Business Strategy Formulation and Planning

This assignment delves into the essential components of business strategy formulation and planning, highlighting various techniques such as BCG, Porter's model, PESTLE, SWOT, and SMART tools. It emphasizes the importance of project planning and personnel roles in strategic management, providing a comprehensive understanding of business strategies for leaders and laggards.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1: Assessment of mission, vision, objectives and core competencies.................................2
1.2: Analysis of factors that are considered while strategic planning....................................3
1.3: Evaluation of two techniques..........................................................................................3
TASK 2............................................................................................................................................4
2.1: Current strategic positioning of Argos............................................................................4
2.2: PESTLE and porter five forces model............................................................................5
2.3: Significance of stakeholder analysis...............................................................................6
2.4: New strategies for Argos ................................................................................................7
TASK 3............................................................................................................................................7
3.1: Alternative plan related with market entry, substantive and growth...............................7
3.2: Justification of the selected strategies.............................................................................8
TASK 4............................................................................................................................................8
4.1: Assess the role and responsibility of personnel ..............................................................8
4.2: Estimation of resource requirement to implement new plan...........................................9
4.3: Use of SMART tools to attain targets.............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategies is a method or idea selected to carry about a desired future, such as
attainment of a objectives or answer to a issues using necessary resources. Like going to take
admission into new college for a new career. On the other hand, it is a business strategies that is
use by company's in order to attain a particular aims and objectives (Ackermann and Audretsch,
2013). A well effective business planning is formulated after considering various factors and
certain strategic decision making. It mostly consists of mission and vision statement of a
company, environment scanning and determining core competencies which is the main strength.
This project analyse various factors which is required during strategies formulation.
Some of the techniques that are used while formulating strategic business plan for Argos Ltd. For
this Space and BCG matrix are more useful for more accurate analysis. Further, this report
explain current market position of the company through audit report analyse and by using
PESTLE and Porter's five models. Significance of stakeholder is also be assessed and
presentation of new plan for Argos Ltd.
However, understanding of market entry, substantive growth and retrenchment of
company are determine and justified by providing positive suggestions. At last, assess of
different role of personnel in relation to strategy development are discussed and estimation of
total use of resources are also identify with the use of current strategies.
The main target of this project report is to provided effective learning knowledge of
Argos company administrative strategies and capabilities in order to create a plan in an
organisation (Azar, 2011). However, it is importance for Argos to identified that what is
happening in its internal as well as external environment and they are adopting necessary
changes. As, Argos Ltd is a British retailer company which is operating in UK. It is known as
one of the subsidiary of Sainsbury's. It is a limited company that is found in 1972 by Richard
Tompkins. It is situated at Milton Keynes, England. Till now this company is working with
almost 845 stores as mostly related with consumer goods. In 2016, about £4095 million of total
revenue is generated by the company.
It has approx, one billion of online visitors per annum those are making the company one
of the largest street retailers in UK. Argos was started with more than 1000 of staffs, taking
around £1 million during a weak time. It was purchased by BAT industry in 1979 for £32
million. They use to published Argos catalogues twice in a year. It consists of various
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information about its product lists, price and a number. These catalogues are complemented
according to seasonal sales flyers and price reductions on current deals. They are known for best
offers of products in the areas of technology, home and garden, baby products and nursery, toys,
sports and healthcare products. Some products such as clothing, jewellery and watches etc.
Overall report explain various information about Argos company and their business strategies in
order to increase their market position and future sustainability.
TASK 1
1.1: Assessment of mission, vision, objectives and core competencies
As, selected company Argos Ltd which is operating as a retail company which is
formulating their operation in online retailers, and catalogues of basic goods and services in UK.
There business strategies in to join and serve more customers with its product and services
according to the demand (Campbell, Edgarand Stonehouse, 2011). For this they are working as a
team to deliver more effective merchandise to there customer as per the current market demand.
Mission:
They are responsible for providing customers with superior value for money through
most convenient shopping experience.
Vision:
To provide the entire range of resources that made possible through recent technology
and help in attaining goals in more quick times (MISSION & VISION, 2015).
Goal and objectives:
Besides, covering overall market company wants to increase its sale that lead to generate
maximum profit and plan to attain maximum leadership in domestic market. The present
business condition is making new issues determining with safeguarding the interest of
shareholders and customers and building intensity.
Core competencies:
These are said to be that values which make them different from other competitors. These
as considers as important part of business strategies. It product services delivery is considered as
core competencies which make them different from others.
