Impact of Business Strategy on Performance

This assignment delves into the crucial relationship between business strategy and organizational performance. It requires students to critically examine how different strategic approaches, such as cost leadership, differentiation, or focus, influence a firm's success across various sectors. The analysis should encompass real-world examples and draw upon scholarly research to substantiate claims.

BUSINESS
STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Apply appropriate frameworks to analyse macro environment for Glastonbury Festival.....1
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organization..................................................................................................................................4
TASK 2............................................................................................................................................7
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market.7
P4 Apply a range of theories to interpret and devise strategic planning for a given organization
......................................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Strategy is a systematic plan that helps a strategic manager in setting future
activities in a systematic manner so that targets could be prioritise and should be conducted on
their priority basis. Business strategies are helpful in getting future task done in most frequent
manner so that all actions could relate with each other so that remarkable profit could attain
along with grabbing competitive advantages (Scholes, 2015). These tactics are useful in
achieving success and growth in marketplace. Business strategy enables manager that he/she
could utilize all resources in optimum way so that entire sources could be placed in those areas
which are able in generating high results. Formulation of effective strategies and their effectual
execution is methods that showcase capabilities of a person. Glastonbury Festival is an event that
takes place in Pilton, Somerset in England. This is a five day functions which consist circus,
performing arts, cabaret, comedy, dance, theatre and other arts. More than thousands of people
came across the world to attend this fest in UK.
TASK 1
P1 Apply appropriate frameworks to analyse macro environment for Glastonbury Festival
This section comprises that all macro factors of external atmosphere that are very
important to be analysed for formulating an adequate business strategies. Environmental analysis
is a term that includes that some elements that influences occurrence of an event and also impact
festivals in negative and positive manner. (Johnson, 2016). Analysis of factor of macro analysis
are described below:
Political Factors: There are some aspects which is to be comprised in this section and
elaboration of these factors are described below: Serving Alcohol – In England, people are becoming more health conscious and because
of this reason, population of nation reduced their use of alcohol. Thus, if government
made rule that a certain amount of alcohol would be served in Glastonbury festival then
not more than this volume of ale could be served and this rule is beneficial for public but
on the other hand, it will be a losable factor for whom deal in this sector. Main reason
behind banning alcohol or deciding a fixed amount of ale is that in festival where lots of
activities are present where ratio of children upon total population is more than young
and adults (Verbeke, 2013).
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 Capacity – It is decided that how much capability a functions gathers and how
government allows that permission is a complex task. Health & Safety – It is clear that a place too much fun is exist in the form of various
activities then people take part in bulk and become audience of various sections. In this
type of food options are present so that all rules that are set by government in context of
food and safety should be followed and if it is not followed by host than this action leaves
negative impact on whole event. Labour Laws – Before hiring personnel then it should be recognised that whether
government did has not set any rules and regulations related to this and if it is found that
some policies are made for securing right of all labours than all rules should be followed
by host. For example for all kind of workers, government set equal wages and salaries
and this rate depends upon capabilities and skills of a person then this regulation should
be followed for smoother conduction of all activities that take place in festival.
 Taxes – Government that belongs to political factor of macro environment charges
several strategies and taxation policies is one of them. If Govt. frames different policies
for festivals and events then it should be positively adopted by host. Profit of whole
festival depends upon tax rate and if this value is more then profit would be low and on
the other hand if rates of taxations are less than it would generate high amount of benefits
along with more financial results.
Economic Factors: This factor includes some factors like demands and supplies, per capita
income of a country and many more. Some economical aspects are described below: Recessions – This term is defined as economic decline generally between two quarters
and in this time period activities of industries and trades are reduces. This action happens
due to reduction in gross domestic product of country. Due to recession, festival shon low
rate of public participation and this is reason behind low profit rate of event in some
certain years (Blackburn, Hart and Wainwright, 2013). Increased Cost – Festival are happened for every sort of people and all concerns related
to events should be relate with all age group and societal class individuals. Price of every
products and services that are present in any function should be economic so that all
income level person could purchase them and this type of behaviour further generates
high footfall of audience for attending festivals (Cascio, 2018).
