Unit 7 Business Strategic Planning Assignment
Introduction
Unit 7 Business Strategic Planning Assignment
Because it comprises all of the critical judgments required to envision them, strategy is the backbone for setting the framework for a successful process and planning. This framework is an important aspect of a strategic approach since it guides the organization’s growth and makes the best use of existing resources to satisfy the demands of its stakeholders. The strategic planning process and its importance are discussed in this study. Various planning methodologies, resources required, and responsibilities to be handled for strategy implementation have also been explored, with an emphasis on numerous firms used as examples to assist grasp the various parts involved in a straightforward manner.
TASK 1
a) Discuss the steps of the Strategic Planning Process. In this discussion, you should include definitions and examples for corporate vision, mission and objectives along with brief descriptions of the concepts of ‘core competencies’ and ‘competitive advantage.
Strategic planning is a business’s direction planning that pushes and guides it to the best possible outcome, assuring growth from where it is now to where it is planned to be in the future. This method is most likely to address the needs of all stakeholders in order to achieve the company’s vision and goal. However, just like any other business risk, this road map has obstacles that must be conquered and altered in order to fulfil the company’s goals. The efficacy of assessing both the internal and external corporate environment, employee competitiveness, and good communication are all factors in strategic planning’s success. Gaggl and Grunig (Gaggl & Grunig, 2013)
Corporate vision: It contains important measures such as R& D statements, profit earnings and share, competitive position relative to rivals, stakeholder relations, and customer value, as well as the owner’s vision for the firm. For example, an automotive parts distributor’s vision statement reads: Delivering quality at low cost and highest customer value to dominate the automotive parts distribution industry. Serving the appropriate need at the right time and in the right location!
Mission: It describes a company’s identity, including its market offer, unique selling proposition, and acknowledgement of its value commitments. It defines corporate goods, target markets, culture, and financial objectives. For example, the mission statement for an automotive parts distributor company might be something like this: To distribute quality products to the auto aftermarket, provide accurate information and service guarantees to customers, be a trustworthy company to all, and gain profitability through reasonable performance.
Objectives: These are the intended results that a company hopes to attain using its resources. For example, the auto-parts Distributor Company’s mission statement reads: Aiming to supply excellent materials at a reasonable price and valued distributorship by recognising needs and providing appropriate solutions. Providing employees with the information and recognition they need to respect worthwhile connections is also important. Chernatony (Chernatony, 2008)
After the corporate purpose and vision have been determined, as well as the objectives, a strategy must be developed so that activities and roles may be devised to achieve them. The strategy must then be put into action or implemented using various resources and within a set timeline.
Core competencies: These are the characteristics that set a company apart from its competitors in the industry by emphasising its uniqueness and value. For example, auto-parts distributors’ main expertise is driven by their USP (Unique Selling Proposition) of providing high-quality material at market-competitive prices.
Competitive advantage refers to a company’s capacity to hold consumer preferences and outsell its competitors in the marketplace. For example, an automobile parts distributor company’s competitive advantage is its market reliability for quality excellence at comparatively reasonable costs.
The function of strategy, which is essentially a corporate directed plan, is to offer emphasis or establish a competitive approach. It explains operations to fulfil objectives by identifying the strengths or features of the firm in relation to changes in the environment, allowing for efficient planning to adapt. This aids decision-making for effective results with limited resources. Overall strategy aids in the analysis and monitoring of a company’s growth. Strategy, according to Mintzberg, has five P’s:
The term “perspective” refers to how a company and its employees think and act. This pattern shapes an organization’s behaviour, responsiveness, and ability based on its culture. For example, with the auto-part distribution firm mentioned earlier, the focus is on high quality at a reasonable cost.
Plan: a step-by-step plan that outlines how objectives will be met. For example, in the case of an auto-parts distributor, the strategy should be centred on making the best use of resources in order to reduce expenses as much as possible.
The intentional or consistent approach to business is referred to as a pattern. For this distributor, for example, the selection is based on cost strategic advantages that were developed after thorough market research to maximise overall resources.
Position: This is a term that explains how a company responds in order to match its organisational demands with the needs of the environment. For example, this distributor’s approach is based on low price differential with high quality as a competitive advantage.
