MICROLINK INFORMATION AND BUSINESS

COLLEGE
SCHOOL OF POSTGRADUATE
MBA PROGRAM

INDIVIDUAL ASSIGNMNET

Submitted by: Hafte Berhe

Submitted to; Mr. Asmachew

1. What are the four major types of resources allocated to different work sections or functional
areas during the strategy implementation? Give one example for each.
Answer
All organizations have at least four types of resources (or assets) that can be used to achieve
desired objectives:
(1) Financial resources, e.g. cash. Equipment or fixed assets.
(2) Physical resources, allocating physical resources is providing Adaptive Server the
memory, disk space, worker processes, and CPU power required to achieve your
performance
(3) Human resources, e.g. in the context of human resource management, allocation refers to a
company's assigning work to its employees. Allocating people can become an issue because
people are limited resources, whereas human expectations in project planning are usually
unlimited and tend to expand.
(4) Technological resources e.g. Resource allocation, in the context of technology, refers
to the process of allocating and distributing resources such as time, budget, personnel, and
equipment to various projects and tasks within an organization
2. Briefly explain Rumelt’s4 Criteria for Strategy Review, Evaluation, and Control.
Answer
The strategic-management process results indecisions that can have significant, long-lasting
consequences. Erroneous strategic decisions can inflict severe penalties and can be exceedingly
difficult, if not impossible, to reverse. Most strategists agree, therefore, that strategy evaluation is
vital to an organization’s well-being; timely evaluations can alert management to problems or
potential problems before a situation becomes critical. Strategy evaluation includes three basic
activities:
(1) Examining the underlying bases of a firm’s strategy,
(2) Comparing expected results with actual results, and
(3) Taking corrective actions to ensure that performance conforms to plans.
Strategy evaluation can be no better than the information on which it is based. Too much pressure
from top managers may result in lower managers contriving numbers they think will be satisfactory.
Strategy evaluation can be a complex and sensitive undertaking. Too much emphasis on evaluating
strategies may be expensive and counterproductive. No one likes to be evaluated too closely! The
more managers attempt to evaluate the behavior of others, the less control they have. Yet too little or
no evaluation can create even worse problems. Strategy evaluation is essential to ensure that stated
objectives are being achieved. In many organizations, strategy evaluation is simply an appraisal of
how well an organization has performed. Have the firm’s assets increased? Has there been an increase
in profitability? Have sales increased? Have productivity levels increased? Have profit margin, return
on investment, and earnings-per-share ratios increased? Some firms argue that their strategy must
have been correct if the answers to these types of questions are affirmative. Well, the strategy or
strategies may have been correct, but this type of reasoning can be misleading because strategy
evaluation must have both a long-run and short-run focus. Strategies often do not affect short-term
operating results until it is too late to make needed changes. It is impossible to demonstrate
conclusively that a particular strategy is optimal or even to guarantee that it will work. One can,
however, evaluate it for critical flaws. Richard Rumelt offered four criteria that could be used to
evaluate a strategy: consistency, consonance, feasibility, and advantage. Strategy evaluation is
becoming increasingly difficult with the passage of time, for many reasons. Domestic and world
economies were more stable in years past, product life cycles were longer, product development
cycles were longer, technological advancement was slower, and change occurred less frequently, there
were fewer competitors, foreign companies were weak, and there were more regulated industries.
Other reasons why strategy evaluation is more difficult today include the following trends:
1. A dramatic increase in the environment’s complexity
2. The increasing difficulty of predicting the future with accuracy
3. The increasing number of variables
4. The rapid rate of obsolescence of even the best plans
5. The increase in the number of both domestic and world events affecting organizations
6. The decreasing time span for which planning can be done with any degree of certainty:

