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Name: Ian Jay M. Descutido

Course, Year and Section: BSMA 3B

1. Discuss the role of strategy in business and how it impacts the success of the company's
vision, mission and objectives.

The role of strategy in business is that it is the way by which businesses could achieve their
goals. It will help companies to ensure that every aspect in the business is planned. This
means that the resources of the business are used in a way that it would benefit the business.
In other words strategy is like the compass of the business it guides the business on what
direction to take in order for it to accomplish its goals. Strategy impacts the success of the
company’s vision, mission, and objectives in a way that it will influence the fate of the
business. The company’s vision, mission, and objectives are the goals of the business, this
keeps the business motivated and on track. Vision, mission, and objectives of the company
are very necessary because they without this the company will not have a direction and
eventually will lost. With proper strategy the company will be able to achieve its vision,
mission, and objectives. On the other hand, without proper strategy business will not be able
to achieve its vision, mission, and objectives. Let say for example, a business has a vision of
expanding its business after a year, however, it failed to plan a strategy that would make
them different from other existing businesses in the market. As a result, instead of
expanding, the business chooses to stop its operation due to severe losses. This happened to
the business because they failed to plan how they will stand out from the already existing
businesses in the market. It is not surprising that people would patronize those businesses
that are already in the market than the new business that has just started its operation which
does not prove anything yet. Thus, having a strategy impacts the success of the company’s
vision, mission, and objectives in a way that it will tell the fate of the business. As what the
saying say, “failing to plan is planning to fail”, without strategy business is just simply
planning to fail.

2. What are the outcomes of the 2 companies, Zara and Kodak? What causes the success of
Zara? Why Kodak failed?

Zara met its success, while Kodak met its downfall. The cause of Zara’s success is its
strategy. The strategy of Zara is far different from other existing clothing brands. Its strategy
are it reacts to trend, and production are made where they are a lot of its retail stores. Zara
reacts to trend, one strategy of Zara is that it reacts to trend in that way it is able to produce
what people are looking for. It is very common to us people that we do not want to be left
out from the trends. Zara took advantage of it, it produces clothes that are on trend which
makes them attractive to the consumers. However, in order to keep up with the trend
whenever the recent trend is no longer on demand then its shift to new trend. In that way
Zara continues to still be attractive to consumers since it keep up with the recent trend.
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Another strategy that Zara made is that it produces its products in places where it has a lot of
retail shop. In that way it is easier for them to shift their products from the production to its
retail shops. With that stocks are replenish immediately. In other words, what made Zara
successful is that it has a strategy that really works for it. On the other hand, Kodak failed
because it failed to create a strategy that would make them still relevant even if there is a
constant change on the market. Kodak failed to adapt to the changing circumstances in the
business. As explained in the video, Kodak failed to adapt to the new trend which is the
digital photography. Instead they invested to things that are a little bit far from their
expertise. As a result, that strategy did not work for them. Thus, what made Kodak failed is
that it does not create a strategy that would work for them.