Business Strategy & Conflict Prevention

This assignment delves into the crucial role of business strategy in conflict prevention and sustainable practices. It analyzes academic papers examining how territorial considerations in business strategies can mitigate social conflicts. The assignment further explores the impact of green business strategies on competitive advantage and performance, highlighting the importance of information systems alignment with business strategy for optimal results.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PowerPoint Presentation...........................................................................................1
TASK 2............................................................................................................................................1
2.1 Organisational audit..............................................................................................................1
2.2 Environmental audit..............................................................................................................2
2.3 Significance of stakeholder analysis.....................................................................................4
2.4 New strategy..........................................................................................................................5
TASK 3............................................................................................................................................6
3.1 Analyse of appropriateness of alternative strategies.............................................................6
3.2 Justify selection of strategy...................................................................................................7
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel.................................................................................8
4.2 Estimated resource required for implementing new strategy................................................9
4.3 SMART targets.....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy can be termed as a plan which is developed by company so that they
can attain their long term targets effectively as well as efficiently. It caters growth and
improvement to the firm (Scholes, 2015). This is like a planning function and in addition, a
continual procedure. It is fundamental for each and every kind of company to formulate some
strategy and thus, they will do their activities in a proper manner. S&L Limited is one of the
leading retail firms in United Kingdom that is being chosen in the report and they are providing
the best goods and services to their clients. Fundamental aim of this report is to conduct internal
and external audit; hence, they can easily find out their environment. Rather than this,
Volkswagen is doing their business in automotive industry in UK and their purpose is to render
best quality items to their clients; as a result, they can gain competitive advantage. They make
strategies for their business so that they can lead in market. Target which is decided by them has
to be SMART.
TASK 1
Covered in PowerPoint Presentation
TASK 2
2.1 Organisational audit
It is required for company to determine their chances and in addition risk by doing audit.
It is essential for an employer to find out their internal and external elements as it can affects
their growth and success. Superior needs to determine demands of their clients; thus, they can
fulfil it within minimum period of time (Leonidou and et. al., 2015).
Manager has to do organisational audit, it will assist them to examine unwanted things as
it can affect business of S&L Limited. Along with this, it is needed for an employer to know
their hazards and for this purpose, they can analyse their books of accounts. For intrinsic audit,
company can conduct SWOT investigation, which is mentioned as beneath:
Strength:
 Brand image of firm is much adequate at marketplace which aid them to enhance their
incomes.
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 They are providing best quality goods as well as services to people at a sensible price,
which attract numerous clients towards them. Share of market of S&L Limited is very effective as compare to their rivals who are
manufacturing same sort of products and services for persons (Verbeke, 2013).
Weaknesses:
 In other nations, goodwill of company is not much appropriate.
 In some countries people are not familiar with their items and along with this services. They are not using new methods or techniques in their business, which can affect their
customer base in high ranges.
Opportunities:
 Brand image of firm in market is much efficient; therefore, if they produce new
merchandises for their clients then they can attract various people towards them. This will
assist them to enhance their profits. Manager of S&L Limited is also providing their goods online to individuals; hence, they
can purchase items online. It will aid them to take benefits from their rivals and along
with this, they can easily increase their reputation at marketplace.
Threats:
 It is fundamental for S&L Limited to expand their business, as their competitors are
continuously increasing their market. Therefore, if they want to compete them they have
to do it in an adequate way (Blackburn, Hart and Wainwright, 2013).
 Company is introducing new items to people on regular basis, if they are much effective
then firm can lose their market and it leads to increase their losses.
2.2 Environmental audit
To determine external elements, manager can conduct extrinsic audit, it will described as
below:
Porter's five forces: Threat of new entrants: It is required for an association to create some effective strategies
for business; therefore, they can not get affected by new company. Because if any
organisation is enter into marketplace they it can provide impact on existing firm's share
either directly or indirectly. But new association will cater some occupation chances for
people.
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 Bargaining power of supplier: It is necessary for an enterprise to make an appropriate
contact with their supplier, as S&L Limited is doing their business in retail aspect. Hence,
they have broad competition because other organisations is importing goods from
different nations at low prices. As a result, they will sell goods to people at reasonable
rates (Klettner, Clarke and Boersma, 2014). Bargaining power of customers: In UK, there are many firm who are doing their business
at retail sector; therefore, an individual can buy items from any association who are
offering their goods at less prices at compare to others. Threat of substitute: It is essential for an organisation to cater products under a single
roof, it will enhance their reputation at marketplace. It is must for company to utilize best
distribution system; thus, they can fulfil demands of their customers as per their needs.
This will assist them to take advantages form their contenders.
