HND Business L5: Strategic Planning, Mission, and Stakeholder Analysis

This report provides an overview of business strategy, emphasizing the importance of a clear mission, vision, objectives, and core competencies. It discusses factors to consider when formulating strategies, including market environment analysis, competitor analysis, and stakeholder analysis. The repor...Read More

BUSINESS STRATEGY

Business vision, mission,
objectives and core competencies
• Mission: Mission of an organisation is the rationale behind its set-
up and existence. It is regarded as the aim of an establishment and
this statement is very significant. Mission statements states the
actions that are to be taken to meet the business vision.
• Vision: It is regarded as the future desires which a organisation has
for the business. Vision statements of an entity also rendered an
understanding of the tasks that are to be completed in a specific time
period.

CONT.
 Objectives: Objectives are the the findings of the actions that are
planned to attain the organisational goals. These are the measure of the
progress that motivates businesses to work in effective manner. They
are also regarded as the guidelines that helps in work according to the
plan.
 Core competencies: These are the set of abilities possessed by an
organisation to gain competitive advantages over the rivals. This
feature helps entities in sustaining in the market places.

Factors to be considered while
formulating strategies
 Analysis of market environment: Before starting formulating any
business plan, it is essentially required to analyse all the internal and
external factors which are associated with the business.
 Analysis of competitors: Competitor or rivalry analysis is also a
significant assessment that should be performed by organisations to
sustain in the market place (Hoskisson, Shi, Yi, and Jin, 2013). For
this type of analysis the tool that can be used is benchmarking,
competitive analysis model, etc.

CONT.
 Stakeholder analysis: In order to create effective plan for the business
strategies, it is essential to determine the needs and demands of all the
stakeholders associated with it. The major segregation of it are buyers,
suppliers, employees, investors, etc.
 Allocation of the budget for the plan: Before implementation of any
business strategy in an organisation, it is essential to allocate al the
resources that will be required to accomplish it. An appropriate budge
has to be developed by the high level authorities before strategies
formulation

Effectiveness of the tactics to
inform strategic planning
All companies seeks for the maximum profit that they can generate from
any operations. There are some common method that are sued by most of
the firms such as market expansion, market entry, etc.
BCG growth matrix: There are four categories of this tool that fits into a
2 by 2 matrix. For each block, a tag is assigned and then the business
activities are positioned in them. It is as follows:
Stars: This box represents the high market growth and market share. At
this stage, the entities will require more financial resources. This is thus
to sustain the growth and to achieve the good market share.

CONT.
 Cash Cows: Cash cows signifies that there is a low growth of the
organisation. However, it had achieved a high market share.
 Dog: In this box, there exists a situation in which the entity will not be
able to gain the effective market growth. Also, the share of them are
low.
 Question Mark: The activities that are positioned in question marks
have high growth rate and low market share.

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