Explanation of the mission, aims, and objectives terms
The business mission is defined as the statement that portrays the fundamental purpose and the principle aims of the business. A mission statement defines what the business, the activities involved, is and the future of the business. For instance, the TNT mission reflects the company’s future through seeking “to lead the industry by instilling pride in our people, creating value for our stakeholders and sharing responsibility around the world.” Such statement is created in a simple way that the employees and other stakeholders can understand and relate to. For instance, the Coca-Cola mission simply defines its aim purpose of refreshing “the world in mind, body, and spirit.”
Business aims provides support for the mission statement and focus on the efficient transfer of goods and documents, offer customer satisfaction and behave responsibly. For instance, the aim of the TNT Company is to exceed the customers, expectations, delivering value, and lead the industry while the aim of Coca-Cola is to create value and make a difference. In order to achieve such aims the company formulates SMART objectives that are easily understood. SMART objectives must be Specific, Measurable, Achievable, Relevant, and Time-related. For instance, the TNT’s objectives are specific in terms of responding to 85% of customers’ calls within ten second. In addition, this objective is measurable in terms of percentage, achievable and time-framed for ten seconds. Similarly, the objective of the Coca-Cola company is SMART because it aims to increase the annual operating income by 6-8%, and hence double their revenue by 2020 (Christopher et al. 2014).
Business strategy and its importance
Business strategy provides the means by which an organization achieves its desired ends or the objectives. The business strategy is described in the long-term planning of the business relative to the chosen product, market, and the environment. Additionally, a competitive strategy should have a distinct position in the market, and build core strengths that are also referred to as core competencies. For instance, the TNT strategy enables the company to position itself in the market through differentiation in terms of reliability, speed and provision of highest standard services. The strategy is also based on building core strengths by having competent staffs that exceed the customers’ expectations.
There are various benefits associated with the strategy map that can help the company to achieve their strategies. The strategy map helps the company to communicate and capture their strategies. In an easy way, the strategy map helps the company to explain how the strategy will bring changes in the organization. The strategy map also involves the customer in every activity of the business. For instance, the TNT’s strategy map communicates to every stakeholder of how the company will achieve its goals. Therefore, the strategy map acts both as the frameworks and practical guide to meet the company’s objective of maximizing profits. The strategic map also acts as a reference point to align the entire organization. Consequently, this helps the company to achieve its strategy because it ensures every stakeholder is focused on the objectives and aims and comprehend their role in achieving them. Among other benefits, the strategy maps help the company to manage it performance through the management of strategy and to focus on the changes within the organization.
An analysis of the relationship between TNT’s overall strategy, its Customer Promise and the practical steps it takes to keep customers happy.
The TNT’s overall strategy enhances an enabled relationship with its customers, regardless of whether it is “one off requests” customers or those placing larger orders. The company has promised to look after the customers, resolve the problem promptly, keep their promise, and to recognize the world they are operating. Other promises include listen and learn, not to over-promise, flexibility, simplicity, and to be friendly. In addition, the TNT Company responds to the needs and preferences of the customers in different ways to ensure it has secured customer loyalty. Ultimately, the TNT overall strategy seems to be effective because it has a better relationship with its customer promise and the practical steps to be undertaken to keep the customers happy. In other words, the strategy has provided the objectives and the link to achieve them.
The TNT’s strategy has identified the main aim of the company, which is to achieve the profitable growth and to achieve this it has to maintain its promises to the consumers. Therefore, through this strategy, the company has to achieve the operational excellence, customer relationship management and innovation. The overall strategy can be considered as effective because it is measurable in terms of providing specific goals that can help the company achieve its objectives. For instance, in order to provide fast, high quality, reliable and value for money services, the strategy develops core competencies through improved recruitment and enhanced skills. Through the core competencies, the company can ensure sustainable and continuous improvement, improve efficiency, cost effectiveness by minimizing overheads, and deliver integrated operations. The company also recognizes the importance of considering its people as the foundation to develop customer-focused strategy. Therefore, it has employed the right people who can deliver the customer promises. For instance, the strategy has engaged all of their people that can enhance communication with their customers and also enabling a proactive, entrepreneurial culture. Additionally, the strategy recognizes that the company has to be innovative and sustainable to keep their customers promises and make them happy. The innovation strategy involves reducing carbon footprint, entering new market, delivering premium solution for core and non-core services, and providing new services to meet the increasing demand.
Strategic Gap
The strategic gap is defined as the difference between the prevailing human resources and those required to implement the strategy fully. In other words, the strategic gap is created by the difference between the prevailing performance of the employee and the desired performance. The TNT Company has identified various measures to reduce the strategic gap. First, the company understands that there is a need to improve its human relationship in order to achieve its goal. Second, the company is committed in sustainable activities, which is an efficient way to improve the employee’s efficiency. For instance, the company has created awareness to the drivers so that they can improve efficiency and safety. Another move that the company has made is pioneering training qualifications with the education institutions. These activities increase the knowledge and skills of the employees, and hence expand their capacity to gain career advancement and earn promotions. On the other hand, these moves benefit the company by implementing the strategy through efficiency and cost savings measures. Such activities are more effective to reduce the strategic gap compared to hiring new employees who are not aware of the organization culture, and who are also costly.
References
Ghemawat, P. (2001). Competition and Business Strategy in Historical Perspective. SSRN Electronic Journal, 76(1), 37-74. doi:10.2139/ssrn.264528
Hnatko, C., Sidhu, R., & Zhang, L. (2014). The Coca-Cola Company: Case Synopsis. Business 478- Section D300. Retrieved from http://www.sfu.ca/~sheppard/478/syn/1141/Group_F.pdf
TNT. (2011). Delivering a business strategy. The Times 100, 113-116.
