Business Strategy UNIT 7: Mission Statement

BUSINESS STRATEGY
UNIT 7: Business Strategy
Task 1
1.1

BUSINESS STRATEGY
An organisations mission would be a formal summary of its core values, aims and methods of
achievement. It may identify their target market or consumer, their range of products or services
and how they go about their business.
For example, the mission of statement of Nike is “to bring inspiration and innovation to every
athlete in the world". The legendary University of Oregon track and field coach, and Nike co-
founder, Bill Bowerman said, "If you have a body, you are an athlete" (Nike 2015a). An
organisations vision would highlight the aspirations for the future of the organisation, generally
based on economic anticipation. This would include forecasts for growths internally and
externally. Nikes defines its mission and vision in terms of meeting their customers needs, rather
than simply saying increased sales, which shows their vision for innovation year after year.
Goals are generally outcome statements that show the intention of an organisation in its efforts.
Usually, several different tasks or programs will work together to achieve an end goal. Objectives
are accurate, measureable, time-based actions that aid in the achievement of specified goals.
Objectives typically should be clear, concise and understandable to all involved. They should be
measureable to time and performance, being set realistically so that the goal can be accomplished.
Such as setting the objective to open five new Nike stores, to achieve the goal of increasing market
share.
Core competencies are unique things that make an organisation stand out ahead of competitors.
For example, the gained knowledge and technical capabilities from years of experience give Nike a
competitive advantage. They also have a strong brand image.
1.2
A strategic plan is a set of processes undertaken in order to develop a range of strategies. It
comprises of being aware of the environmental, the existence of idea or formal documentation of
a future strategic courses of action andbeing aware of both the short and long term implications
of the strategies (Balasundaram 2009). Environmental analysis is where external and internal
factors affecting the strategic plan (such as competition analysis, economical or political
awareness or technological analysis). The results can be used and interpreted to alter strategies,
in an attempt to gain a competitive advantage that is more sustainable going into the future.
Strategic planning is a process, not an event. It is important to consider how all staff will be
collaborated in the plan, to make sure all levels engage well together. This will ensure everyone
fully commits and works towards the common business goal. How the strategic plan will be
communicated to stakeholders will be an important determinant of it’s success and should be
considered during the formation of any plan. Bottom-Up or Top-Down approaches can be used,
with a mixture of both to ensure that all vital information is easily available and understandable
to everyone involved. Feedback from surveys or focus groups can help give input into the
strategic planning process.
Most strategic plans involve many different projects to achieve the end goal. It is important to
consider how these projects will be prioritised during the planning process so that strategies can
be carried out in the most effective manner and time is not wasted in the future (Stanleigh 2015).

BUSINESS STRATEGY
Another factor to consider when formulating the strategic plan is the organisations culture. By
understanding the beliefs, values and behaviours of the organisations people the best way to
carry out a strategic plan will be more obvious.
1.3
There are many different techniques that can be used to formulate a strategic business plan, each
with their own strengths and weaknesses. They help to develop procedures that can be applied to
develop effective strategic plans. The most commonly used examples would be SWOT analysis
and PESTLE analysis.
SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. It helps give an all
round picture of the environment that will be affecting the strategic business plan, through
analysing external (Opportunities, Threats) and internal (Strengths, Weaknesses) factors. These
factors will help give input into the formation of aims, goals, objectives, strategies and
tactics.Nominal ranking can be used to help prioritise a long list of items, such as the results of
SWOT analysis. Voting systems or classification systems can be used to prioritise items in order of
importance or relevance. This can involve all members of the plan, to help determine the best
decisions.
PESTLE analysis stands for the Political, Economical, Social, Technological, Legal and
Environmental factors that will influence the strategic plan and should therefore be considered in
its formation. This looks at a mixture of internal and external factors that may be of influence. This
will help them plan for the future, protect their interests and take full advantage of the identified
opportunities. This is an effective technique since it is intuitive. It is reasonably easy to
understand, uses a simple layout. However, It does not take into account current and future
organisational capabilities.
Task 2
2.1
Organisational audits are activities that can be used to test whether the existing controls are
effective or adequate, and to measure how individual units are following the policies and
procedures laid down by top management. You may conduct an organisational audit through
appraising the various operational functions of an organisation, identifying the competencies of
the firm, which can then be used to give recommendations on for improvements’. They help
improve the organisation by identifying its strengths and weaknesses.
When conducting an internal audit for Nike it would be beneficial to look at how they manage
their resources (human, physical, financial and intangible). They benefit from being cost effective
in their streamlined management structure due to their experience in the industry and years of
improvements. They have a wide product portfolio and are constantly producing new innovative
products, leading the market in athletic footwear. They benefit from having a well-established
distribution channel that provides cost effectiveness. They utilise an effective outsourcing
strategy, using only sub-contractors throughout the globe. They enjoy a massivemarket share and
their huge profits, experience and expertise allow them to market their products well and benefit
from a competitive advantage.