Strategic Management and Leadership

This document discusses strategic management and leadership, including personal development plans, decision making, and financial data analysis. It provides insights on how to improve organizational objectives.

Running head: STRATEGIC MANAGEMENT AND LEADERSHIP
1
Strategic management and leadership
Name:
Institution:

STRATEGIC MANAGEMENT AND LEADERSHIP 2
TASK 1
A.C. 1.1 Construct a personal development plan to address short, medium
and long term needs
A personal development plan (PDP) is a tool that assists employees to grow both in
career and at a personal level (Zepeda, 2013). A person needs to focus on the skills,
abilities and knowledge that he should attain within a given period of time. The
table below illustrates an example of a PDP for a strategic manager:
Personal Development Plan
LONGTERM
GOALS
GOALS HOW TO
ACHIEVE
TIME FRAME OUTCOME
Gain more
experience
Job hunting 3 years Rise to better job
positions
Join professional
body
Apply for
certification
3 years Be recognized
professionally
Obtain cross-
sectional expertise
Set visits to other
managers
2 years Gain competitive
advantage
Complete
postgraduate
studies
Find flexible
hours to attend
tuition
3 years Gain more
knowledge

STRATEGIC MANAGEMENT AND LEADERSHIP 3
MID TERM GOALS
Improve job
performance
Identify a role
model
1 year Be more
resourceful
Improve public
speaking abilities
Prepare and
deliver
presentations
1 year Be a good
presenter
Improve ability to
lead change
Read books on
leading change
6 months Bring positive
change
Develop strategic
thinking abilities
Attend seminars
on strategies
When available as
scheduled
Formulate good
strategies for the
company
SHORT TERM GOALS
Improve
communication
skills
Attend trainings 6 months Communicate
effectively
Coaching and
developing my
team
Ask members to
develop PDPs
Next week Improved work
performance
Learn how to
handle conflicts
Read books on
conflict
resolutions
Daily evenings Be a good
problem solver
Wake up early Develop a habit Daily Perform tasks on
time

STRATEGIC MANAGEMENT AND LEADERSHIP 4
Read often Purchase books Daily after work Obtain more
knowledge
Listen actively Practice listening
skills
As soon as
possible
Pay attention to
details
Develop good
communication
skills and body
language
Practice good
communication
skills
1 month Convey messages
effectively
A.C. 1.2 Evaluate the impact and relationship of a personal development plan on own
development and achievement of organisation objectives
Personal development is a continuous process of growth in skills and expertise of an individual
that seeks to enable one to set and achieve goals successfully. It sharpens an individual into
living quality life and hence reaching the self-actualization ladder (Pedler, Burgoyne, & Boydell,
2013). Not only does personal development enhance achieving of personal goals but also
organizational objectives. Through setting the goals and striving to achieve them, employees
transfer the same energy to the organization through motivation. Motivation will enable
individuals to work extra hard to meet the set targets by their superiors, to go an extra mile into
research and innovation and hence quality output to the organization. Personal development also
assist individuals identify their areas of strength and weaknesses in the SWOT analysis (Noe et
al, 2017). Through these analyses, they are able to identify areas that bring out the best out of
them hence increase productivity at work. Individuals are encouraged to face the threats in their
surroundings and grab in the available opportunities for growth. Personal Development Plan

