Corporate Strategy and Planning

Corporate
Strategy and
planning

Contents
INTRODUCTION............................................................................................................... 2
Q1...................................................................................................................................... 2
(I). Resources and VRIO Framework..................................................................2
(ii). Activities along with purposes of Organizational
analysis...............................................................................3
Q2...................................................................................................................................... 4
Comparison and Contrast among SWOT Matrix and Michael Porter's 5
Forces models assists in generating competitive advantages..................4
Q3...................................................................................................................................... 5
Connection between strategies and structure of organization................5
Q4. .................................................................................................................................... 5
Concepts addition to aims of MBO as well as Activity Based Costing....5
CONCLUSION..................................................................................................................... 6
REFERENCES..................................................................................................................... 6
INTRODUCTION
Corporate strategy is characterized to long tern vision which are set
by entities for building corporate value as well as encouraging staff members
to execute proper actions for attaining satisfaction of customers (Arasti
Khaleghi and Noori, 2017). Planning is said to thinking process that is
required to accomplish desired objectives. Present booklet includes
information about resources as well as VRIO framework in relevance to
Organizational analysis. It further includes explanation of activities addition
to purpose of organizational analysis. Further, differences and similarities
between SWOT Matrix with Michael Porter's 5 Forces model is done. It also
discusses connection among organizational strategy as well as organizational
structure. At last, concepts and aims related to Management by Objectives as
well as Activity based Costing are clearly explained.
Q1.
(I). Resources and VRIO Framework.
Resources: Organizational resources are defined to elements
including materials, money, employees, information addition to other things
which are utilized for functioning properly and to increase wealth of
business. In other words, resources are productive factors which are required
for completion of tasks as well as undertaking enterprise operations for
achieving desired results. When resources are analyzed by business
managers in holistic manner then it results in infallibility of organizational
strategies over time. Resources have huge relevancy with Organizational
analysis as organizational analysis comprises of assessment of resources
which influences organizational performances at huge level (Argenti,
2018). The evaluation of resource base and their potentiality is done
through organisational analysis. For instance, entities like Intercontinental
Bank Ghana, organisational analysis is done by determining potentiality or
capability of resources to attain results within set time.
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In short, resources have huge relevance in organizational analysis as
they ensure that managers develop competitive advantages to sustain in
future.
VRIO Framework: It is defined to one of the strategic tool that is designed
for uncovering as well as protecting resources together with capabilities
which aids in long term advantages in competition. It includes value of
resources, rarity of resources, imitability of resources and organized. Using
such framework, effective business decisions are made by managers of
company. While internal analysis of organization, the framework is used so
that resources are identified and evaluated properly. The framework has
relevancy with organizational analysis as VRIO framework assists in
analyzing and evaluating resources and capabilities of company. For
example, managers of Intercontinental Bank Ghana while performing
organizational analysis practices they ascertain that they are able to exploit
rare opportunities as well as neutralize external threat with capabilities or
resources. Further they also analyses that activities are easy or difficult to
imitate or the control of resources is in relative few hands and determine
whether firm organizes capture value or not. In short, the framework has
huge relevance with Organizational Analysis as it helps in uncovering
competitive advantages by analyzing internal capabilities of organization for
achieving ultimate goals.
(ii). Activities along with purposes of
Organisational Analysis.
Organisational Analysis is termed to the ongoing process of assessment of
developments, personnels, business operations, work environment or other
associations. It focuses on design addition to structure of entity and the ways
the systems, capacities as well as functionalities of organisation influences
outputs (Cook, 2015). It is among the diagnostic business procedure which
helps firms to understand their performances, identify opportunities, looking
problem areas and devising action plans to improve performances.
Undertaking procedures of organisational analysis in effective ways helps
managers in assessing existing well being together with capacity, planning
Activities of Organisational Analysis are explained through Values Chain
Analysis as it comprises primary activities and supporting activities. In
context to primary activity, it represents internal activities that are engaged
by entities while transforming inputs towards final outputs and adds vales in
production processes. Activities like inbound logistics, operational activities,
outbound logistics, marketing & sales and service are part of primary
activities. In contrary, supporting activities are those activities that important
to run business but not related with products. Firm infrastructure activities,
human resource management activities,procurement activities, research and
development activities as well as technology are said to supporting activities.
The strategic factors that should be assessed within such analysis are
production or operational factors, marketing factors, human resource factors,
research and development factors, information system factors and finance
related factors. In context to production factors, it comprises labour, land as
well as capital. In context to finance related factors, it includes funds
sources, financial control and funds usage associated factors. Considering
marketing factors, these are related to integrated as well as control related
factors, price related factors, promotion related factors, production related
factors, promotion related factors and promotion related factors. Within
human resource management factors, it comprises employment related
factor, industrial relations and maintenance related factors. In context to
General management factor, it includes factors related to strategy, external
relationship, organisation change, organisational culture as well as climate
factors.
The purpose of organisational analysis are to identify
inefficiencies addition to problems which have arised but not addressed
properly and further developing strategies to deal or overcome from them. It
addition, the purpose of such concept are to enhance general understanding
about organisational functions, planning for growth as well as
diversification, to improve effectiveness of entity and to solve problems of
organisation.
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