Business Strategy Analysis and Planning

This assignment delves into the realm of business strategy, examining key frameworks such as Ansoff's Matrix, Porter's Five Forces, Value Chain Analysis, and Stakeholder Mapping. It provides a detailed explanation of each framework, illustrating their application in understanding market dynamics, competitive landscapes, internal resources, and stakeholder relationships. The document also emphasizes the importance of strategic planning and its role in driving business success.

BUSINESS STRATEGY

EXECUTIVE SUMMARY
The main purpose of this assignment is to analyze the business strategy which is being
adopted by the manager of selected company named as Nokia. In addition to this, the assignment
also aims to assess the different type of tools which can be used by the firm in order to formulate
its tactical plan in an effectual way. Here, the task 1 of the report will entail the detailed
description regarding the process which firm can use for the purpose to frame the tactical plans.
Likewise, in the second task specific strategy will be suggested to the manager of Nokia. This is
suggested on the basis of environmental analysis which can be carried out with the help of tools
such as PESTEL and Porters. Thus, in the third and fourth task implementation steps with regard
to the selected tactic will be stated.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Assessing how vision and mission of company informs the strategic planning..............1
1.2 Assessing the factors which needs to be considered when formulating the tactical or
strategic plans.........................................................................................................................3
1.3 Evaluating the effectiveness of different techniques which is being used by firm for the
purpose to prepare its strategic plans......................................................................................4
TASK 2............................................................................................................................................6
2.1 Performing organizational audit.......................................................................................6
2.2 Carrying out the environmental audit...............................................................................9
2.3 Significance of stakeholder analysis..............................................................................11
TASK 3..........................................................................................................................................12
3.1 Analyzing appropriate alternative strategies..................................................................12
2.4 Presenting new strategy for Nokia.................................................................................12
3.2 Justifying the new strategy.............................................................................................13
TASK 4..........................................................................................................................................13
4.1 Roles and Responsibilities of personnel.........................................................................13
4.2 Estimated Resource requirement....................................................................................13
4.3 Contribution of SMART targets.....................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

ILLUSTRATION INDEX
Illustration 1: Strategic planning model..........................................................................................1
Illustration 2: Ansoff growth and vector matrix..............................................................................4
Illustration 3: BCG matrix...............................................................................................................5
Illustration 4: Value chain analysis..................................................................................................8
Illustration 5: Porters five forces analysis.....................................................................................10
Illustration 6: Stakeholder mapping...............................................................................................11

INTRODUCTION
Strategy is a plan of action which is designed for the purpose to attain the long term goals
and objectives of enterprises (Strategy, 2016). However, strategic planning is a systematic
process in which manager defines strategy, sets direction and accordingly makes decision with
regard to attain the strategic goals of enterprise in an effectual way. It is beneficial for the
manager so that it should frame tactical plan for the organization. It is because, such plans will
help in assessing the future direction of corporation. Along with this, it will also enable manager
to gain competitive position in the market in an effective way.
For the present report, Nokia is selected. It is a multinational telecommunication
company which was founded in the year 1865. The firm has specialization in producing different
types of electronics goods. The report will give detailed explanation regarding the selected
company. In this context, the report will state different strategic options which could be adopted
by cited firm in order to build distinct image in today's competitive scenario.
TASK 1
1.1 Assessing how vision and mission of company informs the strategic planning
The vision and mission of the company give detailed explanation about the strategic
plans.
The above model states that vision, mission and strategy which are being framed by the
company are prepared on the basis of condition which prevails in firm's external environment.
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Illustration 1: Strategic planning model
(Source: Strategic planning model, 2016)