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 Income – If earnings of a person is not so much high but moderate then he/she can enjoy
festivals but on the other side of coin, it is clear that if an individual earns low than it is
not possible for his to enjoy events. As United Kingdom is a developed country than
more than half public out of total are earning moderate and high income and because they
are able in enjoying all sort of events and this is the reason which makes a festival
successful.
Sociological Factors: This section comprises some elements that are having vital effect on
occurrence of festivals in a nation. These aspects are stated as beneath: Trends – To make an event successful, all trend necessarily to be followed so that young
and present audience could relate themselves. When new trend is not being followed then
festival would be considered as out dated and this factor will become reason of failure of
festival. Beliefs – There are some activities which directly affects belief of a person and these kind
of actions leaves impact upon nature of audience. This factor is having negative and
positive effect on working of host of festivals.
 Locations – If festivals are happening that place where reach of more public is not
possible than it is a cause of failure of that event and on the other side if festival is
happening in middle of country and adequate transportation and conveyance system are
available then this action will ensure success of festival.
Technological Factors – This aspect has significant role in success and failure of festival and
this segment involves many factors and elaboration of these elements are as followed: Equipment – There are various swings present in festivals especially in those events
where chances of reach of children are high than all innovative equipment should be used
in swings so that chances of occurrence of some unfortunate events could get removed.
Equipment could be installed in other workings tasks of associations then it will reduces
functionality of corporation (Schrader, Freimann and Seuring, 2012). Selling Online – In each sort of association, it should be asked that what are their
speciality which they are selling in festival then it is clear that on selling online is
responsible for reduced rate of audience. For example, if people order some unique item
over internet then sometimes they refuse to attend function because they have already
nothing which it could be productive (Parnell and et. al., 2012).
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 New Technology – If there are new and innovative technologies are present that could
make an event more successful that these techniques should be installed in events. For
example, now tickets for whole fest and selective activities could be purchased through
online and this type of behaviour will save and energy then a person can enjoy festival
from when at that time individual arrives.
M1
Atmosphere study can also be states as PEST/LE analysis and have positive and negative
impact upon business activities because it comprises political, economical, sociological,
technological, legal, environmental aspects that influences happening and non-happening an
event at place. This type of study provides some essential information to manager that how much
would be the success rate of a particular event by calculating most approximate accurate number
of audience. Results that are obtained with this analysis are very valuable and quite helpful in
decision making processes. It is not possible that all environmental factor posses only positive
factor. Sometimes there are some environmental factors that stops a business entity in entering a
new market and leaves negative impact. For example, if government made a policy regarding
increment in tax policies that it is a reduction in overall profit and hampers benefits of
corporation.
P2 Using appropriate frameworks analyse the internal environment and capabilities of a given
organization
Glastonbury festival is a most popular five day festival of contemporary performing arts
which held near Pilton, Somerset, England. It is active since 47 years and people enjoyed a lot of
arts, crafts, dance, comedy theatre and circus etc. SWOT analysis has four major elements which
are described as under:
Strength Strength can be considered as a power of an individual or firm which helps
in providing a significant direction to attaining high growth and success. As
a popular festival the major strength of Glastonbury Festival is that is has
wide target audience who are spending a huge amount in experiencing
various entertaining activities.
In the Glastonbury Festival the participation of people are increased as it is a
great platform to show talents and skills. In this people from different areas
are taking effective participation in various kind of cultural dance and art
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activities (Woerner and Wixom, 2015).
This kind of popular festivals are effective in developing economical
condition of country. This is also effective in enhancing the level of foreign
currency as in this people come from different geographical areas and taking
effective participation in various activities.
In this the validation of community groups are high and people can easily be
connected with long time in respect to taking benefits of various entertaining
activities.
VRIO Frameworks: This model consist four criteria which are value, rareness, imitable and
organisation.
Value: When all staff members that are associated with Glastonbury Festival are having
good values in order to provide quality services to their audiences and this thing is becoming
strengths of festival and responsible for success of Glastonbury fate.
Rarity: This function is quite unique and different and resources that are using in this
section is rare which is hard to adopt by competitors. This type of action is making this fate
successful and eye candy in the eyes of customers.
