Scribd
Upload
8 views5 pages

Untitled Document-1

By Shreya Nandini

Uploaded by

rajsomesh2006
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
8 views5 pages

Untitled Document-1

By Shreya Nandini

Uploaded by

rajsomesh2006
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

CC 13: Business Policy and Strategy

1.Formulation of Mission statement.


Ans-Creating a mission statement involves articulating the core purpose of an
organization, its values, and its goals. Here’s a step-by-step guide to help you
formulate an effective mission statement:

Step 1: Define Your Purpose


- **Ask Questions:** What is the primary purpose of your organization? Why does it
exist?
- **Focus on Impact:** Consider how your organization affects its stakeholders
(customers, employees, community).

Step 2: Identify Your Values


- **Core Principles:** What values guide your organization’s actions and decisions?
- **Cultural Elements:** Think about the culture you want to foster within your
organization.

Step 3: Determine Your Audience


- **Who Are You Serving?** Identify your primary audience (customers, clients,
community).
- **Stakeholder Consideration:** Consider other stakeholders who may be impacted
by your mission.

Step 4: Outline Your Goals


- **Short-Term and Long-Term Goals:** What do you hope to achieve in the near
future and over the long term?
- **Measurable Outcomes:** Think about how you will measure success.

Step 5: Keep It Concise


- **Brevity Matters:** Aim for a statement that is clear and concise, ideally one to two
sentences.
- **Avoid Jargon:** Use straightforward language that resonates with your audience.

Step 6: Review and Revise


- **Get Feedback:** Share drafts with stakeholders for input.
- **Refine Language:** Ensure clarity and impact through revisions.

Example Template
“[Organization Name] exists to [purpose] by [how it achieves that purpose] for [target
audience], guided by [core values].”

Sample Mission Statements


1. **Non-Profit Example:** “At [Organization Name], we exist to empower
underprivileged youth through education and mentorship, fostering a brighter future
guided by integrity and compassion.”

2. **Business Example:** “Our mission at [Company Name] is to deliver innovative


technology solutions that enhance everyday life while prioritizing sustainability and
customer satisfaction.”

Final Tips
- **Align with Vision:** Ensure your mission statement aligns with your broader vision
and strategic goals.
- **Inspire Action:** A good mission statement should inspire employees and
stakeholders alike.

Feel free to adapt this process to fit your organization's unique needs!

2. Michael Porter's 5 Forces Model.


Ans-Michael Porter’s Five Forces Model is a framework for analyzing the competitive
dynamics within an industry. It helps businesses understand the factors that
influence their competitive environment and profitability. Here’s a breakdown of the
five forces:

1. **Threat of New Entrants**


- **Definition:** The likelihood that new competitors will enter the industry.
- **Factors Influencing This Force:**
- **Barriers to Entry:** High capital requirements, economies of scale, brand
loyalty, regulatory restrictions, and access to distribution channels can deter new
entrants.
- **Switching Costs:** If customers face low switching costs, new entrants can
attract customers more easily.

2. **Bargaining Power of Suppliers**


- **Definition:** The ability of suppliers to influence the price and terms of supply.
- **Factors Influencing This Force:**
- **Number of Suppliers:** Fewer suppliers increase their power.
- **Uniqueness of Inputs:** If suppliers offer unique products or services, they
hold more power.
- **Cost of Switching Suppliers:** High switching costs for companies can give
suppliers leverage.

3. **Bargaining Power of Buyers**


- **Definition:** The influence customers have on pricing and quality.
- **Factors Influencing This Force:**
- **Number of Buyers:** A small number of large buyers can exert significant
pressure on prices.
- **Product Differentiation:** If products are undifferentiated, buyers can easily
switch to competitors.
- **Price Sensitivity:** Buyers who are price-sensitive can drive prices down.

4. **Threat of Substitute Products or Services**


- **Definition:** The likelihood that customers will switch to alternative products or
services.
- **Factors Influencing This Force:**
- **Availability of Alternatives:** The more substitutes available, the higher the
threat.
- **Price-Performance Trade-off:** If substitutes offer better value, customers may
switch.
- **Customer Loyalty:** Strong brand loyalty can mitigate the threat of substitutes.