Thus, strategic planning model revels the systematic steps which manager of firm like Nokia
uses in order to reap the positive benefits. The detailed explanation of each steps are depicted in
below: Mission: Strategic planning of the firm starts with the mission of company. Here, mission
is the written declaration which defines the core purpose of enterprises (Mission, 2016).
For example, Nokia has the mission to invest in next generation distributive technologies. Vision: The vision provides or prepares the base for formulating the mission. Vision
depicts the long term goal of company. Thus, it is considered as long term goal which
firm wants to accomplish through mission. For example, Nokia has the vision to connect
people from all over the world (Ibrahim, 2015). Strategy (Goals): These are the mid goals or tactics which are framed with an aim to
attain the overall mission and vision of corporation. Hence, strategy is the method or plan
which is formulated for the purpose to accomplish long term vision and mission of the
corporation. For instance, cited firm has the goal to produce the best products and keep
people connected regardless of physical distance. Tactic (Objectives): This comes after goal. Tactics are the small plans which are framed
in order to attain the specific goals of company. For example, in order to attain above
mentioned goal, Nokia has the objective to make significant investment in the
development of skills of its workers. Here, by complying with the given type of activity,
high quality of products will be produced by the corporation. Thus, through this way,
Nokia can meet its goal to produce the best product in an effectual way. Core competency: It is the characteristic or firm's unique ability which differentiates
enterprise from its competitors. For instance, Nokia possesses core competency in its
phone design or feature. In this context, it is analyzed that Nokia is the company whose
phone is better known for the long battery life. Thus, this feature plays an effective role in
meeting tough competition which prevails in the competitive environment (Bergeron,
2004).
 Outcome: The outcome of all the above mentioned strategies will be the accomplishment
of firm's goals. Due to this, Nokia will get benefit in form of increased profits as well as
sales in an effectual way.
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Hence, it can be said that the vision, mission, core competency and objective of company
inform about the strategic plans. This is because, these all given approaches given description of
firm's long terms plan which it wants to attain within specified time frame. In addition to this,
these given goals also help in setting the direction of firm. Thus, due to given approaches only,
Nokia gets benefit in form of increased profits and sales.
1.2 Assessing the factors which needs to be considered when formulating the tactical or strategic
plans
Framing strategic plan for the corporation is not an easier task as it requires constant and
regular review from the side of strategic planner. Furthermore, while framing the tactical plan,
manager of firm like Nokia has to gather information about the number of factors (García‐
Rodríguez and et.al., 2013). This is because, if it is not gathered at that time then, an effectual
plan will not be formed by the manager of enterprise. In accordance with the given context,
detailed explanation regarding the number of factors which manager needs to be consider is
depicted in below: Impact on managers: It is essential for Nokia that it should assess the impact of its
framed plan upon the manager. It is due to the fact that, if firm will not consider this at
that time, then it will become difficult for them with regard to make the practical
implementation of plan which they have framed. Setting of targets: The way to set the target of the firm is being regarded as another
essential factor which needs to be considered by the manager of Nokia while formulating
the tactical plan. Here, it is required by the manager of cited corporation that it should
frame its target on the basis of its resources and capabilities (Köseoglu and et.al., 2013).
This is because, lack of consideration of the same will lead to impact the operations of
Nokia in a negative way. When should be planned: The time to prepare strategic plan of the enterprise also plays a
significant role. Thus, with an aim to identify time for preparing the tactical plan, it is
required by Nokia that it should take help from the product life cycle approach. With the
help of given cycle, position of Nokia product will be assessed and on the basis of this, it
can set varied type of strategic plans. For example, Nokia has identified that its mobile
products belong to mature phase. Thus, with an aim to get them into growth phase, the
firm will have to frame the different type of strategic plan (Sim and Teoh, 2011).
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 Who should be involved: It is another most important task which manager should do
while framing the tactical plans. In this regard, here manager of Nokia will have to make
the decision regarding whether it should involve all its stakeholders in the strategic
planning process or not.
1.3 Evaluating the effectiveness of different techniques which is being used by firm for the
purpose to prepare its strategic plans
There are different types of techniques assessed which Nokia manager could use for the
purpose to formulate its tactical plans. The assessed techniques have their own strength and
weakness and detailed explanation of the same is enumerated in below:
Ansoff growth vector matrix
This matrix is effective as with the help of this manager of Nokia can get the idea about
the strategies which it could use for the purpose to gain success in the market where firm is
operating its operation (Ansoff matrix, 2016). The matrix states four different type of options
such as market penetration, market development, product development and diversification etc.
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Illustration 2: Ansoff growth and vector matrix
(Source: Ansoff growth and vector matrix, 2016)

