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Course Code
MS - 11
Course Title
Strategic Management
Assignment Code
MS-11/TMA/SEM - II/2016
Assignment Coverage
All Blocks
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1. What do you understand by a Mission Statement? Can there be a strategy without a mission statement?
Justify giving examples.
A mission statement is a statement which is used as a way of communicating the purpose of the organization. Although most of
the time it will remain the same for a long period of time, it is not uncommon for organizations to update their mission statement
and generally happens when an organization evolves. Mission statements are normally short and simple statements which outline
what the organization's purpose is and are related to the specific sector an organization operates in.
Properly crafted mission statements serve as ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------mission, corporate mission, or corporate
purpose.
The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decisionmaking. It provides the framework or context within which the company's strategies are formulated." It is like a goal for what the
company wants to do for the world.
According to Dr. Christopher Bart, the commercial mission statement consists of three essential components:
1. Key market: Who is ----------------------------------------------- (generalize if needed)?
2. Contribution: What ----------------------------------------------------------- to that client?
3. Distinction: What makes ----------------------------------------------------- client would choose you?
A personal mission statement is developed in ----------------------------------------------------------------------------------------------------------------------------------------------------------------- wants to focus on, wants to accomplish and wants to become. It is a way to
focus energy, actions, behaviors and decisions towards the things that are most important to the individual.
The sole purpose of a mission statement is to serve as your company's goal/agenda, it outlines clearly what the goal of the
company is. Some generic examples of mission statements would be, ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- to ensure that the mission statement does not lose its touch and become boring or stale.
An article which can be found here explains the purpose of a mission statement as the following:
"The mission statement reflects every facet of your business: the range and nature of the products you
offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your
customers, employees, suppliers, competitors and the community.
It is important that a mission statement is not ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Vision
statements tend to be more related to strategic planning and lean more towards discussing where a company aims to be in the
future.
-------------------------------------------------------------------------------------------------------------------------------------sense of purpose it
will allow them to focus more on their daily tasks and help them to realise the goals of the organisation and their role.
A well-developed mission statement is a --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------or two. If you read it out loud, it should take about
30 seconds. And it should answer questions people have about your business, like:
Who is ----------------------------------------------------?
What do you ------------------------------------------------- for? And why do you do it?
Do you want to ----------------------------------------------------- make a living?
What markets --------------------------------------------------- do you offer them?
Do you ------------------------------------------------------- customers?
What kind of internal work environment do you want for your employees?
Can an Organization Have a Successful Strategic Plan Without Effective Mission Statement?
The strategic plan is the blueprint that -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------missions
and
objectives and, its success is dependent upon the organization attaining its mission.
Mission Statement
The businesss mission statement provides a wide, universal view of the organizations reason for existence. It identifies the
organizations ultimate goal, or vision, and ----------------------------------------------------------------------------- and cultures. The
mission statement is void of specifics and is often so general that it may appear unattainable.
Objectives
In order to develop successful strategies, the ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------is meeting
its objectives in a timely and affordable fashion.
Strategic Plan
The strategic plan analyzes the internal and ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to achieve
success, as well as the budget and resources that must be used to complete the task.
Considerations
The strategic plan involves defining and ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to be unsuccessful because it will
lack direction which will reduce the organizations potential for a competitive advantage.
7 REASONS YOUR COMPANY NEEDS A CLEAR, WRITTEN MISSION STATEMENT
Sometimes business owners ask me if it is really ----------------------------------------------------------------------------------------------------------. Here is why I think it is critical that every business (even small businesses) have a clear, written mission statement.
2. What determines the intensity of competition as per Porters Model? Identify the key strategic factors of the
firm you are acquainted with, in its external environment.
Porter's five forces analysis is a ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------", in which available
profits for all firms are driven to normal profit.
Porters five forces model helps in accessing where the power lies in a business situation.Porters Model is actually a business
strategy tool that helps in analyzing the attractiveness in an industry structure. It let you access current strength of your
competitive position and the strength of the position that you are planning to attain.
Porters Model is considered an important part of planning tool set. ---------------------------------------------------------------------------------------------------------------------------- improve the weaknesses and can compete efficiently and effectively.
Porters model of competitive forces assumes that there are five competitive forces -----------------------------------------------------------------------------------------------------------. These five competitive forces identified by the Michael Porter are:
1.
2.
3.
4.
5.
1.
