Business  Strategy Assignment Help

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Posted on Jun 17, 2016

Business  Strategy Assignment Help

Business  Strategy Assignment Help

Contents

Part 1-  The Strategic Planning  Process

2
1.1 Effect of mission  statement,  goals  and objectives  on strategic planning 2
1.2 Key factors to be assessed for strategic planning 2
1.3  Techniques  used to develop strategic planning 3
2.3  Importance  of stakeholder  analysis  for new strategy formation 4
4.1   Importance  of personnel  in strategy implementation 4
Part- 2 Report on strategic plan for Mark Lambert 10
2.1  Organizational  audit for Solitaire and Co 10
2.2 Environmental  audit  for the company 11
3.1 Competitive  marketing  entry strategies 13
2.4 & 3.2 new strategy  for Solitaire  and Co 13
4.2  Estimated  resource  requirement  for the proposed  strategy 14
4 .3 Evaluation  of SMART targets for the achievement  of the proposed  strategy 15
References 16

Part  1- The  Strategic   Planning   Process
1.1 Effect  of mission  statement,   goals and  objectives  on strategic   planning.
Strategy means firm’s  plan of action.  Mission  and vision statement work as foundation  for laying down organizational   objectives.  Mission   is the statement of purpose of an organization.  Strategic planning   is  done  to  achieve  the  mission.    Vision   gives  a  direction  to  achieve  the  mission. Strategic  planning   is  done  so  that  in  the  longer  term  organization   achieves   its   mission  by fulfilling  its vision.   Goal  is  a specific   short  term  target.  Objective  is   a measure  of change  to achieve  a goal.  Increase  mobile subscriber  base by 5000 can be a goal of Vodafone.   Increasing

25%   of  it by  December   2014  can  be  an  objective.   (Hill  & Jones,  2012).   Hence  vision  and mission  give the directional   input to the firm while goals and objectives  are ways to achieve the same

1.2 Key factors to be assessed for strategic planning

Factors which need to be assessed while making a strategic plan-
When to plan- company  has to understand  when planning  is needed.  Planning  may be needed at new  product  development   stage,  new  production   facility  procurement   stage or  at new market entry  stage.  For example  Vodafone  while  launching  there 4G technology  data plans  did lot of planning on the marketing  strategy.
Who  should  be involved-   The  Company  has to decide  who  all to  involve  in a particular  plan that’s  how many managers,  workers,  stakeholders  or directors  to be involved in each plan.
Role  of  planning-   The  role  of  planning    has  to  be  clear.  For  example   if  planning  aims  at increasing  sales  it should be focused on marketing  strategy.
Targets-  targets  are smaller  aims which are to be fulfilled  in the short run in order to achieve the bigger  objectives.    Targets  have  to  be clear   so that  plan  moves  in proper  direction  (Bamford

&West,  2012).    Planning  has to  be done talent  into consideration  all the factors  as all  of them contribute  in one way or another.
1.3  Techniques  used to develop strategic planning.
BCG   Growth-share    Matrix-   BCG  matrix   classifies    a  company’s    business   units   into   four categories  bases on its  market growth and market share.

Dog-  Low  market  share  and  low  growth  rate.  A declining  product  can be termed  as dog.  E.g. Diet Coke
Question  mark- Products  having  high growth  rate,  with  high  cash consumption   but low  market
share and less  cash generation.  E.g.  Coca-Cola’s   Fanta brand
Stars-  These  products  have  high  market  share  and  high  growth  rate.  Star  has  a  potential   of

becoming  a market leader.  E.g.  Samsung’s   galaxy smartphone
Cash  cow-  The  market  leader  of  a  mature  market,  this  product  generates  more  cash  than  it

consumes.  It has high market share and low growth.  E.g. Coca-Cola’s  black cola
For example  we can say the
Through  this analysis  company  can foresee which  of its question  marks and stars have potential
of becoming  a cash cow.
Directional  Policy  Matrix-  Is a frame work which categorizes  a firm’s  business  activities on the basis  of its market position  and market attractiveness.  The analysis  is performed  on the basis  of ability of each product area to achieve the firm’s  objectives.  Firm needs to identify  factors which determine   market  attractiveness   and  business  strength.    Products  lines,  segments  or  business units  are classified  on basis  of these factors as having high,  low  or medium market attractiveness and business  strength.   On this  basis  a firm  decides  whether  to  invest,  divest,  harvest  or grow (Ansoff,  2007).