Here, on the basis of given option manager of Nokia can prepare its tactical plans. However, it
has been evaluated that the Ansoff matrix depict the long term strategic plans for the company.
Thus, this is proved as ineffective when Nokia has to frame some short term plans.
BCG growth and share matrix
It is the growth and share matrix which entails the position of firm in market. This is the
effective strategic planning technique as it state the time during which firm will have to frame
the varied type of tactics (Kourdi, 2010). For instance, Nokia has identified that its low range
mobile phones belongs to Dogs phase. It is the stage in which firm's earning from the product is
very low. Thus, in order to gain the benefit from the given product, manager of cited corporation
will use the divesting type of tactic. This model helps firm in framing the tactical plans. But, one
of the major limitation associated with the given method is that, it will not state strategy as per
the feature of specific industry.
Directional policy matrix
It is being regarded as another tool which Nokia can use in order to develop the strategic
plan. Here, overall strategy which may be used by the company is being divided into two criteria
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Illustration 3: BCG matrix
(Source: BCG matrix, 2016)

which are as market strength and attractiveness. Thus, this matrix can be used by the firm as a
tool with the help of which it can make the selection of suitable tactic.
SPACE (Strategic position and Action evaluation)
It is an analytical tool which gives idea to the manager with regard to make the selection
of an effective business strategy. Here, in the given approach manager of Nokia has to assess the
internal and external environment of company and accordingly it will have to make selection of
suitable business strategy (Hill, Jones and Schilling, 2014). However, it has been evaluated that
the approach only state the position of firm in market, thus it will not depict the ways which
manager can use in order to deal with the specific type of condition.
PIMS (Profits impact of market share)
The strategic plan of Nokia can also be formulated on the basis of PIMS method. This
approach basically depict the four tactical options which cited firm can use as its business
strategy. However, when using the given method for strategic planning manager of firm will
have to gather the thorough information about the industry. Thus, if this is not gathered then in
this situation it will become difficult for the enterprise with respect to make use of given method
in an effectual way (Butler, 2012).
TASK 2
2.1 Performing organizational audit
Strategic positioning gives description about such position which manager of
organization wants to attain in the future. In order to attain the strategic position, manager of firm
will have to conduct an environmental analysis. Here, for the purpose to assess the internal
environment of company manager of Nokia can use the technique such as SWOT and value
chain analysis. The detailed explanation of the both are depicted in below:
SWOT analysis of Nokia
It is the analysis which gives the detailed explanation regarding the strength, weakness,
opportunities and threats of the company.
Strength Weakness
 It is good and highly recognized brand
which has its operation present in
number of countries.
 The after sales services of company is
very ineffective.
 The company has lost its own huge
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 It has the team of highly talented and
skilled employees which helps firm in
the process of attaining the tactical
goals.
 The firm has the product for all income
group of customers (Pehrsson, 2007).
market share due to its late arrival in
smart phone market.
Opportunities Threat
 To expand the range of product which
is being offered by firm.
 To introduce new feature in the
product.
 From the intense competition.
 From the changes in the tastes and
preferences of buyers.
Value chain analysis of Nokia
Value chain analysis consists of series of activities which are used with an aim to add
value to the final goods and services as being given by firm.
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Illustration 4: Value chain analysis
(Source:Nieuwenhuizen and Koch, 2007 )

