PDF Strategic Management - Sample Assignment

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the student
Name of the University
Author note

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Executive Summary
The primary purpose of this report is to discuss about the process made use of by the
organizations that can help in determining strategy. It expounds on the critical tools that are
used by the organizations for determining the aspect of strategy. The report apples a
particular tool to TESCO and elaborates on its effect.

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Table of Contents
Introduction................................................................................................................................3
A critical assessment of the process used by organisation.........................................................3
Evaluation of the critical models used by organisations............................................................5
Application of tool to TESCO....................................................................................................8
References:...............................................................................................................................10

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Introduction
Strategic management refers to the formulation of the major goals that is undertaken
by the top management of a company for the sake of owners. It is on the basis of resources
along with that of the internal and the external environment within which a company
competes. It helps in providing the overall direction to the organization. It involves
specifying the objectives of the organization and the development of policies. It helps in
devising plans that can help in achieving the goals pertaining to the organization. It allocates
the resources based on which the plans will be implemented. The nature of strategic
management is not constant and a feedback loops often helps in monitoring the process of
execution (Jannesson, Nilsson and Rapp 2016). It involves both strategic planning along with
that of strategic thinking. Strategic planning is indicative of the formal procedures that can
help in producing data. Strategic planning is indicative of the control mechanisms that can be
used for implementation of strategy. Strategic Management is involved with the two major
process- formulation along with implementation of strategy (Buckley, Burton and Mirza
2016). This report critically analyses the process that is made use of by the organizations for
determining strategy. The report evaluates the critical models that are used by the
organizations for determining the strategy.
A critical assessment of the process used by organisation
A mission statement can prove to be of great benefit for the organization and it can
help in providing the employees along with the leadership with a common goal. A mission
statement explains the reason for the existence of an organisation and the particular path that
it will take so that it can achieve the goal. A mission statement can prove to be of great
benefit for an organization as it can help the employees in focussing towards a common goal.
An organization can then carry out the Gap analysis that can help in the process of

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identification of gaps that exist between that of the current state and that of the vision (Slack
2015). The Gap Analysis can help in eliciting important data regarding the weakness and
threats pertaining to the organization and how due consideration to these threats can help in
planning the strategic process of an organization. The data outside and both inside the
organization should be researched that can help in highlighting important points. The analysis
of the external environment pertaining to an organization can help in the process of
highlighting important points that can help the company in earning profits. An organization
has to look at the following aspects before the determination of strategy- market share,
financials, internal process, public relations and that of customer satisfaction.
Understanding the market share is important for the growth of the company and it is
an early process in relation to marketing planning (Brewster 2017). Gauging the market share
can help the organization in targeting the process of growth and the customers. It is important
to know about the financial dynamics in relation to a company as it can help in assessing
whether the company will be able to undertake the process of strategic planning.The current
state pertaining to that of the organization can be determined based on the four parameters-
customer satisfaction score, profit margin and market share. The customer satisfaction score
will help in revealing whether the customers are happy with the products and services of the
company and to what level. Net profit margin shows the profit that is made by a company and
it has bearing on that of the capital reserves of the company. The higher the amount of profit
more likely it will be that the business will be able to stay resilient during that of unexpected
loss. The SMART goals in relation to an organization should be written down that can help
an organization in moving towards that of the strategic goal. SMART goals are important in
relation to strategic planning as it can help in focussing on the aspect of effectiveness
pertaining to an organization. The objectives will become crucial for the organization and it
would inspire the management along with that of the employees for working towards

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achieving the goal. It can help in establishing that of the reasonable time frame. It can help in
measuring productivity and lead to quality improvement. It can help in the process of seeking
collaboration and inspiring innovation within an organization (Scholes 2015). It can help in
measuring the impact in relation to community benefits. It can help in identification of the
executive role within that of change management that can help in greater organizational
control. It can help in identifying and quantifying that of the performance measures.
The goals of an organization should be monitored on quarterly basis. The
organizations are busy in the modern age and the responsibilities can come in the way of that
of completion of that of long-term goals. The SMART objectives focuses on that of short
term goal and it can help the company in reaching a goal in the long term. The strategic plan
should be reviewed in every year and it should be updated. This can help in reflecting on that
of the current market situation along with that of changes. It can help in ensuring that the
goals have been focussed on current condition of the organization. The external environment
keeps on changing and focussing on the short term goal can greatly help an organization.
There are many organizations that does not create the strategic plan because the process
proves to be intimidating for them. Trained facilitator can help the organization in this aspect
and he can help the organization in chalking out the future path (Mebert and Lowe 2017).
The facilitator prepares multiple activities that can help the organization in deciding about the
strategic plan priorities. The facilitator has insights into that of the organizational issues and
he can help in providing a direction to that of the strategic management problems.
Evaluation of the critical models used by organisations
The Balanced Scorecard is indicative of a framework that can help an organization in
understanding whether they have been able to accomplish the objective on strategic basis.
The non-financial metrics can also be made use of for that of performance evaluation. The
performance assessment takes a holistic approach with the help of this model. Business