The Process of Evaluating

Strategies Strategy evaluation is necessary for all sizes and kinds of organizations. Strategy
evaluation should initiate managerial questioning of expectations and assumptions, should trigger a
review of objectives and values, and should stimulate creativityingenerating alternatives and
formulating criteria of evaluation.
Strategy-evaluation activities should be performed on a continuing basis, rather than at the end of
specified periods of time or just after problems occur.
If assumptions and expectations deviate significantly from forecasts, then the firm should renew
strategy-formulation activities, perhaps sooner than planned. In strategy evaluation, like strategy
formulation and strategy implementation, people make the difference. Through involvement in the
process of evaluating strategies, managers and employees become committed to keeping the firm
moving steadily toward achieving objectives. Notice that corrective actions are almost always needed
except when
(1) External and internal factors have not significantly changed and
(2) The firm is progressing satisfactorily toward achieving stated objectives.
Numerous external and internal factors can prevent firms from achieving long-term and annual
objectives. Externally, actions by competitors, changes in demand, changes in technology, economic
changes, demographic shifts, and governmental actions may prevent objectives from being
accomplished. Internally, ineffective strategies may have been chosen or implementation activities
may have been poor. Objectives may have been too optimistic. Thus, failure to achieve objectives
may not be the result of unsatisfactory work by managers and employees. All organizational members
need to know this to encourage their support for strategy-evaluation activities. Organizations
desperately need to know as soon as possible when their strategies are not effective. Sometimes
managers and employees on the front lines discover this well before strategists. External opportunities
and threats and internal strengths and weaknesses that represent the bases of current strategies should
continually be monitored for change. It is not really a question of whether these factors will change
but rather when they will change and in what ways.
Here are some key questions to address in evaluating strategies:
1. Are our internal strengths still strengths?
2. Have we added other internal strengths? If so, what are they?
3. Are our internal weaknesses still weaknesses?
4. Do we now have other internal weaknesses? If so, what are they?
5. Are our external opportunities still opportunities?
6. Are there now other external opportunities? If so, what are they?
7. Are our external threats still threats?
8. Are there now other external threats? If so, what are they?
9. Are we vulnerable to a hostile takeover? Measuring

There are three benefits of strategic evaluation and control:

• They provide directions. They enable management to make sure that the organization is
heading in the right direction and that corrective action is taken where needed.
• They provide guidance to everybody. Everyone within the organization, both managers and
workers alike, learns what is happening, how their performance compares with what is
expected, and what needs to be done to keep up the good work or improve performance.
 • They inspire confidence. Information about good performance inspires confidence in
everybody. Those within the organization are likely to be more motivated to maintain and
achieve better performance in order to keep up their track record. Those outside – customers,
government authorities, shareholders – are likely to be impressed with the good performance

3. Write the differences between intended and emerged strategies. How could a strategist use
both types of strategies so as to succeed in his or her endeavor?
Answer

The difference between intended and emergent strategies is a distinct one where intended
strategies are the strategies that an organization hopes to execute in order to achieve a business
objective whereas emergent strategies take a bottom up approach by identifying unforeseen
outcomes from the execution of strategy. Adopting an intended approach is difficult due to many
unforeseen changes in the business environment. Every organization should have clear intended
strategies; however, strict adherence to them will be difficult to be successful due to the rapidly
changing environments, thus, an emergent approach should be adopted when and where
necessary.

What are Emergent Strategies?

Emergent strategies are strategies that are implemented by identifying unforeseen outcomes from the
execution of strategy and then learning to incorporate those unexpected outcomes into future
corporate plans by taking a bottom-up approach to management. Henry Mintzberg introduced the
concept of emergent strategy; his argument was that the business environment is constantly changing
and businesses need to be flexible in order to benefit from various opportunities.

Rigidness in plans emphasize that companies must continue to proceed with the planned (deliberate)
strategy irrespective of the changes in the environment. However, political changes, technological
advancements, and many other factors affect businesses in various degrees. These changes
sometimes will make the intended strategy implementation impossible. Therefore, most business
theorists and practitioners prefer emergent strategy over intended strategy for its flexibility.
In general, they view emergent strategy as a method of learning while in operation.

What are intended Strategies?

Intended strategies are the strategies that an organization hopes to execute. These are derived from
the strategic plan prepared by the company’s top management. Intention is the starting point of the
planning process developed in order to achieve a specific objective.