STRATEGIC MANAGEMENT AND LEADERSHIP 5
(PDP) on the other hand helps individuals determine their long, short and medium term goals
(Desimone, 2011). Identifying the available opportunities set the action plan and then continuous
monitoring and evaluation to realize the outcome. This is a key factor that employees can
incorporate in the various organizational projects they are working in to ensure successful
execution of the work. Through frequent changes in the set goals, analyzing and effective
implementation, the organization will successfully plod through its goals. Higher targets and
goals will eventually be realized. The impact of PDP can be measured in organizational
objectives through: Increased rate of employee retention at work (Eisele et al., 2013). This is
because it provides a boost in the employee performance which directly impacts to
organizational goals .It also cuts down on costs and time used by management to track
employee development and performance appraisal. Employees are hence able to match their
personal goals with that of the organization.PDP are vital in setting SMART goals and working
them out. Employees have a clear position in the organization and their well defined
responsibilities in achieving tasks. It enhances development of high skills and expertise that
promote expert findings in business. This is a greater way to discover individual talents and
mobiles them towards organizational goals.
PDP can be measured through record keeping and analysis, having regular checklists,
quantitatively by using rates and figures and also by subdividing the goals into smaller bits that
can be tackled one at a time. Goals broken into small goals are then allocated into the time
schedule that ensures an individual stick to the plan and achieve the goals within the time frame.
Quantitatively, development can be measured through increased output at minimum costs and
hence profitability. Organizations are delighted to know that they are moving forward when

STRATEGIC MANAGEMENT AND LEADERSHIP 6
preparing income statements of a given period. Keeping records is necessary for future referrals.
This will greatly enhance problem solving in the organization when problems emerge. It also
will have a combination of alternatives that work for the organization in moving forward.
Regular checklists are important in showing completed tasks, work in progress and also tasks
that are yet to begin. In the organization checklists will give management a list of completed
projects and those that are yet to be finished or started. This will ensure that the resources are
channeled in the right direction. For stagnating projects, management can quick start them and
also push for completion of work in progress. It is very important to ensure that no projects are
dragging behind and that the factors of production are utilized to the maximum. Rating can also
be used to measure personal development by having scales, you choose and make sure you reach
the highest scale. Organizations hence set high targets and work towards them then set even
higher bars to challenge employees to reach them.
A.C. 1.3- Analyse how the development plan affects, or could affect, achievement of
organisational objectives
Personal development plans should go hand in hand with the goals of the organization in order to
achieve a similar goal by both the employee and the organization as a whole. Having this plan
will add value to the organization because it focuses on improving the skills of an employee and
strengths and as a result it will lead to the well being of the organization through improved
performance. Employees should identify the connection between the company’s objective and
his/her own personal objectives. They should then consider connecting their goals with the
strategies of the company so as to archive the same goal for the stated period of time. The
employee should also be able to explain his/her weakness and how it affects the performance of

STRATEGIC MANAGEMENT AND LEADERSHIP 7
the organization. After identifying his weakness he should find proper ways of dealing with it so
that it will not continue to affect the performance of the organization. An example in the above
PDP plan scenario is that the strategic manager knows very well that he has little knowledge
about the work he is doing, he considers going back to school to advance on his studies to
sharpen his knowledge and skills. After completing his studies, he will be well equipped to
handle his tasks and will also take up new challenges which will at the end contribute to the
performance of the organization positively. Another case example is where the manager states in
his PDP that he wants to coach and develop his team by asking them to develop their own PDPs.
This will have a positive impact to the organization because every member will be able to
understand his/her weak points and work on improving them. A company should take lead in
motivating and encouraging its employees to prepare their own personal development plans. This
is because it has a great significance to the performance of the organization since it increases
productivity.

STRATEGIC MANAGEMENT AND LEADERSHIP 8
TASK 2
A.C. 2.1 Determine the data and information available to the strategic manager for
decision making
The following are the types of data and information that can be used by a strategic manager in
decision making:
1. Descriptive data
This type of data focuses on primary data that is collected from different sources to give
insights into the past (Tesch, 2013). This type of data is not reliable to be used for
decision making since it only states what happened but does not go ahead to explain why
it happened. An example of this data can be a marketing manager saying he only
managed to reach 10 new clients for the entire month. For this case strategic managers
prefer to combine this type of data with other types before analyzing and coming up with
a decision.
2. Diagnostic data
This data gives a deep explanation to a particular problem because it tends to explain why
something happened. With these types of data a strategic manager will be able to keenly
find out reasons as to why something happened and be able to draw solid conclusions to
which he can consider while making decisions.
3. Predictive data
This data tends to predict what is likely to happen in future. It uses findings obtained after
carrying out descriptive and diagnostic analysis to detect and predict future trend. This
makes strategic managers to consider it as a powerful tool in decision making and
predicting what will happen in the future. It is a good tool in forecasting however its

