Strategic Management Basics: Vision–Mission, SWOT, Strategy Formulation and Implementation (Overview) Questions

Question 1

Define strategy.

Accepted Answer

Strategy is a long-term plan of action designed to achieve organisational objectives and gain competitive advantage.

Question 2

What is a vision statement?

Accepted Answer

A vision statement expresses the organisation’s future aspiration—what it wants to become in the long run.

Question 3

What is a mission statement?

Accepted Answer

A mission statement describes the organisation’s purpose—what it does, for whom it does it, and why it exists.

Question 4

What is SWOT analysis?

Accepted Answer

SWOT analysis is a tool to analyse internal strengths and weaknesses and external opportunities and threats for strategic planning.

Question 5

State any one level of strategy.

Accepted Answer

Business-level strategy is a level of strategy that focuses on how to compete in a particular market (e.g., cost leadership or differentiation).

Question 6

State any one importance of strategic management.

Accepted Answer

Strategic management provides long-term **direction** and helps the organisation adapt to changes in competition, technology and customer needs.

Question 7

Differentiate between vision, mission and objectives.

Accepted Answer

Vision, mission and objectives differ as follows:

| Term | Meaning | Time | Example |
|---|---|---|---|
| **Vision** | future aspiration | long-term | be market leader |
| **Mission** | purpose/scope | present + long | provide quality service |
| **Objectives** | measurable targets | short/medium | increase sales by 15% |

Thus, vision gives direction, mission states purpose, and objectives provide measurable targets.

Question 8

Explain the levels of strategy (corporate, business and functional).

Accepted Answer

Levels of strategy are:

- **Corporate level**: overall scope and direction (diversification, mergers).
- **Business level**: how to compete in a market (cost leadership, differentiation).
- **Functional level**: departmental strategies supporting business strategy (marketing, HR, finance).

| Level | Focus |
|---|---|
| Corporate | portfolio/scope |
| Business | competition |
| Functional | department actions |

All three must align for successful strategy execution.

Question 9

Explain the steps of strategic management process (brief).

Accepted Answer

Steps in **strategic management**:

1) Define **vision and mission**.
2) Set **objectives**.
3) Do **environmental analysis** (internal + external).
4) **Formulate strategy**.
5) **Implement strategy**.
6) **Evaluate and control** (measure results and correct).

Flow (write/draw): Vision/Mission → Objectives → Analysis → Formulation → Implementation → Evaluation/Control

Question 10

Explain SWOT analysis and how strategies can be suggested from SWOT (SO, ST, WO, WT).

Accepted Answer

SWOT analyses internal **Strengths/Weaknesses** and external **Opportunities/Threats**.

Strategies from SWOT:
- **SO**: use strengths to capture opportunities.
- **ST**: use strengths to overcome threats.
- **WO**: reduce weaknesses to exploit opportunities.
- **WT**: defensive strategy to reduce weaknesses and avoid threats.

| Combination | Meaning |
|---|---|
| SO | attack/growth |
| WT | defensive |

Thus, SWOT helps managers choose strategies that fit both internal capability and external environment.

Question 11

Explain the difference between strategy formulation and strategy implementation. (Any three points)

Accepted Answer

**Strategy formulation** is deciding the strategy, whereas **strategy implementation** is executing it.

| Basis | Formulation | Implementation |
|---|---|---|
| Meaning | selecting the strategy | converting into action |
| Focus | analysis + choice | resources + people + structure |
| Output | strategy document | action plans/results |

Thus, formulation answers **what to do**, and implementation answers **how to do it**.

Question 12

Explain competitive advantage and state any two ways a firm can achieve it.

Accepted Answer

**Competitive advantage** is a condition where a firm performs better than rivals because it offers greater value or lower cost.

Ways to achieve it (any two):
- **Cost leadership**: produce at lower cost (process improvement, scale).
- **Differentiation**: offer unique features/quality/service/brand.
- **Focus strategy**: serve a specific niche better than competitors.

| Approach | How it helps |
|---|---|
| Cost leadership | lower price or higher margin |
| Differentiation | customer loyalty, premium price |

Thus, strategy aims to build a sustainable advantage over competitors.

Question 13

Explain strategic management and its importance to an organisation.

Accepted Answer

Strategic management is the process of **formulating** and **implementing** strategies to achieve organisational objectives and build long-term competitiveness.

### Importance (exam-style points)
- Provides **direction** through vision, mission and objectives.
- Helps adapt to **environmental changes** (competition, technology, regulations).
- Improves **resource allocation** to priority areas.
- Builds **competitive advantage** by choosing a suitable strategy.
- Aligns departments and employees with common goals.

| Strategic step | Benefit |
|---|---|
| Analysis | identifies opportunities/threats |
| Implementation | converts plan into action |

### Conclusion
Thus, strategic management improves long-term performance and sustainability of the organisation.

Question 14

Explain strategy formulation and strategy implementation. Also mention why implementation often fails.

Accepted Answer

### Strategy formulation
Formulation is deciding **what strategy to choose** based on objectives and analysis. It includes generating alternatives, evaluating feasibility/risk and selecting the best option.

### Strategy implementation
Implementation is converting strategy into **action** through structure, resources, people, budgets and culture.

| Aspect | Formulation | Implementation |
|---|---|---|
| Nature | deciding | doing |
| Focus | choice of strategy | execution |

### Why implementation often fails
- Lack of **resources** and budget support.
- Poor **communication** and unclear responsibilities.
- Resistance to change and weak leadership.
- Strategy not aligned with structure/culture.

### Conclusion
A good strategy needs strong implementation systems, leadership and continuous monitoring to succeed.

Question 15

Prepare a simple SWOT for a small coaching institute and suggest one SO and one WT strategy.

Accepted Answer

### Simple SWOT (coaching institute)
- **Strengths (S)**: experienced faculty, good results, strong local reputation.
- **Weaknesses (W)**: limited online presence, small infrastructure.
- **Opportunities (O)**: growing demand for online learning, new courses.
- **Threats (T)**: new competitors, price competition.

| SWOT | Examples |
|---|---|
| S | faculty, results |
| W | low online reach |
| O | online demand |
| T | competitors |

### Strategies
- **SO strategy**: Use strong faculty + results to launch online batches and attract wider students.
- **WT strategy**: Improve online marketing and cost control to face competitors and avoid losing students.

This shows how SWOT converts analysis into actionable strategies.

Term	Meaning	Time	Example
Vision	future aspiration	long-term	be market leader
Mission	purpose/scope	present + long	provide quality service
Objectives	measurable targets	short/medium	increase sales by 15%

Strategic Management Basics: Vision–Mission, SWOT, Strategy Formulation and Implementation (Overview)

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