Q1. Goals are general in nature while objectives are specific.

Explain using
examples.
Answer
Goals and objectives provides the foundation for measurement. As goals are the
outcome statements that define what an organization is trying to accomplish, both
programmatically and organizationally. Goals also define the general intentions and
ambitions of the business but can be difficult to measure. Setting goals is an
important step of business planning, as well defined broad primary outcome will
have an impact on areas including mission statement, financial objectives, corporate
culture and marketing strategy.

Likewise, in general objectives are more specific and easier to measure then goals.
Objectives are basic tools that underlie all planning and strategic activities.
Objectives serves as the basis for creating policy and evaluating performance. 1. For
example, a person could have a goal to become a successful published author. While
this is a good goal, there are no specific actions or time frames associated with
general goals like this. 2. A company may have a goal of becoming the most
profitable advertising agency in the country, objectives related to this goals might
include increasing their new business sales by 5% each quarter, growing their market
share by a set the frame, improving client retention rates by 10% each month or
adding two new products to their product line by the end of the fiscal year.

Q2. Suppose you are going to open a new mobile device manufacturing
company. Prepare the following
 Mission statement
 Vision statement
 Goals and objectives of an organization
Answer
The mission, vision, goals and objectives of my company are as follows.
Mission
To make a cheapest and durable mobile handset.
Vision
To bring a revolution in mobile industry by selling handsets in each and every
corners of the world and in each and every houses.
Goals
 1. Improve customers base
2. Increase market shares
3. Increase profits.
Objectives
To provide a mobile handset with unique feature and style to the world.

Q.3 The five forces model provide the rational for increasing and decreasing
resources commitment. Comment
Porter's Five Forces is a model that identifies and analyzes five competitive forces
that shape every industry and helps determine an industry's weaknesses and
strengths. Five Forces analysis is frequently used to identify an industry's structure
to determine corporate strategy. Porter's model can be applied to any segment of the
economy to understand the level of competition within the industry and enhance a
company's long-term profitability.
Porters classified his model into 5 factors, they are as follows: -

Competition in the Industry

The first of the five forces refers to the number of competitors and their ability to
undercut a company. The larger the number of competitors, along with the number
of equivalent products and services they offer, the lesser the power of a company.
Suppliers and buyers seek out a company's competition if they are able to offer a
better deal or lower prices.

Potential of New Entrants into an Industry

A company's power is also affected by the force of new entrants into its market. The
less time and money it costs for a competitor to enter a company's market and be an
effective competitor, the more an established company's position could be
significantly weakened. An industry with strong barriers to entry is ideal for existing
companies within that industry since the company would be able to charge higher
prices and negotiate better terms.

Power of Suppliers
The next factor in the five forces model addresses how easily suppliers can drive up
the cost of inputs. It is affected by the number of suppliers of key inputs of a good
or service, how unique these inputs are, and how much it would cost a company to
switch to another supplier. The fewer suppliers to an industry, the more a company
would depend on a supplier.

Power of Customers
The ability that customers have to drive prices lower or their level of power is one
of the five forces. It is affected by how many buyers or customers a company has,
how significant each customer is, and how much it would cost a company to find
new customers or markets for its output.

Threat of Substitutes
The last of the five forces focuses on substitutes. Substitute goods or services that
can be used in place of a company's products or services pose a threat. Companies
that produce goods or services for which there are no close substitutes will have
more power to increase prices and lock in favorable terms. When close substitutes
are available, customers will have the option to forgo buying a company's product,
and a company's power can be weakened.
Understanding Porter's Five Forces and how they apply to an industry, can enable a
company to adjust its business strategy to better use its resources to generate higher
earnings for its investors.
Q.4 Suppose a firm competes in the micro-computer industry. Where in your
opinion the boundaries of this industry begin and end.

A microcomputer is a small, relatively inexpensive computer with a microprocessor

as its central processing unit (CPU). It includes a microprocessor, memory and
minimal input/output (I/O) circuitry mounted on a single printed circuit board.
Microcomputers became popular in the 1970s and 1980s with the advent of
increasingly powerful microprocessors.

To compete in the microcomputer industry there should be new innovation and

changes in the product which will enable to attract and grab the attention of
customers and demand, by boundary will be defined by the no. of sellers and demand
for this product.
The end of the competition in the microcomputer industry will arise when there lacks
innovation, lack of distinct and unique features in the computer.

Q.5 You are the CEO of a footwear manufacturing company. Your company
manufactures shoes and sandals for the both successes. The design of the shoes
and sandals have not change over the years, your shoes sold like hot cakes in
early 2000s but now the sale have declined heavily. Analyze the situation and
suggest appropriate solution to get the company back on track.
Answer-
The reasons for the decrease in the sales of the product may be due to the following
reasons: -
1. The company lacks creative ness and innovation
2. The company lacks information about customers taste and preferences
3. The company ignore the threats of new entrants

Suggestions
1. The product should be designed in a better way as the customers are attracted
by aesthetic aspects.
2. The product should be stylish and trendy.
3. The company should know the preferences of the customer’s.
4. The company should know what kind of products competitors are offering in
the market.