 A strategist can leverage both intended and emergent strategies to succeed their endeavor
by:
 1. Remaining Flexible: Be open to adjusting the planned strategy based on
emerging opportunities or challenges.
2. Continuous Monitoring: Regularly assess progress and be vigilant for
changes, allowing real-time adjustments.
3. Learning from Emergent Strategies: Identify successful elements from
emergent strategies and incorporate them into the intended strategy.
4. Feedback Loops: Establish mechanisms for gathering insights to inform
adjustments and improvements.
5. Scenario Planning: Anticipate possible scenarios, develop contingency plans,
and capitalize on unexpected opportunities.
6. Strategic Mindset: Foster a proactive and responsive mindset within the team
to navigate through unexpected situations.
7. Balanced Risk-Taking: Embrace calculated risk-taking while adhering to the
core of the intended strategy.
8. Iterative Strategy Development: Treat strategy as an ongoing, iterative
process, continuously refining based on insights.
9. Communication and Alignment: Ensure the team understands the intended
strategy and the importance of adaptability.
By combining these approaches, a strategist can create a dynamic and resilient strategy to
navigate the complexities of the business environment.

4. What is the difference between strategic mgt and strategic planning?

Answer

Strategic planning and strategic management may sound like they’re interchangeable, but
they are two different parts of a very important process: achieving a business’s long-term
goals. Strategic planning is the approach used in forming an organization’s direction (e.g., its
vision, mission and priorities).

On the other hand, strategic management is the overall process of achieving that direction,
from planning to execute. Managing the action plans, projects and lifecycle of the strategic
plan is crucial to accomplishing your business’s long-term priorities.

Sometimes businesses will be better at looking forward and figuring out their opportunities
than they are at executing their plans, or vice versa, so it’s important to break down what
strategic management involves.
BASIS FOR
STRATEGIC PLANNING STRATEGIC MANAGEMENT
COMPARISON
Meaning Strategic Planning is a future Strategic Management implies a bundle of
 BASIS FOR
STRATEGIC PLANNING STRATEGIC MANAGEMENT
COMPARISON
oriented activity which tends to decisions or moves taken in relation to the
determine the organizational formulation and execution of strategies to
strategy and used to set priorities. achieve organizational goals.
Stresses on It stresses on making optimal It stresses on producing strategic results,
strategic decisions. new markets, new products, new
technologies etc.
Management Strategic planning is a Strategic management is a management by
management by plans. results.
Process Analytical process Action-oriented process
Function Identifying actions to be taken. Identifying actions to be taken, the
individuals who will perform the actions,
the right time to perform the action, the

This is the five steps of Strategic Planning

1. Determine where you are

2. Identify what is important
3. Define what are you must achieved.
4. Determine who is accountable
5. Review the work done
There are five stages in the process of strategic management
1. Goal setting
2. Analysis
3. Strategy formation
4. Strategy implementation
5. Evaluation and control
5. Why some companies do not have strategic management? Explain the reasons behind. What
could be the consequence of not having strategic plan?

Answer

The first and foremost reason for poor strategy is the lack of experience in strategic
management which is due to the paucity of managers and executives with experience and the
presence of those who do not understand strategic management.
Without a strategic plan, providers are also less prepared to cope with changes in their industry
or market. They may lack the foresight to anticipate challenges and the agility to adapt their
operations in response. This could lead to missed opportunities and a failure to stay competitive.

What are the consequences of not planning?

Lack of planning often results in missed deadlines, improper delegation, lack of motivation, low
employee productivity, and project infeasibility.

Without strategic goals and objectives, employees may not know what to prioritize, resulting in
confusion, inconsistent performance, and poor use of resources and time management. Without a strategic
plan, providers are also less prepared to cope with changes in their industry or market.

If organizations fail to anticipate or prepare for fundamental changes, they may lose valuable
lead time and momentum to combat them when they do occur. These fundamental elements of
business are customer expectations, employee morale, regulatory requirements, competitive
pressures, and economic changes, and they’re always in flux.

Often businesses achieve a level of success and then stall. Strategic planning helps you avoid the
stall and get off the plateau you find yourself on.

Accidental success is dangerous. Succeeding without a plan is possible, and plenty of examples
exist of businesses that have achieved financial success without a plan. If you’re one of them,
consider yourself lucky, but ask this question: “Could we have grown and become even more
successful if we’d organized a little better?” I’m willing to bet your answer is yes.

