Business Strategic Planning
Added on 2020-07-22
23 Pages6962 Words52 Views
Business DevelopmentFinanceLeadership Management
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BUSINESSSTRATEGY
Table of ContentsINTRODUCTION ..........................................................................................................................3TASK 1 ...........................................................................................................................................31.1 Strategic planning for business organisation ........................................................................31.2 Factors involved while formulating strategic plans .............................................................41.3 Various planning techniques ................................................................................................5TASK 2 ...........................................................................................................................................72.1 Organisational audit for business organisations....................................................................72.2 Environmental audit of company .........................................................................................92.3 Stakeholders analysis .........................................................................................................102.4 Develop a new strategy for company .................................................................................11TASK 3 .........................................................................................................................................123.1 Alternative strategies relating to substantive and limited growth ......................................123.2 Strategies for market entry and growth ..............................................................................13TASK 4 .........................................................................................................................................144.1 Roles and responsibilities of who is involved in implementation of strategies .................144.2 Resource require to implementing a new strategy .............................................................144.3 How to use SMART targets ...............................................................................................15CONCLUSION .............................................................................................................................16REFERENCES .............................................................................................................................17
INTRODUCTION Business strategy is an essential part of every business organisation as it assists inachieving the set goals and objectives. Managers develop strategies and policies in order toensure the future market growth and success of enterprise. Business strategy is a kind ofmanagement plan which supports in increasing the organisational performance and productivityas well. This is the way of achieving goals from competitive market as without having aneffective business strategy, managers cannot compete with external environment. ALDI is thechosen organisation in this present report which has over 10000 stores of retail products in globalmarket. Its annual turnover is more than €50 billion. The report involves mission, vision, goals,objectives and core competencies of cited organisation which are necessary for strategic planningof business organisation. Along with this, BCG matrix is used as a planning technique which ishelpful to develop strategic plans and policies. In order to analyse the current position ofcompany, SWOT analysis is done whereas Porter's 5 forces model is used for environmentalaudit. It is necessary for Aldi to do strategic evaluation which is helpful to monitor the futuregrowth of company. At last, SMART objectives are used that contribute in the strategic planningof ALDI. TASK 1 1.1 Strategic planning for business organisationStrategy refers to long term planning which is able to set the goals and objectives ofcompany. The concept of strategic planning determines organisational strategy and resourceallocation for achieving desired aim from target market. it is also helpful in describe the currentas well as future position of the company in target market. . Strategic planning involves some major elements as without them, it is impossible to makeplans. These are: Vision – It relates with a particular picture of business organisation which encompasseswith where it is and where it wants to reach in the future. Without having specific vision,no company can survive in the market. For instance- ALDI's vision is to increasecustomer satisfaction level by providing them high quality products and services.
Mission – It is the basic aim of ALDI that relates with the reason why organisation existsin the global market and what it does to attain the vision. Mission statement is a veryimportant task for every business organisation which is inspire employees as they can forit. ALDI's mission is to be the world's best and biggest supermarket retailer.Organisation is focusing to produce high quality food products it give an adequatestandard to ALDI in potential market. Goals – It is contextual planning in order to achieve target. For instance, top managementof ALDI decides goals and employees need to follow the same. It can be explained withthe way by which a company is going to achieve its mission. Main aim of ALDI Ltd. is tomake profit through increased sales. For that purpose, they always innovate the productsand make them more qualitative for enhancing the shopping experience of customers. Objectives are totally differ from goals. Every business organisation set some objectivesto sell its more products and services than its competitors. It can be developed toimprove any service or creating any new ones. ALDI focus on how to becomesuccessful in grocery market by sales orientation and marketing mix. Core Competencies are helpful to differentiate the organisation from its rivals. Ifcompany has competitiveness as it is capable to penetrate its potential market. ALDI hasmany core competencies i.e. skills, resources, activities etc. through which it can securecompetitive advantage in market. 1.2 Factors involved while formulating strategic plansStrategic planning plays a vital role in order to make a successful business organisation.It is done to start a new company, for creating a new department, new product development orany other undertaking which affects the organisation's future. Below mentioned some factorswhich put their impact on strategic planning of ALDI Ltd. are as follows: - Engagement – The key element of strategic planning process is to engage with all staffmembers throughout company. If the firm is not able to get together of its employees asit cannot be established cooperation and coordination among working activities. Staffengagement is helpful to generate extra input and build their commitment to the strategicplan. . In ALDI, it is necessary to include employees in strategic development to competewith the external market. 4
Company resources – It is essential for company to develop a plan or having an idea thatwill help it to achieve growth and success in the competitive market. Resources ofbusiness organisation are as- like capital, personnel, raw materials, space requirements,vendor relationship etc. Apart from this, if organisation does not have any resources tocreate a plan then it would stall its progress. Resources are another important factor ofstrategic planning which can put high impact on the firm because they are responsible tocomplete projects and tasks. Communication – There is a significant role of communication in strategic planning.Without having effective communication, manager cannot work properly. The process ofstrategic development becomes successful when top to bottom approach ofcommunication is taken. ALDI follows top down communication in which seniormanagement will discuss the strategic plan from employees and they will convey theinformation of project management . Communication also generates innovation,which isalso impact on strategic planning of company. Business organisations have to developtheir strategies to make an innovative and new product. Sometimes, companies are notable to find skilled and innovative employees which affect its production capabilities.Apart from this, project management is also a big task in strategic planning whichencompasses that managers have to plan all their working activities and complete themon time. Needs and wants of customers – Managers of ALDI limited also involves needs andwants of customers while developing the strategic plan of the company. If they canrecognise customers expectations as they can produce accordingly; this will helpcompany to achieve the competitive advantage. Future direction of competition- Managers needs to define the future direction of thecompany; it will help them to manage all work and tasks accordingly. Through whichthey can easily develop their strategies and policies in order to achieve the benefits oftarget market. Contents of strategic plan -5
A strategic plan is roadmap to grow a business entity. It needs some contents, such as –executive summary of the strategic plan, elevator pitch, mission statement of the company.Along with this, it also requires the determination of best opportunities for company in order topursue to achieve goals and objectives. Key performance indicators are also requires in strategicplan that involves number of customers and visitors who are connected with company. 1.3 Various planning techniques Strategic planning is the process of business organisation which is used in formulating,planning and resource allocation. There are divergent techniques of strategic planning such as-PIMS and BCG matrix. PIMS is considered to evaluate the results and actions of business projectand assignment. It is also helpful for the managers as they can understand as well as reacttowards external business environment. Apart from this, ALDI Ltd. also uses BCG matrix as itsstrategic planning technique. It shows a direct relationship between cash generators of themarket share. In this organisation, the Boston Consulting Group's product portfolio (BCG)matrix is designed in order to ensure long term strategic planning. In other words, such matrix isalso beneficial for company by reviewing its portfolio of products so that managers can easilydecide where to invest. BCG matrix is separated into four parts which are as follows:- 6
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