Ploy is a slang term for a clever advantage over competition. The strategic developed for this distributor, for example, may be low-cost bulk sales. This will enhance sales volume while keeping expenses low in comparison to competitors. (Prahalad & Hamel, 2010; Prahalad & Hamel, 2010; Prahalad & Hamel, 2010
Though beneficial, strategy can be thwarted by issues such as a lack of clarity in the aim, communication, information, approach, competency, and resources, among others. Other concerns may include leadership challenges, corporate culture, unreasonable expectations, and unforeseen changes brought on by customers, the environment, or staff.
Techniques for Planning
The BCG matrix is used to plan for the investment and market potential of a product or business portfolio. They characterise existing competency as well as the construction of future probabilities. This aids in the decision-making process for investments, product development, and product decline. Based on characteristics of stars, cows, dogs, and questioning marks, it determines growth and market share dimensions. 2007 (Griffin). This is seen in the diagram below.
Task 2
a)Explain to the interns how the ANSOFF Matrix OR the SWOT Analysis has helped you to carry out an organizational audit for one of your client companies
SWOT analysis is a valuable analytical technique for conducting organisational audits since it examines internal and external competency and resources in relation to the micro and macro environments of the firm. This tool aids a company in determining its own capacity and competitive advantage, assessing the status of competitors, identifying opportunities, and formulating a strategic response. (2009, Bohm)
The environment audit for Mulberry, for example, will assist in understanding PORTER’S 5 FORCES:
Threat of Alternatives: Mulberry’s products have a major quality that is difficult to reproduce, thus there isn’t much of a threat of substitutes. Furthermore, their production method and operational activities are so well-designed technically that their products cannot be substituted in terms of quality, and they thereby possess their uniqueness. Furthermore, because their clients are extremely exclusive by nature, moving to replacement items is minimal.
Buyers’ negotiating power: Mulberry’s buyers or customers have a lot of bargaining power since they choose value negotiation over cost switching. These rich and influential customers are more loyal to designers than to retailers. Mulberry is thus obligated to preserve its value chain.
Supplier bargaining power: Mulberry is a superb fashion business with a long history of workmanship. Furthermore, because qualified artisans are in short supply, suppliers have little bargaining leverage. Mulberry also places a high importance on its suppliers and believes in maintaining connections with them in order to carry on the company’s tradition of quality and originality. As a result, Mulberry and its suppliers are in a win-win position.
Competitive rivalry: Mulberry is a well-known premium brand that has carved out its own niche among customers. Furthermore, it has negligible switching costs. Though it confronts some rivalry from comparable prestige companies such as Burberry and Armani, it has no opposition from newcomers to the business, as competing on an equal level would need massive worthy expenditures. And emergents’ financial strength is clearly lacking.
New Entrants: Mulberry faces little to no threat from new entrants because they are a well-known brand in the premium business. Matching their brilliance and uniqueness would also have a significant economic value for new entrants who would take a long time to establish themselves. (Porter, et al., 2008)
c) Explain to the interns the significance of stakeholder analysis, that is usually carried out for your client companies by mapping stakeholders using the MENDELOW Matrix
Stakeholder analysis is the process of identifying the interests and power of all persons, groups, and organisations engaged in a business or project, whether directly or indirectly. It’s also a matter of controlling their interests in order to keep them convinced and loyal. Healthy connections, good cooperation, uninterrupted flow of resources, effective performance, strong decision-making, and strategic methods to adapt to environments, changes, and risk management are all benefits of stakeholder mapping. (Blokdijk, 2015) (Blokdijk, 2015) (Blokdijk,
Conclusion
It can be inferred from this discussion that strategies are critical for recognising and intelligently employing every business input so that a company’s growth objectives are realised with long-term sustainability, high productivity, performance, and profitability. This planning aids in making sound judgments so that various tasks and actions are carried out efficiently and on schedule. This is critical for a company’s effective operation and operation.
References
Bohm, A. (2009). The SWOT analysis. GRIN Verlag Copyright
Blokdijk, G. (2015). Stakeholder analysis: simple steps to win, insights and opportunities. Emereo Publishing Copyright
Bodenmuller, F., H. (2014). Leadership as framework for successful strategy implementation. Anchor Academic Publishing Copyright
Chernatony, de L. (2008). From brand vision to brand evaluation. Routledge Copyright
Gaggl, R & Grunig, R. (2013). Process based strategic planning.Sprienger Science and Business Media Copyright