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1.2: Analysis of factors that are considered while strategic planning
In Argos Ltd, Strategic planning is used to attain long term and short term aim and
objectives through keeping all the factors which are affecting business operation. It mainly
related with internal and external factors that may impact the activities of businesses. Some of
them are:
Customers behaviours is changing: The bulks of Argos principle for a deal is focused
on the quickly changing quality of customers and their expectation to be capable to shop speedily
either in store, online and mobiles.
There will be few Argos shops on the high street: As, there are more than 840 Argos
shops currently operating across the UK but the point is that about 40 percentage of total stores
are getting close because of expire lease.
The Future of Home base: There is a planning to introduce private equity players in
order to increase there future home base. This will be transfer as soon as a business deal goes
through.
Setting targets: There prime focus is to captured as much market as they can to become
more effective supplier of quality product and services.
Planning according to various departments: It has been observed that there are lots of
department working for the same objectives. They need to make equal contribution form
production, HR, Compliance and other regulatory sectors.
1.3: Evaluation of two techniques
In order to determine correct analyse effectiveness of Argos SPACE and BCG matrix
techniques can be use as more effective tool. It will help to provide more accurate ideas for
future business strategies.
BCG Matrix: It divide business operations of company into four equal parts related with
growth rate and interest of market share of Argos company.
 Question mark: Investment in other parts of European countries are big challenge for
the company as sees high growth rates. But because of low market share they are not able
to cop up with according to their expectation.
 Star: The insurance business of Argos in other parts of the countries are the star units for
an organisation as it indicate more high growth and market share.
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 Cow: Since, after tie-up with sainsbury it has been in perfect position with their brand
values and market growth rate.
 Dogs: Some of the sectors of Argos are not performing well because of inappropriate
market share and growth which is at declining stage.
SPACE: It is known as analytical method which is used in strategic formulation and
further planning.
 Strategic: It is initial stage of business planning which is done in order to make their
product more effective for the customers.
 Position: They are delivering more creativity product and services to the customers in
accordance to develop effective market position.
 Action evaluation: All those necessary actions which are more useful for the company to
increase there market position and its profitability are taken into consideration. For the
betterment of Argos company they need to conduct daily analysis report.
TASK 2
2.1: Current strategic positioning of Argos
For betterment of future results company need to plan a perfect audit research which will
help them to prepare their current strategies more effective. The process of strategic plan involve
are:
 Resource audit: Those resources that are used in the organisation which is based on
human resources, technical resources etc.
 Value chain analysis: In this analysis, the process of developing each new product at
Argos will be determined in order to get product more profitable.
 Performance analyse: Argos products will identify with the present performances of
every product units, department etc (Ibrahim, 2015).
SWOT: It is related with internal performances of company regarding their product and
work operation performed by Argos Ltd.
 Strength: Around 1.1 million active store card customers and over 1.5 million email
database are presently operating in the market.
 Weakness: There is a Over dependence on UK market. Other one is related with the size
which is compare to its major products.
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 Opportunity: They have the great proportion of market without having digital TVs.
Chance of maximum vacation and outdoor entertaining costs.
 Threats: They are facing more problem with the other product brand as they offers use to
provide same variety in there product at the same costs.
2.2: PESTLE and porter five forces model
The business strategies mostly targets those external factors which are affecting more on
the performance of the business. Some of them are discuss underneath:
Illustration 1: PESTLE Analysis
(Source: Ivan Teh RunningMan, 2016)
 Political: It is related with decision which are made by current government regarding
development of products and services (Higgins, Omer and Phillips, 2015). As a results,
every is obliged to make sure that they are buying more new and quality products.
 Economic factors: With the current economic crisis in the country mostly due to the
moderating property markets and high product costs. The rate of unemployment goes to
5.8%. It had huge impact on the efficiency and performance of an organisation.
 Social factors: The people of UK have become more health conscious this made the
company to increase obesity rate and ill rate. The social requirements cannot be meet as
per the set standards.
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 Technological factors: Because of large innovation in trading market that consists of
packing, small snacks bars and recyclable design etc for new products.
 Legal: If there is large number of supply in market of consumable product the case of
product claims are also being arises.
 Environmental: For the better environment product safety and its Ozone-friendly
packaging can help to avoid maximum wastage.