In the above mentioned situations, Customer can easily switch to substitute products. So substitutes are a threat to your
company. When there are actual and --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, if competition rises or technology modernizes then
prices and profits decline.
2.
A new entry of a competitor into your market also weakens your power. Threat of new entry depends upon entry and exit
barriers. Threat of new entry is high when:
There is variation in attractiveness of segment depending upon entry and exit barriers. That segment is more attractive which has
high entry barriers and low exit barriers.
Some new firms enter into --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------face more risk because poor performance companies stay in and
fight it out. When these barriers are low then firms easily enter and exit the industry, profit is low. The worst condition is when
entry barriers are low and exit barriers are high then in good times firms enter and it become very difficult to exit in bad times.
3.
Industry Rivalry
These situations make ------------------------------------- modifications, ultimately costs increase and it is difficult to compete.
4.
Bargaining Power of supplier means how strong is the position of a seller. How much your supplier have control over
increasing the Price of supplies. Suppliers are more powerful when
When suppliers have more control over ------------------------------------------------------------------. It is best way to make win-win
relation with suppliers. Its good idea to have multi-sources of supply.
5.
Bargaining Power of Buyers means, How much control the buyers have to drive down your products price, Can they work
together in ordering large volumes. Buyers have more bargaining power when:
Buyers bargaining power may ------------------------------------------------------------------------------------------------------------------------------------------------------------ but huge quantity ordering buyers, then they have the power to dictate you.
sell enough products to cover those costs. High costs of storage prompt companies to compete to make sales quickly. When
customers have free mobility to change providers it forces more intense competitive rivalry.
Many Firms, Flat Market
One of the more obvious reasons for high ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and competitors work hard to steal customers.
Differentiation Potential
The level of possible product or service differentiation ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------diversity among providers with regard
to the makeup of their companies and strategies can lead to more rivalry.
Ability to Leave
The ease with which companies can exit an industry also affects competitive intensity. Porter notes that high barriers, including
costs, of exiting an industry ------------------------------------------------------------------------------ than to stay and compete, they are
more likely to make the investment and commitment necessary to optimize their potential within the industry. In industries where
exit is simpler, companies may opt out rather than stay the course and fight intensely for business.
The bargaining power doesnt have major influence in current scenario as Nano doesnt have direct alternative in its 600CC
product category. But there is availability of substitutes for buyers in terms of vehicle utility. Hence the bargaining power of
buyers is medium.
Result: Bargaining power of buyers is medium, hence Industry attractiveness is moderate
Industry Rivalry
Automobile industry in India is ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------car segments.
Result: Threat from rivals is high, hence Industry attractiveness is low.
3. Describe corporate culture. Do you think that a corporate culture can be changed? Justify your answer with
the help of suitable examples.
Corporate culture refers to the shared values, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------The
concept is somewhat complex, abstract, and difficult to grasp. A good way to define it is by indirection.
Most corporate culture initiatives are launched with good intentions and flawed intelligence. Case studies show an established idea
that culture change is a top-down, one-size-fits all process. This misses the mark completely. Culture forms like a web, not a
pyramid.
There are tested building blocks that create the framework necessary for culture to spread. They are:
1) The culture storyhow ------------------------------------------------------- and given context.
2) Role modelingleading by example, ------------------------------------------.
3) Reinforcementorganizational ------------------------------------------------------- cultural values.
4) ---------------------------give -------------------------------------- the new culture.
For culture to take root, you need to build framework and commit to the process. Psychological studies show that for cultural
values to be successfully adoptedin a business or a communitythere must be constant reminders of them everywhere,
throughout the day.
Culture is created by consensus. Its ------------------------------------------------------------- group. But it all starts somewhere.
CULTURE IN SMALL BUSINESSES
Culture can be a particularly important consideration for small businesses. A healthy company culture may increase employees'
commitment and productivity, while an unhealthy ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.
Instead of attempting to retain control over all aspects of the business, the small business owner should, as consultant Morty
Lefcoe told Nation's Business, strive to "get everybody else in the organization to do your job, while you create an environment so
that they can do it."
In a healthy culture, employees view themselves as part -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
-needs. They only perform the most basic requirements of their jobs, and their mainand perhaps onlymotivation is their
paycheck.
Since every company is different, there are many ways to develop a culture that works. Following are several main principles that
small business owners should consider in order to create a healthy corporate culture:
Prevailing corporate culture begins at the top. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------personal ethics, and dealings with others (customers, vendors, and employees) will almost certainly find their companies defined
by such characteristics.
