Lesson 5

• A mission statement defines the fundamental purpose of an organization, providing clarity on its primary goals, target customers, products or services, and the overall impact it seeks to achieve
• Essentials of a mission statement:

  • Clarity: guides actions but doesn't guarantee success
  • Feasible: states realistic and attainable goals
  • Current: should consider changes in the internal and external environment
  • Enduring: should motivate and inspire employees
  • Distinctive: sets the company apart from competitors
  • Comprehensive: covers philosophy, purpose, and strategy
• Google's mission is to "organize the world's information and make it universally accessible and useful"
• Microsoft's vision is to "empower every person and every organization on the planet to achieve more"
• A SWOT analysis examines the Strengths, Weaknesses, Opportunities, and Threats an organization faces, providing a clearer picture of its external and internal environments
• Core values are the fundamental beliefs or guiding principles that shape the organization's behavior, decision-making, and culture, serving as ethical and cultural standards
• A TOWS analysis combines internal and external forces to generate productive ideas on how to best use information, aiming to reduce threats, take advantage of opportunities, exploit strengths, and remove weaknesses
• Business strategy focuses on competing in the marketplace, while corporate strategy focuses on business growth and profits
• Various ways a firm can implement their corporate diversification strategy:

  • Internal Development
  • Strategic Alliance
  • Joint Venture
  • Merger and Acquisition
• Business strategy is the strategic initiatives a company pursues to create value for the organization and its stakeholders, gaining a competitive advantage in the market
• A vision statement outlines the desired future state or long-term goal of the organization, inspiring and motivating employees by painting a compelling picture of the organization's future success and impact
• Amazon's core values include customer obsession, ownership, long-term thinking, and innovation
• An effective business strategy is built around three key questions:

  • How can my business create value for customers?
  • How can my business create value for employees?
  • How can my business create value by collaborating with suppliers?
• Types of Business Strategies:

  • Market Penetration
  • Market Development
  • Product Development