The definition of a mission statement is a concise description of your organization’s core

purpose, answering the question, “why do we exist?”. A mission needs to boldly state why you
exist, and why you do what you do. The best mission statements express your core purpose and
why you exist with clarity.

I believe this to be the best business planning process. I also recommend inexperienced people
start with their objectives because this is what they will find the easiest.

From there, they can work upwards to their mission, vision, purpose and values and clarify them.

Then from the pivot point, they can work down to their strategies and actions.
They are all critical aspects, and the more attention you give to the whole structure, the clearer
the future direction and pathway and the easier it is to discuss your business with those who can
help them.

Describe four generic business strategies. Give one advantage and one
disadvantage of each
Every business must find a strategy that enables it to achieve a competitive advantage in the
marketplace. That choice of strategy is based on the strengths and weaknesses of the company's
products and the position it wants to have in the minds of its customers. The best strategy is the
one that leverages the company's strengths for the greatest profits and the highest return on
investment.

Companies try to gain a competitive advantage by offering consumers something better for their
money. That could be the lowest price in the market or offering a product with better benefits to
justify a higher price.

Michael Porter, a professor at Harvard Business School, wrote several well-known books about
competitive strategies for businesses. His works on generic strategies are popular worldwide,and
are used by all levels of management. Porter believed that a business must identify and
implement a clear strategy to beat the competition and survive in the long term.

Porter's generic strategies are as follows:

Cost Leadership Strategy.

Differentiation Strategy.

Cost Focus.

Differentiation Focus.

Cost Leadership

A cost leadership strategy works if the company can produce its products at the lowest cost in the
industry. This strategy is commonly used in markets with products that are not distinctly
different from each other. They are "standard" products in a broad market, frequently purchased
and universally accepted by most consumers.

To become a cost leader, a company strives to reach the lowest cost of production with the least
distribution cost so that it can offer the cheapest price in the market. With the lowest price, the
company hopes to attract the most buyers and dominate the market by driving competitors out.

A successful cost leadership strategy requires the optimization of all aspects of a company's
operations. To becomes the lowest-cost producer, a business might pursue the following:

Productivity: Study any process that uses labor and find ways to improve productivity and
increase efficiency.

Bargaining power: One way to lower the cost of production is to exploit the economies of scale.
Higher volumes enable the business to negotiate lower prices from material suppliers and
reduced costs for transportation.

Technology: Improvements in technology happen rapidly, and a company must invest in the

latest innovations to remain competitive.

Distribution: As with technology, the methods of distribution are constantly evolving. Businesses
must continuously analyze changes in distribution costs to find the lowest cost to transport their
goods.

Production methods: Lowering the cost of production is a continuous process. For example,

implementing just-in-time inventory controls for raw materials is a way to reduce financing costs
of assets.

Firms that are successful with a cost leadership strategy usually have the following advantages:

They have access to the capital needed to large investments in manufacturing facilities that lower
the cost of production. Weaker competitors may not have the financial strength to borrow large
sums of money.

More efficient producers will have highly-skilled engineering and production staff that work
constantly to improve the manufacturing processes.
Aggressive companies are always looking for ways to vertically integrate their processes by
acquiring raw material suppliers, component manufacturers and distribution companies. Of
course, this also requires having the financial strength to finance the purchases of these
companies.

Walmart is one of the most well-known companies that has an effective cost leadership strategy.
Their approach is to market to the largest number of customers with the lowest prices on all of its
products.

The company has been able to dominate the low-cost market by negotiating price-volume
discounts with suppliers and building an incredibly cost-efficient distribution system. Walmart
works with all of its internal processes to operate at the lowest cost.

Differentiation Strategy

A differentiation strategy requires the company to offer products with unique characteristics that
consumers believe have value and are willing to pay more for them. If consumers perceive that
these unique properties are worthwhile, the company can charge premium prices for its products.

Ideally, the premium prices will be more than enough to offset the higher costs of production and
allow the company to make a reasonable profit.

Companies that succeed with a differentiation generic marketing strategy need to have a talented
and creative product development staff. These people must have the ability to survey the market
and get into the minds of the potential buyers to identify the features that will attract consumers
and make them willing to pay more for the products.

Having a unique product is not the end of the story. The implementation of a differentiation
strategy requires a sales team that has the skills to effectively communicate the unique properties
of the products and convince consumers that they are receiving more value for their money. At
the same time, marketing campaigns should promote and establish the company as a reputable
firm known for high-quality and innovative products.

