Chapter 3 Flashcards
What is a Mission Statement?
Declares why the business exists, focusing on the purpose and direction of the company. Examples: Nike: ‘Bring inspiration and innovation to every athlete in the world.’ Additional tagline: ‘If you have a body, you are an athlete.’ Key Features: Practical and actionable purpose; reflects immediate priorities and goals.
What is a Vision Statement?
An aspirational description of what an organization wants to achieve in the future. Example: Tesla: ‘To accelerate the world’s transition to sustainable energy.’ Key Features: Long-term focus; inspirational and forward-thinking.
What are the key differences between Vision and Mission Statements?
Vision Statements: Aspirational (‘What do we want to become?’), values and long-term goals, rarely updated, broad and non-specific, forward-looking. Mission Statements: Declaration of purpose (‘What is our purpose?’), focused on immediate objectives, updated more frequently, concrete and specific targets, present-oriented.
What are the advantages of Vision and Mission Statements?
Motivates employees with positive and inspiring goals; aligns customer expectations with company values; helps align stakeholder interests with business objectives.
What are the disadvantages of Vision and Mission Statements?
Often vague and fail to differentiate businesses from each other; may primarily serve PR purposes, lacking true business impact; offers limited guidance to internal operations and decisions.
What is Corporate Social Responsibility (CSR)?
A self-regulating business model where companies commit to ethical and sustainable practices. Key CSR Policies: Accurate product labeling; environmental consciousness; fair employment practices; contributions to community initiatives (e.g., volunteering, charitable work).
What is a SWOT Analysis?
A strategic tool used to evaluate a company’s internal and external factors. Framework: Internal (Controllable): Strengths (competitive advantages), Weaknesses (areas needing improvement). External (Uncontrollable): Opportunities (chances to grow or benefit), Threats (risks that could harm the business).
What are examples of Strengths in a SWOT Analysis?
Strengths (Tesla EV): Strong brand value and recognition as a premium EV manufacturer; first-mover advantage in global EV markets; unique selling proposition (USP) based on sustainability.
What are examples of Weaknesses in a SWOT Analysis?
Weaknesses (Tesla EV): Only became profitable in 2020; open-source patents enable competitor access; high pricing limits mass-market appeal.
What are examples of Opportunities in a SWOT Analysis?
Opportunities (Tesla EV): Rising global demand for EVs due to environmental concerns; government policies encouraging EV adoption.
What are examples of Threats in a SWOT Analysis?
Threats (Tesla EV): Intense competition from traditional automakers; anticipated shortages in raw materials for EV batteries.
What are Offensive Strategies in SWOT Analysis?
Offensive Strategies: Use strengths to capitalize on opportunities. Example: Tesla intensifying promotional strategies emphasizing sustainability.
What are Defensive Strategies in SWOT Analysis?
Defensive Strategies: Use strengths to mitigate threats. Example: Monitoring competitor EV developments.
What are Reorientation Strategies in SWOT Analysis?
Reorientation Strategies: Address weaknesses to exploit opportunities. Example: Tesla revising open-source patents to safeguard technology.
What are Survival Strategies in SWOT Analysis?
Survival Strategies: Mitigate the impact of weaknesses meeting threats. Example: Merging with competitors to combine resources.
What are the advantages of SWOT Analysis?
Simple and quick to create; applicable across industries and situations; helps identify current market position and competitive responses; can reduce risks by identifying challenges early.
What are the disadvantages of SWOT Analysis?
Static model; does not account for future changes; decision-makers may avoid addressing weaknesses or threats; requires complementary tools for deeper analysis; limited scope without follow-up actions or evaluations.
