1.Writing a mission statement requires focus and should inspire not only the employees within an organization but the customers, suppliers and community as a whole. What are the nine basic components of a mission statement? Why is it important to include as many of these components as possible in a company’s mission statement?
2.There are many analytical tools and techniques available for companies to gauge not only where they stand within the industry but to also assess their sustainability and competitive advantage within the marketplace. Why do you believe it is an important step within a strategic planning process to conduct a SWOT analysis? How can a VRIO help an organization?
3.Describe a situation when a TOWS matrix framework would be appropriate.
Business Research For Decision Making
The mission statement of a business is one of the important components of a business plan as it seeks to give the company a sense of direction and what is expected of them for the company to achieve organizational goals and objectives. A mission statement is often described as a declaration of as a company’s basic and permanent purpose and focus. According to research, there are nine basic components of a mission statement of any organization. Notably, these components of a mission statement help to identify what is important and what is not important to an organization (Vassiliadis, 2013). Below are the components of a mission statement:
- Function – an effective mission statement must describe the basic function of business by stating the core reason why the business exists.
- Target region – a mission statement of any company, must identify and establish the primary region the company intends to serve in the course of their business.
- Values – a good mission statement must describe the core values of business by expressing the principles of the company.
- Technology – the company must state the essential technology the business uses or intends to employ in their daily operations (Noort, 2013).
- Employees – mission statement must provide information regarding employee policy to help them understand what is exactly expected of them.
- Strategic positioning – mission stamen must describe the strategic position of the business within the available market.
- Financial objectives – clear financial objectives of a business must be included in the mission statement to provide a sense of direction and outline the goals of a company (Noort, 2013).
- Image – careful and clear public images are necessary for a mission statement as a company gets an opportunity to describe its features.
SWOT analysis is a business evaluation technique that is employed by a company to gauge its strengths, weaknesses, opportunities, and threats in their current market. Notably, this analysis technique is often employed to identify both internal and external factors that are likely to affect the performance, growth, and expansion of a business (Min, Min, Jang, Han, & Kang, 2016). According to research, SWOT analysis can help companies to design and implement plans to ensure they effectively and efficiently use the available resources as well as improving their operations.
On the other hand, VRIO which stands for Value, Rarity, Imitability, and Organization is described as an analytic tool that is utilized by companies and organizations to help make strategic and efficient decisions. Through the provision of information, data and result regarding the competitive advantage and competitive position of a company, businesses can make strategic and efficient decisions regarding their operations and future (Min, Min, Jang, Han, & Kang, 2016).
TOWS matrix helps with the Analyzation and evaluation of the internal strengths and weaknesses of a business and the external opportunities and threats to a business. This matrix aims at helping companies to develop strategic alternatives for external-internal evaluation. Despite the fact that TOWS and SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats of an investment they often used on different occasions. TOWOS is often used in a situation where an organization needs to understand the external environment of a business deeply (Haile, 20160. Notably, TOWOS can help businesses to make better decisions, utilize the available opportunities and protect itself from against the threats.
Haile, M. (2016). Modelling of SWOT Analysis Using Fuzzy Integrals. doi:10.15405/epsbs.2016.08.12
Min, B. S., Min, J. H., Jang, W., Han, S., & Kang, S. Y. (2016). VRIO Model Based Enterprise Capability Assessment Framework for Plant Project. Korean Journal of Construction Engineering and Management, 17(3), 61-70. doi:10.6106/kjcem.2016.17.3.061
Noort, G. (2013). “So What?” – Dutch Responses to the New Mission Statement. International Review of Mission, 102(2), 191-198. doi:10.1111/irom.12020
Vassiliadis, P. (2013). An Orthodox Assessment of the New Mission Statement. International Review of Mission, 102(2), 174-178. doi:10.1111/irom.12017