the
optimal time and pace to implement the strategy.
Pace is ensuring that the company executed the strategy effectively and efficiently. So
that, it is important that the company must find the right pace in executing the strategy because
there are a lot of factor that could affect it such as the constant change in the business
environment. Thus, if the strategy are implement at the right timing there is a high probability of
success not a failure.

In real life I have been encountered this, last week I have planned all of strategies on
how I could balance my review to our eight subjects. But suddenly, I have been encountered
different task that could change it on how I could able to execute my strategy. In this, situation I
realize that it is important on how we could keep on pace and adapt those changes. Therefore,
the company should considered and not set aside these importance of proper timing and level
of intensity when executing strategies in order they can take into action correctly those strategy
and make a difference for the success of the business.