C) Survival: The objective of surviving for the long time should be the important objective currently. Sony Ericsson doesn’t want to be in market for short period of time and leave the market to competitors after gaining required profit. Our company want to be in the mind of our Indian customer and gain all the market share profit from the Indian market.
D) Growth: The Company’s objective is to be in the fast growing Indian Market. As to enter in Indian Market, company’s objectives lies with upgrading the technology and including new innovative products to be in the rapidly growing globalisation.
E) Stakeholders: Keeping our stakeholder in our mind i.e. Customer, Employees and Shareholders Sony Ericsson must create its objective.
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Customers: Customer is the most important stakeholder for any organisation. Sony Ericsson have to develop its objective by keeping all the wants of customer in their mind. And all the objectives made by the company must be achievable.
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Employees: The Company should develop its Objective which is achievable and to make it achievable company should concentrate on the needs of employees and provide them the friendly environment at their work place and always keep them happy with all concerned.
. Shareholders: Shareholders are the one of the important part of the group of stakeholder. Our company’s main objective must be to keep the shareholder interested to invest in company for the longer period of time so as to gain profits.
2) Developing Mission Statements:
As stated by Sony Ericsson (2008) their mission statement says that “Our mission is to establish Sony Ericssion as the most attractive and innovative global brand in the mobile handset industry”
A mission is important to every member of the organisation not only to the manager. Vision and strategy intersect each other, but there needs to be a strategy in order to achieve any positive goals. It also assist to keep the organization focused on its strategy in making the vision a reality. This is illustrated in the diagram below.
The following factors are to be put in to consideration when developing our mission statement as the anchor of our future visions and missions.
A) Customer trust: Our main mission should be to gain Consumer Trust. The product must be develop in such a way that the customer should be agreed on and majorly trust on. We should think about the future generation which should rely on our product. Customer loyalty is a major contributor to .
B) Brand Loyalty: It is the commitment by our customers to buy our branded products continuously which can be seen by continuous purchasing of our product and service. It is a simple behaviour of repurchasing of our products by our customer which can be due to:
- Restriction of situation.
- Less alternatives.
- For their personal comfort.
A strong brand can prove to be the propeller of a company’s growth in the global arena. The proper nurturing and development of a brand can help ensure its long term success. The company should develop products with quality and which should be value for the customer’s money and it should enter market rapidly. If our company creates the Brand loyalty its going to be very hard to break it down by our competitors.
C) Environmental Respect: Considering the environment respect in mind Sony Ericsson should develop the products. Our mission must be to respect the environment and make the product which are environment friendly.
D) Boycotting Discrimination: The Company should stop viewing or differentiate between our employees by sex, caste and religion etc. Sony Ericsson should offer free Employment to all without any issue. To be in the market for the longer period of time these are few points which must be kept in mind before making any objectives.
Risks of Mission Statement
In a study of local government in Britain LEACH (1996) found that mission statement and strategic vision had also become fashionable. While in some authorities mission statement has made a real impact in clarifying organisational value and culture.
The risk is not just that missions is unrealistic and fail to recognise an organisation’s capabilities but also the management fails to develop a belief in the mission statement throughout the organisation.
The idea of the mission statement needs to be cascaded through the structure to ensure a link between mission and day to day actions.
3) TRADEOFF:
Sony Ericsson to gain future profit has to compromise in some thing to keep a foot forward in the market from its competitors. The trade offs that are to be balanced by Sony Ericsson are stated below:
Diagram below shows some points about business tradeoffs
(a) Short term verses long term: Our Company has to engage both short term and long term marketing effort so as to have consistent sales cycle. We can have sales spikes by using short term marketing efforts but for shorter period of time but we have to mix long term marketing efforts to sustain sales.
(b) Profit margin verses Competitive position: To gain a huge profit for a longer period of time Sony Ericsson has to compromise some points in shorter period of time which can get some problems at start but we should not think it as a huge problem. Sony Ericsson has to increase its profit so as to keep its competitors behind.
(c) Profit verses non-profit objectives: We can see one difference in both the objectives i.e. in profitable objectives we have to emphasise revenue, profit growth and our product must be able to fulfil our customer demands. But non-profit objectives are just to complete the need of our organisation i.e. general community, health and welfare.
(d) Related verses non-related growth opportunities: Related growth opportunities include Market capture, Brand name and Innovation while Non related growth opportunities include growth of the country’s economy, encouraging the technology development of the country where the operations are carried out.
(e) Market penetration verses market development effort: Considering trade offs, this point is a bit confusing. The sale in products highly is directly proportional to the depth of penetration. In order to increase the sales of the products which are already sold in markets, Sony Ericsson has to make use of strategies which are used in penetrating market which includes price cutting, advertising more, get a good store for our products or new innovations for our distributor.
(f) Risk avoidance verses risk taking: We have to assess risk and consider risk systematically for designs and operations in our organisation. Some alternatives are rejected because they fail to meet our criteria.
4) Conclusion:
Regarding Sony Ericsson, the statements above about mission and objectives states that there must be some risk worth undertaking in order to achieve objectives and missions. The company should respect their competitor as they are the compellers of our organisation in developing new products and technologies. In order to satisfy our customers who are the most important stakeholders and shareholders, we have to plan our objectives and missions. Innovation is the major factor for the growth of our company and we must take it as a major objective for us. We have to innovate our products on regular basis and make them as per customer demand.
To operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders & expanding opportunities for development and career growth for our employees. To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally & internationally. Considering as being in the top of Mobile Telecommunication in mind Sony Ericsson has to develop its mission.
Reference:
Johnson. G. and Scholes. K. 2001. Exploring Corporate Strategy: Texts and
Cases. FT Prentice Hall.
Joyce. P. and Woods. A. 2001. Strategic Management: A Fresh Approach to Developing Skill Knowledge and Creativity. Kogan Page
Kaplan, R. and D. Norton. 1996. Using the balanced scorecard as a strategic management system. Harvard Business Review (Jan-Feb).
William. D. Jenkins. W. Cooke. P. Moreton. K. 2004. Strategic Management and Business Analysis. Elsevier Butterworth-Heinemann.
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