Understanding the Process of Strategic Planning

This presentation provides an overview of the strategic planning process in business. It focuses on a car manufacturing firm, Brown Motors, and discusses its mission, vision, objectives, and goals. The presentation also explores the macro and micro environment factors affecting business operations. Additionally, it covers the effectiveness of techniques like BCG Analysis and SPACE Analysis. References to relevant sources are provided.

Business Strategy
(Understanding the process of strategic planning)

Table of Content
• Introduction
• Business Mission, Vision, Objectives, Goals and
Competencies
• Factors to be considered while formulating plan
• Micro Environment
• Macro Environment
• Effectiveness of Techniques
• BCG Analysis
• SPACE Analysis
• References

Introduction
An action plan which assist in achieving different goals and
objectives in an effective manner is known as business
strategy.
It give a path which can be follow by company employees
that help in accomplishing goals and objectives in effective
manner.
This presentation is about a new enterprise which
manufacture cars for their customers. The name of firm is
Brown motors.

Contd..
Brown motors is established in 2011 and it has only 60
employees who work in the company.
It is a car manufacturing firm and its headquarters is located
at UK.
It is ranked in top 10 in the list of small business enterprise.
The organisation has provides best features, designs and
model of the car to their buyers.

Business Mission, Vision, Objectives, Goals
and core competencies
Company manager are responsible for positioning products
which assist in gaining effective market strategy:
Vision- To provides high quality products or services to
their customers that attracts more buyers towards the
particular firm brand which assist in developing growth.
Mission- The main motive of this Volkswagen is to build
trust in mind of customers and also create groups buyers
that enhance growth and development.

Contd..
Objectives- The foremost aim of company is to maximise
profitability by increasing sale of goods in large market
and also they create good reputation in workplace.
Goal- The major goal is to expand all business operation sin
all over the world which increase their sale of products or
services.

Core competencies
This is an essential representation of products or services
and other special features of Volkswagen car by acquiring
benefit at big marketplace.
Brown motors need to analyse their customers choice and
preferences, and also offers effective products.
 Price of goods
 Self appraisal
 Quality services

Formulation of strategic plan
There are different types of elements which can analysed an
action plan. Basically there are two types of business
environment that directly affects firm operations such as
Macro and Micro.

Macro environment
It is an internal factor which is controlled and manageable by
company. It affects business operations It help in analysing
by using SWOT analysis:
Strength
Offers Branded cars
Online selling products
Innovative and creativity
Weakness
Due to competition, limited market
share
Competition between similar
companies in market
Opportunities
Develop strong relationship
Innovate new ideas and plans
Threats
Increase cost of raw material
Entrance of new firm

Macro environment
It is external factors which is uncontrollable by company and they
need to analyse pestle so they can identify the external factors of
business environment.
Political-It is that factor in which government restrict on selling
some products. Company should change their rules according
to the system management.
Economical-If any change in taxation policy of government than
it directly affects on business activities and functions. Firm
need to modify their policies according to them.

Contd..
Social- It is used for growth and development of country
population. Volkswagen maintain culture and social
factors in an organisation.
Technological-Organisation need to adopt new
technologies and methods. It also aid in attracting
customers towards the innovative products.

Contd..
Environmental- Company should reduce wastage of material
during the process of production. It is important factor to
enhance profitability and productivity in the firm.
Legal- Government introduce some rules, plans, policies which
should be followed by company. This factor directly affects
business activities and regulated rules which are manage by
managers.

Effectiveness of Techniques
There are different techniques which are used by managers as to
analyse effectiveness of methods used.
The two strategies used by Brown motors are:
 BCG Matrix
 Space Analysis

BCG Matrix
The organisation is capable to divide and manage all the
products in a effective manner with this matrix. It assist
portfolio and investment management.

SPACE Analysis
SPACE analysis is describe to be an technique that is used by
company managers to control and plan future activities. It
help in evaluating an idea that is feasible for business
operations.
Financial strengths: The Brown motors is trying to boost its
profitability by 6% in next one year.
Competitive advantage: Strategic, Creative and innovative
approach.

REFERNCES
Scholes, M. S., 2015. Taxes and business strategy. Prentice
Hall.
Teece, D. J., 2010. Business models, business strategy and
innovation. Long range planning. 43(2). pp.172-194.
Bharadwaj, A. and et. al., 2013. Digital business strategy:
toward a next generation of insights.

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