Introduction To Set of Activities
Added on 2021-02-16
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4Introduction Set of activities that assists the company in achieving the objectives are termed as businessstrategy. Organizations through business strategy identify mission, vision and objectives andbased on these mission and vision develop plans and policies to accomplish the objectives.Business strategy is essential and important for organization as with proper strategy and planbusiness cannot operate successfully. To achieve the objectives of this assignment theorganization selected is Tesco. It is leading retail chain in the UK and operates in differentcountries around the world. In this assignment different concepts of business strategy will bediscussed and a new innovative product will be developed for Tesco. Task 1 1.1Evaluate the role of organizational values, mission,vision, goals and competencies in strategy formulation. Strategic planning can be defined as a process that identifies the strategy and direction of thecompany and assigns the resources to achieve the set goals and objectives. It is important tounderstand the current situation and future of the company to determine the direction of thecompany. Few main elements are included in strategic planning and preparing a strategic planwithout these elements is impossible. Mission: Mission statements defines the main objective of the company. The purpose ofcompany’s existence and how is achieves its vision is stated in it. For the company missionstatement is significant and motivates the employees to work as a team to achieve the visionand objectives of the company. There must be a synchronization between mission stamen andoperation of the company. For instance mission statement of Tesco indicates that its aim is tooffer value to its customer so that lifetime loyalty of these customers can be earned Vision: Vision statement defines what organization desires to be in future, or the objectives itwants to achieve in given time period. Usually, vision is developed based on the long term goalsand operations of the company in future. For every organization vision is inspirational and
4motivating. For example the vision statement of Tesco defines that it wants to be highly valuedby the customers and communities in which it operates, by the employees and other importantstakeholders. Goals: The desires of the organization are its goals or it is a particular target. Goals are short-term objectives of the company and are used to assess and review the performance of theorganization. Goal can be defined as the ultimate destination that an organization wants toachieve. Goals are developed by the top management and are communicated to all theemployees of the company. Strategic plan are then developed to achieve these goals. Forinstance in Tesco the top management develops the goal and plans for accomplishing the goals.Employees then according to the developed plans. When developing goals of the organizationmanagement must align the personal goals of the individuals with the organizational goals. Objectives: Objectives and goals are often treated as one and as synonyms by managers mostof the time, however they are two different concepts. Objectives can be used by theorganizations to measure the progress needed to reach a specific target. On the other handgoal provides the detail of the target. Steps necessary to achieve the goals are the objectives.Hence it can be said that objectives are part of goal however goals cannot be considered as apart of objective. Core competencies: Core competencies helps the achieving the success of the company.Company gains competitiveness through its core competencies. Competitiveness helps thecompany to successfully penetrate the market. For companies like Tesco, customer service andeffective processes are the core competencies. For manufacturing companies corecompetencies can include manufacturing process, supply chain, effective procurementprocedure and product development. Core competencies provides cross functional businessprocess hence they are necessary element for organizations to achieve success. Cost, qualityand outcomes must be measured by the cross functional business process.
41.2Choose/select an organization and analyze factors tobe considered when deciding its strategic planning andmonitoring of effectiveness. To achieve the goals of the organization strategic planning is significant as they direct the waysto reach the targets set by the company. Strategic planning has some important factors andthese factors must be analyzed properly and must be prioritized based on time and importance.Members involved in planning processAll the members within the company must be involved in the planning process. Involving all themembers helps in covering all the areas in the planning process and also helps in effectivedevelopment and implementation of the plan. Planning process is performed by the topmanagement of the company and middle management executes the plan (Batt and Nohara,2009). Daily operations are performed by the low level employees to accomplish the goals andobjectives of the company. Top level: Senior executives are included in the top level and they develop plans inTesco. Different factors like employee engagement, organizational growth anddevelopment are considered by them. In planning process important role is played bythe senior management level. Middle level: Middle level management is responsible for the implementation of theplan developed by the senior management. To effectively execute the plan middlemanagers ensures that there plans are effectively implemented within the company. Lower level: In the planning process lower level employees are also involved as theyperform daily operations related to the plan which are directed by the middle managers.This operation include, purchasing, inventory management and production etc. Short term and long term targetsTesco Long term objective is to constantly meet the needs of customer by obtaining theirperspectives about innovation, product quality, store services and facilities and choices andaccordingly take actions. To provide customer with products and services at an affordable price.