A differentiation strategy has several risks. Competitors will not remain idle when losing market
share; they will find ways to imitate products and begin their own differentiation campaigns.
Another risk is changing consumer tastes. Unique product characteristics that capture the minds
of consumers at one time can fade away as competitors introduce other features that catch the
eyes of buyers.

Cost Focus

A cost focus strategy centers on a limited market segment or a particular niche. It requires the
company to understand the idiosyncrasies of that market and the unique needs of those specific
customers.

Companies that pursue a cost focus strategy are taking a risk by abandoning the mass market.
While concentrating on a specific demographic may develop a loyal pool of customers, the
company is basing its fortunes on a small group of buyers. The features that are attractive to this
niche market may not appeal to the broader market.

Differentiation Focus

Like a cost focus strategy, the differentiation focus approach aims for a narrow niche market. In
this case, the company finds unique features of its products that appeal to a particular group of
customers.

However, the company is depending on the spending habits of a small group of consumers for its
profits. If this group changes its tastes, the company will have difficulty switching direction to
start selling to the mass market.

A successful differentiation focus strategy depends on developing a strong brand loyalty from its
customers and constantly finding unique features to stay ahead of the competition.

Choosing a Strategy

The first step in selecting a strategy for your company is to conduct a SWOT analysis of the
business. This analysis will identify the strengths and weaknesses of the company in addition to
highlighting market opportunities and threats.

To thoroughly understand the market, Porter developed another model known as the Five Forces
Analysis. This analysis looks at the competitive position of the business and the factors that will
adversely affect its profitability. Those factors are the
Power of suppliers.

Power of customers.

Availability of similar products.

Threat of new competitors.

Internal competition.

The SWOT and Five Forces analyses will help to identify which one of these generic business
strategies will work best for your company.

Distinguish between strategy and tactics.

Key Differences Between Tactics and Strategy

The following are the major differences between tactics and strategy:

Tactics are the properly organized actions that help to achieve a certain end. The strategy is the
integrated plan that ensures the achievement of organization objectives.

Tactics is a subset of strategy, i.e. without the strategy, tactics can do nothing.

Tactics try to find out the methods through which strategy can be implemented. Conversely,
Strategy is a unified set of activities that can help the organization to gain an advantageous
position.

Tactics are formulated by middle-level management, whereas top level management formulates a
strategy.

Tactics involve lower risk as compared to strategy.

Tactics are preventive in nature while Strategy is competitive in nature.

Tactics are defined as a trip, i.e. typically for a short duration, but the strategy is a journey that
lets the company travel from one position to another. Hence it is for a long duration.

Tactics frequently change with the changes in the market conditions; however, the strategy
remains same for a long period.
Tactics have a reactive approach, unlike strategy.

Tactics are made for coping with the present situation. In contrast to strategy, they are made for
future

Customer Strategy

The starting point of a good business strategy is a Customer Strategy. The Customer Strategy and
the shareholder strategy should then be used to build a business strategy/business tactics. And in
today’s age both the business and the Customer Strategy should be adaptive to the changing
future.

Is Customer Strategy Different from Business Strategy?

Many can ask if a Customer Strategy is redundant. But it isn’t. It is crucial if organizations want
to change and become truly Customer-centric. The Customer Strategy focuses on the Customer,
what the company can do to improve the Customer parameters and become more Customer-
centric and to inculcate a Customer-centric culture. It looks at the Customer’s needs, and how to
increase Customer Value for him.

A Business strategy focuses on the market place and the market potential and how to take
advantage of it.

This example will illustrate the difference between a Customer Strategy and a business strategy.
Take the mortgage meltdown in 2008. The Customer Strategy would have revealed that the
Customer wanted mortgage products that would be Customer friendly when interest rates went
up or home prices dropped. The market or business strategy showed an opportunity to bundle
mortgages and sell them to a larger financial institution, getting back the money the mortgage
company had loaned as mortgages, thereby allowing the mortgage company to sell more
mortgages. The name of the game was to sell more mortgages, bundle them and sell more, and
recycle your funds. So instead of getting $5 on a $100 mortgage for each of the next 30 years,
the mortgage company would get the money back, and say $1 in fees. If they could do this 10
times in a year their $100 would fetch $10 instead of $5 in the original strategy.
The quality of the mortgagee was ignored. When banks called in their loans, they found that
many Customers were defaulting. The defaults cascaded to the last holder of the mortgage paper,
causing a major collapse of the financial markets.

Another example is a coffee shop that looks at increasing clientele by selling reasonably priced
coffee compared to other stores, or to look at the Customer need of wanting to feel relaxed and
enjoy the ambience, Starbucks style. Each is a result of a different Customer Strategy and
requires different tactics and tasks.