Another danger is that the lack of a strategic plan negatively impacts the attitude of an
organization’s team. Employees who see aimlessness within an organization have no sense of a
greater purpose. People need a reason to come to work every day (besides the paycheck).

Lack of direction results in morale problems because, as far as your employees are concerned,
the future is uncertain, unpredictable, and out of control. These depressing conclusions can only
be seen as a threat to employment, which negatively impacts productivity.

Skipping a business plan can actually bring financial consequences. It can bring your business
down and cost you resources, which will make it harder to succeed and forcing you to spend
valuable time regrouping your efforts and repairing the damage.
Of course, running a business without a strategic plan will also cost you frustration and stress
and will inhibit you from reaching your fullest potential.
But, as a business coach I’ve spent time with all kinds of leaders and businesses, and know that
some of the biggest consequences of forgoing a business plan are financial.
 Lack of direction with resources
  Wasted time spent drifting.
 Time spent on the wrong path.
 Missed opportunities for growth.
 Inability to cover overhead expenses.
 Failing to turn a profit.

6. What are the measures or criteria for effective strategic planning?

Answer

Six Essential Steps for Effective Strategic Planning

Set your strategic vision. ...

Almost every single textbook about strategic planning suggests setting up strategic
goals to achieve in the long-term. This is easy to say but so difficult to do when
your plans for the year ahead can often feel quite vague.
Identify the resources and tools needed to achieve your goals. ...
At this stage, it’s important to avoid the “simplification trap” – many students often
immediately start considering and calculating only their financial resources, but the
reality is that other, non-tangible assets may be more important to your goals.

For example, you might have access to certain professional software, equipment,
conference rooms or office space, which you can use to accomplish your objectives.

Find a team you can work with. ...

It’s vital to remember that success depends not only on financial reports but also on
how well you mobilize people and build your teams.

So, you need to identify your “strategic drivers” – the people who will help you
accomplish your goals. These people could come from your network of alumni and
classmates, or from visiting business executives and investment angels.

Skillfully mobilizing and teaming up with strategic drivers is essential for long-term
success in implementing your vision

Use a five-step action plan to stay on top of things. ...

One of the simplest ways to develop your plan is to use a five-step action matrix
which divides the execution of your vision into specific steps (set, plan, assess,
mobilize and execute).

In addition, your strategy should include at least three routes of advancing forward:
working with people; working with documentation, data and research; and working
with social media and cyberspace.

Be prepared to constantly review your plans.

Experts in the field of strategic management suggest you should periodically review
and revise your strategic vision, goals and action plans.

One useful trick in creating a competitive environment is to discuss your strategic

plans with your classmates and friends and make them hold you accountable for your
goals. Maybe even offer to cook them dinner if you fail to achieve certain targets.

Nothing is a better motivator for keeping people on track than a healthy contest, a
competitive environment and the desire to win

Stay well-informed about how new technologies could aid your work

The best business leaders stay ahead of the competition by planning strategically and
adapting to include new technologies in their plan as they become available.

Recently, we’ve seen many managers in large and small corporations begin to
integrate apps and software into their strategic planning process, with several strategic
planning apps available. Some companies have even begun integrating AI into their
products.

So, experimenting with these new apps and technologies will ensure both your
planning and your business idea stay one step ahead of the competition

6 Steps to Measure Your Strategic Plan

 1. Define your key performance indicators (KPIs): KPIs are metrics that help you
measure progress towards your goals. They should be specific, measurable, and aligned
with your strategic objectives. These could be financial metrics such as revenue growth,
profit margin, or customer acquisition cost, or non-financial metrics such as customer
satisfaction, employee engagement, or market share. Examples of KPIs include revenue
growth, profit margin, customer acquisition cost, customer retention rate, employee
turnover rate, and market share.

2. Set targets for each KPI: Establish realistic and achievable targets for each KPI based
on historical data and industry benchmarks. This will help you measure progress and
assess whether you are on track to achieve your goals.

3. Collect data: Collect data on your KPIs regularly, using a combination of internal data
sources (such as financial reports, customer surveys, or employee feedback) and external
sources (such as industry reports or competitor analysis).

4. Analyze the data: Analyze the data to identify trends, patterns, and areas of
improvement. Use this analysis to adjust your strategic plan if necessary.