Imitablity: Glastonbury festival organisers are using good quality resources and skills
that are highly complicated to imitate which is a complex task for business rivals.
Organisation: Resources are highly efficient in providing their support in all
arrangements that are taking place in festival and due to this, event managers are capable in
managing all activities in most efficient manner.
BCG Matrix of Glastonbury festival
Glastonbury festival is the five days festival which are related to performance given by
different types of art by different individual it concerned with the contemporary dance, music,
the festival host dance, comedy theatre circus cabaret and other arts. Leading and pop and rock in
order to determine the effectiveness of this festival has different tools for their business strategies
of BCG matrix implemented. This approach helps to determine the effectiveness of this festival.
It has four cell matrix which is developed by BCG USA. According to this matrix business could
be classified as the high or low profit which is based on the growth rate and relative market
share. There are four cells of BCG matrix which are described as below:
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Illustration 1 BCG Matrix, 2010
Stars- it represent business unit having large market share in a fast growing company in
the marketplace. They may generate cash but because of fast growing market stars needs require
huge amount of investment in order to maintain strong position in the marketplace (Woodard and
et. al., 2012).
Cash cows – Cash cows represents business units having large market share in a mature,
slow growing industry. Cash cows need little investment in order to generate cash that can be
utilised for the investment in other business units. These SBU's are the corporation's key source
of cash, and are specifically the core business.
Question Mark- it represent the business unit which having low relative market share
and it is related to growth of company. Organisation require huge amount of cash to manage or
gain market shares. They are require to determine if the project can be viable. Question mark are
generally new goods and services which is provide by the management of the Glastonbury
festival.
Dogs: Dogs represented businesses having weak market share in low growth markets.
They neither generate cash nor require huge amount of cash. Due to low market share these
business units are faced by the cost disadvantages. Generally retrenchment strategies are adopted
by Glastonbury festival these business organisation gain market share because of high costs poor
quality ineffective market share Unless a dog has some other strategic objective in order to
enhance the performance of the organisation then the management do not able to expand its
business in effective manner (Wang and Verma, 2012).
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M2
Above analysis are very time consuming and also covers small area in their analysis.
SWOT analysis can be considered as a strategic planning technique which is widely applied by
an individual or organisation in respect to identifying strength, weaknesses, opportunities and
threats. On the other hand It is most important corporate portfolio determining tools. It gives
graphical representation for this organisation in order to determine the different condition of
market. This matrix also gives portfolio which related to market share and growth rate of
industries. Sometimes, internal environment is not ready to accept any change and tools of
intrinsic study generate negative results which is not adequate and accurate. For instance, tools
and techniques are not capable in finding actual capabilities of business entity and this action
eliminates market opportunities in reach of company. In festival there are many people who uses
plastic bottles and then throw them anywhere and this action of visitors sabotage arrangements of
festival organisers and reduces image of fate among audiences.
Weaknesses: This consist as disadvantage which has a huge influence on an individual or an
organisation. There are various weakness of Glastonbury Festival in which some are associated
as under: As a popular festival the major issue which is faced by the organisers is over crowed.
Large number of people are gathered just to taking advantage of services and activities which
cause issue in growth and development of festival.
It is also required for organisers and investors to deal with a great manner through planning and
preparation. As to conduct all activities in effective manner there is huge requirement of
sponsors. Additional staffs and volunteers are also required in respect to managing crowed.
Opportunities: Opportunities can be consist as the benefits for firm or an individual which helps
in providing a significant way ton develop skills and abilities. The Glastonbury Festival has
various opportunities for people and countries economic condition in which some are described
as under: Providing opportunities to people in respect to explore their talent and knowledge.
Provide a way to communicate with a new and wider audience. This is also effective in
distinguishing new themes which are effective in nature (Iacob, Quartel and Jonkers, 2012). This
is helps in exploring various kind of culture and norms. As a high profile event press, radio and
TV channels are concern on increasing their brand image which create value in growth and
success of firms. Creating awareness of local produces and also encourage community to spend
locally.
