What is the importance of writing a Mission statement.

Does it
hold any impact on the Profitabilty ,Growth and Market
Leadership of a company.

A mission statement is a short statement of an organization's purpose, identifying the

scope of its operations: what kind of product or service it provides, its primary
customers or market, and its geographical region of operation. It may include a short
statement of such fundamental matters as the organization's values or philosophies, a
business's main competitive advantages, or a desired future statethe "vision"
A mission statement is not simply a description of an organization by an external party,
but an expression, made by its leaders, of their desires and intent for the organization.
The purpose of a mission statement is to focus and direct the organization itself. It
communicates primarily to the people who make up the organizationits members or
employeesgiving them a shared understanding of the organization's intended
direction. Organizations normally do not change their mission statements over time,
since they define their continuous, ongoing purpose and focus.
1. It determines the companys direction. Smart business owners use this statement
to remind their teams why their company exists because this is what makes the
company successful. The mission statement serves as a North Star that keeps
everyone clear on the direction of the organization. This leads to the second reason.
2. It focuses the companys future. Many people refer to this as the vision which is
different than the mission. The vision is about the future. The mission tells us what
were doing today that will take us where we want to go in the future.
3. It provides a template for decision-making. A clear mission sets important
boundaries which enable business owners to delegate both responsibility and authority.
Mission is to the company what a compass is to an explorer, a map to a tourist, a rudder
to a ship, a template to a machinist. It provides a framework fro thinking throughout the
organization.
4. It forms the basis for alignment. When a new employee is hired it is critical that
the new hire know what the company does and where the company is going. The
mission statement forms the basis for alignment not only with the owner, but the entire
team and organization.
5. It welcomes helpful change. Many people are resistant to change because it causes
us to feel insecure and sometimes out of control. However, if the mission is clear, then
team members are more likely to see the value of the change and how it helps the
organization accomplish the mission. This will create a culture that welcomes change
when warranted.
6. It shapes strategy. Every business needs a strategy. But strategies must not be
created in a vacuum. Instead of looking at whats new or what competitors are doing
and trying to copy them, wise business owners create the most effective strategies
possible to accomplish the mission.
7. It facilitates evaluation and improvement. It has been said that What you
measure will be your mission. If you have a clear, written statement of mission you will
know exactly what to measure and how to measure it. Clarity of mission brings clarity
on every other level of the organization.

Discuss the use of VRIO Framework for analyzing Resources

and Capabilites
VRIO Analysis is an analytical technique briliant for the evaluation of
companys resources and thus the competitive advantage. VRIO is an acronym from the
initials of the names of the evaluation
dimensions: Value, Rareness, Imitability, Organization.
The VRIO Analysis was developed by Jay B. Barney as a way of evaluating the resources
of an organization (companys micro-environment) which are as follows:

Financial resources
Human resources
Material resources
Non-material resources

Is perfect for evaluation of the companys resources. One you know your resources you
can better understand your competitive advantages or weaknesses. The VRIO
considers for each type of the resource the following questions (called evaluation
dimension) both for your company and for your competitors. The dimensions
of VRIO are:

Value - How expensive is the resource and how easy is it to obtain on the market
(purchase, lease, rent..)?
Rareness - How rare or limited is the resource?
Imitability - How difficult is it to imitate the resource?
Organization, respectively arrangement - Is the resource supported by any
existing arrangements and can the organisation use it properly?

VRIO analysis is a complement to a PESTEL analysis (which assesses macro-

environment). VRIO is used to assess the situation inside the organization (enterprise) -
its resources, their competitive implication and possible potential for improvement in
the given area or for a given resource. Such an assessment is then used for example in
the strategic management of development in various areas or for decision making about
the advantage of an external or internal process and the securing service (e.g.
outsourcing decision).
 If the resource is not valuable it should be outsourced because it brings no
value to us
If the resource is valuable but not rare the company is in competitive
conformity. It means we are not worse than our competition,
If the resource is valuable and rare but it is not expensive to imitate it, we have
a temporary competitive advantage. Other companies will try to imitate it in
the near future, then we lost our competitiev advantage.
If the resource is valuable, rare and is expensive to imitate it but we are not
able to organizate our company, the resource become expensive for
us (unused incurred costs)
if we can manage the advantacea and we are able to organize our company and
temporary competitive advantage, it becomes as permanent competitive
advantage

In practice, the VRIO analysis is also used in combination with other analytical
techniques to help organizational management evaluate business resources in a
more detailed view. For financial resources, there are many detailed financial
indicators that evaluate the financial condition or performance of the business
from different perspectives. Likewise, human resources, property or information
are other detailed indicators of their performance, efficiency or quality. The
advantage of a VRIO analysis is its simplicity and clarity.

Differentiate between Concentric and Conglomerate

Diversification while enumerating relevant examples
If a business sells only one kind of product, then its success or failure depends
entirely on demand for that single product. A business with a wide selection of
offerings, by contrast, is more insulated from shifts in demand. This is why
companies value diversification. It helps them increase sales and gain access to new
markets while reducing their risk. The difference between conglomerate and
concentric diversity demonstrates the breadth of diversification strategies available.
Conglomerate
In business, a conglomerate is a company involved in multiple lines of business that
have little relationship to one another. One well-known example is Warren Buffett's
Berkshire Hathaway, which owns companies as varied as utilities, newspapers, food
processors and furniture stores. Conglomerate diversity, then, refers to
diversification by entering entirely new and unrelated lines of business. If you owned,
say, a hardware store and then bought a car wash, you'd be engaged in
conglomerate diversification. Typically, companies achieve conglomerate diversity
through acquisitions -- buying existing businesses -- rather than starting new
operations from scratch.
Concentric
Concentric diversification involves adding new products or services that are related
to your current offerings -- either because they appeal to the same market or
because they can be offered without much investment in new resources (or both.) If
you own a bakery, for example, you might add a deli counter and start serving
sandwiches. If you produce table linens, you might start making curtains. If you clean
carpets for commercial customers, you might add services for the residential market.
You can achieve concentric diversity with acquisitions, but often it's a natural
outgrowth of what you're already doing.
Advantages
Concentric diversity aims for synergy -- using your experience and strengths in one
area to gain a foothold in another area. You use what you know about your bakery
customers to sell them sandwiches, or you use the same equipment to make both
napkins and curtains, or you take your commercial carpet cleaning experience and
apply it to homes. Concentric diversification can also provide a gainful use for excess
capacity. With conglomerate diversification, the advantage is the diversification itself
-- spreading the market risk across more sectors. If the hardware store business falls
into a funk, the car wash business may be able to carry the company. This kind of
advantage applies to concentric diversity, too.
Disadvantages
Although diversification is supposed to reduce market risk, it carries dangers of its
own. With conglomerate diversity, there's no guarantee that the businesses will be a
good fit. A hardware store owner can buy a car wash, but if you don't know anything
about how to run one, you'll have problems. And even if you hire someone to run it,
you may not be able to tell with confidence if it's being run well. Dangers of
concentric diversity include line overextension -- diluting the value of your brand by
trying to do too much. If your new products or services don't measure up to the
quality of your current offerings, that could hurt your existing sales as customers lose
faith. And with both types, there is always the possibility that the diversification will
just be a poor investment -- you'll misread the market and end up offering something
that customers don't want (at least from you.)