Assignment on Business Strategy
1. Evaluate a company of your choice's Mission statement in the light of the 3 components of any Mission Statement. Also use the Abel framework to evaluate the business definition that this mission statement drives. Ans.) While a business must continually adapt to its competitive environment, there are certain core ideals that remain relatively steady and provides guidance in the process of strategic decision making. These unchanging ideals from the business vision and are expresses in the company mission statement. The mission statement communicates the firm’s core ideology and visionary goals, generally consisting of the following three components: a. Core values to which the firm is committed
b. Core purpose of the firm
c. Visionary goals the firm will pursue
The firm’s core values and purpose constitutes its core ideology and remain relatively constant. They are independent of industry structure and the product life cycle. The core ideology is not created in the mission statement; rather, the mission statement is simply an expression of what already exists. The specific phrasing of the ideology may change with the times, but the underlying ideology remains constant. Here is the Coca-Cola Company's mission statement for Stakeholders which is published in Jeffrey Abrahams' new book, 101 Mission Statements From Top Companies . "The Coca-Cola Promise: The Coca-Cola Company exists to benefit and refresh everyone it touches. The basic proposition of our business is simple, solid, and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business." The audience for this mission is specifically for the stakeholder. The values here are stated explicitly: refreshment, value, joy, fun, and attractive returns. These words were obviously carefully chosen by those who crafted this mission statement. The “ultimate obligation” of “attractive returns” is a powerful way to state the company’s vision and keeps the values stated in context. A separate mission statement is published on The Coca-Cola Company's website for access by the general public: “Everything we do is inspired by our enduring mission:
* To Refresh the World… in body, mind, and spirit.
* To Inspire Moments of Optimism… through our brands and our actions. * To Create Value and Make a Difference… everywhere we engage.” These values are consistent with the stakeholder version of the mission: refreshment and value are echoed in addition to inspiration. 2. What does a Business model intend to achieve, and how? Evaluate any company of your choice's Business Model in the light of the same. Ans.) Business Models are simulations of actual business functioning. They act as ideal real life examples, and help participants actively discuss the pros and cons of the situation given. A business Model gives a Full Account of any particular Business Scenario. One has to SWOT analyze the Business Model based on different parameters. A business model is a description of how a business intends to operate, how it makes money or delivers value, and what it does and does not do. A business model can change throughout the life of business or can be applied to a specific product, or to a nonprofit. It is a more general and concise statement than the business plan, but is still often used to explain the business and its activities to investors, banks or employees. Standard business models are often referred to in shorthand, such as "subscription" or "low-cost leader."
As we know a business model is the mechanism by which a business intends to specify a market offering. It is a summary of how a company plans to serve its customers and specifies its product offering. It mentions both the strategy and methods of...
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