Question

Using knowledge from the textbook, additional materials, and outside knowledge (must be referenced appropriately), discuss one of the following topics

1. The text discusses strategic trade-offs that are different between Walmart and Nordstrom even though they are in the same industry. Think of another industry that you know fairly well and select two firms there that also have made very different choices for these trade-offs. Describe some of the differences between these firms. What type of trade-off decisions have these firms made?
2. What characteristics does an effective mission statement have?
3. The “job to do” approach discussed with the Clayton Christensen milk-shake example can be useful in a variety of settings. Even when we are the customers ourselves sometimes we don’t look for better solutions because we get into routines and habits. Think about a situation you sometimes find frustrating in your own life or one you hear others complaining about frequently. Instead of focusing on the annoyance, can you take a step back and look for the real job that needed doing when the frustration occurred? What other options can be developed to “do the job” that may lead to less irritation in these situations?

Answer 1

Hi there,

Here is my answer to one of the question mentioned above regarding charactersitics of mission statement.

Mission Statement

A mission statement, which can be defined as the heart of the business’s vision and the guide of its operation, is essential for any small business. These statements can be of all shapes and sizes and are said to be an accurate and unique summary of your specific organization .A mission statement provides perfect clarity behind the “what,” the “who,” and the “why,” of your company. The best mission statements are guidelines by which a company operates. Everything you do as a company should work toward your mission statement.

Mission Statements of Some of th world's best companies :

• TESLA - To accelerate the world’s transition to sustainable energy
• TED - Spread ideas
• LinkedIn - To connect the world’s professionals to make them more productive and successful.
• Amazon - To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.
• Nike -  Bring inspiration and innovation to every athlete in the world.

Characteristics of Good Mission Statement are:

1. Keep it short. Many people like to use the “8 words or less” method when creating their mission statements. Those that are short and sweet are not only easier to be placed on business cards, but also are more memorable and effective.
2. Be specific. Your target audience (customers, employees and potential business investors) should not be able to apply your mission statement to competing companies. Focus on what it is that makes you strive to do differently, how you achieve excellence, and what makes your business stand out from all the rest.
3. Make it realistic. Mission statements often seem impossible to achieve, which will only discourage your employees. They are supposed to be a description of why you exist and what you do; create a statement that includes something that is possible, but is not too easy or too idealist.
4. Test it. Whether you are revamping your current statement or building one from scratch, it is always a good idea to test it on your employees. Not only will the quality of the statement improve with outside opinions, but your employees will feel more invested in the statement because they helped put all the pieces together.
5. Consider longevity : Create a long-term picture while constructing your statement that will be able to withstand time and will still hold a deep meaning in the long run. Your mission statement should not be changing every time a short-term goal is achieved.

6. They Create Expectations :A good mission statement embraces the expectations of a target audience for something they truly crave. For example, Zappos’ mission statement is “To provide the best customer service possible.” That creates the expectation in Zappos’ customers that they will deliver superior customer service each and every time.

7. They Are Memorable : What are the key phrases and terminology you can use in your mission statement to make it memorable? That doesn’t mean that readers must be able to recite your mission statement in whole as if it’s a catchphrase, but it does mean that people should be able to associate key aspects of that statement with your company.

8. They Are Active : word “active” in this context refers to active verbs that make readers feel as if something is happening now rather than in the past. For example, instead of writing, “These products are made by our company to improve your life,” you should write, “Our company makes these products to enhance your quality of life.” Notice how the transition from passive to active verbs, and substituting “enhance your quality of life” for “improve your life” conveys a stronger message?

9. They Are Adaptable : A strong mission statement is something that your marketing and product development teams can also use for motivation and direction. For example, eyeglass brand Warby Parker’s mission statement is, "Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses." The concepts of “rebellious spirit,” “revolutionary price,” and “socially conscious businesses” are all a marketing department’s dream because they are sellable concepts.