Explain in brief the concept of strategic thinking

Strategic thinking focuses on finding and developing unique opportunities to create value for
your organisation. The term has been misused and abused in the past and too often strategic
planning sessions fail to deliver any value. This can often lead to the disengagement of
employees, who are the very people that boards and management need actively involved in the
process.   1. Business Strategy: Customer Experience

The first of the three types of strategy is Business Strategy and focuses on how your customer
will experience your business. It is primarily concerned with how a company will approach the
marketplace - where to play and how to win.

"Where to play" answers questions like:

Which customer segments will we target?

Which geographies will we cover?

What products and services will we bring to market?

How to win answers questions like:

How will we position ourselves against our competitors?

What capabilities will we employ to differentiate us from the competition?

What unique approaches will we apply to create new markets?

Senior managers typically create the business strategy. After it is created, business architects
play an important role in clarifying the strategy, creating tighter alignment among different
strategies, and communicating the business strategy across and down the organization in a clear
and consistent fashion.

Executives are just beginning to bring advanced, highly credible business architecture practices
and purpose-driven CX design into the strategy discussions early to provide tools, models, and
facilitation that enable better strategy development.

Resource: Check out our ebook "How to Design an Elevated Customer Experience" to discover
tools you can apply to your business strategy for a customer-centric business model!

2. Operational Strategy: People & Process

The second of the three types of strategy is Operational focused on your people and your
processes. It is primarily concerned with accurately translating the customer-centric business
strategy into a cohesive and actionable implementation plan.

Operational strategy answers questions like:

Which capabilities need to be created or enhanced?

Which processes need improvement or a complete redesign?

Do we have the people we need and do they have the right skill base? (Ex: talent retention plans
through Strategic Learning and Development programs)

The vast majority of business architects are currently working in the operational strategy domain
reaching up into the business strategy domain and communicating with leadership for direction.

They work from the middle out to bring clarity and cohesiveness to the organization’s operating
model typically working vertically within a single business unit while resolving issues at the
business unit boundaries.

More mature business architecture practices work cross-functionally and in multiple verticals or
move from one vertical to another.
3. Transformational Strategy: Platform Technology

The third of the three types of strategy is Transformational that focuses on how your technology
can enable and transform your organization. We aren't talking about automation... we are talking
about true digital business model transformation. It is seen less often as it represents the
wholesale transformation of an entire business or organization.

This type of strategy goes beyond typical business strategy in that it requires radical and highly
disruptive changes in people, process, and technology.

Transformational strategy is generally the domain of the Project Management Office (PMO),
organizational development, and consultants. Few organizations go down this path willingly and
with reasonable expectation of the resources it takes.

These efforts are incredibly complex and require highly experienced and knowledge technical
resources. At Accelare, we called them Platform Design Engineers. There is also significant
benefit from applying business architecture discipline though it is rare to see business architects
playing a significant role here.
The strategic management process encompasses three phases-strategy
formulation, implementation, and evaluation and control. —Discuss.
The strategic management process encompasses three phases-strategy formulation,
implementation, and evaluation and control. —Discuss

The strategic management process encompasses three phases

1.strategy formulation

2.implementation

3.evaluation and control

elaborate each process with good insights ,each example and clear understanding

Strategic Management

Strategy formulation is the first stage of strategic management process. It involves identifying
the mission and vision of the business. It also includes identifying the strengths and weaknesses
of the business using the PESTLE and the SWOT analysis. Besides both short and long term
objects are set in the strategy formulation stage.For instance a company like Coca-Cola could
identify its mission as providing qiuality drinks for its customers. Its strengths would be its brand
awareness and weakness would be competition

Strategic implementation is the second stage of the strategic management process. It involves
resource allocation in the business. Different incentives are allocated resources to aid in their
running Organizational culture along with policies to govern employees are created. The culture
created needs to be supportive of the organizational strategy.During this stage employee
motivation sis critical to ensure improved performance. Sacrifice and commitment are
emphasized in the organization. For example strategic implementation in Coca-Cola would
involve motivating employees with rewards such as salary increment for improved performance.