Treat all employees equally. Entrepreneurs should treat all employees equally. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------"Doing otherwise quickly undermines employees' morale'. Showing favoritism in the workplace is like
swimming with sharksyou are destined to get bitten."
Hiring decisions should reflect desired corporate culture. The wise -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------typically benefit from having a diverse workforce rather than one that is overly homogeneous.
Two-way communication is essential. Small business owners -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------effort on behalf of the overall business, productivity declines and growth comes to a halt. Unfortunately, many
entrepreneurs tend to ignore the developing cultures within their businesses until it is too late to make needed changes.
In an article for Entrepreneur, Robert McGarvey outlined some warning signs of trouble with the company culture, including:
increased turnover; difficulty in hiring talented people; -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------culture. If so, the small business owner should take steps to improve the culture, including reaffirming the company's mission and
goals and establishing a more open relationship with employees.
Each organization has its own way of dealing with corporate problems and do have their own organizational structure. The culture
of the organization very much depends on the behaviour of the employees. If the employees have a strong commitment towards
their organizations, the organization is said to have a strong culture and vice versa.
For example, Infosysone of top companies in the area of IT in Indiacan be said to have a strong organizational culture. This
is reflected in its annual results. It is not easy to ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------more on the role of leaders in shaping the
culture of the organization and will discuss the role of leaders in handling the employees.
At the observable level, culture is manifested in an organizations climate the behaviors and strategies that can be managed in
support of organizational goals.
The value is in understanding an organization ---------------------------------------------------------------------- goals. Only then can the
workspace truly provide the support team members need.
Because each culture type is distinct, the ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.
Various
subcultures will exist in departments or teams some even contradicting the overall organizations culture. By looking at culture
and subculture throughout an organization, space planners can begin to structure solutions to the work styles they will support. By
starting with a meaningful cultural assessment, planners can resolve complex and often competing issues with creative,
constructive solutions that benefit team members and improve business performance.
Yes, A Corporate Culture can be changed ---------------------------------------------- by taking firm actions.
Based on experience of Mr. Mike, President of Thomas Nelson Company, ---------------------------------------------- of your own
business, or any organisation:
1.
Become aware of the culture. Begin to notice its characteristics. Pay attention to shared values, the way people express
----------------------------------------------------------------------- tell about their success and failures.
2.
o
At Thomas Nelson we had a performance ---------------------------------------------------------------------------------------------------------------------------. We had to succeed financially in order to resource our mission.
o
3.
Envision a new culture. This is the fun part. Rather than simply complain about what is, begin to image what could be.
Imagine you are ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- culture look like? Write it down in as much detail as possible.
I wrote down five pages of notes --------------------------------------------------------------------------------- team, and we finetuned it. This became a blueprint for what we wanted to create.
4.
5.
Get alignment from your leadership team. --------------------------------. You. This is something altogether different.
You want a team that buys the vision, understands what is at stake, and is willing to take a stand to make it happen.
Think of it as a ------------------------------------------------------------------- together to make a positive change that will
transform your organization.
6.
Model the culture you want to create. The culture of a company is the behavior of its leaders. If you change their
attitudes, their values, their beliefs, their behaviors, you will change your culture. If you dont, you will fail.
This is why you --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------That may sound harsh, but its true. If
you dont, nothing will change in the organization.
As Gandhi famously said, Be the change you want to see in the world.
And by the way, ----------------------------------------------------------------------------------------------------------------------department, division, or operating unit. In fact, thats usually how it works.
That is exactly how I did it at Thomas Nelson. I started implementing what I am sharing here five years before I became
the president of the company. Frankly, I think it had a great deal to do with why I kept getting promoted.
Is it possible to change the culture of your organization? ---------------------------- in leadership, you must be intentional.
The Expansion through Integration means combining one or more present operation of the business with no change in the
customer groups. This combination can be done through a value chain.
The value chain comprises of ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to focus more
comprehensively on the needs of the existing customers.
The expansion through integration -------------------------------------------- expansion strategy. There are two ways of integration:
Vertical integration:
The vertical integration is of two types: ---------------------------------------------------------------------------------------------------------------------------- made a forward integration. Example, the manufacturing firm open up its retail outlet.
Whereas, if the organization retreats to the source of raw materials, is said to have made a backward integration. Example, the
shoe company manufactures its own raw material such as leather through its subsidiary firm.