Porter's Model analysis:
 Threat of industry competitors: The importance of using this analysis is to determine its
competitors those are responsible for threaten business as well as profitability of Argo
company.
 Threats of substitute goods: Because of private labelling large amount of other product
substitute are there in the market which are offering same kind of products.
 Bargaining power of supplier: As, per as supplier in the retailer company they have a
very low bargaining power because of private labels market share (Oestreicher-Singer
and Zalmanson, 2012).
 Bargaining power of buyers: This is basically associated with the ability clients have to
drive price down. It is affected by buyers as they always tried to switch from one
company to other.
 Threats of new entry: Every company is affected by forces of new entrants into its
market. It will take less time and money for a competitors to enter into a new business
and become a well effective in front of competitors.
2.3: Significance of stakeholder analysis
In an organisation, stakeholder are playing an active part to make company more
profitable with the available resources. It is the systematic process of collecting and determining
qualitative information in order to frame new business strategies for the company. As, they
consists of individual, leaders team and other social concern those are involve in formulation of
well profitable plan. For proper marketing strategies and developing corporate relationship and
overall business development (Pagani, 2013). They are the one who are responsible for business
expansion and to make the business more successful in coming time. Thus, concern managers
need to analyse the stakeholder s the more crucial aspects to understand how profitable their
demands can be meet.
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2.4: New strategies for Argos
In order to make Argos Ltd a more effective company as compare to other various new
changes are need to be done. Some of them are for an instance business growth and most of new
plans. Out of which Argos ltd will have to choose best one which is more desirable. The
planning of Argos is to develop some value and to make a focus on customer satisfaction. It will
be fulfil through better product and service delivery. In accordance to design a new product they
need to implement new strategies (Rahbar, and Abdul Wahid, 2011). They new products will
have more upgraded features that can replace the old one. Its major impact are shown over
profitability and market position. The most effective aspects of this planning is to gain maximum
competitive advantages over other company's. The sources of finance can also be the part of plan
in such a ways that maximum profitability and growth chances can be increased.
TASK 3
3.1: Alternative plan related with market entry, substantive and growth
Substantive growth: It is related with the increasing organisational total presence in a
specific business process, product line and industry etc. growth strategies are based on forward
integration. In which a align is formed with suppliers to purchase direct material. It will increase
the cost of expenses as well as cost of sales will also increase.
Limited growth: It is mostly related with substantive growth with only difference being
the total scale of growth. The test marketing would help the company to came up with smaller
packs of their goods an services so that major issues related with products can be solved.
Market entry: The best market which is providing maximum profit and growth
opportunities are need to be plan. It is mostly related with importing and exporting of services by
Argos Ltd. Joint venture, merger and licensing is the best possible sources.
Retrenchment strategies: Such planning is used in order to lower down expenditure
with the aim of becoming more capital strong business market.
3.2: Justification of the selected strategies
According to make company more effectively working with its limited resources they
need to follows right strategies which can make them more successful (Scholes, 2015). By
implementing to determine the correct solution for the issues of non-acceptance of goods. Argos
faces a problems of less acceptance in many countries where it sells its goods, the main issues is
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related with early positioning of products. Growth strategies is considered as more perfect
strategies for Argos as to make their product more effective for customers. The chosen growth
planning will help the market and open many of the ways to increase their market position in
front of others. The maximum investment is done in modification or delivering superior quality
in their product to their international as well as domestic outlets. In order to increase maximum
growth and sustainability it is crucial for them to implement employee retention strategies so that
extra costs can be controlled.
TASK 4
4.1: Assess the role and responsibility of personnel
The success of business plan is totally depend upon the marginal leadership. It requires
information that consists of various aims and objectives that aims to attain companies targets. By
implementing new strategies company can generate its production capacity at higher speed. It is
responsibility of HR administration to implement all strategies and plan in effective manners so
that maximum profit can be desired. Managers of Argos always help employees to do there work
according to their available skills and knowledge (Slack, 2015). The managers of company is
working on product development plan that will allows managers to attain the goals with using
latest technology. Some roles are:
 It is the duty of managers to use organisational policies which is best suitable for the
development of company as well as individual. Some government laws are also be
effective tools for them.
 Proper communication system should there in between top management and operational
level department.
 New strategies must be evaluated in front of top management so that chances of mistakes
can be overcome. Leadership style of motivation can be used in formulation and
coordination of team those are working on company's new projects.