 Rivalry amongst existing firms: If there are minimum sellers of products and services
then competition is also less. Thus, to attain competitive benefits firm can use some kind
of strategies, for example: advertisement.
PESTLE analysis: Political factor: As company is doing their business in many nations; hence, it is needed
for them to follow rules and regulations of every state. There are many components
which can influence their business such as new laws, market, additional charges and so
on (Sabherwal, Hirschheim and Goles, 2013). Environmental factor: Too much alterations in rate of return can affect business of S&L
Limited. Therefore, it is must for them to do marketing of their items in an effective way,
as it assists them to improve their profits and in addition reputation at market. Socio cultural factor: Manager of association has to provide quality goods to their
clients; hence, they can satisfy their needs effectively. Technological factor: In modern times, it is fundamental for firm to use new methods and
along with this techniques so that they can beat their competitors at marketplace. They
can sell their goods to people on online. As a result, it will aid them to increase their
incomes and market share.
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 Environmental factor: It is must for an organisation to reduce wastage and develop eco
friendly items for their clients. As a result, they will secure surroundings from any kind
of damage and in addition harm (Leonidou and et. al., 2017).
 Legal factor: It is essential for S&L Limited to apply all laws into their business which is
required to follow by them. If manager is not doing this, they he can get punished.
2.3 Significance of stakeholder analysis
Bondholders are an important part for each and every kind of association because they
cater fund to them; therefore, they can do their operational activities effectively and along with
this expand their business. Hence, it is required for manage to take them into under consideration
while formulating strategies or taking decision. Stakeholders can be classified into two segments,
such as internal as well as external.
Examination of shareholder is like an effective procedure which assist company to take
assistance from social people. There are many sorts of stakeholder, some of them are named as
below:
 Primary
 Secondary
 Key bondholders
It is fundamental for an enterprise to study them in an adequate way. For this purpose
they can utilize some methodologies (Bentley, Omer and Sharp, 2013). Therefore, they can
easily attain desired targets effective as well as efficiently.
 Interest of shareholders.
 Possibility of risks.
 Performance which can affect other bondholders.
 It is must for manager to update their top authority about completion of project work.
 If nature of shareholder is negative, than it can provide impact to goodwill and in addition
profits of an association.
All above described points have to considered by an employer when they are developing plan
related to their bondholders. Manager need to use various steps before making any
modifications. Additionally, it is essential that it provides benefits to both kind of stakeholders,
internal as well as external (Martinez-Simarro, Devece and Llopis-Albert, 2015).
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 Internal bondholders will consist employees and it is required for superior to take an
effective decision which encourage them. Thus, they will do their work with maximum
effectiveness.
 Manager of an organisation can render some additional advantages to them, like
commissions, rewards, paid leaves and so on. It works as a motivational tool.
 It is necessary for superior to give them salary on particular time. As a result, they will
keep up their goodwill.
Therefore, it is required for top level management to develop plan appropriately. It will aid them
to give some benefits to bondholders. Instead of this, company has to provide best quality
products to their customers; thus, this will assist to maintain shareholder's interest in firm.
2.4 New strategy
It is needed for company to create an adequate plan for their business; therefore, they can
fulfil demand of their buyers in an effective manner (Chen and Jermias, 2014). Employer of firm
can explicate guideline as it will aid them to improve value of their items between their
purchasers. When superiors of an enterprise is going to introduce new or unique product to
people, then it is must for him to create an effective strategy. Every person has their own needs
which they want to accomplish. Hence, it is necessary for an association to produce goods in
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Illustration 1: Mendelow's matrix
(Source: Mendelow matrix, 2017)

creative way. This will help them to beat their rivals at market and along with this they can easily
enhance their revenues. It will cater growth and improvement to business of S&L Limited.
Company is using cost leadership strategy in their business; as a result, they can easily
get advantages from their contenders on prices basis. It is must for them to manufacture quality
items for their buyers, so that they can pull numerous people towards them. This will aid them to
increase their market share. Manager of an enterprise can provide training to their staff members;
thus, they will do their task more adequately (Haley and Haley, 2013). It will eliminate unwanted
cost form business procedures and this leads to enhance sales and in addition productivity.
Rather than this, manager can divide their market as per needs and wants of an
individual. Hence, they can easily accomplish demand of every kind of clients. It will increase
their profits and in addition reputation at marketplace. Along with this, they can compete their
rivals at competitive world.
