Management
LA-1
The strategic decision making of the business plays an important role in the success and sustainability of the business in a long run. There are certain elements which affect the strategic decision making of the business such as shareholders, government, financial signals and all other important stakeholders. However, only the directors of the business have the power of making and implementing the strategic decisions of the business. The directors of the business are the individuals who are in a position to direct the business in a most favorable ways. Therefore, in the strategic decision making of the business, the directors or the board of directors makes strategic decisions for the business. (Griffin)
Strategic management of any business is a process which implements the strategic planning of the board of directors. It is very important in the business to communicate the exact plan for a financial year to the lower management of the business. Therefore, the strategic management process of the business conveys the actual strategic planning in a simple and relevant manner to the lower or middle level managers of the business. For example, if the strategic plan of a business is to increase the production level, then the relevant manager must know the exact and relevant planning of the directors. Moreover, the strategic management process of the business identifies the idle or unachievable targets of the strategic planning and the directors revise their strategic plans accordingly. (Piccolo, 2011)
There are four basis phases or steps of strategic management process in any form of business. The first step is called ‘formulation’ in which the management of the business decided the most profitable and feasible targets of the business. Moreover, the SWOT analysis of the business is analyzed in this phase of the strategic management process. The second step of strategic management process is the ‘implementation’ which can be described as the actual implementation of the strategic planning within the organization effectively. Moreover, this phase of the strategic management process also deals with the monitoring of the processes and the comparison of the budgeted and actual results of the business. The third phase of the strategic management process is called ‘evaluation’ which focuses on the feedbacks from lower level managers and the employees of the business. The fourth phase of the strategic management process is known as ‘modification’ which fix the errors made in at the planning stage. (Moore)
The game chess is very close to the strategic planning and the strategic management process. The nature of the game chess is entirely based on the planning to save own army and to damage the competitor. Similarly, from the first move, the management of the business makes a strategy on how and when to use their assets in the most favorable ways. Moreover, to maintain a control in the game of chess is another similarity between the game chess and the strategic management process. To accomplish the budgeted targets, it is very important for the management to maintain proper control of the different processes of the business.
The most important element of the ancient times was to maintain a distance from the most risky and uncertain circumstances and to keep the main or important assets when needed most. For example, the war strategies of the ancient kings were to damage the enemy’s forces from arrows before the man to man battle. Similarly, this tactic is adopted by the modern day management of the businesses to analyze and estimate the element of risks and to avoid these risky areas. Moreover, the management of the business can make plans for such risky areas of the business at the strategic planning stage of the business.
LA-2
The mission statements of ‘for profit’ and ‘not for profit’ organizations are different from each other. The main difference between the mission statements is the purpose to perform a business. In ‘for profit’ business, it is clearly stated that the main purpose of the business is to generate cash and to increase the wealth and worth of the shareholder’s equity. On the other hand, the ‘non-profit organizations’ works for the best interest of the society, which is called ‘greater good’ of the community. (Fritz)
The mission statement of the non-profit organization ‘USO’ is “lifts the spirits of America’s troops and their families”. This mission statement is brief and clearly explains the purpose of the organization. The main purpose or the mission of this non-profit organization is to support and facilitate the soldiers of the United States of America and to support the families of their soldiers. ("50 Example Mission Statements")
The not for profit organization “Live strong” has a mission statement ‘to inspire and empower people affected by cancer’. Their main purpose is to educate people who are suffering from cancer to fight against this disease and contribute to the society. Moreover, this organization raises funds to assist in the research for cancer treatment to help the victims of this dangerous disease. ("50 Example Mission Statements")
The not for profit organization “Oxfam” has a mission statement ‘to create lasting solutions to poverty, hunger, and social injustice’. This mission statement clearly shows that the main purpose of the organization is to reduce the poverty, hunger and the social justice from the society as compared to earning profits. ("50 Example Mission Statements")
The ‘Nike’ is a ‘for profit’ organization and their mission statement is ‘To bring inspiration and innovation to every athlete in the world’. This mission statement clearly identifies that the company is investing a lot of funds to improve their products to maintain and improve their market share. ("Examples of Mission Statements")
The company ‘Amazon’ has the following mission statement: ‘Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online’. This mission statement clearly shows that the company is profit oriented and their aim is to maximize their sales on the internet to generate the profits.
Similarly, the company ‘Coca-Cola’ says that their mission statement is ‘To create value and make a difference’. Therefore, the mission statement clearly shows that the company is discussing the difference and the value of their product with shows that the company is a profit oriented. This mission statement represents the prestige and pride of the company and the product. The coca-cola company is the most famous and the oldest soft drink in the market today. Therefore, their mission statement proudly says that they like to maintain the quality, value and the difference from other soft drinks available in the market. ("Examples of Mission Statements")
The mission statement of the ’Nike’ says that they inspire the athletes to perform well. However, this claim is totally wrong because the performance and the inspiration of the athletes are based on their practice and their hard work. This mission statement can be revised and the new mission statement must be ‘to bring comfort and innovation to every athlete in the world’. This revised mission statement conveys that the products of NIKE will provide comfort to the athletes during their practice sessions and during their sport assignments. ("Examples of Mission Statements")
References
Griffin, D. (n.d.). Decision Making Strategies in Business. Retrieved October 5, 2014, from
http://smallbusiness.chron.com/decision-making-strategies-business-2677.html
Piccolo, R. (2011, November 2). The Importance of Strategic Management. Retrieved October 5,
2014, from http://ron-piccolo.com/2011/11/02/the-importance-of-strategic-management/
Moore, M. (n.d.). Four Phases of Strategic Management. Retrieved October 5, 2014, from
http://smallbusiness.chron.com/four-phases-strategic-management-70617.html
Fritz, J. (n.d.). How Is a Nonprofit Different from a For-Profit Business? Retrieved October 5,
2014, from http://nonprofit.about.com/od/qathebasics/f/nopvspro.htm
50 Example Mission Statements. (n.d.). Retrieved October 5, 2014, from
http://topnonprofits.com/examples/nonprofit-mission-statements/
Examples of Mission Statements. (n.d.). Retrieved October 5, 2014, from
http://examples.yourdictionary.com/examples-of-mission-statements.html