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success in the long term cannot be achieved if the focus is laid on that of financial outcomes.
With the help of this approach, performance measurements can be developed. The different
indicators should be congruent with that of overall entity objective. The measurements can
relate to that of financial outcome or that of customer outcome. It can also be made use of in
case of business process outcome. This approach helps in targeting the thresholds that can be
met but the main focus is laid on the aspect of improvement (Hoque 20140. This metric can
help in measuring the progress in relation to fulfilling of the corporate objectives. The
managerial accountant should be involved for gathering relevant data within that of balanced
scorecard performance report. The reports are graphical that can facilitate its easy use along
with that of interpretation (Hansen and Schaltegger 2016). Great amount of emphasis is laid
on timely identification pertaining to the trends.
A strategy map can also be made use of by an organization for communication of that
of the strategic plan. It can help in the process of achieving that of high-level business goal. It
helps in communication of the high level of information in an easy format. A strategy map
can provide a clean and visual representation. It can help in unifying the goals into that of a
single strategy. It provides the employees with a common goal that can help them in
accomplishing tasks along with measures. It can help in the process of identification of that of
key goals. A strategy map helps the leadership of a company for visualising the goals which
they can communicate with that of the rest of the company (Shahsavari-Pour et al. 2017). It
can help in visualizing the connections between that of different ideas and how the ideas can
pave the path for specific results. It can help in the identification of the necessary parts
pertaining to the organization that can help in supporting that of new undertakings. It can help
in communication of the goals pertaining to the company and show the ways by the help of
which the objectives can be achieved. It can help in providing the starting point in relation to

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each division. Strategy mapping can help in highlighting whether the divisions fit into that of
the overall strategy in relation to the organization.
The Blue Ocean Strategy is mixed with that of strategic management principles that
are traditional. It can help in the gathering of business intelligence and makes use of tipping
point analysis that helps an organization in searching for the opportunities that will come into
existence. They are not being made use of and using this strategy can help organizations in
jumping to that of opportunity that shall come in their path. It helps in providing the
framework that helps a company to run towards that of an opportunity. It can be said to be a
combination of that of differentiation along with that of cost leadership that can help a
company in finding that of the brand market. It makes use of traditional approach like that of
SWOT( strength, weakness, opportunity and threat) and that of PEST GO ( political,
economic, social, technological and that of government and organizational analysis. These
are then synthesized for evaluation of critical success factors along with that of key
performance indicator. Strategy canvas is core to that of development pertaining to that of the
blue ocean. Blue Ocean differs from that of Porters’ Strategy in relation to two respects. The
Blue Ocean model helps in defining the element of uncontested marketplace (Kim and
Mauborgne 2014). The traditional models does not want to go outside that of the comfort
zone into that of the new territories. This model helps in achieving cost leadership along with
that of differentiation. This strategy helps in developing the strategic canvas and identifies the
company with the competition prevailing in the industry. It assists the management in seeing
that of the typical results that shows the convergence strategies that are made use of by the
organizations. It utilizes that of Elimination- Reduction- Raise- Create grid that can help in
identification of the characteristics within that of the industry which can be eliminated or
raised based on that of market analysis (Agnihotri 2016). The organization is analysed against
that of strategic groupings, complementary products and the buyer groups. By analysing these

