Std Bank and Edcon Case
Standard Banks mission statement Standard Bank, in this case, has incorporated a mission statement within their vision. Looking at the vision statements, Standard Bank states,” … Making a real difference to uncial services in South Africa and other emerging markets”, and, “.
.. Ensure long- term sustainability…
“, which reads as being mission statements, leading them to their vision of, “to attract, retain, develop and deploy teams of people with energy, passion and skills. When looking at the components of a mission statement, Standard Bank has used the components of mentioning their stakeholders/ customers – it is mentioned broadly, as they want to appeal to all people, with no emphasis on age, gender or race; Their market they want to achieve in, being financial services for South Africans and merging markets – new potential clients and potential globalization; Their concern for their growth and profitability – This mission statement also hints at reaching out into global markets, leading to more potential clients.
Their focus on the growth of their employees and their wealth can also lead to a more effective, efficient and motivated staff. By growing their internal stakeholders and reaching into new potential markets will assist in sustaining them in the financial industry and help them to grow financially, economically and as an employer of choice; Standard Banks philosophy comes through as being a motivated team that wants to help their stakeholders grow, personally and financially. This attitude and ethic will lead to their employees being diligent, and thereby they will strive to grow the company.
All stakeholders could feel like they really do have an investment in the company, so they will do their most to achieve the objectives of the company and live out the philosophy in their own lives; Concern for their public image – Standard Bank wants to be seen as a motivated, caring and competent company, with the most skilled employees and financially rowing clients and employees; Concern for their employees – Standard Bank speaks of attracting the right people, internal and external stakeholders.
They focus on team work, incorporating differently skilled people, as to give the best service to their customers; Regarding technology, this component has been excluded. A mention of developing technology or improving the way their clients can bank, for example, Internet banking services, or purchasing on line; and a security chip in the cards issued, for the security of their clients’ money could add value and a sense of trust with the customers. 2. Characteristics of the mission statement long.
It is inspiring for the stakeholders, showing care and concern for the employees and customers. However, it does not really mention anything about specific products or services, or reveal anything about Standard Bank being environmentally responsible. They could mention being affiliated with an environmental organization to rectify this. Standard Banks mission statement is motivational, and this can only lead to growth, internally and in the market place. The scope is broad enough too, as to allow for growth in emerging markets, with potentially new products or services, and new customers.
They have incorporated many components of their mission statement into values, and they strive to meet and succeed them. B. DECOR GROUP 2. 1 Components of the Deacon’s mission statements mission as an employer; and community mission. When looking at the components of the mission statement, they have included many factors.
Their focus on training and growing their employees is amicable and will present happy and motivated staff. They mention that they plan to reward their staff, which is also an advantage for the employee, leading to better work performance.
The DECOR Group mission does not mention anything about a technological advantage. They could mention the possibilities of buying online, applying for an account online, websites of all their underwritten companies and their products, or online safety features. They show an environmental/ social responsibility by supporting an organization for education of less fortunate South Africans.
This creates a more trusting employee and customer, as they feel that they are then a part of a responsible initiative and that they are supporting a company who cares.
DECOR also focuses on growth, sustainability and profitability, as they continuously ant to train and develop their staff, and provide financial options for all customers, and all lifestyles. These initiatives can lead to skilled, motivated people working for them, reaching for the same goals, and satisfied customers, who are now able to buy products within their meaner. This meets their statement of, “creating wealth for the benefit of all stakeholders. ” Their philosophy of respecting one another and guarding against arrogance are very crucial to the public image and their self- concept.
These qualities are admirable and customers would want to associate with a company that holds these as values.
Their value of integrity can also be included in their public image component, as they strive to be seen as a integrity-based company, holding high values and continually striving to meet their values and objective, living them out in their everyday lives, as stated in their business mission. This can be essential in making them the consumers’ store of choice, as they are striving for in their mission. Characteristically, the DECOR mission statement is clear and motivational.
They want their employees and customers to feel cared for that they are part of a responsible and motivated organization. They have put a large focus on many of the components and have made them values of the company.
Even if the customers and employees didn’t have an input on the mission statement, they can feel that it is created with them in mind. 3. Briefly discuss the industrial organization view regarding the competitiveness of organizations. The Industrial Organization view focuses on the external forces of an organization advantage.
Michael Porter’s view was that by finding key aspects of each of the industry forces, the importance and strength of those aspects, and whether it is Roth it for the firm to remain in competition or to leave the industry.
If it is not possible or financially, economically and socially viable, depending on what is important to the company, then the choice would be to move on to another industry, with a repositioning strategy, but if the company remains in the industry, they could try strategies of introducing a substitute product, or smarter marketing and advertising strategies.
If we look at the environmental forces discussed by David, there are five main forces to consider. Each of these forces can help or hinder a competitive advantage of a many. Firstly, economic forces, like inflation and increasing interest rates in the buyers’ market. This can be a major factor in competitiveness within an industry, as for a company to remain at the top of their game; they need to be able to supply their customers with the same product and service as they did before the economic hikes.
This could be problematic for the company that doesn’t have the buying power or capital to buy in bulk, and try and keep their prices as low as possible. They could run competitions, but for a company to remain ahead in an industry, they need to eve their loyal customers willing to pay a little more than usual, but receive the same quality and service that they received before, or better. Holding regular specials can help in retaining the customers and maybe locking in potentially new customers, if their regular provider is not able to compete with the prices.
Secondly, there are social, cultural and demographical forces to consider. As the market is becoming globalizes, and companies within certain industries have to now compete worldwide within their chosen industry, factors of culture and social preferences in different countries and demographic areas need to be taken into account, regarding product manufacturing, design and advertising channels and format. Description and promotion of certain products will need to be assessed against possible religious values and social preference in various demographic areas, as not to offend potential and existing consumers.
For a simple example, promoting a phone that has an application for Bible verses and daily inspirational messages should not be promoted as such in China, as there is a different religious background that demographic to move away from the manufacturer’s products, hence company. Trends of different countries and societies should be taken into account. Social and technological advancements and preferences differ from country to country, as the social needs and wants are different.
Thirdly, political, governmental and legal forces can make competitiveness difficult, as it can restrict many areas of possible competition. Companies need to remain within the legal boundaries of their markets and country, and try not to have too much of a political affiliation, unless that is their chosen target market.
Getting involved in political propaganda can be dangerous, if it is taken in the wrong light by the customers. It could ruin the public image of the company and chase away potential and loyal customers.
Global laws are becoming more relevant too, as the shipping laws, docking and marine laws are important in the transportation of many products in various industries, and the importation and exportation into different countries. The fourth factor is the technological forces. With the fast growing economy and the rapid technological advancements, each company has to remain ahead with the new technologies.
Because of these advancements, the world is becoming smaller, and companies have to compete in a global market to gain an advantage.
For the same reason, the customers are becoming more difficult to please, as they have more choices. The customers have also become smarter and decisive about what they want, so more personalization is required and smarter companies, who can meet the needs and wants of the customers, better than what their competitors can do. Lastly, there are competitive forces, which can be a summary of the above mentioned difficulties and advantages. Competition is healthy for any company, as it guides the company to do their best, but it is difficult to remain ahead of competitors all the time.
There is a constant need for a market analysis, as we live in a changing environment, so companies need to be able to adapt, and take control of as many factors as possible that can possibly disadvantage them in competitiveness. A company needs to focus on their bargaining power with suppliers, the bargaining power of their customers – needs and wants, and in staying the customers’ choice. By taking the technological, economic, political and legal, social, cultural and demographic forces into consideration, and being proactive in dealing with them, a company can reach the top of their industry.