identify the three components of the business model used by \"Tough Mudder LLC:
ID: 429871 • Letter: I
Question
identify the three components of the business model used by "Tough Mudder LLC: Turning Mud Runs Into a Global Business." Distinguish the following concepts, using examples drawn from the case: corporate strategy and competitive strategy, strategy and tactics. What do you think is the role of Tough Mudder's sense of identity ("we know who we are and what we stand for") in influencing the effectiveness with which it implements its strategy?
Then, after reading Drucker's 1994 article, "The Theory of the Business," identify which assumptions correspond to the business model employed by the King of Shaves. Also, identify strategic elements in the basic framework for strategy (Figure 1.5) that correspond to other assumptions of the theory of the firm.
Explanation / Answer
Strategy : It is the main ingredient in the succesful business organization. It helps the system to understand the following
Strategy helps the organization to plan as.. how to get things done, choose a pattern a best alternatiove to the solution ,positioning the product to the right audience, and at the best perspective to the company. The differnt kinds of strategies are used in the market to attain a peak top position.
Corporate strategy : This defines how and when the company has to operate in the business world.It descibes the overall scope of the organization.
Competitive strategy: This strategy defines in the given basis ,the company stands in position of the market.This is a long term planned over its rivals and stand head on in the market.
Strategy and tactics : These togather bridge the gap between ends and means.These helpin formilating and carrying out the plan of action.
The diffrence between corporate and competitive strategies:
Corporate strategy defines the way in which the organization does the working and implements its planning in the system. It mainly defines what the company does. Where as Competitive planning defines where the company stands in the market in competition with its rivals and other competitiors. It descibes the capabilities of the company's strenghts and weakness in relation to market competition.
The difference between strategy and tactics.
Strategy defines the grand scope of the organization.It provides guidance in general and on-goind operations. It helps the system to deploy the plan of action before hitting the market. Where as Tactics has limited scope to the organization . It provides guidance on specific and situational operations. It employes quick to action and generally used during the organization.
The corporate strategy helps in defining the following questions :
The competitive strategy answers the following questions :
The strategy and tactics explains the following questions :
Hence the statement in the question given : the quote by Tough Mudders sense of identity " We know who we are and what we stand for " ...
The Corporate Strategy implements these statements and answers them. it decribes the company's goals and objectives. This strategy deals with the way the company offers its services and manufacture it products.
The article of "Theory of business " by Druckers . It defines the four specications of a valid theory in bussiness. They are as follows :
The business of king of shaves adopts the assumption of environment ,mission and core competancies.
This mode of assumption helps the company to know the ground details and market . It helps to understand the needs of the market and mould its new products accordingly. The company demerged from Knowledge and Merchandicing Inc. The company offers saving bonds 6% pa interests to its consumers. This helps the company to study the market and act acc. to the demand and supply.
The strategic elements of basic framework of strategy :
A breif description of these strategic elements :
Vision statements : These describe the policy and summarize the company objectives and used as motivational element.
Mission statements : This helps the company's purpose in a realistic mode. They set out the reasons that make the existance of business. They communicate the essential priorities with the company and set goals.
Strategic time frames: They provide the specific time frame which is righ to implement th eplan of action. They help the company to remodify their goals time to time and provide scope for updation. These time frames help to estimate the demand and supply patterns.
Strategic Objectives : These provide support as the backbone to the company. They communicate to the business teams and help set high standards to the company.
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