There are a few more techniques  like  strategic  position   and business evaluation  matric (SPACE) and profit  impact  of marketing  strategy  (PIMS).  BCG matrix  is one of the best techniques  as it gives  a quick  and simple  analysis   of the opportunity  available.

2.3 Importance  of stakeholder analysis  for new strategy formation

Stakeholders’   analysis  is a review of impact  of stakeholders  like suppliers,  customers, employee, shareholders  and investors  on business.

Stakeholders  mapping  is done in order to understand  the orientation   of different stakeholders and to  develop  better  working  relationship  and  trust  with  them.  For  Example  doe  a new product launch stakeholder’s   like customers and employees  are very important.

Stakeholder’s  grid is  a technique  of mapping  the impact of stakeholders  on the firm.

Impact/influence   grid-  This  grid  helps  understand  which  stakeholder  has maximum  impact or influence over a project.

High impact,  high influence  stakeholders-   Such stakeholders  should be given full attention. Low Influence,  high impact stakeholders-  These need to be kept informed.

High  influence,  low  impact- These stakeholders  need to be kept satisfied.

Low influence,  low impact- These stakeholders  need to be monitored  closely.

The stakeholders  in each category differ from project to project and are subject to change (Hill & Jones,  2012).   Stakeholders  are the key people  who matter to a company  hence knowing which stakeholders  are more important  is  essential  for smooth functioning.

4.1 Importance of personnel  in strategy implementation.

Employees   or personnel  are crucial  for successful   implementation   of any strategy.  Sales  targets are achieved  by the workforce  on the field. A committed  sales force will be able to influence the customer  to a great extent. For successful  delegation  of work the work is distributed  into targets which  each  employee  has to achieve  within  a stipulated  time.  Many  companies  like Vodafone distribute  geographical  area between their  employees  and assign area based targets.  These targets help the employee  keep his job  in perspective.  Also  the entire project is divided  in to reams and each team is  given a target to achieve.   The team leader  then divides this target between members of the team.  While dividing  the target the leader  should keep in mind role of individual   as well  as the  team  in  order  to  achieve  it.   Every  employee  has  different  capability  and  capacity  hence company  cannot  expect  same  amount  of  target  achievement   by  all.  Benchmark  target  is   the

desired  level of target  which   should  be achieved  by an employee.  These  targets may change at different  levels in the organization  (Hussey,  2007).  At the end of the day it’s  the employee  who produces  and promotes  the product for the company  hence they are very important to company’s growth.

Conclusion-  A well-defined  strategic   planning  process  can help the organization   in  achieving  its objectives  in an effective  and timely way.

Presentation

Srraregic

..Planning          J>rocess

Strategic Planning

D  Strategic planning  is an organized  process   of defining  goals,  objectives, mission and  vision of the  firm.

D  It also  includes  analyzing  core  competencies, formulating     strategies  and  controlling  and monitoring these  strategies  (Bamford  &West,

2012).
Mission,     Vision    , Goals   and    Objectives

D  Mission    statement     is  the   statement    of  purpose   of  an organization.

D  Vision     gives    a  direction    to  achieve    the   mission

D  Goal    is  a  specific    short    term    target    serving  a  specified purpose           for   the   bigger     achievement      of  the  mission. Objective                  is  a measure    of  change  to  achieve   a  goal (Ansoff,  2007).

Key  Strategic  Planning  Factors

D  When  to  plan- A  company   has to  understand    when   in  the production    or  sales  process   planning   is  needed.