4.2: Estimation of resource requirement to implement new plan
In formal business communication the set of resources required for the business for
development can be depend on organisation which is going to use in there business operation. In
order to implement new effective plan, this Argos company should use these main resources
which provide them maximum support (Spender, 2014).
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Human resource: The role of HR department is responsible for the development of
company. Because they unite all the departments together to get maximum out of it. It is concern
as backbone of company. This particular department is working for the benefits of future
profitability. They essential role of HR is to make available all necessary requirement which are
required for the development of company.
Time and material resources: For the purpose of strategies designing, there is a basic
requirement of time and costs which are used in formulation of business plan. Because these are
considered as one of major aspects which on that basis Argos are depending.
Financial resource: There are various sources such as internal and external sources. By
which financial requirements can be meet out. For this purpose equity financing and debt are
more suitable part of finance (Verbeke, 2013). It is totally depend upon finance manager to
choose best one that provide more profit to them.
4.3: Use of SMART tools to attain targets
As, it has been seen that not all targets are attain by individual with single handed. They
need a perfect tools and techniques which can help them to make their product more easy to get
success. SMART targets is more useful for the company's in order to attain their aims and
objectives in more easy manner.
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Illustration 2: SMART Tools used in Business strategies
(Source: Chad Walters, 2012)
 Specific objectives: The objectives of Argos business plan must be specific so that all
members should understand it in more clear manner. There prime objectives is to
generate maximum return from their available resources. Market share of Argos will
increase from 5 to 7%.
 Measurable: Whatever, goals are set by Argos company all can be measured in term of
time and cost.
 Achievable: Every plan which is made by managers for the purpose of profitability can
be attain in more quick time (Woodcock, Green and Starkey, 2011).
 Relevant: The resources that is used in the process of product development are must be
appropriate for them.
 Time bound: According to this, project plan should be time bounded which means it will
completed on time with minimum costs. By this outcome of company is more favourable
to take necessary decision. The project completion time must determine so that an
estimated of total return can be evaluated.
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CONCLUSION
According to this particular report, it has been found that business strategies are more
effective tools which is used by company to plan their future aims and objectives. This reports
consists of systematic plan for Argos Ltd company. The understanding of various factors and
techniques that is required in the formulation of business plan are discussed under this. Personnel
roles and strategies are the main key of this project that indicate their use in strategies
formulation. Various techniques such as BCG, Porter's model, PESTLE, SWOT and SMART
tools are explained in relation to project planning.
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REFERENCES
Books and Journals:
Ackermann, S.J. and Audretsch, D.B. Eds., 2013. The economics of small firms: A European
challenge (Vol. 11). Springer Science & Business Media.
Azar, O.H., 2011. Business strategy and the social norm of tipping. Journal of Economic
psychology. 32(3). pp.515-525.
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Coad, A., 2011. Appropriate business strategy for leaders and laggards. Industrial and Corporate
Change. 20(4). pp.1049-1079.
Higgins, D., Omer, T.C. and Phillips, J.D., 2015. The influence of a firm's business strategy on
its tax aggressiveness. Contemporary Accounting Research. 32(2). pp.674-702.
Ibrahim, A.B., 2015. Strategy types and small firms' performance an empirical investigation.
Journal of Small Business Strategy. 4(1). pp.13-22.
Oestreicher-Singer, G. and Zalmanson, L., 2012. Content or community? A digital business
strategy for content providers in the social age.
Pagani, M., 2013. Digital business strategy and value creation: Framing the dynamic cycle of
control points. Mis Quarterly. 37(2).
Rahbar, E. and Abdul Wahid, N., 2011. Investigation of green marketing tools' effect on
consumers' purchase behavior. Business strategy series. 12(2). pp.73-83.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise. OUP
Oxford.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Woodcock, N., Green, A. and Starkey, M., 2011. Social CRM as a business strategy. Journal of
Database Marketing & Customer Strategy Management. 18(1). pp.50-64.
Online
MISSION & VISION. 2015.[Online]. Available
through:<http://www.argos.lib.in.us/mission.html> .[Accessed on 30th October 2017].
Ivan Teh RunningMan. 2016.[Online]. Available through:<http://ivanteh-
runningman.blogspot.in/2016/05/pestle-analysis.html> .[Accessed on 30th October
2017].
Chad Walters. 2012.[Online]. Available through:<http://leanblitzconsulting.com/2012/01/new-
years-resolutions-smart-goals/> .[Accessed on 30th October 2017].
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