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paths, a firm is able to understand whether it will be possible for a new blue ocean strategy to
exist.
Application of tool to TESCO
TESCO that is the multinational grocery has its headquarters in England, United
Kingdom. It accounts to be the third largest retailer within that of the world on the basis of
the profits made. It has diversified geographically and spread into such areas like that of
retailing of books, clothing and that of electronics. The advancements made in the field of
technology has caused the productivity to rise. It has resulted in increased supply as
compared to the demands. It thus leads to the dramatic fall in prices. Globalisation has further
worsened the situation that has facilitated the entry of the new comers. It has helped in
lowering the cost of the production. The demands are quite high in the case of the richest
nations. Blue Ocean Strategy can help TESCO in creation of the new market place (Kim and
Mauborgne 2017). It helps in focussing on the non-customers for the creation of demands.
The Blue Ocean Strategy can help TESCO in the process of reconstruction of that of the
market boundaries. It can help in weakening the risks related to searching. The blue ocean
strategy can help TESCO to explore the new aspects instead of paying attention to simply
increase the numbers. This strategy can be a boon for TESCO in reaching beyond that of the
existing demands and helps them in getting the right strategy sequence. The blue ocean
strategy thus reduces the business model risks pertaining to TESCO (Tescoplc.com, 2018).
The blue ocean strategy helps in the process of creation of that of values. Innovation has a
key role to play pertaining to that of value creation (Jafari, Shahanaghi and Tootooni 2015).
The blue ocean strategy can help TESCO in the aspect of value creation and the strategy
specifies the need for value creation for both organization along with the customers. The blue
ocean strategy can help in eliminating the services that are not valued by that of the current
market.

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The blue ocean strategy can help TESCO in tapping that of the new geographical
market and introduce the new products to that of the existing ones. It can help TESCO in the
creation of an uncontested market space that will make the competitors to be irrelevant. It can
help in creation of the customer value by decreasing the costs. This strategy will make the
product and service better in respect to the dimensions that is valued by that of the new target
customer. The dynamic strategy of blue ocean can help TESCO in creating products and
services that rises above that of the industry standard and reduce the competition pertaining to
other retailers. It can help TESCO in creating different kinds of factors that the company has
not offered previously. The blue ocean strategy can help TESCO in analysing the preferences
pertaining to that of the customers that can help in the process of simplification of business of
TESCO. It can help TESCO in providing the right kind of supply chain that can prove to be
less wasteful.
There are different kinds of cultural factors that influences the pattern pertaining to
our eating and consumer preferences should be scrutinized by TESCO so that it can stay
relevant within that of the competitive market. The main business of TESCO is related to
food and it should build on these business sector in order to expand the business. The smaller
stores have been asked by TESCO to make promotions that will prove to be relevant for the
brand and the online TESCO is focussing on the arena of that of Delivery Saver customers.
The Blue Ocean strategy prioritizes on the specific categories and small electrical products
that are in great demand among that of the UK population is targeted by TESCO. The blue
ocean strategy will help TESLA in focussing on the arena of innovation and work on the
arena of healthy eating. It shall thus be able to engage with the agenda related to public health
that will increase the popularity of the products and services within the market. Different
ventures can be provided to the supplier start-ups that can help in demonstrating the
innovative zeal of the company.

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References:
Agnihotri, A., 2016. Extending boundaries of blue ocean strategy. Journal of Strategic
Marketing, 24(6), pp.519-528.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35). Routledge.
Buckley, P.J., Burton, F. and Mirza, H. eds., 2016. The strategy and organization of
international business. Springer.
Hansen, E.G. and Schaltegger, S., 2016. The sustainability balanced scorecard: A systematic
review of architectures. Journal of Business Ethics, 133(2), pp.193-221.
Hoque, Z., 2014. 20 years of studies on the balanced scorecard: trends, accomplishments,
gaps and opportunities for future research. The British accounting review, 46(1), pp.33-59.
Jafari, M., Shahanaghi, K. and Tootooni, M., 2015. Developing a robust strategy map in
balanced scorecard model using scenario planning. Mathematical Problems in
Engineering, 2015.
Jannesson, E., Nilsson, F. and Rapp, B., 2016. Strategy, Control and Competitive Advantage.
SPRINGER-VERLAG BERLIN AN.
Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to
create uncontested market space and make the competition irrelevant. Harvard business
review Press.
Kim, W.C. and Mauborgne, R.A., 2017. Blue Ocean Leadership (Harvard Business Review
Classics). Harvard Business Review Press.
Mebert, A. and Lowe, S., 2017. Blue Ocean Strategy. CRC Press.

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Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Shahsavari-Pour, N., Asadi, H., Asadi-Pasoojani, M., Kazemi, M., Mirzaie, A. and Karami,
M., 2017. A new approach for building a strategy map based on digraph theory. International
Journal of Applied Management Science, 9(1), pp.1-18.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Tescoplc.com (2018). Tesco PLC. [online] Tesco plc. Available at:
https://www.tescoplc.com/ [Accessed 1 May 2018].