Horizontal integration allows a -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of production or
distribution within the same industry.
----------------------------------------------------------------- acquires a distributor, which is further down the supply chain.
Backwards integration is when the ----------------------------------------------- is further up the supply chain.
Examples of vertical integration
In some businesses, vertical integration is inherent-most wine producers produce their own grapes. Big producers also
make their own bottles.
Apple has moved from ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------well as their own chain of retail stores.
Yum Yum/--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and quality of its finished products.
A home-based costume jewelry entrepreneur is vertically integrated if she or he is also the designer and manufacture of
the products.
Horizontal Integration:
A firm is said to have made a horizontal integration when it takes over the same kind of product with similar marketing and
production levels. Example, ---------------------------------------------------------------------------- company.
As in the ------------------------------------------------------------------ own advantages and disadvantages. But first lets take a look at
some of the companies who have implemented this concept and to evaluate how successful they were. These are the examples of ------------------------------------------------------------------------------.
After reaching a certain level of success, Walt -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------action
films (For example, ------------------------------------------------------------------). In this manner the company managed to reach new
audiences and control a bigger share of the film industry.
Another good example would consist in -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, but in order to develop them, they need more
financial and human resources.
However, this company has created itself a name on ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------this integration, and the European
company will get the localized expertise.
A horizontal integration can generally be -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------will generally see horizontal integration taking its
own sweet time to fall through.
Horizontal integration can prove to be a successful strategy when
Your competitors are lacking capabilities, skills or resources that you can provide
What works for a company doesnt ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and on the most important element of the company, the
value chain.
Advantages of Horizontal integration
Higher Efficiency
Since the companies work together------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------increase profits. They also have more strength over
supplier and distributor. It reduces the competitor.
Economies of Scale
Economies of scale give ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of scale by HI can help the company to accomplish require imposing
business model and ignore from the business sector.
Economics of Scope
Horizontal integration allows achieving -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------between the companies.
International Trade
Integrating horizontally helps the company to enter outside businesses immediately. This diminishes the expense of international
trade by permitting the company to both handle and offer the product in the foreign market.
Horizontal Integration in a Supply Chain
A supply chain is the network of ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------establish growth.
5. Suppose you are a Manager (Strategy). Try to develop a model for evaluation and control process of your
organization.
As a manager (Strategy), the model for evaluation and control process is as follows.
Suppose I am manager at ABC Corporation (Imaginary Company) and I have to make model for evaluation and control process
for ABC Corporation. Suppose ABC Corporation is a leading Steel Company in India andOur Focus: ------------------------------------------------------------------- long-term survival
Our wants: people to ------------------------------------------------------------------- success
Our Management: takes care not to --------------------------------------------------------------------- about other issues.
We dont clutter the picture with lofty vision statements as ask employees to pursue vague, intermediate objectives like
excellence or burden them with complex business strategies.
Our Competitive Strategy: to build ------------------------------------------------------------------------------------------ we ask to our
employees to produce more products for less money. Then we reward them for doing that well
Erroneous strategic decisions can inflict severe penalties and can be exceedingly difficult, if not impossible, to reverse.
Measuring Performance
Performance is the end result of activity. Which measures to select to assess performance depends on the organizational
unit to be appraised and the objectives to be achieved.
Shareholder values
Balance Score Card approach
Strategic Audit
Strategic Audit:
Strategy audit is one of the methods for evaluating ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. The process involves the following steps:
Now the questions come why Strategic Audit is important for corporate planning? Strategic Audit helps to:
Evaluate ------------------------------------ result
Review corporate governance
Scan and -------------------------------------------- environment
Scan -------------------------------------------------- environment
Analyze ----------------------------------------- SWOT.
Generate and evaluate strategic alternatives
Implement -------------------------------------- -----------------------------------------and control
CONTROLLING:
Controls can be established to focus e-------------------------------------------------------------------------------------------------------------------------------------------- the performance (BEHAVIOR) or resources that are used in performance (INPUT).
The Primary Types of Organizational Control
There are three primary types of organizational control: strategic control, management control, and operational control.
Each of these types of control is not a separate and distinct entity and, in fact, may be indistinguishable from others. Moreover,
similar measurement techniques may be used for each type of control.
KIAN PUBLICATION
Whatsapp- 9580039150
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kianpublication1@gmail.com
ignou4you@gmail.com