TASK 3
3.1 Analyse of appropriateness of alternative strategies
Clients are essential for each and every kind of association, if they want to survive at
market for long terms and in addition to take benefits from competitors. Volkswagen has many
contenders at marketplace like Toyota. Hence, it is required for them to examine them in an
adequate manner (Mellat-Parast and et. al., 2015). For above stated purpose they can create plans
also as per circumstances. Several strategies can be utilized by Volkswagen, which are stated as
beneath:
Market entry: As indicated by this, an enterprise has to convey their goods and services
to their buyers on time as per their planning. If an association enters into global market then there
are many options which are accessible for them. This will comprises much cost and along with
this risk. It is required for an employer to organise contacts with other individuals appropriately.
For above stated aim, they can obtain another companies. As a result, they will get growth as
well as advancement. Also, they will accomplish their coveted targets within an adequate period
of time.
Substantive growth: For success and development at marketplace, Volkswagen needs to
improve their existing goods and target market. To decrease risk of their business, organisation
can diversify their products into distinctive markets. As a result, they can easily enhance their
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incomes. This will aid them to compete their rivals at competitive world. It can comprises some
elements, like:
 Turn around strategy
 Liquidation
 Divestment
Limited growth: To improve market share of enterprise, manager has to develop new
sorts of merchandises for their customers (Fontana, Sastre-Merino and Baca, 2017). Company
can provide their goods and services to distinctive markets; as a result, they can easily maintain
their reputation at marketplace. This will assist them to take benefits from their rivals and in
addition they will easily grow in market.
Retrenchment: By expanding business and items, an association can accomplish coveted
targets effectively as well as efficiently. If Volkswagen are not much able to fulfil needs and
wants of their clients, then they need to sale their resources. This form of strategy can be utilized
by company, if they want to become financial strong.
3.2 Justify selection of strategy
Market entry: If any organisation takes entry into new market, then this will assist them
to improve their reputation and profits. It is required for them to improve their contacts, if they
want to move their business in global market. Along with this, if company wants to be more
financial stable then they can use merger option.
Substantive growth: This strategy can be utilized by an organisation to reduce their risk
by diversify their products and services into distinctive market. It will aid them to improve their
incomes. By doing this, they will cater their items to numerous people. Thus, they can enhance
their market share and goodwill at competitive world. For success and growth, manager of an
enterprise can develop inventive goods for persons. To develop an effective policies for business,
employer needs to examine their surroundings (Malerba and et. al., 2015).
Limited growth: Volkswagen can use most adequate strategy for their business like item
development. This will aid them to compete their competitors at marketplace. It is fundamental
for an enterprise to create unique merchandise for customers; therefore, they can enhance their
goodwill at marketplace. Hence, it has been comprehended that, there are two sort of strategy
which can be utilized by company, such as market development and in addition penetration. For
this purpose, they need to be much financial strong.
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Retrenchment: If organisation is using liquidity selling into their business then they can
easily get financial assistance and this will help them to do transactional exercise appropriately.
Along with this, they can easily pay their advances and credits. It will help them to take benefits
from their rivals at competitive world.
Therefore, Volkswagen is using market entry strategy for their business. As it will assist
them to improve their market share and in addition profits (Amran and el. al., 2016).
TASK 4
4.1 Roles and responsibilities of personnel
It is required for an association to develop strategies for business as it will cater success
and improvement to them. Along with this, manager will do their work in a systematic manner.
Entire things have to be decided by an employer; therefore, he can lead his team effectively.
Organisation's personnel assumes an eminent role for strategy execution. It is must for superior
to perform their duties as well as obligations appropriately. Objectives need to decide by
manager' thus, they can survive for long term in market (Sabherwal, Hirschheim and Goles,
2013).
Roles and responsibilities which are associated with personnel are mentioned as beneath:
 It is essential for superior to distribute task to their employees as per their capabilities and
skills; hence, they will do their work in an adequate manner. Along with this, coveted
objectives will attain within a specific time frame.
 Manager need to develop an open communication system in company. Thus, people can
share their thoughts and ideas easily. Additionally, they will give some suggestions to
their employer regarding issues. As a result, it enhances revenues and goodwill of
Volkswagen at market.
 Furthermore, necessary duty of manager is to do their work in ethical way. When they are
taking decision for organisation, they have to consider interest of every people who are
doing job over there. It will assist them to retain their staff members in association.
 It is fundamental for superior to examine work of staff members timely; therefore, they
can determine differences and deduct it (Klettner, Clarke and Boersma, 2014).
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4.2 Estimated resource required for implementing new strategy
It is fundamental for manager to determine resources which are essential for their
business; thus, they can execute their work in an effective and efficient way. If they are going to
introduce new assignment then, manager has to find out those resources which are beneficial for
them; as a result, work will accomplish within a specific period of time. It will aid them to
improve market share and for this purpose they can also expand their market (Blackburn, Hart
and Wainwright, 2013).