D  Who    should  be  involved-  The   Company  has   to  decide who all  to  involve   in  a particular  plan

D  Impact     on  managers-   Company   has to  assess    what impact a particular     plan    is  having     on  managers.     Is  a particular

plan    motivating     managers     or  not   (Bamford    &West,  2012).
Techniques  of Strategic   Planning

  • BCG Growth-share  Matrix   (Ansoff,  2007).

The    BCG     Matrix

Relative   Market        Share      Position    in   the    Industry

Hi;;J..       +20

Industry     Sales Growth      Rate (Percent)

!l,lediU>n         O

Hi;;ll

1.0

Me.cliUJft                                            Low

Sutars   (II) Question    Marks   (l)

?

Cash    Cows   (III)

pr

Do~s   (IV)

~

.50                                                        0.0

Low          -20

Techniques of Strategic  Planning

  • Directional  Policy  Matrix

Olt is  a frame work which categorizes a firm’s business activities on the basis of its market position and market attractiveness.

O On the basis of market attractiveness  and strength the firm can decide if it should invest,  divest, harvest or grove {Hill & Jones,   2012).

Importance  of stakeholder  analysis

O Stakeholders’  analysis is a review of impact of stakeholders  like suppliers,  customers, employee, shareholders and investors on business.

O Stakeholders mapping is done in order to understand the importance  of different stakeholders.

D Stakeholder’s grid is a technique of mapping the impact of stakeholders on the firm (Hill  & Jones,  2012).

Impact/influence grid-

DHigh impact, high influence stakeholders- Such stakeholders should be given full attention.

DLow Influence, high impact stakeholders- These need to be kept informed.

DHigh influence,  low impact-These  stakeholders need to be kept satisfied.

DLow influence,  low impact- These stakeholders need to be monitored closely (Hill & Jones,   2012).

Importance  of personnel  in strategy implementation

O Employees   or personnel   are crucial  for successful implementation    of any strategy.

O Sales  targets  are achieved  by the workforce   on the field.  Their  role  is of great  importance.

O Work force  is greatly  needed  at the stage  of selling the  concept  and  communicating    it to the customer (Hussey,   2007).

References

Theory to Implementation. New  Jersy  :  Taylor  & Francis.

Part- 2 Report  on strategic   plan for Mark Lambert

To

Managing  Director

Solitaire   and Co

Dear Sir,

2.1  Organizational  audit for Solitaire and Co

Organizational    audit   is   a  systematic,  periodic   and  comprehensive    evaluation    of  a company’s environment,    strategies,  objectives  and activities  to  find  out areas  of  improvement.  There  are various  ways  to conduct  it

Benchmarking-   Benchmarking   is  comparing  own  performance  with  industry   best practices.(Henry,   2011).   Solitaire and Co is known for its quality  chocolates  but if the company wants to diversify  into non organic  confectionaries  in Europe  it needs to upgrade  its machinery, distribution  network and supply chain to match industry standards.

SWOT  Analysis-  SWOT  is a method  of analyzing  the external  and internal  environment  of the company.   Strengths  and  weaknesses   are  internal  while  threats  and  opportunities   come  from outside environment

Strength- Quality organic range product is a major strength

Weakness-  No experience  of selling  in Europe  and outdated  machinery  which  is  30 years old  is weaknesses.

Opportunity-  Huge market in Europe is  a big  opportunity.   Single European  market can give  huge sales  and profits to the country

Threats- UK membership  of EU is  in doubt which could land  the company  in trouble.

Value  chain  analysis-   Value  chain   analysis   is  an analysis   of how the company  adds  value to a raw material  and converts  it into something  the customer  is  ready to pay for.  It involves  inbound logistics,   operations  and outbound  logistics  (Bamford  &  West,  2012).  Solitaire  and Co aims  at diversifying  its range of product  into inorganic  confectionaries  for this it will  have to change its inbound  logistic   facilities.   It plans  to build new premises  for production   and get new machinery

to replace   the  outdated  one.  It also  plans  to tie  up with  distributers  and agents  in  various   EU

countries.