5. Communicate the results: Communicate the results of your KPIs to stakeholders, such
as employees, investors, and customers. Use this communication to celebrate successes
and highlight areas where improvements can be made.

6. Continuously improve: Use the data and analysis to continuously improve your strategic
plan. Identify areas where you can optimize performance, adjust targets, or shift
resources to achieve better outcomes.

7. Discuss the five competitive forces of porter’s model.

Porter's Five Forces Framework is a method of analyzing the operating environment of

a competition of a business. It draws from industrial organization (IO) economics to derive five
forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof)
of an industry in terms of its profitability. An "unattractive" industry is one in which the effect
of these five forces reduces overall profitability. The most unattractive industry would be one
approaching "pure competition", in which available profits for all firms are driven to normal
profit levels.
Porter refers to these forces as the microenvironment, to contrast it with the more general
term microenvironment. They consist of those forces close to a company that affects its ability
to serve its customers and make a profit. A change in any of the forces normally requires a
business unit to re-assess the marketplace given the overall change in industry information. The
overall industry attractiveness does not imply that every firm in the industry will return the
same profitability. Firms are able to apply their core competencies, business model or network
to achieve a profit above the industry average. A clear example of this is the airline industry. As
an industry, profitability is low because the industry's underlying structure of high fixed costs
and low variable costs afford enormous latitude in the price of airline travel. Airlines tend to
compete on cost, and that drives down the profitability of individual carriers as well as the
industry itself because it simplifies the decision by a customer to buy or not buy a ticket.

Porter's five forces include three forces from 'horizontal competition' – the threat of substitute
products or services, the threat of established rivals, and the threat of new entrants – and two
others from 'vertical' competition – the bargaining power of suppliers and the bargaining power
of customers.

Porter developed his five forces framework in reaction to the then-popular SWOT analysis,
which he found both lacking in rigor and ad hoc. Porter's five-forces framework is based on
the structure–conduct–performance paradigm in industrial organizational economics. Other
Porter's strategy tools include the value chain and generic competitive strategies.

A. Threat of new entrants

New entrants put pressure on current organizations within an industry through their desire to gain
market share. This in turn puts pressure on prices, costs, and the rate of investment needed to
sustain a business within the industry. The threat of new entrants is particularly intense if they
are diversifying from another market as they can leverage existing expertise, cash flow, and
brand identity which puts a strain on existing companies’ profitability.

Barriers to entry restrict the threat of new entrants. If the barriers are high, the threat of new
entrants is reduced, and conversely, if the barriers are low, the risk of new companies venturing
into a given market is high. Barriers to entry are advantages that existing, established companies
have over new entrants.

Michael E. Porter differentiates two factors that can have an effect on how much of a threat new
entrants may pose:[5]

Barriers to entry
The most attractive segment is one in which entry barriers are high and exit barriers are
low. It is worth noting, however, that high barriers to entry almost always make exit more
difficult.
Michael E. Porter lists 7 major sources of entry barriers:

 Supply-side economies of scale – spreading the fixed costs over a larger

volume of units thus reducing the cost per unit. This can discourage a new
entrant because they either must start trading at a smaller volume of units and
 accept a price disadvantage over larger companies, or risk coming into the
market on a large scale in an attempt to displace the existing market leader.
 Demand-side benefits of scale – this occurs when a buyer's willingness to
purchase a particular product or service increases with other people's
willingness to purchase it. Also known as the network effect, people tend to
value being in a 'network' with a larger number of people who use the same
company.
 Customer switching costs – These are well illustrated by structural market
characteristics such as supply chain integration but also can be created by
firms. Airline frequent flyer programs are an example.
 Capital requirements – clearly the Internet has influenced this factor
dramatically. Websites and apps can be launched cheaply and easily as
opposed to the brick-and-mortar industries of the past.
 Incumbency advantages independent of size (e.g., customer loyalty and brand
equity).
 Unequal access to distribution channels – if there are a limited number of
distribution channels for a certain product/service, new entrants may struggle
to find a retail or wholesale channel to sell through as existing competitors
will have a claim on them.
 Government policy such as sanctioned monopolies, legal franchise
requirements, patents, and regulatory requirements.
Expected retaliation
For example, a specific characteristic of oligopoly markets is that prices generally settle
at equilibrium because any price rises or cuts are easily matched by the competition.
B. Threat of substitutes
A substitute product uses a different technology to try to solve the same economic
need. Examples of substitutes are meat, poultry, and fish; landlines and cellular
telephones; airlines, automobiles, trains, and ships; beer and wine; and so on. For
example, tap water is a substitute for Coke, but Pepsi is a product that uses the same
technology (albeit different ingredients) to compete head-to-head with Coke, so it is
not a substitute. Increased marketing for drinking tap water might "shrink the pie" for
both Coke and Pepsi, whereas increased Pepsi advertising would likely "grow the
pie" (increase consumption of all soft drinks), while giving Pepsi a larger market
share at Coke's expense.

