The paper "Principles of Corporate Strategy, Product Life Cycle Concept " is a good example of a business assignment. If an organization lives up to the values expressed in its mission statement, act in accordance with the principles derived from it, and meets the standards it generates, and the organization will be securing its morale and strengthening its reputation. However, if it fails to live up to theses values it leaves itself open to charges of hypocrisy, weakness, and ignorance from inside and outside the organization. A mission statement must be central, enduring, constraining, and visionary.
This is because a mission statement is there to communicate ideas to company employees, managers, and stakeholders. When organizational values and values of employees are similar, it creates a sensitive and meaningful relationship between the company and its employees. In contrast, an ineffective mission statement that is too narrow or too broad, the supported mission does match operational realities. The statement seems to make people just to feel good without any possibility of realization. Briefly explain the Product Life Cycle concept and why firms use it to plan for the future. In a Product Life Cycle, the average product can be divided into distinct sales stages (introductory, rapid growth, maturation, and decline) each characterized by differing marketing, investment, and distribution requirements.
The concept of Product Life Cycle is being used by firms to plan for the future because of the underlying principle that products have a limited life. This is because changes in taste and technology influence the customers to demand the product thus no product will remain in demand by customers indefinitely. Briefly describe the concept of competitive advantage and why firms strive to achieve it. Marketers who succeed do not have any intention of defeating their competitors but to make them completely irrelevant to their customers.
In other words, firms want to establish a close and satisfying long-term relationship with their customers to the extent that they will no longer seek an alternative. Firms want to achieve a competitive advantage over their competitors because it can greatly increase their ROI (Return on Investment and ROS (Return on Sales). Briefly describe the ways in which industry may be defined and the influence on competitive strategy. The first step of strategic analysis is the definition of business.
The company can be defined by the reason it exists – the purpose, values, strategy, and behavioral standards. This can be in terms of what the customer needs, which are the customer groups, and how technologies will be utilized. Defining a business can influence competitive strategy as the distinctiveness of the company’ s position can enhance competitive advantage. This is because a firm’ s competitive strategy should seek to distinguish its product from those of competitors, generate values for its buyers, and guides operational decision making across an organization. Briefly explain the term vertical integration and the benefits a company could gain from this form of development. Vertical integration normally happens when a company combines several operations together.
It is a point to which alone a business entity carries on consecutive steps in the processing and distribution of a product. There are numerous reasons why a company would use vertical integration and one of them is to avoid sales taxes by substituting taxable market transactions by internal transactions. Another is to strengthen their capacity to engage in price discrimination or to realize technological cost savings.
Some may use it to enlarge their monopoly by eradicating wasteful increase of markups at different stages of production and distribution.