BUSINESS STRATEGY

The main objective of this lecture given by my Prof.Tom was on how a firm would seek to employ a business strategy and side by side how to understand the processes implemented and communicated by a firm to denote its purpose and position within the industry sectors.

All the management activities consists of their own organizational culture as well as structure, corporate social responsibility . It even consist of developing strategy along with planning, controlling and measuring performance, the main point is their innovation and team building.

MISSION STATEMENT:

The mission statement should guide the actions of the organisation, spell out its overall goal, provide a path, and guide decision-making. it provides "the framework or context within which the company's strategies are formulated." Its like a goal for what the company want to do for the world.it aligns with the stakeholders and enables employees to focus on the same goal. it actually defines the philosophy of a firm-what it stands for -why the firm exists.

EXAMPLES:
APPLE:"As a leader in innovation, the mission statement of the apple company should be equally innovative, inspiring and somewhat lofty, but officially and unofficially Apples mission is barely a mission at all."

GOOGLE: “to organize the worlds information and make its universally accessible and useful.”

E Bay: “provide a global trading platform where practically anyone can trade practically anything.”

The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970’s. it is based on the observation that a company’s business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitors
Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth –share matrix thus maps the business unit positions within these two important determinants of profitability.

This framework assumes that an increase in relative market share will results in an increase in the generation of cash. This assumption often is true because of the experience curves; increased relative market share implies that the firm is moving forward on the experience curve relative to its competitors, thus developing a cost advantage. A second assumption is that a growing market requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the position of a business on the growth-share matrix provides an indication of its cash generation and its cash consumption.