Strategy evaluation is the last stage of strategy implementation process. It is the duty of
managers to understand the problems and ineffective working if the set strategies. This area of
management is accomplished through conducting an evaluation.In this stage performance is
measured and corrective action taken. For instance coca-cola would evaluate if employee
motivation was improving their individual performance.
SectionC

SWOT is an acronym for strengths, weaknesses, opportunities and threats related to

organizations. Amazon, as the e-commerce and cloud computing company worldwide needs to
build upon its strengths at the same time reducing negative impact of its weaknesses on the
bottom line. Moreover, it is important for the company to take advantage of opportunities and
adopt a proactive approach in dealing with threats in the marketplace. The following table
illustrates Amazon SWOT analysis:

Strengths

1.      Market leadership in the global scale

2.      Strong ecosystem of products and services

3.      Cost leadership due to efficient cost structure

4.      Customer-centricity

5.      Brand value

Weaknesses

1.      Business model that can be imitated

2.      Seasonality of the business

3.      Weak competitive position of Amazon’s Fire Phone

4.      Damage to the brand image due to tax avoidance controversies in USA, UK and Japan

5.      Working conditions for warehouse workers

Opportunities

1.      Diversification of e-commerce business segment

 2.      Increasing focus on own brand products and services

3.      Increasing physical presence of the brand

4.      Developing more local sites in international markets

5.      Intensifying backward integration

Threats

1.      Patent infringement and other lawsuits against the company

2.      Weakening of industry entry barriers

3.      Threats to online security

4.      Andy Jassy failing to fill Jeff Bezos shoes effectively

5.      Backlash towards the brand

Amazon SWOT analysis

Strengths in Amazon SWOT Analysis

1. Amazon is an undisputed market leader in online retail and cloud computing segments. The e-
commerce giant generated USD 386 billion revenues and earned a net income of USD 21,3
billion in 2020 alone[1]. Dubbed as The Everything Store, Amazon sells hundreds of millions of
products of its own and third-party sellers. Current market leadership position grants the tech
giant upper hand in the competition in a number of ways such as economies of scale and brand
recognition. Furthermore, the more products and services Amazon sells, the more customer-
specific information the company has to feed its Artificial Intelligence (AI) systems to help
generate more sales.

2. Amazon possesses a strong and growing ecosystem of products and services. Specifically, the
ecosystem of the tech giant comprises retail, payments, B2B, entertainment, hardware, logistics,
cloud computing and other segments. Amazon products and services within the ecosystem are
highly compatible with each other and as such, the usage of one product or service within the
ecosystem encourages the usage of other related products and services.

For example, Amazon smart security camera that is compatible with the Echo smart speakers
allows users to stream live video from the camera on the Echo Show or through the Alexa
smartphone app. Moreover, Amazon smart glass is based on Alexa voice assistant and can be
used only if the device is linked to a user’s smartphone.[2] Strong and growing ecosystem is a
considerable strength for online retail behemoth to achieve long-term growth.

3. The e-commerce giant efficiently utilizes its lean cost structure as one of its main sources of
competitive advantage. “Amazon can operate on razor-thin margins and still make money on the
transaction. Physical retailers can’t do that and if they drop prices online they risk cannibalizing
their own sales and driving margin down while having all the same overhead costs.”[3] This
advantage is gained by the company thanks to an extensive exploitation of the economies of
scale. Accordingly, Amazon has been justly described as “a brutal competitor for brick and
mortar merchants due to their large and growing cost advantages and a maniacal commitment to
having the lowest prices anywhere”

4. Efficient customer relationship management practices also belong to the list of strengths
possessed by Amazon. The tech giant has “a reputation for providing customers with everything
that they need, all in one place. What has since become known as ‘the Amazon Effect’, the
company have successfully managed relations with millions of customers without ever meeting
them face-to-face.”[5] Amazon’s customer relationship management practices effectively
integrate customer data collection and the usage of the data for service personalization.
Moreover, Amazon’s returns process is dealt with entirely online via a customer’s account.

5. Amazon is one of the most valuable brands in the world.  Kantar BrandZ assessed Amazon as
the most valuable brand worldwide for 2020 with the brand value of USD 415,90 billion, an
increase of 32% compared to the previous year[6]. According to Brand Finance Amazon is the
2nd most valuable brand in the world in 2022 after Apple with brand value of USD 350, 27
billion.[7] High brand value is indicator of strengths of the business, as well as, high level of
customer loyalty.
 

Weaknesses in Amazon SWOT Analysis

1. The e-commerce and cloud computing company generates its revenues from online sales of
own products and third-party seller services, Amazon Web Services, subscription services and
advertising revenues. These businesses can be imitated by existing or potential competitors to
threat the market share of the tech giant. In other words, it can be argued that the largest internet
retailer in the world by revenue mainly benefits from the economies of scale and it does not
possess business processes or know-how that competitors cannot copy.

