Crafting and Executing Strategy - Essay Example

? Crafting And Executing Strategy [Pick the Importance of Strategic Planning for the Business The now known multinational Apple Incorporation was earlier known as Apple Computer Incorporation. For more than two decades, the company was known for producing computers, which included Apple II, Macintosh and Power Mac lines (Dermol, 2012). These products were not however pulling up the company to the required level and the company was evenly facing rocky sales and low market share, especially during the 1990’s. The high level management of Company badly realized the attacks the company was suffering (CIP, 2003). The new CEO of the company formulated a strategic plan as per the need of the time. He formulated that there was an immediate need for the introduction of some strategy that needed to refresh their market condition. For that, he incorporate the strategy of markets drifts; existing electronic devices with revised and more easy-to-handle in lesser space. He worked on the new corporate philosophy of recognizable products and simple design, that did not exist right then (Sebastian Desbidt, 2006). Pertaining to the successful and in time execution of strategic planning, Apple now is the bench mark of excellent pocket electronics and a status symbol in electronic market, leading to have dropped the word “Computer” from its name. Now, it widely operates with high sales, premium profits and big market share as Apple Incorporation (Bread, 2011). Simply put, the strategic planning has helped Apple gain competitive advantage in the market. It gains the company a road map to define its strategies and seethe future road. The plan predicts the way to company’s future, and where is it going over a particular period of time and how is it going. As in the case of Apple, it is clearly evident that strategic plan is a management tool, which is for the management persons and business owners who seriously aim for the business growth. Strategic planning is one of the very important components of business plan. A typical business plan only lays out the purpose of the business, whereas strategic planning shows how it can be made successfully operational; business plan sheds light on the fund seeking, strategic planning drafts prioritization of financial needs and the effective sources to get them; business plan focuses on planning human resource, whereas strategic planning breaks down the duties and responsibilities and works on smoothing the communication between all the levels of the organization and finally, business plan structures the ideas, whereas strategic planning draws direction to move from plan to action. 2. Anticipated Mission Statement for Apple Incorporation Apple Incorporation’s mission is to provide its customers with convenient to use, all applications centered one single and handy user friendly electronic device that can even be easily used by the people who are not technology literate. We are constantly working on bringing in new and innovative technological devices that can add further ease and be suitable to be used for all ages. Our products meet the highest quality standards and come with high level usage assurance. Importance of Mission Statement Effective mission statements focus on the purpose of the formation of businesses. They highlight their fundamental and unique purposes. It puts light on its unique formation and it proclaims the corporate purpose of the organization. Additionally, the mission statement tackles what a particular firm intends to accomplish and guides the philosophical premises that guides their actions (Dermol, 2012). If once the mission statement has been successfully set, it becomes basis for building other intended actions. For instance, the Apple Incorporation’s mission statement makes it clear that their primary motive is to focus on the production of user friendly devices. Once cleared, the company can easily define the line of its operations and it can make its way from the monotonous market approaches towards a single and outlined method for its market stability (Sebastian Desbidt, 2006). 3. Anticipated Vision Statement for Apple Incorporation Our vision is to give our customers a high ride of technological advancement like no other, and make every home a place that is incomplete without technology that talks about Apple. Importance of Vision Statement Vision statements are the solid foundations blocks in the strategic planning of businesses. When buildings are built on week basis with low quality solid or concrete material, the buildings subsequently collapse at the later stages (Bread, 2011). Likewise, the vision statements form the source of initiating a strong work basis that can be stretched with full confidence of vigor to the highest level of excellence. In other words, vision statements are functional, motivational and transformational. Vision statement is like a dream mapped and drafted out in words, which further only needs motivation and execution. For instance, in the above vision statement, the Apple Incorporation focuses on the desire to have apple products in every home; that’s a dream drafted out. Further, they need motivational plans and strategic execution to get the plans functional. This makes the managers think strategically, help them make better decisions since they are clear with what they want and their focus their energies, efforts and resources in the right direction (CIP, 2003). 4. Basic Five Business Objectives The five core objectives for any business are: Survival, Stability, Growth, Efficiency and Profitability. They basically encompass all the financial, operational, functional and human resource related aspects of any business. Below is a detailed insight into their working. Survival: Any business at the initial stage survival; the ability to pull itself up from the seed with strong roots, towards the stem and further the branches. At the very preliminary stage, businesses need to overcome the threat from the competitor are there, ready-to-kill the new forming ventures, since they are new and can be easily exploited in the market. In practical terms, a company need so break even in the market, built trust amongst the customers and develop good terms with the stake holders as the minimum for the assurance of its survival. Stability: Once the company gets to survive in the market, it now needs stability. Here, the company needs to have ample resources in terms of finances, human and technology to settle down in the market. This phase is very important before the growth, since unless the firm holds momentum, it cannot speed up. Growth: This is the most desired objective and equally the most important to have strong footings in the market. It brings along self-esteem for the business. Now, the core components of business working get properly targeted. For example, volume of the sales, increase in the customers, speeding of sales turn over, moving up the value chain and progressing the production quality. Efficiency: Efficiency is needed in terms of finances i.e. to increase the profit margin. It can either be done through increasing the overall sales or otherwise reducing the business costs, depending which of the external or internal factors can be more easily controlled. Profitability: This is what makes all the above objectives operational; in the absence of profits, there could be no survival, stability, growth or efficiency. This makes ability to make profits and in the absence of profits, no company can exist or have any recognition as a brand in the market. (CIP, 2003) 5. Objectives Developed through Mission Statement The above anticipated mission statement of Apple Incorporation talks about survival through offering high level commitment to customers and strengthening its basis in the market, stability through the promise of continuous development in consumer friendliness and easy to use operations, growth from office use to domestic and educational use, efficiency through increasing sales when they offer durability and warranty and finally all these factors lead to profitability. Objectives Developed through Vision Statement The above anticipated vision statement of Apple Incorporation talks about its survival through focusing on technological advancements unlike any competitors so that they cannot be easily swept from the market, landing on stability through maintain high stream of customers who enjoy extravaganza high profile technological gadgets, growth getting positioned everywhere in domestic life, for instance, camera, music, information, cable access etc., efficiency through economies of scale that can be attained through massive application through a single gadget and finally profitability through a combination of all the above combinations. References Bread, p. (2011, June 01). Retrieved from http://www.ohiodominican.edu/uploadedFiles/Library/CoursePages/Courses/Bus/Bus498/Mission%20and%20Vision%20Statement%20Analysis%20Paper%20Example.pdf CIP. (2003, October 21). Retrieved from http://www.cipotato.org/research/docs/CIP_Vision_Statement.pdf Dermol, V. (2012, MAY 03). Retrieved from http://www.issbs.si/press/ISBN/978-961-6813-10-5/papers/ML12_171.pdf Sebastian Desbidt, A. H. (2006, September 04). Retrieved from http://www.feb.ugent.be/nl/Ondz/wp/Papers/wp_06_416.pdf Read More