Business Strategy (Understanding the process of strategic

Business Strategy
(Understanding the process of strategic
planning)
Task 1

Table of Content
• Introduction
• Mission vision
• Goals & Objective
• Core competencies
• Factors affecting business
• Techniques for strategy evaluation
• References

Introduction
Strategic planning is a procedure of decide direction where
enterprise want to go and than allocate resources so
company can easily achieve the same. This is known as
one of the main responsibility of managers.

Mission, vision
Vision: Vision is known as the final state in which a firm want to
see itself after 5 years. This is the main aim for which company is
build.
Mission: Main objective of firm for which manager give
direction to al business activities is known as mission. Mission of
Johnson is to create and build a good relation with its customers
by offer them quality products.

Goals & Objectives
Goals: Goal of company is to use an effective method during
production of vehicles.
Objectives: Main objective of Johnson is to achieve the top
position in automobile industry. To achieve the same manager
of firm focus to use innovative technology.

Core competencies
Core competencies: Features and qualities of firm which
provide an advantage to company over its competitors is
known as competencies.

Factors to be considered while formulating
strategic plan
Internal factors:
 Skills of workers
 Values system of company
 Stakeholders
External factors:
 Political factors
 Economic factors
 Social factors

Effectiveness of Techniques
This method can be used by the Johnson to identify the
profitability related with every product, company sell
to its customers.

Cont..
This is divided in main four parts:
• Star
• Question mark
• Cash Cow
• Dogs

Porter's five force analysis
Second techniques which can be
used by managers of Johnson
for formulate effective
business plans is porter's five
force analysis.

Cont..
This technique includes the following:
 Bargaining powers of suppliers:
 Bargaining powers of customers:
 Threat of substitutes
 Threat of new entrants
 Industry rivalry:

References
Hsieh, Y. H. and Chen, H. M., 2011. Strategic fit among
business competitive strategy, human resource strategy,
and reward system. Academy of Strategic Management
Journal. 10(2). p.11.
Liedtka, J., 2010. Business Strategy and Design: Can this
Marriage Be Saved?. Design Management Review.
21(2). pp.6-11.

THANK YOU