Primary activities Inbound logistic: In the given step, manager of Nokia order the raw material which it
will use for the purpose to carry out the production of its product. Operation: Here, in the given phase the raw material of firm will be converted into actual
or designed product. Outbound logistic: In this phase, efforts will be taken by the manager of corporation with
respect to deliver the produced goods to the respective buyers. Marketing and sales: This step will help in raising the sales of product which is being
produced by Nokia. Services: Nokia also gives after sales services to the buyers. Furthermore, in the given
phase firm takes feedback from its buyers and accordingly it performs changes in the
manufactured good. Thus, it is through this way only firm add value to its product
(McCray and et.al., 2011).
Supporting activities Infrastructure: The firm's infrastructure includes the building and all associated
facilities. This provides support to the primary activity of Nokia. Human resource department: The given department also play very crucial role. This is
because, with the help of given section only Nokia will be able to carry out the
recruitment of such individual which tend play very effective role in the process of
achieving the tactical goal of enterprise. Technological development: This includes research and development department of
company. With the help of given department, Nokia gathers the information prevailing in
its external environment (Joseph and Eshun, 2009). Thus, on the basis of gather
information only cited firm performs changes in its operation in an effective way.
 Procurement: In this process, suppliers of the firm play very effective role as with the
help of them only firm will be able to carry out its efforts in terms of meetings the needs
and demands of its respective buyers in an effectual way.
2.2 Carrying out the environmental audit
It is essential for the corporation that it should gather the information about the factors
which are outside the control of company. In order to perform the same, the tools such as
PESTEL and porters five forces model can be used. These both are explained in below:
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PESTEL analysis of Nokia Political: The decision regarding the selection of strategy should be made by Nokia on
the basis of political condition of nation. In this context, it must gather the information
about interest rate and tax rate etc prevailing within nation. It is because, if such
information will not be gather at that time it will become difficult for the company with
regard to gain success in a highly competitive environment (Jun, Park and 2013). Economical: The manager of Nokia should also consider the economic condition of
country while selecting any tactic. The economic scenario of nation includes situation
such as recession and inflation which has huge impact upon the selected tactic. For
instance, Nokia has decided to introduce new high price range mobile in market. This
product will be proved as ineffective if the nation where firm has planned for launching
such product will be impacted through recession (Hansen and Smith, 2006). Social:Nokia should also perform changes in its product as per the changing needs and
demands of its buyers. Technological: This causes major impact upon company as its operation is thoroughly
based on technologies which changes on constant basis. Nokia has faced the impact of
same when the demand of smart phones have increases in market. Environmental:Nokia should follow and abide all the environmental rules and
regulations. Legal: Nokia follows all the laws related with employment and thus through this way
only it carries out its operation in a smother manner (Doole and Lowe, 2008).
Porters five forces analysis of Nokia
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Illustration 5: Porters five forces analysis
(Source: ) Threat of new entry: This is high for Nokia as the firm which plan to get entry in the
given industry has to obtain patent and must have good knowledge of proprietary rights.
 Threat of substitute: Bargaining power of customers: This is high for Nokia because of the presence of
intense competition in the given industry. Bargaining power of suppliers: This is moderate for cited firm because of the
availability of huge supplier.
 Rivalry among competitors: This is high and here Nokia is facing tough competition
from other established brands such as Apple and Samsung etc (Beaver, 2007).
2.3 Significance of stakeholder analysis
Stakeholders are the individual which affects and get affected through the goals and
objectives which is being framed by the company. While taking any decision, it is necessary for
the corporation that it must conduct the stakeholder analysis. It is due to the fact that through
such analysis only, it can be assessed by the firm that whether it is going on to the right direction
or not. Furthermore, through this way only feedback regarding the strategy which Nokia has
selected will be collected. Accordingly, firm can perform necessary changes in the same.
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Illustration 6: Stakeholder mapping
(Source: Stakeholder mapping, 2016)
The above given stakeholder map helps in giving description regarding the particular type
of stakeholder which Nokia should give much importance. For example, if Nokia has assessed
that its employees and customers resides in high and low grid position. Then, in this condition
cited firm should make all sort of efforts with an aim to maintain the satisfaction of them.
Likewise, the supplier of firm resides in low and high grid (John, 2005). Thus, satisfaction of
supplier will be maintained by it if Nokia will give them all information about its tactical plan.
Furthermore, it is through this way only cited firm can implement its tactical plan in an effectual
way.
TASK 3
3.1 Analyzing appropriate alternative strategies
Different alternative strategies analyzed which Nokia could use and explanation of the
same is depicted in below: Market entry strategy: Nokia can opt the options such as merger acquisition, strategic