Potential factors:

 Buyer propensity to substitute. This aspect incorporated both tangible and

intangible factors. Brand loyalty can be very important as in the Coke and
Pepsi example above; however, contractual, and legal barriers are also
effective.
 Relative price performance of substitute
 Buyer's switching costs. This factor is well illustrated by the mobility
industry. Uber and its many competitors took advantage of the incumbent
 taxi industry's dependence on legal barriers to entry and when those fell
away, it was trivial for customers to switch. There were no costs as every
transaction was atomic, with no incentive for customers not to try another
product.
 Perceived level of product differentiation which is classic Michael
Porter in the sense that there are only two basic mechanisms for
competition – lowest price or differentiation. Developing multiple
products for niche markets is one way to mitigate this factor.
 Number of substitute products available in the market
 Ease of substitution
 Availability of close substitutes
C. Bargaining power of customers
The bargaining power of customers is also described as the market of outputs: the
ability of customers to put the firm under pressure, which also affects the customer's
sensitivity to price changes. Firms can take measures to reduce buyer power, such as
implementing a loyalty program. Buyers' power is high if buyers have many
alternatives. It is low if they have few choices.

Potential factors:

 Buyer concentration to firm concentration ratio

 Degree of dependency upon existing channels of distribution
 Bargaining leverage, particularly in industries with high fixed costs
 Buyer switching costs.
 Buyer information availability
 Availability of existing substitute products
 Buyer price sensitivity
 Differential advantage (uniqueness) of industry products
 RFM (customer value) Analysis
D. Bargaining power of suppliers
The bargaining power of suppliers is also described as the market of inputs.
Suppliers of raw materials, components, labor, and services (such as expertise) to
the firm can be a source of power over the firm when there are few substitutes. If you
are making biscuits and there is only one person who sells flour, you have no
alternative but to buy it from them. Suppliers may refuse to work with the firm or
charge excessively high prices for unique resources.

Potential factors are:

 Supplier switching costs relative to firm switching costs.

 Degree of differentiation of inputs
 Impact of inputs on cost and differentiation
 Presence of substitute inputs
 Strength of the distribution channel
 Supplier concentration to the firm concentration ratio

Employee solidarity (e.g. labor unions)

Supplier competition: the ability to forward vertically integrate and cut

out the buyer.
E. Competitive rivalry
Competitive rivalry is a measure of the extent of competition among existing firms.
Price cuts, increased advertising expenditures, or investing in service/product
enhancements and innovation are all examples of competitive moves that might limit
profitability and lead to competitive moves. For most industries, the intensity of
competitive rivalry is the biggest determinant of the competitiveness of the industry.
Understanding industry rivals is vital to successfully marketing a product.
Positioning depends on how the public perceives a product and distinguishes it from
that of competitors. An organization must be aware of its competitors' marketing
strategies and pricing and also be reactive to any changes made. Rivalry among
competitors tends to be cutthroat and industry profitability is low while having the
potential factors below:

Potential factors:

Sustainable competitive advantage through innovation

Competition between online and offline organizations
Level of advertising expense
Powerful competitive strategy which could potentially be realized by
adhering to Porter's work on low cost versus differentiation.
 Firm concentration ratio
8. Answer the following questions.
A. What is business mission?
Answer

A Business Mission is the main idea, the purpose and the drivers behind a company, which
sends the company, its executives and employees along its way in a particular direction. The
Mission is typically defined in a mission statement.