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Threats: There are various threats of Glastonbury Festival in which some are evaluated as
below:
The major weakness of the festival is to competing with various events which are popular in
between target audience.
Lack of planning and coordination among organisers and authorities.
Poor turnout is also measured as the threat of Glastonbury Festival.
D1
Above study showcases that to analyse all methods like PEST, SWOT and BCG Matrix
have limited area to discover and provides less direction in strategy formulation but if all are
conducted well then it can serve good results. Glastonbury festival is to be organises on vital
level and government provide support and sponsorships to this event. This function is highly
capable in attracting and attending more and more customers which is observed from past data
that is presenting that numbers of visitors are increasing on regular or year on year basis. This
action is enhancing capabilities of festival and now organisers have sufficient source to conduct
this event on very large level.
TASK 2
P3 Apply Porter’s five forces model and to evaluate the competitive forces of a given market
Five aspects of this model are presented below in the context of Glastonbury festival
which takes place in England.
Illustration: 2Porter's Five Forces Model, 2018
Competition in Industry:- This is an ability that could threatens a firm of event. More and
wide number of customers along with wider range of products and services are able in
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decreasing power of firm and event as well. In context of Glastonbury Festival, opening of
various amusement parks is a competitive situation because today’s world is a busy place where
everyone is busy in his/her life many time people do not have much time to attend a fest
frequently then they take support of amusement parks for relaxing and enjoying their kids. All
those relaxing activities that are presented by various businessmen are a good option over
festivals because all those facilities and fun that are provided in fests could goes to be enjoying at
malls and parks.
Potential of New Entrants:- If there is high chances of entering new ventures in same
industry than it is a critical situation for a company and festival host can get rid out of this
situation is by competing them very effectively and efficiently. In respect to Glastonbury, if
chances of occurrence of these type of events become high than this condition would impact high
on success of festival and reduces image of fest in the eyes of audience and on the other hand if
fest is having strong entry barriers then it will increases power of festival & host and this action
further makes a strong environment for festival. This element of Porter’s five forces model’s
points is that this elements provide information regarding how many barriers are present in
industry and how can these overcome by some host (Acquaah, 2013).
Power of Supplier:- This factor comprises that how much supplier is efficient in setting
price of a good or service in marketplace. It is affected by number of suppliers of some important
element of goods or facilities and how much peerless these factors are what will be cost of
switching from one supplier to another. A supplier holds more power when more than one
company depends upon this. In context of Glastonbury festival, there are prominent number of
supplier are present because this is a larger event that provides several opportunities to suppliers
so that competition among all supplier is quite high and this kind of actions makes all activities
very economic for audience otherwise they would not come for attending fest (Köseoglu and et.
al., 2013).
Power of Customers:- In case of Glastonbury festival, customers means audience who
came to attend fest. All activities that take place in an event depend upon number of customers
and not only this even success and failure of a festival also depends upon customers. In respect to
Glastonbury festival then there are high number of people who attend this fest in UK and not
only domestic public become audience but also individuals also come out side of United
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Kingdom. As per this point of view, there are many opportunities present that make this fest eye
candy among population.
Threat of Substitutes:- Fear of launching same kind of product or services or event in
marketplace reduces place of company in marketplace. In context of Glastonbury festival, if
government starts another festival with lots of more fun activities then people will get fascinated
towards that fest and this type of condition is a failure for Glastonbury festival. On the other
hand if Govt. put more efforts and investment in this festival it will become much enjoyable for
audience and they will come over and over again for attend this event. Glastonbury fest is an
event that takes place in England and having vast area and number of customers are some
situations that are able in creating threat for other hosts.
According to this model, it is notify that Glastonbury is a festival have not much
competition in marketplace but host of this event must analyse that whether their suppliers are
charging rate with monopoly or not because this situation is not so simple so every supplier
could handle this and because of this reason monopoly of suppliers could get starts the they
charged with hosts according to their price (Smith, 2013).
M3
Porter’s five forces analysis is a business tool that aids management in carry out a
research on competitors in various industries. Michael Porter introduced this method when they
analysed need of this kind of methodology for formulating effective strategies for business.
