1. Diversification involves accepting new challenges in both markets and products.

It often
results in a business moving aware from its original core competences. It is the process
of selling different, unrelated goods or services in new markets.
2. Reason 1: Workers of the company were not involved in helping to create the mission
statement and they have not been involved in. A mission statement helps motivate
employees, guiding and directing them to good employee behavior. Employee behavior
will be more in line with company values and goals. They can work more efficiently and
contribute to company growth and goals and increase the financial worth of the
company. Hence they are important in helping employees develop a sense of belonging
to the company which they currently lack. Mission and vision statements help a company
focus in a certain direction, such as by planning new strategies. It gives the organization
a sense of purpose and prevents it from drifting between the tides of the currents of
powerful events. These statements help STS to plan for the future and set goals.
Reason 2
Missions and vision statements can help establish what the business is about. STS is a
waste management business that cares about children’s future and wants to increase its
financial worth. These statements can help improve the image of STS which has a
negative reputation due to poor CSR. These statements can be used for advertising for
example as a slogan.
3. Mission statements outline the overall purpose of the organization. A mission statement
helps to condense the central purpose of a business’ existence into one short
paragraph. It is not concerned with specific, quantifiable goals, but it tries to sum up the
aims of the business in a motivating, appealing way. STS’s mission statement is to be
the country’s number one waste business for our children’s benefit. It inspires employees
and serves as a motivation to work harder so that their children can have a brighter
future.
Vision statement that describes a picture of the ‘preferred future’ and outlines how the
future will look if the organization achieves its missions. It is a statement of the future
position that describes what owners and directors ideally want their business
organization to become. ‘ Our vision is to maximize the shareholder’s value through a
strategy of aggressive growth. Our objectives are to expand year to year.’ The vision
statement creates short term goals for the company. STS's preferred future is to
increase the financial worth of the company. Their strategy is to have aggressive growth.
The company can work towards achieve aggressive growth so that the financial worth of
the company can grow.