STRATEGIC MANAGEMENT AND LEADERSHIP 9
accuracy depends on how reliable and accurate the data obtained from descriptive and
diagnostic methods is.
4. Prescriptive data
This type of data is only useful in giving recommendations on what is to be avoided in
future and what is to be maintained or improved. However these information may not be
accurate because it s based on assumptions and probabilities. It tends to combine
mathematical data and other business rules. It’s used when an organization has a large
impact on the overall performance and tends to expand in future.

STRATEGIC MANAGEMENT AND LEADERSHIP 10
A.C. 2.2 Identify core financial data, analyse the data and draw conclusions
The table below shows comparative income statements for ABC Company for the years ended
2017 and 2018
ABC COMPANY
INCOME STATEMENT FOR THE PERIOD ENDING 31, 2017/2018
Increase/decrease
2018 $ 2017 $ Amount $ percentage
Sales 1,500,000 1,200,000 300,000 25%
Cost of sales 1,100,000 900,000 200,000 22.2%
Gross profit 400,000 300,000 100,000 33.3%
Selling expenses 200,000 150,000 50,000 33.3%
General expenses 104,000 90,000 14,000 15.6%
Total operating expenses 304,000 240,000 64,000 26.7%
Operating income 96,000 60,000 36,000 60%
Other income 8,000 10,000 (2,000) (20)%
Total income 104,000 70,000 34,000 48.6%
Other expenses 5,000 10,000 (5,000) (50)%
Income before tax 99,000 60,000 39,000 65%
Income tax 50,000 27,000 23,000 85.1%
Net income 49,000 35,000 5,000 14.3%

STRATEGIC MANAGEMENT AND LEADERSHIP 11
ABC Company registered an increase in its net income by 14.3% in 2018 as compared to 2017.
This is a good indication as the income improved on its productivity from the previous financial
year. This could be explained as a result of a 25% increase in sales recorded. Also ABC
Company recorded a 26.7% increase in its operating expenses; this could be due to increases
administrative costs, or additional expenses of adopting new strategies. If this company
continues with trend of increasing its sales over the coming years it will reach greater heights.
A.C 2.3 Discuss methods to recommend a course of action, or Organisational
improvement, as a result of conclusions, including methods of presenting the
recommendation
The final stage of strategic planning is coming up with an action plan which clearly indicates
roles of the employers and the employees play in implementing a strategy by a given period of
time. Action plans are essential in strategic planning since they help the employees to understand
what exactly needs to be done and the key roles they will play in the implementation of the work
plan so as to put the organization’s strategies into place (Oettingen, & Gollwitzer, 2010). The
first step of implementing an action plan is raising awareness among the key stakeholders of the
organization (Steiner, 2010). This is done by providing information about the analysis that has
been carried out either through organizing workshops and conferences. Training is the second
step of implementing a course of action. It’s done to equip employees with knowledge and skills
to use while practicing their roles in implementing the course of action. The last step is
monitoring and reporting. A strategic manager should perform regular updates, conduct periodic
views and identify important corrective actions to know if employees are meeting their set

STRATEGIC MANAGEMENT AND LEADERSHIP 12
targets in implementing the course of action. In order to meet the performance target, it is
essential to carry out a periodic review of the activities mentioned in the action plan so as to find
out how far the company is in terms of implementation of the action plan so as to meet the
company’s objective to achieve desired goals for the given period of time. Team work is a key
element in implementing a course of action (Nancarrow et al, 2013). This is because work is
made easier and effective when efforts are combined by different employees. It also saves on
time.