Major use of this tool is in understanding industry structure of an organisation along with in
framing corporate strategy for firm. Porter recognised five points that are increasing efficient use
of this approach. This is a wide tool which is good in analysing status of competitors. Porters
five forces strategy for market entry is quite good as it provides all information related to
surroundings of organisation like what are the power that suppliers have and this impacts
distribution system, buying capacity of buyers and this affects demand, business rivalry and it
means competition, threat of substitute and this is a fear of low price substitute product of firm;s
item and the last but not the least is stakeholders and this is a most important factor on which all
activities of association revolves.
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P4 Apply a range of theories to interpret and devise strategic planning for a given organization
In respect to Glastonbury festival, there are some theories that are applicable in strategic
planning are quite useful and makes a plan successful by generating higher profits for host of
event (Khalili Shavarini and et. al., 2013). These theories are stated as follows:
Classic 4 Step Approach for Strategic Planning
This is also stated as Situation Analysis of a company or festival. It comprises several points that
are elaborated further:
 Organisational History: It is important to collect because it provides information
regarding mergers; dissolutions, changes in senior staffs etc. and success of event
depend upon these factors.
 Previous and current strategies should be analysed for identifying gap between
both time scales.
 Financial aspects should be checked before planning and event because the entire
festival depends upon this.
Illustration 3 Situational Analysis, 2017
Next analysis is Future Direction and this states that where this festival wants to go in future
time period. This point involves some elements which are described as below:
 Vision: This is a goal that tells where a function wants to in certain long time period.
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 Mission: In this section, vision is distributed in small parts so that short term objective
could be set for better achievement of purposes (Alsudiri, Al-Karaghouli and Eldabi,
2013).
 Aims and Objectives: These are some requirements that should be prior decides so that
future activities could be planned and implement. This section involves SMART
objectives that mean Sustainable, Measureable, Attainable, Relevant and Time duration.
These points should be analysed before planning an event.
Third analysis is Strategic Development and this comprises that after analysing all facts and
figures and conducted an statistical study of all aspects then a strategy would be develop further
and this tactic provides path by walking that all objectives would get achieve in future.
Force Field Analysis: This factor relies upon thought that an organisation or event is not tactic
but dynamic and shows changes as per time pass. According to this model current situation is a
result of balance between opposite forces. This technique is developed by Kurt Lewin, a pioneer
in the field of social science. This is wonderful in showcasing status of planning and
implementing strategies for a particular activity (Barberá and et. al., 2012).
Illustration 4 Force Field Analysis, 2017
M4
Strategic planning is a necessary act which must be done by all kind of businessman to
conduct all operational and non-operational activities in a systematic so that all task could get
done in most profitable manner. Only a step-by-step function of corporation is able in catering
need of customers.
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(Source: Strategic Management Plan, 2014)
D1
This is a method which provides help in formulating strategies but have their own profit
and loss if applicable then it is said as strategic tools are wider area concept but it is hard them to
apply in real situation accurately. Application of this tools are quite complex and time
consuming and company requires experts
CONCLUSION
This report is summarised as that business strategy is a scheme that creates path for
business activities so that all task could get done in systematic manner and could generate higher
profit for organisation. There are some analysis that helps in analysing macro and micro
environment like SWOT and PEST study. Along with this porter’s five forces model helps in
finding rate of competition and number of competitors in marketplace.
REFERENCES
Books & Journals
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Illustration 5: Strategic Management Plan, 2014

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(Scholes, 2015) (Johnson, 2016) (Verbeke, 2013) (Blackburn, Hart and Wainwright, 2013)
(Cascio, 2018) (Schrader, Freimann and Seuring, 2012) (Parnell and et. al., 2012) (Woerner
and Wixom, 2015) (Iacob, Quartel and Jonkers, 2012) (Woodard and et. al., 2012) (Wang
and Verma, 2012) (Acquaah, 2013) (Köseoglu and et. al., 2013) (Smith, 2013) (Khalili
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Shavarini and et. al., 2013) (Alsudiri, Al-Karaghouli and Eldabi, 2013) (Barberá and et. al.,
2012)
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