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~Mission Statements~
 

 Mission statement = a precise description of what an organization does. It should describe the business the organization is in. It is a definition of “why” the organization exists

 

A "mission statement" describes the business in terms of goods, markets, services, and client needs. The "mission statement" should define an organization's ultimate strategic intent for profitability, growth, market share, and building competitive advantage...thus-- the mission statement will outline the basic strategy that you selected:

 

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~Vision Statement~
 

A vision is a statement about what your organization wants to become …

A compelling description of the state and function of the organization once it has implemented and achieved by your strategic plan… by the end of the simulation (accordingly your vision statement should delineate what key Marketing, Production & Financial objectives & metrics you want to achieve by round 8)

 

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Cost Leader with Product Life Cycle Focus


A Cost Leader with Product Life Cycle Focus will seek to minimize costs through efficiency and expertise. Products will be allowed to age and change in appeal from High End, to Traditional, and eventually Low End buyers.
Firm Profile:
Minimum presence in "specialty" segments (Size & Performance)
Low R&D spending (very little repositioning & new product every 2-3 years)
Invests in automation early in the product's life-cycle
Spends moderately on promotion and sales
Focus on ROE, ROS, and Profits


Differentiation Strategy with a Product Life Cycle Focus


A Differentiation Strategy with a Product Life Cycle Focus seeks to be known far and wide as the top producer of the best performing state-of-the-art products.
Firm Profile:
Multiple product lines in targeted segments (High End, Traditional, and Low End)
Minimum focus in other segments
High promotion and sales investments to create maximum awareness and accessibility
High R&D expenditures to continually reposition product lines and keep products fresh
Unlikely to invest in increased automation or production capacity
Focus on ROA, Stock Price, and Asset Turnover


Broad Cost Leader


A Broad Cost Leader will attempt to be the low-cost producer in every segment of the market. It will have good profit margins on all sales while keeping prices low for price-sensitive customers.
Firm Profile:
More likely to reposition products than introduce new ones to the market
Capacity improvements are unlikely to be undertaken (may run overtime instead)
Automation may be pursued to increase margins
Investments will be financed with debt and/or stock issues
Tends to spend less on promotion and sales
Focus on Market Share, Profits, and Stock Price


Broad Differentiation


A Broad Differentiator will seek to create maximum awareness and brand equity. It wants to be well known as a maker of high quality/highly desirable products.
Firm Profile:
High R&D spending to keep products fresh
Maintains a presence in all market segments
Spends heavily on advertising and sales to create maximum awareness and accessibility
Prices tend to be higher
Focus on Market Share, Profits, and Stock Price


Niche Cost Leader


A Niche Cost Leader seeks to dominate the price sensitive market segments. Its aim is to set prices below all competitors — and still be profitable.
Firm Profile:
Multiple product lines in the low-tech segments (Low End & Traditional)
Invests heavily in automation
Spends moderately on advertising to cost sensitive customers (sales people have more than one product to pitch to prospects)
Investments financed with debt and/or stock issues
Focus on ROS, ROE, and Profits


Niche Differentiation


A Niche Differentiator will seek to be well-known as a top producer of good performing products in each of the targeted segments.
Firm Profile:
Multiple product lines in high-tech segments (High End, Performance, and Size)
Minimum focus in other segments
High promotion and sales investments to create maximum awareness and accessibility
High R&D expenditures to continually introduce new product lines and keep existing products fresh
Unlikely to invest in increased automation or production capacity
Focus on ROA, Asset Turnover, and ROE