Several essential resources are mentioned as beneath:
Finance: Without it no organisation can survive or do their business activities in an
adequate manner. If Volkswagen wants to expand their firm then also they need fund. If
reputation of an enterprise is much adequate at marketplace then they can easily get loan and
advances for their business.
Human resource: To accomplish goals and objectives within time organisation needs
sufficient people. They have to hire individuals for their association; thus, they can allot task to
them as per their capabilities and knowledge. If manger wants that their staff members do their
work effectively then they can provide training to them.
Relation with customers: It has to be appropriate, as they are end users of any products
and services. It is must for an employer to maintain healthy relations with them; therefore, they
can beat their rivals at marketplace (Verbeke, 2013).
4.3 SMART targets
It is fundamental for each and every kind of association to set targets for business;
therefore, people will do their work accordingly. SMART targets:
Specific: It is required for an association that there objectives need to particular. Hence,
workers will achieve it within a specific period of time. It is much associated with that what an
organisation need to attain, where and along with this when ?
Measurable: As indicated by this, goals which are set by superior has to be measurable.
This will include cost, frequency, quantity, deadline and so forth. For example: quantity can be
examined in percentage (Leonidou and et. al., 2015).
Attainable: It is must that objectives have to achieved within minimum time span. As a
result, firm can easily compete their competitors at competitive world.
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Realistic: Targets need to be real rather than fictionary. As it will cater success and
development to an enterprise.
Time bound: It is essential for an organisation that work need to be fulfilled within
period of time. Therefore, they can accomplish desire of clients as per their needs (Scholes,
2015).
CONCLUSION
As indicated by this report it has been concluded that each and every organisation needs
to develop some strategies for their business. Thus, it will assist them to attain coveted targets
and goals effectively as well as efficiently. It is must for manager to set mission, vision and
objectives for their firm; hence, staff members will attain it within minimum time duration. This
will aid them to beat their contenders at competitive world. In this report, there is a description of
organisational and environmental audit, which need to be conducted by an employer; hence they
can determine mistakes and competitors. If superior wants that every work to be done
systematically then they have to communicate about plan and procedure to their employees. As
a result, they will assist them in an appropriate manner.
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REFERENCES
Books and Journals:
Amran, A. and et. al., 2016. Business strategy for climate change: an ASEAN
perspective. Corporate Social Responsibility and Environmental Management. 23(4).
pp.213-227.
Bentley, K. A., Omer, T. C. and Sharp, N. Y., 2013. Business strategy, financial reporting
irregularities, and audit effort. Contemporary Accounting Research. 30(2). pp.780-817.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Chen, Y. and Jermias, J., 2014. Business strategy, executive compensation and firm
performance. Accounting & Finance. 54(1). pp.113-134.
Fontana, A., Sastre-Merino, S. and Baca, M., 2017. The Territorial Dimension: The Component
of Business Strategy that Prevents the Generation of Social Conflicts. Journal of
Business Ethics. 141(2). pp.367-380.
Haley, U. C. and Haley, G. T., 2013. Subsidies to Chinese industry: state capitalism, business
strategy, and trade policy. Oxford University Press.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics. 122(1). pp.145-165.
Leonidou, L. C. and et. al., 2015. Environmentally friendly export business strategy: Its
determinants and effects on competitive advantage and performance. International
Business Review. 24(5). pp.798-811.
Leonidou, L. C. and et. al., 2017. Internal drivers and performance consequences of small firm
green business strategy: the moderating role of external forces. Journal of Business
Ethics. 140(3). pp.585-606.
Malerba, F. and et. al., 2015. Dynamics of knowledge intensive entrepreneurship: Business
strategy and public policy (Vol. 38). Routledge.
Martinez-Simarro, D., Devece, C. and Llopis-Albert, C., 2015. How information systems
strategy moderates the relationship between business strategy and performance. Journal
of Business Research. 68(7). pp.1592-1594.
Mellat-Parast, M. and et. al., 2015. Linking business strategy to service failures and financial
performance: Empirical evidence from the US domestic airline industry. Journal of
Operations Management. 38. pp.14-24.
Sabherwal, R., Hirschheim, R. and Goles, T., 2013. 11 Information Systems—Business Strategy
Alignment The dynamics of alignment: insights from a punctuated equilibrium
model. Strategic Information Management. p.311.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online:
Mendelow matrix. 2017. [Online]. Available through: <http://www.open.edu/openlearn/money-
management/management/leadership-and-management/discovering-
management/content-section-1.4.3>. [Accessed on 2nd October 2017].
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