4Tesco Short term target is to develop the skills and capabilities of the employee’s by trainingthen and also develop the core competencies of the company. Appropriate timing for the planningPlanning is a continuous activity however plans must be developed within a specific time. In theplanning process all the objectives are separated in short, medium and long-term objective sothat all objectives must be achieved in time. Task 2 2.1Generate ideas for an innovative product or service.Focus on the following key steps: Idea generation Idea generation can be defined as process through which new creative ideas are identified bythe company to develop innovative product and services. In idea generation many ideas arebrought up in group discussion, then good idea or ideas are selected, plans are developed toimplement the idea, and feasibility of the idea are assessed. The ideas generated at this stagecan be either tangible (something that has physical presence and can be touched) or intangible(something that cannot be touched). Techniques like brainstorming can help the company increating many ideas for the new product or service of the company. Ideas are not assessed oranalyzed in the brain storming stage. Hence employees can freely and easily share their ideaswithout fearing critics. In brainstorming all ideas good or bad are accepted. Tesco is willing to introduce to introduce new innovate product or service, this the idea oflaunching a budgeted smartphone is generated. The budgeted smart phone of Tesco willcompete with the leading brands in the smart phone industry like Apple and Samsung. Theoperating system of Google android will be used by the Tesco Smartphone. Other built-inservice that will be included in the smartphone are Blinkbox, movie and music streaming andinternet shopping and may more. Touchscreen smartphone were invented and are being used by people for just nine year,however it has already completely penetrated the market. Societal and commercial impact of
4Smartphone was massive and no other personal device had such impact. At initial stage Tescosmart phone will be launched in the UK only and will also operate in UK only. The currenttrends in the mobile industry were analyzed by the UK mobile consumer survey and some ofthe main findings are listed below: Individuals belonging to the age bracket of 18-24 years have a habit of checking themobile at midnight. Fingerprint reader is included in 27% of smartphone and 76% individuals use thesefingerprint reader. 2% of adults own smart lights and smart appliances, this indicates that connected homedevices are still used by majority of people. By the mid of 2016, half of the adults in the UK had access to one entertainmentproduct or service. The adoption rate of 4G doubled from 25% to 54% in 2016. No traditional voice calls are made by 31% smartphone user. This percentage was 4% is2012. The users of smartphone are expected to grow to 45m in 2017. Opportunity evaluation and SWOT SWOT analysis is a strategical tool that is used by the organization to assess its internal strongpoints and weak points and external opportunities and threats. StrengthStrengths are internal traits and resources of the company that provides it advantage over itscompetitors in the industry. Products and services offered by Tesco are innovative and have unique design. Low cost of production allows the company to compete on price in the industry. Good image and reputation of the company due to its focus on the environmentMarket share of Tesco is largeThere are many loyal customer of Tesco.
4In its day to day operations Tesco follows industrial standardsInventory management system of the company is strong and effectiveWeaknessesWeaknesses are the internal attributes that can negative influence the company and itsoperations. They can also reduce the competitiveness in the market. Tesco does not have its own operating softwareThere is too much variation is the productLack of focus on core competency of the productStrong competition is faced by Tesco in smart phone industry from leading companieslike Apple. profit margin are low OpportunityOpportunities are the external factors that can be exploited by the company and can help ingaining sustainable competitive advantage. The market of smartphone is raisingGrowth in the industry due to increasing interest of people in portable devicesThe demand of quality processors is growing rapidlyPatents can be gained through acquisition. ThreatThreats can hinder the business and operation of the company and are mainly external factors.Threats like weaknesses can decline the competiveness of the company in the market. The growth rate of smartphone market is slow in developed countries Changes in the technology are taking place rapidlyIntensive level of competitionIn hardware production margins are declining.
4New product/service planning There are different stages involved in the development of new product, which are discussed indetail below: The Idea: The first step of product development is the idea. Idea can be simple that leads todevelopment of new product that is similar to current products of the company or it can beunique or revolutionary. For example the idea of smartphone by Tesco is unique andrevolutionary. Product ideas can be generated by seeking the help of employees, particularlythe employee who often interact with the customer. Customer survey can also be performedfrom creating new idea as it helps in understand the needs and wants of the customers.Organizations can also research the market to see if there are any gaps that can be fulfilled bynew product development. Companies like Tesco can use social media to perform online surveyof customers. In the process of idea generation many ideas can be developed howevermanagement must assess all the ideas and pick only good ideas and drop bad ideas. Research: After selecting the best idea/s the next step that Tesco must follow in search themarket. Marker research will help Tesco is better understanding of the industry and customerexpectation. Needs and wants of the customer can also be assessed by the company throughmarket research Development: Development of the product is the next stage of new product development.Prototypes are develop which can be modified until the manufacturing stage so that finishedproduct is the one that customer is willing to buy. Testing: Before the product is actually launched in the market, new product is tested withinsmall group of customer. This helps in testing the viability of the new product and anymodification that must be made in the final product. Analysis: Results of the testing in the previous stage are analyzed and necessary changes aremade if necessary. These results are also used to develop marketing strategies of the company.The company decides how the new product will the introduced in the market. Pricing andpromotion strategies are also decided at this stage.
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