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Written Assignment Unit 2

Anonymous

BUS5117 – Strategic Decision Making and Management

University of the People

September 17, 2024

Written Assignment Unit 2

Introduction

According to Softic (2022), a business organization cannot successfully run without

vision, mission, and goals. Additionally, a business organization can operate successfully in the

long run and become competitive in the market if it defines its vision, mission, and goals in a

timely manner. That is how business organizations transform ideas and desires into concrete

projects and innovations in the market. This is especially the case for local companies and those

operating in a global market (Softic, 2022). With this understanding, in this paper, three key

ideas which are believed to be the most important for a firm operating in a global market and

discuss why they are the most important for the process. Secondly, the paper discusses the role of

a strong leader in the formulation of vision and mission statements. Thirdly, the paper analyzes

which between internal and external factors is more relevant to a global firm’s vision and

mission statements.

Key Ideas for a Firm Competing in a Global Market

Companies cannot succeed in a global market without comprehensively understanding

the market in which they operate. Understanding the cultural diversity, embracing technological

advancements, and building strategic alliances are three of the key ideas are the most important

for a company competing in a global market (Kennedy, 2020). In the case of understanding

cultural diversity, in a global market, companies should recognize and appreciate the cultural

diversity that makes up their target markets. Understanding the cultural diversity includes

companies comprehensively understanding the preferences, behaviors, and values of their target

customers. This is important because it will help companies adapt their goods and services and
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market strategies to the cultural practices of their target markets, which can make them

effectively compete and gain competitive advantages (Miller, 2020).

According to Miller (2020), companies competing in a global market should also

embrace technological advancements. This factor is important because of the critical role that

technology plays in global competition. Therefore, such companies should stay updated with the

latest technological advancements as this will enhance their operations as well as improving their

efficiency to deliver innovative goods and services. Additionally, when companies in the global

market embrace technology, they can easily reach a wider audience, streamline their business

processes, and compete effectively (Miller, 2020).

Building strategic alliances is also a key factor. Collaborations and partnerships are

important for companies competing in a global market. This is especially important because,

when such companies form strategic alliances with industry leaders or local companies, they can

easily leverage the expertise, networks, and resources of these partners to increase their

competitiveness by facilitating their market entry and reducing risks. Building strategic alliances

would significantly help such companies combine their complementary strengths and capabilities

(Miller, 2020).

Role of a Strong Leader in Formulating Vision and Mission Statements

Hargreaves and Shirley (2020) state that every organization should have a strong leader

especially when formulating mission and vision statements. Such a leader plays specific roles,

including setting an organization’s direction. A strong leader provides a clear direction and

purpose for the organization. Additionally, such leaders effectively articulate a compelling vision

that employees need to feel inspired and motivated. The vision of the leader can be used by the
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organization as a guiding star because it outlines the current state of the organization, the desired

future, and the specific strategic goals that should be achieve (Hargreaves & Shirley, 2020).

Another equally important role of a strong leader is to define values and culture. A strong

leader has characteristics which enable them establish the values and culture of an organization.

Such leaders define the specific principles and beliefs that are needed during decision-making

process in the organization (Hargreaves & Shirley, 2020). In addition, such a leader ensures that

the mission and vision statements being formulated are in line with the values of the

organization. This is important as it creates a strong organizational culture (Hargreaves &

Shirley, 2020).

A strong leader also plays the role of communication and engagement. A strong leader

can effectively communicate the vision and mission statements to every stakeholders in an

organization (Hargreaves & Shirley, 2020). Such leaders engage stakeholders, including

employees and customers, in the strategic direction of an organization. Furthermore, the leader

ensures that stakeholders understand and embrace the mission and vision statements and that

they are integrated into the day-to-day operations of the organizations (Hargreaves & Shirley,

2020).

When they play these roles, strong leaders ensure that the mission and vision statements

and formulated in a meaningful way and that they are relevant and in line with the strategic

objectives of the organization. Additionally, when strong leaders are involved in the formulation

of the mission and vision statements, it fosters a sense of unity, commitment, and purpose among

stakeholders. This is important because it drives the organization towards the achievement of its

goals and objectives (Hargreaves & Shirley, 2020).

Relevance of Internal and External Factors to a Global Firm’s Vision and Mission

Statements

Both internal and external factors play a critical role to the vision and mission statements

of a global company. However, the level of their important is completely different and highly

depend on the specific context. Internal factors like organizational culture, capabilities,

resources, and competitive advantage play a key role in shaping the mission and vision

statements of a global firm (Distanont, 2020). The unique strengths and capabilities of a

company can be used to differentiate it from other industry players and guide its strategic

direction. For example, organizational culture significantly influences the behaviors, values, and

beliefs of an organization on which mission and vision are founded. Internal factors provide the

foundation every company needs to achieve long-term success and gain competitive advantage

(Distanont, 2020).

External factors comprises of aspects like government regulations, competition, market

dynamics, and technological advancements. These factors also significantly impact the mission

and vision statements of a global company. For example, government regulations shape the

environment in which the company operates and may influence the strategic priorities of a

company (Distanont, 2020). Competition and market dynamics drive the need for a company to

differentiate itself from competitors and adapt the market. Technological advancements create

opportunities and threats that a company should consider in its strategic direction. Overall,

external factors provide the context and external perspectives for a company’s mission and

vision statement to remain relevant and responsive to a global market (Distanont, 2020).

Each of the internal and external factors play critical roles in shaping the mission and

vision statements of a global company. On the one hand, without the internal factors, a global
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company would not have the foundation and strengths to operate in a global market. On the other

hand, without external factors, a global company would not have external perspective and

context necessary for operating in the global market. When developing mission and vision

statements, a company operating in a global market should employ a comprehensive approach

that considers both internal and external factors. With such an approach, a global company will

develop mission and vision statements that are in line with its strategic objectives and enable it

achieve success in the market.

Conclusion

As vision and mission statements play a critical role in the success of every organization,

this paper selected three key ideas from the textbook which are believed to be the most important

for a firm competing in a global market and analyzed the reasons why they the most important to

the process. Additionally, the paper looked at the role that strong leaders play in the formulation

of vision and mission statements and finally analyzed which between internal and external

factors is more relevant to a global firm’s vision and mission statements. Overall, firms operating

in a global market should have specific facts to success in a global market and strong leaders are

indispensable in the formulation of vision and mission statements. Finally, firms operating in

global markets need both internal and external factors in their mission and vision statements.
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References

Distanont, A. (2020). The role of innovation in creating a competitive advantage. Kasetsart

Journal of Social Sciences, 41(1), 15-21.

Hargreaves, A., & Shirley, D. (2020). Leading from the middle: its nature, origins and

importance. Journal of Professional Capital and Community, 5(1), 92-114.

Kennedy, R. (2020). Strategic management. Virginia Tech

Publishing. https://vtechworks.lib.vt.edu/handle/10919/99282

Miller, K. (2020, December 8). The triple bottom line: What it is & why it’s important. Harvard

Business School Online. https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line

Softic, L. (2022). Importance of vision, mission, goals, and values.

https://www.linkedin.com/pulse/importance-vision-mission-goals-values-lejla-softi

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