2.2 Environmentalaudit for the company

PESTLE Analysis-   This is  an analysis  of external  factors affecting  an organization

Political  Factors-   EU has massive  food tax regime  which needs evaluation  if relocation   is the aim

Economic  Factors-  If the company  diversifies  to Europe  it will be impacted  by industry   growth rate, inflation rate and trends  in business cycles affecting  Europe

Social   Factors-For   its  relocation  to  mainland   Europe  it  has  to  understand   the  social-cultural dynamics.

Technological  factors- The Company  plans  to shift to inorganic  ingredients   for which  it plans to procure new machinery.

Environmental  factors-Company  will have to adhere to EU norms of waste  disposal,    recycling of waste and minimum  C02  emission  (European Union,  2014).

Legal  Factors-the  Company  would   have  to  abide  by  EU  legal  directives   like   the  equity  pay directive,  workplace  distribution  directive and racial discrimination   directives

Barriers  to Entry

– “me and  cost  of  en

– Knowledg,;

– Economies. cf scal

– Cost eovantaces

–   echnology

– Barriers

Suppliers

– Numl:s-r of  suppliers

– Size of suppliers

– Switching  costs

– Unique service/product

try

e

STRATEGIC POSITION

– Ability to substitute
Substitutes

– Substitute performance

– Cost of switching

– Buyer willingness

Buyers

– Number  of customers

– Buying  volumes

– Drffereniiation

– Price elasticity

– Incentives

– Brand   identity

– Switching   costs

Competitive  Rivalry

– Number  of ccrncettors

– Exit barriers

– Niche.  quality

– Differentiation

– Switching   costs

– Industry  concentration

– Diversity of competitors

Figure 1:  Source:  Hill & Jones  (2012)

Competition  among existing  firms- Competition   in chocolate  industry is  intense.   There are many established  players  like Nestle,  Ferrero group and Lindt (CAOBISCO,  2014).

Bargaining  Power  of suppliers-   As the company  will need to tie  up with new agents bargaining power will be high  initially.

Bargaining  power  of the customer-  Due to many choices their  bargaining  power will be initially high.

Threat of new entrains-    As EU is one market there are low  entry barriers  but capital required for establishing   the plant   is high hence threat of new entrain  is moderate

Threat   of  substitutes   –  Various   cooking   flavors   like  vanilla   and   lemon  area  substitute    to chocolates  but,  most people  love chocolates   hence threat of substitute products  is  low.

3.1 Competitive   markeitng entry strategies

Organic  growth –  Organic  growth  is a growth  in company’s  business  due to growth  in its own business   rather  than  by  purchasing   another  business.   Solitaire  and  Co  wants  to  expand  its existing  business   to  mainland  Europe  by opening  up a new plant  there.  Hence  it  is following organic growth strategy.

Growth  by  merger  or  acquisition-  As  there  are  many  companies  already  in  this   industry  in mainland  Europe  a strategy  of purchasing  or merging  into an existing  firm can also  be adopted. Strategy of merger  or acquisition   of with  another  company  can give advantage  on technological and marketing  grounds.  Company will have to spend lesser  on innovations   and branding

Strategic Alliance-   Strategic  alliance  is an entry  strategy  in  which two firms agree upon certain pre  decided   objectives.  Alliance   can  be  for  partnership   of  distribution   channel,  production facility or technology  Solitaire  and Co can go into a strategic  alliance with existing  firms in order to gain access to the European  markets.

Franchising-  Franchising  is a strategy  of leasing  out for a specific  period  of time  a company’s business model and brand name.  A firm goes into an agreement with a local agent and he can sell in the name  of the company.  There  are certain  clauses  on maintenance  of ambiance,  employee standards etc.  which  the agent has to keep uniform .. As Solitaire  and Co is a successful  chocolate

brand in UK so it can use this method as an entry strategy.

2.4 & 3.2 new strategy  for Solitaire and Co

A company  can choose various strategies. Few of them are-

Horizontal  and vertical  integration-   horizontal   integration  is  partnership,   merger,  acquisition   or alliance with a similar firm. Vertical integration  is taking over suppliers’.