2. Amazon revenues and scope of operations are highly seasonal with direct implications on a
wide range of business practices and processes, especially HR practices. Sales and revenues tend
to peak in Q4 annually and the company experiences an urgent need for extra workforce during
the same period of time. The company generates higher sales volume in Q4 each year. Dramatic
fluctuations of the need for the workforce over the course of the year is a significant weakness as
it increases the costs of employee training and development along with other disadvantages in
various levels.

Amazon.com Inc. Report contains a full version of Amazon SWOT Analysis. The report

illustrates the application of the major analytical strategic frameworks in business studies such as
PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model
on Amazon. Moreover, the report contains analyses of Amazon leadership, organizational
structure, business strategy and organizational culture. The report also comprises discussions
of Amazon marketing strategy, ecosystem and addresses issues of corporate social responsibility.

What is, in conceptual terms, a core competence? Please provide a concise definition of the
concept

For any organization, its core competency refers to the capabilities, knowledge, skills and
resources that constitute its "defining strength." A company's core competency is distinct, and
therefore not easily replicated by other organizations, whether they're existing competitors or
new entrants into its market.
An organization's core competencies -- sometimes called core capabilities or distinctive
competencies -- explain what it can do better than any other company, and why. These
capabilities provide a strong foundation from which the business will deliver value to customers
and stakeholders, seize new opportunities and grow. They set the company apart from its peers
and help create a sustained competitive advantage in its industry or sector.

A company can have one or more organization-wide core competencies, such as the following:

product quality

buying power

customer-centric omnichannel support

design or innovation capabilities

sales and marketing ecosystem

automated workflows and processes

size

Each competency is a positive characteristic that contributes to the company's unique

positioning. Having and using them matters because they can make it quite difficult for
competitors to exactly duplicate the company's offerings or replicate its success. This is why
identifying core competencies is a crucial step in strategic planning.

Which core competencies matter most varies by industry. A company's ability to stand out in
those competencies, and ideally uniquely combine them with other competencies, can give it
competitive advantage over its industry peers.

For example, Southwest Airlines built and still has a strong position in the competitive airline
industry by focusing on its core competencies. As detailed in Mukund Srinivasan's airline
industry blog post, those competencies are keeping operational costs low (largely but not entirely
through route efficiency), delivering award-winning customer service and creating a fun work
culture that promotes employee loyalty.

Many of the world's largest and most successful companies (see more real-world examples
below) got there through similar focus on their core competencies.
TECHTARGET

Evolution of the idea of core competency

The concept of core competency is widely accepted today. But contrary to popular belief, it's not
an old idea. It was first proposed in 1990 in the HBR article "The Core Competence of the
Corporation" by C.K. Prahalad and Gary Hamel. In this classic, influential piece, the authors
suggest a company's core competence is the "most powerful way to prevail" in global commerce
and "adapt quickly to changing opportunities."

Evaluating business managers and leaders based on their ability to "identify, cultivate, and

exploit the core competencies that make growth possible" quickly became prominent. In the
1980s, the focus was on streamlining, restructuring and decluttering organizations. According to
Prahalad and Hamel, successful enterprises viewed themselves as "a portfolio of competencies
versus a portfolio of businesses."

This approach encouraged business leaders to rethink the concept of the corporation itself. The
authors also noted that a core competence encompasses collective learning, technology
integration, communication, leadership and a commitment to working across the organization's
boundaries.

In recent years, a variation on core competence has emerged, with the focus on individuals. This
idea suggests that job seekers should develop their personal core competencies or specific
abilities to stand out in the job market.

These include the following:

analytical abilities

communication skills

digital literacy

problem-solving

decision-making

interpersonal/relationship-building skills

cultural competency

business acumen
What do you consider Amazon’s most important core competence? Explain how this core
competence is related to core products, and to specific businesses, using information from the
case

In these most challenging of times, organizations are well served when they analyze, embrace
and leverage what makes them special in the eyes of those they serve.  Such an analysis is often
referred to as a core competency analysis.  Such an analysis defines the bundle of skills and
technologies that enable a company (or organization) to provide a particular value to a customer.

Amazon: An Example of Leveraging Core Competency

A perfect example is Amazon.  We know Amazon is striving to be, in their words, “earth’s most
customer-centric company.” In this example we see that Amazon’s core competencies are
centered on providing a premier customer experience via fast delivery, superior customer service
and access to a wide range of products at a lower cost. These capabilities provide access to a
wide range of markets, are difficult for competitors to imitate and make a significant contribution
to the perceived customer benefit.  Amazon’s ability to build, leverage, and reconfigure its core
competencies into sustainable competitive advantages exemplifies why they are supremely well
positioned to expand their offerings and succeed in a rapidly changing external environment.