STRATEGIC MANAGEMENT AND LEADERSHIP 13
TASK 3
A.C. 3.1 Outline the core marketing concepts relevant to the role of a strategic manager
It is very essential for an organization to have a marketing concept since it provides guidance and
helps a company to prioritize satisfying the needs of their customers by concentrating on the
demands of the customers (Baker, 2014). Strategic managers need the following core marketing
concepts: New product development, best pricing, distribution and promotion of the same
products. Through regular research, companies get to know the changes in customer preferences
and demand. This gives an idea of how to come up with what customer wants and avail it in the
market. New products should have key feature to beat those of their competitors. The product
should also be cost effective hence affordable and durable to their customers.
Through branding and advertisement of the same products, companies reap huge profits by
establishing where to sell them and how much to sell at. When new products enter the market,
new market segments are created hence new customer base (Kotler, 2015). From idea generation,
screening of the idea, concept development and testing and marketing, strategic managers
carefully develop these products to enhance sustainability in the market. Pricing strategies seeks
to ensure that the product is sold and the best price while at the same time ensuring the
organization reap maximum profit from it. Selling the product at low prices will help achieve
maximum sales and revenue however, profit will be lowered. On the other hand, selling the
product at higher prices renders high profits but reduce the sales volumes of a particular

STRATEGIC MANAGEMENT AND LEADERSHIP 14
company .In both cases, strategic managers found out that they could lead to lower gross profit
and hence the need to find the best selling price. Customers would demand to know the reason
for increased prices thus managers need to come up with justifiable reasons while maintaining
higher profits and sales volumes and also customer satisfaction. Most companies decide the
optimal prices through guess work but strategic managers’ use cost data of pricing and sales
volumes. Graphically, profit maximizing price is obtained whereby marginal revenues is the
same as marginal price.
Effective marketing will ensure effective distribution of products and services into the target
market to customers (Armstrong et al, 2015). In the distribution strategy, managers employ vast
methods such as wholesaling, retailing, use of direct sales representatives, distributors,
merchandisers and also middlemen. The best distribution strategy is the one that bears high sales
and hence high profits. Managers in this case need to closely monitor distribution and pick the
core methods that can be permanently be employed by an organization. Distribution also must
ensure the right products and right quantities reach the market in the right time. This is to make
sure that demand in that market is met adequately through maximum supply. Distribution is sub
divided into: exclusive distribution whereby products are stored into distribution center and thus
the company has maximum control while Intensive distribution opens more outlets into the
market to maximize sales. Selective distribution on the other hand carefully picks numerous
channels and partners to help in delivering their products into the market.
Once distribution is done, managers take to promoting these products and services. Creating the
necessary public relation through advertisements, use of social media, provide bonuses and
discounts. The main aim of this strategy is to influence customers into buying goods and services
and hence develop demand. Promotion provides good business strategy to increase sales, create

STRATEGIC MANAGEMENT AND LEADERSHIP 15
consumer awareness, enhance product variety and differentiation and also provide competitive
information from their rivals (Fahy & Jobber, 2015). Promotion should ensure information reach
as many people as possible to create a wider range of markets and thus sales volumes. The
marketing concept relies on four pillars to be successful. These are the target market, the
customers’ demands, integrated marketing and profitability.

STRATEGIC MANAGEMENT AND LEADERSHIP 16
TASK 4
A.C. 4.1 Explain methods to be used to identify and agree an increase in staffing levels.
Staffing levels is defined as having the correct number of people who are well equipped with
knowledge and skills to work in an organization at a given period of time to enhance the
performance of the organization. In order for an organization to recruit new employees and retain
the existing ones, a proper staffing strategy needs to be followed (Zepeda, 2013). An increase in
staffing levels boosts the morale of existing employees at the same time improves customer
satisfaction. (Phillips, & Gully 2012). The following staffing strategies can be used to identify
and agree an increase in staffing levels:
1. Short term staffing analysis.
By understanding the current staffing size in an organization, a strategic manager will be
able to find out if the current employees are being overworked. Analyze the number of
tasks performed by each employee and the total time averagely taken to complete the
tasks. Normal working time should be an approximate total of 40 hours per week. If after
doing the analysis you find out that employees are working for more than the expected
time, consider adding other employees. Also calculate the total costs incurred to pay
employees for working overtime and weigh with the alternative of hiring a new one.
Depending on your analysis you can consider hiring either part time or full time
employees.

