Unit 7 Aspect of Business Strategy Assignment
This unit 7 component of business strategy assignment is designed to aid in the development of an individual’s current understanding of basic business analysis tools as well as the assessment of their strategic thinking skills. A stakeholder analysis in relation to a certain organization is required to demonstrate their knowledge with strategic planning. A strategic strategy will be implemented as well as monitored and controlled.
Task 1 – Personal Portfolio
Topics discussed in class
Week 1 – This was the first week’s introduction to the notion of strategy. The action plan that was pre-determined for achieving a certain vision or goals linked with the organization is known as strategy. For the achievement of organizational goals, strategy provides both direction and purpose. Not only does strategy help you get a competitive advantage over your competitors, but it also relates to the ever-changing characteristics of the corporate environment. There are both short-term and long-term strategic issues to consider. The ‘Business Level,’ ‘Functional Level,’ and ‘Corporate Level’ are all considered at various strategic levels.
Week 2 – In Week 2, a component connected to the Corporate Strategy Model was introduced. Porter’s Five Forces and PESTEL Analysis are two approaches for developing a strategic management strategy that he introduced. PESTLE Analysis is used to handle external concerns that affect a business, with each letter of the name ‘PESTEL’ denoting a different issue that affects the firm, such as political, economic, social, technical, environmental, and legal difficulties. Porter’s Five Forces theory identifies five assessment criteria: business-related competitive rivalry, supplier negotiating power, consumer bargaining power, risks from new entrants, and threats from substitutes. (2016, Bhandari)
Week 3 – In the third week, an overview of factors relating to competitive advantage is offered. Competitive advantage refers to the distinct edge that a certain firm or organization has over its competitors in a given industry. It also serves as an introduction to the notion of Strategic Capability. The segregation can occurs in three segments which are human, physical as well as financial.
Week 4 – The fourth week introduces the many difficulties impacting the strategic organizational goals. The notion of ownership is given a lot of weight. There is a debate over the fundamentals of corporate governance. In the current situation, the function of Corporate Social Responsibility, or CSR, as well as the significance of shareholders in an organization or corporation are briefly assessed.
This business model, which is made up of a ‘2×2 Matrix,’ was created by the Boston Consulting Group in the United States.
A two-dimensional assessment for efficient Strategic Business Unit management.
The horizontal axis represents market share (relative), while the vertical axis represents market growth rate.
The allocation of resources to business units is determined by their grid position and circumstance. The four compartments are made up of’stars,’ ‘cash cows,’ ‘question marks,’ and ‘dogs.’
The four portions are also known as’stars,’ ‘cash cows,’ ‘question marks,’ and ‘dogs.’ (Bradley, 2016) (Bradley, 2016) (Bradley, 2016)
Matrix of Ansoff
Market Penetration – A company’s purpose is to achieve expansion through using existing goods, with the ultimate goal of increasing market share.
Market Development – The firm’s goal is to grow by focusing available products on new market niches.
Product Development – The company seeks to produce new items that are aimed at current market sectors.
Diversification – New enterprises are diversifying by concentrating on the creation of new goods for new markets.
McKinsey Matrix is a matrix created by McKinsey & Company.
The vertical axis of the matrix represents industry attractiveness.
It is determined by factors such as market growth rate, demand fluctuation, and so on.
The horizontal axis represents the business unit’s strength.
The elements that are considered include market share, market share growth, brand equity, and many more.
International strategy refers to the plans that lead business transactions between companies in different nations.
Global Business Strategy – A global business strategy may be defined as an organization’s strategic roadmap toward globalization.
The Diamond of Porter
Conditions of Factors – A nation’s concentration is on the development of its own concerns, such as skilled resources.
When the overseas demand for a product is lower than the local demand, local companies give more attention to it than foreign enterprises, resulting in a competitive advantage when exporting.
Related and aiding industries — When local supporting industries are competitive, firms benefit from more cost-effective and creative inputs.
Firm strategy – The firm’s strategy is influenced by local factors.
Framework for Cage Distance
There are cultural, physical, administrative, and economic distinctions between the nations.
It might be useful for learning about diverse trade patterns, capital information, and many other things.
Innovation in Products and Processes
Product innovation refers to the introduction of a new or significantly improved product or service in terms of its qualities or intended usage.
These take into account significant advancements in technical requirements, components, and materials, as well as software, user friendliness, and other operational characteristics. Product innovation considers both new items and new applications for existing products.
The implementation of a new or considerably developed way of production or delivery that incorporates large changes in processes, equipment, and software is referred to as process innovation.
Methods of Strategy
Growth that is natural
It is a way of expanding a firm by boosting output, extending consumer base, or producing new products. It normally does so without taking into account the impact of foreign exchange. The term “core growth” refers to development that takes foreign exchange into account.
In contrast to the development that comes from the purchase of new companies, it is the development that comes from an organization’s businesses that existing.
Acquisitions & Mergers
In the case of a merger, the Boards of Directors of two organizations approve the merger and seek shareholder approval. Following the merger, the acquired company ceases to exist and merges with the acquiring company.
In the case of an acquisition that does not modify the company’s name or legal structure, the acquiring organization obtains the majority of the ownership in the acquired firms.
Strategic Alliance – A strategic alliance is an agreement between two or more parties to pursue a set of mutually agreed-upon goals while remaining autonomous organizations. Mergers and acquisitions, as well as organic growth, are examples of this form of collaboration. When one organization acquires the equity ownership of another organization and vice versa, equity partnerships are formed. The purchased share of an organization is treated as a minor equity stake, therefore the decision-making authority remains with the separate organizations. Strategic partnerships with non-equity will include a wide range of possible collaboration across organizations.