A company's mission is the plan for how it will achieve its vision. Mission is a call to action.
Some reference to a business model would be appropriate

The mission, which describes what business the organization is in (and what it isn’t) both now
and projecting into the future. Its aim is to provide focus for management and staff.

Defining the company mission is one of the most often slighted tasks in strategic management.
Emphasizing the operational aspects of long-range management activities comes much more
easily for most executives. But the critical role of defining the mission is repeatedly
demonstrated by failing firms whose short-run actions have been at odds with their long-run
purposes. The principal value of the mission statement is its specification of the firm's ultimate
aims. A firm gains a heightened sense of purpose when its board of directors and its top
executives address these issues: "What business are we in?" "What customers do we serve?"
"Why does this organization exist?" However, the potential contribution of the company mission
can be undermined if platitudes or ambiguous generalizations are accepted in response to these
questions.

And what is business vision?

Answer

What is a business vision?

A business vision defines a company’s reason for existence and the direction the business is
heading. The vision that you create should be based on the goals, objectives and aspirations that
you have for your company.

Take, for example, Instagram’s business vision, which is ‘to capture and share the world’s
moments’. This vision statement defines the company’s ultimate goal and provides a clear
measurement for success.

Nike’s vision is: ‘To bring inspiration and innovation to every athlete in the world’

Google’s vision is: ‘To organize the world's information and make it universally accessible and
useful’

All these companies have clearly defined visions that are focused and inspirational.

It is imperative that you keep true to your vision even in the current turbulent business climate.
You need to remain nimble, adaptable, and flexible in order to reach your long term vision. You
also need to be courageous in looking for new ways to attain your vision during these times.

Why is it important to have a business vision?

A business vision statement should be a powerful defined statement, which allows growth
towards achieving specific goals. Therefore, having a vision is essential from the outset because
it keeps you focused, driven, and goal-orientated.

A vision will also help to motivate and engage your employees, which is imperative if you wish
to achieve long term goals. A business vision will empower the team and result in loyal, happy
and productive teams.
 B. Write at least the mission and vision of two multi-national companies.

Answer

Coca Cola
Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.

To refresh the world…

To inspire moments of optimism and happiness…

To create value and make a difference.

Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

Load Star
Mission
We will manufacture quality and cost effective tires, tracks, and wheel systems, effectively and
efficiency for our worldwide customers trough empowered and self driven team, working
together and improve our people, company, society and environment.

Vision
To be the premier manufacturer of mobility systems for the productive world by harnessing and
nurturing people’s abilities.
C. Briley explain the Benefits of having clear mission and vision.
Answer

Vision and Mission statements are successful if anyone in the organisation can recall them
upon request and does so with a hint of pride. Then the Vision and Mission can yield
benefits like:

1. Guide the Thinking and Actions of Employees

When people are about to invest a lot of time and energy into an Endeavour, they want to
know they are doing "the right thing". They want to know their actions will not generate
criticism and hopefully garner praise.

If there are clear Vision and Mission statements, the whole organization has adopted them,
and the employee has correctly interpreted them, then an employee can ask "Will this action
be in alignment with our Mission? Will this action get us closer to our Vision?"

Having a reliable way for someone in an organization to internally validate their thinking and
actions means they can focus more of their time on moving the organization forward rather
than worrying about justifying the soundness of what they are doing.

2. Help Determine and Inform Performance Standards

Like guiding thinking and actions of employees, strong Vision and Mission statements will
make it much easier to construct transparent and consistent performance standards and
measurements. One can ask "What behaviors’ do we want to encourage/discourage that
would bring us in alignment with our Mission and closer to our Vision?"

Not only can performance tools be aligned to the Vision and Mission, but the performance
tools can be used to help align the organization.

3. Help Attract Appropriate Talent

Clear and easily understood Vision and Mission statements help with hiring in several ways.
Making the Vision and Mission not only public but also communicating them to candidates
means that some candidates will select themselves out because they know the organization
would not be a good fit for them.

