Understanding the Process of Strategic Planning

This presentation provides an overview of the process of strategic planning and its importance in business strategy. It includes a case study on Purbeck Ice Creams, a well-known ice cream making company based in Dorset. The presentation covers topics such as business mission, vision, objectives, goals, and competencies, factors to be considered while formulating a strategic plan, micro and macro environment analysis, effectiveness of techniques like BCG analysis and SPACE analysis. References are also provided for further reading.

Business Strategy
(Understanding the Process of Strategic Planning)

Table of Content
• Introduction
• Business Mission, Vision, Objectives, Goals and Competencies
• Factors to be considered while formulating plan
• Micro Environment
• Macro Environment
• Effectiveness of Techniques
• BCG Analysis
• SPACE Analysis
• References

Introduction
Business strategy is also known as a plan of action which is used
by company for gaining competitive edge over its market
competitors.
It sets a path that can be used by employees for achieving goals.
This presentation states about a organisation which is presently
serving into food and beverages market, Purbeck Ice creams.

Cont...
The company was established 29 years ago but today it requires
funds so that it can expand out of a limited area.
It serve ice creams and other food items which are not harmful in
nature.
Purbeck ice cream is a well known ice cream making company
which is based in the heart of Dorset that is Corfe Castle.

Business Mission, Vision, Objectives,
Goals and Competencies
The managers of company are responsible for preparing these as
to gain alignment and consistency in business process:
Mission: The prime aim of organisation is to ensure that they
are able to serve good quality of products across UK.
Vision: The organisation end goals are stated to be a top gun in
the field of healthy deserts sector. All the activities will be
performed as per quality and standards.

Cont...
Goals: The prime goals of company are to serve people with
items that enhances value for them and improves their life.
Objectives: These will assist in measuring organisation level of
achievement.
 The services need to be customer focused (keeping
satisfaction above 90%).
 Integrating innovation in producing products.
 Reducing chances of duplication.

Cont...
These are the core competencies that enables an organisation in
achieving competitive advantage in market.
Purbeck Ice creams is focused on ensuring that it able to provide
healthy food items to people, it is at present serving through
small restaurants and bakery shops.
The best capabilities that differentiates us from others are,
Innovation, honesty, hard work, smart way of production,
creativity.

Factors to be Considered while
Formulating Strategic Plan
Various factors are existing in
the external environment
and has to be analysed for
making effective strategy.
The company keeps on
evaluating internal as well
as external environment to
reduce level of impact.

Micro Environment
It is known as controllable environment that can be managed by
organisation by changing rules and polices.
They exist in internal environment and can be evaluated by
SWOT analysis.
Strengths
 Innovation
 Creativity
 Customisation of meals
 Healthy products, gluten
free, sugar free.
Weakness
 Higher level of competition
existing in market
 Limited growth due to
competition.
Opportunities
 Establishing relationship
with more consumers and
business partners.
 Execution of innovative
idea's.
Threats
 Major changes introduced
by rivals.
 Increase in the cost of raw
material.

Macro Environment
This is a uncontrollable environment factor that has to be adopted
by company or managed by introducing changes in their
strategy.
PESTLE is conducted:
Political:
 Government stability is a major issue for the business in
food sector. If there is instability it will increase prices of
basic requirements.
 Also unrest is a threat to any business

Economic:
 Growth rate of a country
 Rate of unemployment
prevalent in industry.
 Changes in rate of
interest, inflation rate or
fiscal policy has impact
upon company.
Cont...
Social:
 The distribution of money
between people at various
levels of society.
 Movement and availability
of labour in market.
 Changes in individual
lifestyle as well as needs of
people.

Cont...
Technological: There is constant changes in technological
aspect, such as changes in method of food processing and cost
of adaptation is also increasing which is issue.
Legal and Environment: These are different issues but changes
in environmental laws are forcing company to cut down
emission rate and install better equipments that provides
higher rate of productivity.

Effectiveness of Techniques
It is very important for managers to ensure that they are
analysing and evaluating all strategies and their
effectiveness.
The two strategies used by Purbeck Ice Creams are:
 BCG Matrix
 Space Analysis

BCG Matrix
The organise uses this method for categorising and managing
various products and services. This matrix allows managers in
understanding which product needs more investment and
which one has to be removed.

SPACE Analysis
This analysis technique is used by the company for managing its
activities and ensure that the idea generated suits company capabilities.
It is one of the best tool to evaluate a existing plan of action or prepare
a new effective strategy
Financial strengths: The Purbeck Ice Creams is trying to boost its
profitability by 4% in next one year.
Competitive advantage: It can be gained by using creative and more
effective approach.

References
Meskendahl, S., 2010. The influence of business strategy on
project portfolio management and its success—a conceptual
framework. International Journal of Project Management.
28(8). pp.807-817.
Mithas, S. and Lucas, H. C., 2010. What is your digital business
strategy?. IT professional. 12(6). pp.4-6.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary
theories of the firm: towards a synthesis. Springer Science &
Business Media.

Thank You