alliance, joint venture, licensing and franchising etc in order to get entry into new market.
Here, with respect to merging and alliance tactic Nokia can merge its operation with such
company which has good brand image in market. In the similar way, franchising is the
most cost effective tactic as it help firm in saving varied costs which are related with
construction of building and land.
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 Substantive growth strategy: Related and unrelated diversification along with horizontal
and vertical integration are the part of substantive growth. When Nokia expands its
operation in the product line in which it is currently working then it is called as related
diversification. However, when Nokia expanded its operation into completely new
industry then it is termed as unrelated diversification. Horizontal integration is the type of
integration wherein firm increases the production of its goods and services in the same
part of supply chain (Li and Solis, 2013). Likewise, vertical integration is the type
integration in which company expanded its operation which is completely different for its
current area of working. Limited growth strategy: Market development, product development and market
penetration are limited growth tactic. By expanding operation of firm in new market then
it is called as market development tactic. Likewise, product development tactic can be
used by firm by introducing completely new product in market. However, Nokia can
penetrate the market by offering discounts upon its product.
 Retrenchment strategy: Turnaround, divestment and sell out are some of the
retrenchment tactic. These all tactics are used when firm would see that its product or
operation are not effectively working in market.
2.4 Presenting new strategy for Nokia
From the above given strategy, it is suggested to the firm that it must opt the merger and
acquisition tactic. This is because, it is an effective way with the help of which Nokia can expand
its operation in the market which is completely new to it. In accordance with the given context, it
is suggested to the manager of Nokia that it should merge its operation with such company which
has good brand image in market. This is because, by merging with such company cited firm can
increase its probability of achieving high sales and profits in an effective way (Eigenhuis and
Dijk, 2007).
3.2 Justifying the new strategy
The strategy such as merger and acquisition which is selected for Nokia is appropriate,
feasible and desirable also. It is appropriate because with the help of this cited firm can weed its
weaknesses of losing the firm's market share because of late presence in smart phone market. It
is feasible also because firm has contact with large number of famous companies with whom
which it can merge its operation.
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TASK 4
4.1 Roles and Responsibilities of personnel
 Human resource manager – Human resource manager is responsible for making sure that
people associated with the merger & acquisition are effectively trained. For that purpose,
all the employees must be prepared through training & development for the change which
is been taking place
 Finance manager – He is responsible for assuring that company is backed up with good
financial support in the implementation of the M&A strategy. There should be optimum
utilization of all the financial resources (Butler, 2012).
 Operation manager - The operation manager holds the responsibility for managing all the
operational issues which can arise while the course of the process. These could be
technical failure, lack of manpower etc.
4.2 Estimated Resource requirement
Following resources are very crucial in the implementation of the strategy:
 Manpower – In the implementation of M&A strategy, workforce will play an important
role. Their contribution will be crucial to the company. Success will be attained by using
their skills and competencies. Hence there will be a need of capable workers who can
give their maximum efforts towards the goals.
 Funds – In order to implement a strategy, business will require appropriate funds. For that
purpose, the management will need to identify suitable sources of finance from which the
money can raised consistently. Nokia can use the option of retained profits, issue of
shares, dividends etc (Joseph and Eshun, 2009).
 Technology - It is an unavoidable source for the business in the present context. Nokia is
required to make use of ongoing technological advancements within the business. Digital
marketing makes a great influence on the business activities of the organization
4.3 Contribution of SMART targets
Evaluation and control is essential for successfully implementing the strategy of merger
& acquisition. It is essential because monitoring is needed at all the levels. Errors and mistakes
may arise at any point of time. There is a need to put check on all the aspects. Evaluation makes
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sure that strategy does not deviate from its path and direction. Control can help in taking
corrective actions.
Following are the SMART targets for the adopted strategy:
S – Specific – The objective is to implement the strategy without any resistance to change
M – Measurable – Control can be assured by organizing meetings, taking feedbacks, auditing,
record keeping etc
A – Attainable – Company is having skilled and effective resources for attaining the desired
goals
R- Realistic – The market conditions are favourable for the adopted strategy (Ibrahim, 2015).
T – Time bound – The whole process can be performed within the confined time period.
CONCLUSION
From the above report it can be stated that, with an aim to frame a competitive strategy,
manager of firm has to perform the thorough environmental analysis of the market where it is
operating its operation. This is because, if this is not done then in the given circumstance it will
become difficult for the corporation with regard to mark an effective presence in market which is
highly competitive.
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