Since performance standards align with the Vision and Mission, then we know what
behaviors’, characteristics and skills are needed to help fulfill the Mission and achieve the
Vision. When conducting interviews, interviewers can use the information to guide their
questioning and assessment of candidates.
4. Provide Context and Reduce Friction During Organizational Restructures
Organizational Restructures and major reallocations of resources can be very stressful.
However, if the restructure aligns with the Vision and Mission, it can help give some context
to the restructure.

When people understand why the change has to happen, and they can see how that change
would improve the organization, then they are going to be more accepting even if it might
cause some personal grief.

5. Provide a Stable Framework that can Outlast Internal Changes

Creating a crisp and inspiring Mission and Vision and then weaving it into the fabric of an
organization is hard. But when the Vision and Mission are an integral part of the
organization they give the company strength and direction well after those who helped create
it are gone.

A charismatic leader or founder may leave, or C level management may change, but the
company continues from strength to strength. The Vision and Mission providing an almost
spiritual leadership that can help ensure the actual leaders that take over following in the
footsteps of those who came before them.

6. Inspire People to be Focused and Productive

The Vision and Mission need to be inspiring. They need to resonate with everyone in the
organization. They need to help provide meaning and purpose. Therefore Vision and
Mission can't just be about increasing revenue because that doesn't motivate someone doing
their shift in Customer Service.

Once a Vision and Mission have sparked inspiration with the individual, the team and the
organization, then they operate in a state of focus. Being focused allows an individual and
an organization to channel their energy and creativity into a single and concentrated
direction, the Vision and Mission. It is the difference between trying to push a blunt pencil
versus a sharp pencil through a sheet of paper.

7. Facilitate Collaboration with Teams, Customers, Suppliers and Partners

When teams in an organization have a common Vision and Mission, they can look beyond
internal politics and KPIs and can collaborate. Helping you may cost me, but it brings us
closer to our Vision and Mission.

When the Vision and Mission are crisp and inspiring, beyond just those in the organisation,
then customers, suppliers and partners can feel part of something special too. Customers
know why they use your services. Partners know why they collaborate with you rather than a
competitor and Suppliers feel proud that their product or service can help you achieve your
Vision and Mission.
 8. Help with Public Relations
Since Vision and Mission help define an organization’s identity, then it makes sense that the
Vision and Mission are an important part of a company's Public Relations strategy. Who we
are, what we do, and why we do it are enshrined in the Vision and Mission, and that is also
what we want to communicate to the outside world.

Since the company arranges itself around the Vision and Mission, aligning the company's
brand and communications with the Vision and Mission means that there will be consistency
between what happens inside and what is communicated outside. Keeping the company and
its public image in sync gives its public persona greater gravitas.

D. What are some of the Characteristics of mission statement.

Answer

9 Characteristics of an Effective Mission Statement

Mission statements are not one-size-fits-all, although there are some guidelines that can help you craft
one that effectively captures the purpose and goal of your business. The general rule for these
statements is that you can’t confuse your audience, because that defeats the purpose of trying to
communicate the reasons your business exists. However, there are nine characteristics common in
effective mission statements that provide the parameters under which you can craft a statement that not
only sells the “what” of your company but also the “why.”

 They Are Short

 They Are Unique to Your Business
 They Create Expectations
 They Are Realistic
 They Are Memorable
 They Are Active
 They Are Positive
 They Are Adaptable
 They Are Targeted

E. What are some of the criteria to evaluate the quality of mission statement?

Answer
1. The mission statement is clear and understandable to all personnel, including rank-and-
file employees.
2. The mission statement clearly specifies what business the organization is in. This
includes a clear statement about:

a. What customer or client needs the organization is attempting to fill (not what products
or services are offered)

b. Who the organizations primary customers or clients are; and

c. How the organization plans to go about its business, that is, what its primary
technologies are.

3. The mission statement should have a primary focus on a single strategic thrust.
4. The mission statement should reflect the distinctive competence of the organization.
5. The mission statement should be broad enough to allow flexibility in implementation but
not so broad as to permit a lack of focus.
6. The mission statement should serve as a template and be the means by which managers
and others in the organization can make decisions.
7. The mission statement must reflect the values, beliefs, and philosophy of operations of
the organization and reflect the organizational culture.
8. The mission statement should reflect attainable goals.
9. The mission statement should be worded so as to serve as an energy source and rallying
point for the organization.