Quiz 3: Evaluating Opportunities in the Changing Marketing Environment

Business

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Objective of a firm: Every firm works to achieve an objective. The objective of a firm helps to decide the direction in which the firm should move. The objective is the starting point that helps the firm and its employees decide their course of action. Mission statement: The objectives of the firm have to be made sensible for the firm's employees to develop their plan to achieve the objective. However, there could be some conflicts in the minds of the managers and other employees of the organization about the objective. So a mission statement is needed for stating the reason for the existence of the firm. A firm based mission statement does not make sense as the purpose of the firm should be much bigger than just assuring about production. It is the reason for the existence of the firm in the society. A firm may have a specific objective that is product-oriented and this will help the marketing department to give direction to its team members. Thus, a mission statement should represent a broader context than being very specific. In the given example, a division's mission statement is given. It is not a suitable mission statement, as the statement should be specific to that division only. The existing mission statement has the words 'available anywhere in the world'; gives a wrong impression about the business. Since it is a mission statement of a division, it has to be specific to the division. The mission statement given is generic in nature and does not state the reason for the existence of the company. Moreover, the mission statement mentions the product but it should be about the bigger goal that the company wants to achieve like providing clean environment or saving fossil fuels etc. Such a mission statement would be more appropriate for the company.

Objective of a firm: Every firm works to achieve an objective. The objective of a firm helps to decide the direction in which the firm should move. The objective is the starting point that helps the firm and its employees decide their course of action. Firm's objectives and search for opportunities: The objectives of the firm have to be made sensible for the firm's employees to develop their plan to achieve the objective. However, there could be some conflicts in the minds of the managers and other employees of the firm about the objective. Also, a firm's objectives will be based on the resources that it possesses. The breakthrough opportunities that a firm may have are based on the competitive advantage of the firm. These opportunities are based on the strengths of the firm. The areas of opportunities are identified based on the strengths and weaknesses that the firm has. Sometimes research and development activities are needed for development of the strengths of the firm. The opportunities that exist in the market can be made use of to develop the strengths further. For example: A global company may not set up its manufacturing units everywhere but the good connectivity that the firm has may be utilised for manufacturing at one place and then making the product available in other places. This way the strength of the firm has led to new opportunities.