Unit 7 Business Strategy Assignment Sample – Tata Steel
Introduction
Sample Business Strategy Assignment for Unit 7 Tata Steel has emphasised the company’s business approach in the United Kingdom. Tata Steel is planning to sell its operations in the United Kingdom, putting thousands of jobs at risk. The report will highlight the method and approaches taken to overcome the problem based on this circumstance. The evaluation of strategies is also taken into account while determining the optimum plan for Tata Steel. On this basis, substantial expansion is thought to be necessary to boost Tata Steel’s operations, which may be accomplished by taking into account more growth in other nations.
Task: 1 Report
1.1) Assess how business missions, visions, objectives, goals and core competencies inform strategic planning
The following is how business missions, visions, objectives, goals, and key competencies are linked to strategic planning:
Mission: According to the mission statement, a company like Tata Steel focuses on its performance metrics through providing value that makes the company worldwide renowned. Apart from that, Tata’s business procedures adhere to the principles of corporate ethics and place people at the centre of their operations. Thus the strategic planning considers the mission statement by the declaration made by Tata steel for the stakeholders about their business policies and philosophies which will attract them towards the business.
Tata Steel’s goal is based on increased value and corporate citizenship as a standard. The vision statement is mostly used to fulfil the purpose. By creating a benchmark for completing the mission, strategic sales planning may be linked to the vision statement. The vision statement, which serves as a framework for strategic planning, lays out the criteria for fulfilling the objective. Tata Steel (Tata Steel, 2016).
Goals for Business: Tata Steel’s business in Europe is based on five pillars: innovation, customer focus, responsibility, people, and operational excellence. Tata Steel puts both consumers and employees on an equal footing, with everyone’s safety as a top concern. More clients will be attracted by innovation, and modernisation in production and distribution will assure operational excellence.
Tata Steel’s mission is to become a prominent steel maker by providing steel products to markets such as automotive, energy, power, and construction. The aim is an important aspect of strategic planning since it establishes the organization’s objectives.
Core Competences: The primary resources necessary to meet the company objectives are core competencies. Innovation, operational efficiency, competent staff, training and development programmes, and periodic renovation of facilities via research and development are the basic capabilities that have helped Tata Steel become a reputable global brand. The strategies to attain the objective are also considered in strategic planning, and key competencies are the ways to achieve the aim.
1.2) Analyse the factors that have to be considered when formulating strategic plans.
The following method may be used to analyse the aspects that have a significant influence in the formulation of strategic plans:
Managers: It is the responsibility of senior management to establish a strategic plan for the organisation, taking into account business objectives, resource allocation, and activities in order to achieve the intended aim. However, while designing a strategy plan for the organisation, senior management must have the necessary expertise and abilities. Otherwise, the strategic strategy will be ineffective in achieving the aim. (Wheelen, 2010) (Wheelen, 2010) (Wheelen, 2010
Distribution: When top management develops a plan, it is the delegation of responsibilities among employees based on their expertise and specialisation that is to be shared. The organisation will be more productive as a result of this. However, the specialised personnel must be informed and trained in order to deliver performances that meet the top management’s expectations.
Targets: Targets are the benchmarks that management establishes as part of a strategic plan to attain a goal. However, the goal must be reasonable and attainable so that people are not demotivated in their work.
Resources: Physical, financial, and human resources are all needed for a firm to achieve its objectives. However, a lack of resources might make it difficult to meet the goals set forth in the strategic plans. (Lynch, 2014; Lynch, 2014).
A strategic plan’s most critical component is time. Each and every activity in a strategic plan is assigned a time frame in order to reach the goal on time. Fixing the time without taking into account the number of job activities, on the other hand, might demotivate employees. As a result, we can see that each aspect of a strategic plan has a role to play, as well as concerns that must be addressed in order to create a successful strategic plan for the firm.
1.3) Evaluate the effectiveness of techniques used when developing strategic business plans.
- BCG Matrix: The BCG matrix will assist the company in determining its position within the industry. The BCG matrix covers four different aspects: the question mark, stars, cash cows, and dogs. These four characteristics of the BCG matrix reveal four distinct images that need to be examined. The launch of a firm with a smaller market share than the industry share is denoted by a question mark. Stars indicate that the firm has improved its business and expanded its market share, indicating that it is in a growth stage. Cash cows are companies that have seen rapid development, but whose industry has grown saturated, indicating maturity.However, we can see from the study of a BCG matrix that there is a disadvantage:
The BCG matrix may trace the business’s peak and low points, but when the firm performs in a position that is neither high nor poor, the BCG matrix will not provide a genuine picture.
Only two criteria are included in the BCG matrix: the relative share of a firm and the industry. However, the most crucial element, profitability, is not taken into account.
- Mc Kinsey Matrix: The Mc Kinsey Matrix has nine cells in which the three parts of contract law, high, medium, and low, are evaluated. The attractiveness of the industry and the strength of the business unit are the measures for analysing the firm. The attractiveness of an industry is determined by characteristics such as its size, growth rate, profitability, and degree of competition. The strength of a business unit is determined by market share, brand equity (the public’s perception of the brand), and other factors. (2010) (Kotler).
Task 2
2.1) Analyse the strategic positioning of TATA steel Europe by carrying out an organisational audit
An organisational audit is a report that is generated to determine the organization’s assets. The organisational audit considers capacity, work processes, human resource competencies, work structure, financial status, and other factors while developing a strategic plan. There are several techniques available for performing an organisational audit, such as value chain analysis, SWOT analysis, benchmarking, and so on. Value chain analysis, among other methods, can assist in determining Tata Steel’s current situation as follows:
The logistics, operations, marketing, and service activities of the organisation are the primary activities, according to the value chain analysis.
Supported Activities: According to the value chain analysis, supported activities include human resources, technology, and the purchasing process.
Conclusion
As a result, we may deduce that Tata Steel can continue to operate in the United Kingdom without selling the factory. Tata may be able to achieve substantial development by horizontally integrating with other steel plants in order to compete with Chinese and Brazilian competitors. The BCG matrix and the GE matrix will be utilised in the Unit 7 Business Strategy Assignment Sample Tata Steel to demonstrate the efficacy of approaches employed in strategic business planning. The report also includes an organisational audit, which is used to identify the organization’s assets. The capability, work process, human resource competences, work structure, financial position, and other factors are taken into account in the organisational audit while establishing the strategic plan.
References
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Freeman, R (2010), Strategic Management: A Stakeholder Approach, Cambridge University Press.
Friedman L., A. (2011). Stakeholders: Theory and Practice. Oxford University Press
Harrison J., S. (2002). Strategic Management of Resources and Relationships: Concepts and Cases. John Wiley and Sons
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Norman., l. (2016). What Is the Business Difference Between Objectives & Goals? [Online] Available: http://smallbusiness.chron.com/business-difference-between-objectives-goals-21972.html , Accessed on 4.7.16
Proctor, T (2014). Strategic Marketing: An Introduction. Routledge
Steiner, G (2010), Strategic Planning, Simon and Schuster.
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