STRATEGIC MANAGEMENT AND LEADERSHIP 17
2. Future staffing needs.
Consider your future staffing need to determine whether to recruit new employees. If the
company is targeting to expand its operations according to its strategic plan and will
consider promoting the current employees, it means their current positions will need to be
filled up. Adequate staffing improves productivity and increases customer satisfaction.
By knowing the future staffing needs a company will be able to make proper decisions in
terms of proper plans and also set aside required resources for the recruitment and
training of new employees. Future staffing comes with expansion of organizational
undertakings and hence managers need to come up with quick solutions of filling the
openings that will be created.
3. Defining staffing requirements.
With technology advances, a company may consider hiring more employees to fit the
expanding needs of the organization if there is an increase in sales. A strategic manager
should carry out a job analysis to evaluate the usefulness and competence of each
employee and find out if they match the needs of the organization. The division of labour
and specialization provide certain individuals with high skills and expertise in what they
do. The organization might want individuals, who are well versed with current
technology, thus provide manpower for running machines.
A.C. 5.1 Analyze methods or processes to assess, or evaluate, the performance of
employees, and to support performance improvement
It is very necessary for a company to measure the performance of its employees so as to find out
the value they add to the organization (Munyon, Summers, & Ferris, 2011) When employees

STRATEGIC MANAGEMENT AND LEADERSHIP 18
perform well, the company’s productivity increases on a large scale. The following are methods
that can be used to measure employee performance:
1. Use of graphic rating scales
Involves use of sequential numbers either from 1-10 or any given range to relate
employee performance in various areas like their personality, skills and how well they
perform their tasks.
2. 360-degree feedback
It employs the feedback, assessment and opinions of individual performance from a
group of people they work together with. Supervisors, team leaders and colleagues are
included in giving the feedback. As you tally the input, there is clear evidence of
similarities in both positive and negative trends.
3. Self evaluation
The employer can also request employees to measure their own performance by
evaluating themselves. It can bring forth conversations that will be of benefit to the
growth of the employee. This can be well implemented by designing a questionnaire with
multiple choice answers for the employees to answer.
4. Management By Objectives/ management by results
This is a process which involves managers and employees coming together to form joint
objectives. They screen each individual objective and compare the objectives with the
company’s goals and relate them with the general performance of the company.
5. Checklists

STRATEGIC MANAGEMENT AND LEADERSHIP 19
The employer may use a simple ‘yes or ‘no questions to identify an employee’s
deficiencies in various skills. This will help point out employees’ weaknesses and will
help the employer to call for training if necessary to sharpen the skills.
Employee performance should be measured because it is easier to identify those who are pushing
themselves harder. It also gives room to gauge worker efficiency and productivity hence decides
on remuneration and improves the overall team performance. This can also be a means of
determining which employees to reward for their good work and cut down those that are
underperforming. Workplace productivity is improved if the employer is able to detect the strong
and weak side of his employees.

STRATEGIC MANAGEMENT AND LEADERSHIP 20
References
Armstrong, G., Kotler, P., Buchwitz, L. A., Trifts, V., & Gaudet, D. (2015). Marketing: an
introduction. Retrieved on April 3, 2019.
http://131.193.209.39:8003/view_syllabi/static/view_syllabi/syllabus/MKTG%20360%20CRN
%2038150%20Trampas%20Spring%202018.pdf
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education. Retrieved on April 3, 2019. https://books.google.com/books?
hl=en&lr=&id=w69hBQAAQBAJ&oi=fnd&pg=PP1&dq=importance+of+having+a+good+mar
keting+concept&ots=dfOhUVIGhp&sig=DcXDPOW7wwfpJL-IJ2zTwQ7YjXQ
Desimone, L. M. (2011). A primer on effective professional development. Phi delta
kappan, 92(6), 68-71. Retrieved on April 3, 2019.
https://journals.sagepub.com/doi/full/10.1177/003172171109200616
Eisele, L., Grohnert, T., Beausaert, S., & Segers, M. (2013). Employee motivation for personal
development plan effectiveness. European Journal of Training and Development, 37(6), 527-
543. Retrieved on April 3, 2019. https://www.emeraldinsight.com/doi/pdf/10.1108/EJTD-02-
2013-0015
Fahy, J., & Jobber, D. (2015). Foundations of marketing. Retrieved on April 3, 2019.
https://w8x4a7cfct12.storage.googleapis.com/EfzczavRv8n1S6c1ZH12.pdf
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson
Higher Education AU. Retrieved on April 3, 2019. https://books.google.com/books?