Related  and unrelated  diversification-   going  into  new markets  with  similar  business   is  related divarication  while starting a new business  is unrelated  diversification

The An off matrix Market penetration-  It is the strategy of increasing  market share of a firm in  its existing  market.

Product development-It  is the strategy of developing  new product for existing market.

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Market  development-  It is the strategy of developing  new market  for existing product  lines.   The product may get minor modification.

Diversification-   It is  the  strategy  of  setting  up  new  business   venture   m  new  markets  with diversifies  product

Market   development   strategy   is  suggested   for  Solitaire   and  Co  for  venturing    into  Europe. Lambert  finest  is  a good  brand  name  in UK  the company  should  use the  same to launch  the product   in  Europe.  This  wills  help  the  company  to  use  its  goodwill   in  a positive   manner. Goodwill  will  help  it in positive   positioning.   It can also  market  itself  in a way that customers perceive  it as an old brand  coming  to Europe.   Market  development   strategy  entails   expansion with new uses or new users.  The company will have to find new users through new geographical segmentation   in Europe.  Market  development   strategy  targets  new  customers  hence  company will be better able to position  its new inorganic content chocolate.  Company is planning  to tie  up with new agents, vendors  and distributers  in this case also market development  strategy is  more suitable

4.2  Estimated resource  requirement for the proposed  strategy.

Any new strategy  requires  resources  to reach the implementation  stage   Major resources which are needed are-

Finance-  financial  strength  is very important  because any new venture  costs a lot of money. The Company  is  planning  to venture  into Europe.  It would  require  finance  for setting  up plant  and machinery,   vendor  and  supplier  payments,  employees’   payment,   marketing  cost,  payment  of taxes  and  tariffs  etc.  For  this  purpose  the  company  is planning   to  become  a public  limited company to raise funds,

Human  Resources-  It is  the workforce  who actually  creates the product  and sells it hence good human resource planning  is  essential   for successful  strategy  implementation.    The company plans to relocate  and open a new factory  in Europe.  For this  the company  requires  skilled workforce managers,  supervisors,  marketing  and sales  staff and other administrative  staff. It can  transfer its

existing  employees  to Europe and also  recruit from local population.

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Material-  Material  requirement   should be analyzed  in detail while implementing  the strategy The Company  would  need to procure  the raw material  required   to produce  the chocolates.   It would also  need to buy new machines  as existing  ones are 30  years old.  For this  company  should  forge partnerships  with suppliers

Time-  Plan should  always  be time bound otherwise  it will never be achieved  Company plans  to achieve a sizable amount of marker share in  terms  of sales  within the next five years.

4.3 Evaluation of SMART targets for the achievement  of the proposed strategy

A  strategy  can  be  successful   if  its  operational,   corporate  and  individual  targets  are  met in  a specific,  measureable,  achievable,  realistic  and time bound  (SMART)  way   Through  the use  of marker development  strategy the objectives  of the firm can be given a direction.   SMART targets can help achieve the strategic  objectives in a fruitful  manner

Specific-  market  development  strategy  of developing  new market for existing  products  through specific  corporate  targets  like establishing   a factory  in  Europe,  arrangements  and tie ups with vendors and specific operational  targets like purchasing  new machinery

Measurable-   The  targets   should   always  be  quantifiable   so  that  they  can  be  measures.   For example  in the current  situation  targets  can be measures  on number  of machines  purchased  or

area of the factory premises  or sales  volumes.

Achievable-  target  should  always  be achievable.  Under  market development  Strategy Company should be able to achieve  its target of setting up new factory and buying  new machines.

Realistic-  target should  be always  realistic.   The targets  of Solitaire and Co of becoming a public limited  company,  new factory, new machines and distributer  tie  ups are very realistic

Time bound- timely target achievement  is a key to success of strategic planning;   Solitaire    and Co has put a time limit  of five years to achieve its targets.

 

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