Ramos, Ylyka Paulyne

BSA 2D

Tasks:

1. Differentiate Objectives from Strategies.

— Objectives and strategies are related concepts used in planning and goal-
setting processes, but they serve different purposes and have distinct
characteristics. Objectives refer to specific, measurable, achievable,
relevant, and time-bound (SMART) goals that an organization or individual
aims to achieve. Objectives are typically high-level statements that outline
what an organization or individual wants to accomplish. They provide
direction and purpose, and they serve as a framework for decision-making
and resource allocation. Objectives should be clear, concrete, and aligned
with the overall vision and mission of the organization or individual.
Strategies, on the other hand, are the broad approaches or plans that an
organization or individual uses to achieve their objectives. Strategies are
the means by which objectives are accomplished. They are the
overarching plans or methods that guide the allocation of resources,
activities, and efforts towards achieving specific objectives. Strategies are
often developed based on an assessment of internal and external factors
that may affect the achievement of objectives, and they are typically
flexible and adaptable to changing circumstances. In summary, objectives
are the specific goals an organization or individual aims to achieve, while
strategies are the broad approaches or plans used to achieve those
objectives. Objectives provide the “what” of the goal-setting process, while
strategies provide the “how” or the means to achieve the objectives.

2. Differentiate value, added value, and value creation. Please give an

example.
— Value: Value refers to the perceived worth, benefit, or usefulness that a
product, service, or process provides to its intended audience. It is the
satisfaction or utility that customers derive from consuming or using a
product or service. Value can be subjective and can vary depending on
individual preferences, needs, and expectations.

- Example: A smartphone that has a long battery life, a high-quality

camera, and a user-friendly interface can be considered valuable
to customers who prioritize these features in their mobile devices.

— Added value: Added value, also known as value-added, refers to the

increase in worth or utility that is generated at each stage of a production
or value chain. It represents the difference between the value of inputs
(e.g., raw materials, labor, capital) and the value of outputs (e.g., finished
goods, services) after each stage of production or processing.
 - Example: A coffee shop that sources high-quality coffee beans,
roasts them in-house, and serves freshly brewed coffee to
customers adds value to the raw coffee beans by transforming
them into a finished product that meets customer preferences and
demands.

— Value creation: Value creation refers to the process of generating new or

additional value by improving, innovating, or transforming existing
products, services, or processes. It involves creating value beyond what
already exists, often by addressing customer needs, solving problems, or
offering unique and differentiated solutions.

- Example: A company that develops a new software application

with advanced features that solve a common problem for its target
market, and offers it at a competitive price, is creating value by
providing a novel solution that meets customer needs better than
existing alternatives.

3. How does value creation may lead to the organization’s success or failure?
— Value creation can be a critical factor that can impact the success or
failure of an organization. When an organization effectively creates value,
it can lead to success by attracting customers, building customer loyalty,
increasing market share, generating revenue, and achieving sustainable
profitability. On the other hand, failure to create value can result in the loss
of customers, declining market share, revenue erosion, and ultimately,
organizational failure.

Here are some ways In which value creation can contribute to an

organization’s success:

1. Customer satisfaction and loyalty: When an organization creates value

by offering products or services that meet or exceed customer needs
and expectations, it can result in high customer satisfaction and loyalty.
Satisfied and loyal customers are more likely to make repeat
purchases, recommend the organization to others, and contribute to
positive word-of-mouth marketing, which can help in attracting new
customers and retaining existing ones.

2. Competitive advantage: Value creation can lead to the development of

unique and differentiated products, services, or processes that provide
a competitive advantage to the organization. A competitive advantage
can enable an organization to differentiate itself from competitors,
command premium prices, and gain a larger market share, which can
contribute to its success.
 3. Innovation and adaptability: Value creation often involves innovation,
whether it’s in the form of new product development, process
improvement, or business model innovation. Organizations that are
able to consistently create value through innovation and adapt to
changing market dynamics are more likely to stay relevant and
competitive in the long run, which can contribute to their success.

4. Brand reputation and trust: Organizations that consistently create value

and deliver on their promises can build a strong brand reputation and
establish trust with their customers. A positive brand reputation and
trust can lead to increased customer loyalty, favorable brand
perceptions, and a competitive edge in the market, which can
contribute to an organization’s success

4. Explain the figure below by giving an example.

— The formation of value is seen in the figure up top. V stands for the
product’s perceived value by the buyer, and P stands for the price the
company charges for the goods it sells (be aware that this can alter as a
result of competition). The corporation can provide more value for its
clients and charge them more for its products by cutting costs or simply
making the product more appealing than the brand of a rival. By having a
higher value, the company will be more profitable than its rivals.

Consider the costs incurred during the production of the goods. From
these supplied values, we may derive three formulas. Return on Capital
(VC) is a metric used to determine a company’s value. Consumer surplus
is V-P, while the company’s profit margin is P-C. The business will be
profitable as long as the product’s price is higher than the cost of
manufacturing. As the cost falls, the profit rate will rise. The difference
between value and price depends on the extent of market competition; as
a result, if there is less competition, a company may charge more for the
value of its product.