STRATEGIC MANAGEMENT AND LEADERSHIP 21
hl=en&lr=&id=8TjiBAAAQBAJ&oi=fnd&pg=PP1&dq=importance+of+having+a+good+marke
ting+concept&ots=jecxlRv7j0&sig=2iEQuxVt7l6NJevgE_8_BCjXwN0
Munyon, T. P., Summers, J. K., & Ferris, G. R. (2011). Team staffing modes in organizations:
Strategic considerations on individual and cluster hiring approaches. Human Resource
Management Review, 21(3), 228-242. Retrieved on April 3, 2019.
https://www.sciencedirect.com/science/article/pii/S1053482210000367
Nancarrow, S. A., Booth, A., Ariss, S., Smith, T., Enderby, P., & Roots, A. (2013). Ten
principles of good interdisciplinary team work. Human resources for Health, 11(1), 19.
Retrieved on April 3, 2019.
https://human-resources-health.biomedcentral.com/articles/10.1186/1478-4491-11-19
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Retrieved on April 3, 2019.
https://www.researchgate.net/profile/Ariadne_Tsambani/post/What_would_be_the_best_approac
h_to_support_leaders_in_processes_of_change_and_organizational_development_through_eLea
rning/attachment/59d6341579197b8077991c40/AS
%3A377864680689667%401467101368871/download/51.pdf
Oettingen, G., & Gollwitzer, P. (2010). Strategies of setting and implementing goals: Mental
contrasting and implementation intentions (pp. 114-135). Retrieved on April 3, 2019.
http://kops.uni-konstanz.de/bitstream/handle/123456789/1321/oettingen_gollwitzer_strategies.pd
f?sequence=1

STRATEGIC MANAGEMENT AND LEADERSHIP 22
Pedler, M., Burgoyne, J., & Boydell, T. (2013). A Manager's Guide to Self-development.
McGraw-Hill Education (UK). Retrieved on April 3, 2019. https://books.google.com/books?
hl=en&lr=&id=by-
oAJbApcMC&oi=fnd&pg=PP1&dq=importance+of+a+personal+development+plan+&ots=oLH
4okbSzl&sig=l5TuT67_UbJjXlUTn9r94wlqkT0
Phillips, J., & Gully, S. M. (2012). Strategic staffing. Upper Saddle River, NJ: Pearson Prentice
Hall. Retrieved on April 3, 2019.
https://a91ajwnuc911.storage.googleapis.com/EjnPtqipO8o8m1aDCQ11.pdf
Steiner, G. A. (2010). Strategic planning. Simon and Schuster. Retrieved on April 3, 2019.
https://books.google.com/books?
hl=en&lr=&id=EXoPC22vb4oC&oi=fnd&pg=PR7&dq=effective+course+of+action+plan&ots=
5-2PBQNsGH&sig=Pzvgyity8QL1-7g0ry5VhWUthdY
Tesch, R. (2013). Qualitative research: Analysis types and software. Routledge retrieved on
April 3, 2019. https://content.taylorfrancis.com/books/download?dac=C2004-0-31809-
X&isbn=9781134077304&format=googlePreviewPdf
Zepeda, S. J. (2013). Professional development: What works. Routledge. Retrieved on April 3,
2019 https://content.taylorfrancis.com/books/download?dac=C2016-0-25329-
X&isbn=9781317926009&format=googlePreviewPdf