5. **Industry Rivalry**
- **Definition:** The intensity of competition among existing firms in the industry.
- **Factors Influencing This Force:**
- **Number of Competitors:** More competitors generally lead to higher rivalry.
- **Rate of Industry Growth:** Slow growth can intensify competition as firms fight
for market share.
- **Product Differentiation:** Low differentiation increases competition based on
price.

Application of the Model


- **Strategic Planning:** Businesses can use this model to assess their competitive
environment and identify strategic opportunities or threats.
- **Market Entry Decisions:** Understanding these forces helps firms evaluate
whether entering a new market is viable.
- **Competitive Positioning:** Companies can analyze their strengths and
weaknesses relative to these forces to develop strategies that enhance their
competitive position.

Conclusion
Porter’s Five Forces Model provides a comprehensive framework for assessing the
competitive landscape of an industry. By understanding these forces, businesses
can make informed strategic decisions that enhance their profitability and market
position.

3. Different types of Growth strategies.


Ans-Here are some common types of growth strategies:
1. **Market Penetration**
- **Definition:** Increasing market share within existing markets.
- **Approaches:** Competitive pricing, promotional campaigns, and improving
product quality.

2. **Market Development**
- **Definition:** Expanding into new markets with existing products.
- **Approaches:** Targeting new geographical areas or demographic segments.

3. **Product Development**
- **Definition:** Introducing new products to existing markets.
- **Approaches:** Innovating or enhancing current products to meet customer
needs.

4. **Diversification**
- **Definition:** Entering new markets with new products.
- **Types:**
- **Related Diversification:** Expanding into areas related to the current business.
- **Unrelated Diversification:** Venturing into completely different industries.

5. **Acquisition and Mergers**


- **Definition:** Gaining control over other companies to enhance market position.
- **Approaches:** Buying competitors or merging with complementary businesses.

6. **Strategic Alliances and Partnerships**


- **Definition:** Collaborating with other organizations to leverage strengths.
- **Approaches:** Joint ventures, co-marketing agreements, or technology sharing.

7. **Franchising**
- **Definition:** Allowing others to operate using your brand and business model.
- **Approaches:** Expanding reach without significant capital investment.

8. **Digital Transformation**
- **Definition:** Leveraging technology to enhance operations and customer
engagement.
- **Approaches:** E-commerce, digital marketing, and data analytics.

Conclusion
These growth strategies can be used individually or in combination, depending on
the company’s goals, resources, and market conditions.

4. Drukers Performance Areas.


Ans-Peter Drucker, a renowned management consultant and author, identified
several key performance areas that organizations should focus on to achieve
effectiveness and efficiency. Here are the main performance areas he emphasized:

1. **Market Focus**
- Understanding customer needs and preferences.
- Identifying target markets and adapting offerings accordingly.

2. **Innovation**
- Encouraging creativity and new ideas.
- Developing new products, services, or processes to stay competitive.

3. **Human Resources**
- Recognizing the importance of people in an organization.
- Fostering a culture of engagement, training, and development.

4. **Financial Performance**
- Monitoring financial health through metrics such as profitability, revenue growth,
and cost management.
- Ensuring sustainable financial practices.

5. **Operational Efficiency**
- Streamlining processes to improve productivity and reduce waste.
- Implementing best practices in operations management.

6. **Social Responsibility**
- Acknowledging the organization’s role in society.
- Balancing profit with ethical considerations and community impact.

7. **Strategic Planning**
- Establishing long-term goals and aligning resources to achieve them.
- Regularly assessing and adjusting strategies based on market changes.

Conclusion
Drucker's performance areas serve as a framework for organizations to evaluate
their effectiveness and drive continuous improvement across various dimensions of
their operations. By focusing on these areas, organizations can enhance their overall
performance and adaptability in a changing environment.

By- Shreya Nandini


B.B.A Sem -6
Roll no- 08

You might also like