Strategic Management for SMEs

This report discusses the current strategic direction of the Bryson organisation and provides a stakeholder analysis. It also evaluates available strategic growth choices and assesses their feasibility. Finally, key strategic recommendations are provided for the organisation's future development.

Strategic Management
for SMEs

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Critically appraise the organisation’s current strategic direction................................................1
A stakeholder analysis with a critical evaluation of the expectations of the different
stakeholders..................................................................................................................................3
Based on the critical evaluation of the impact of internal and external environmental identify
available strategic growth choices...............................................................................................4
A critical evaluation of strategic growth choices to assess their feasibility................................5
Provide key strategic recommendations for the organisation for future developments...............7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic management can be defined as the formulation and execution of the main
objectives of the organisation by the managers of the organisations. This is a very important
process at the workplace as it involve the assessment of all the resources that company has. In
other words it can also be stated that identification and implementation of all the strategies at the
workplace in order to achieve the goals and the targets of the organisations (de Araújo Lima,
Crema and Verbano, 2020). In this report, there will be the discussion on the organisation's
currents strategies which is being changing over the time. After that stakeholder analysis of the
organisation will also be undertaken into the account. After various growth options for the
organisation will be undertaken after evaluating the internal and external factors of the
organisation. Along with that there will be the evaluation of the strategic growth choices in order
to assess feasibility, suitability and acceptance. At the end recommendations will be given to the
organisations.
TASK 1
Critically appraise the organisation’s current strategic direction.
Strategic direction refers back to the plans that want to be carried out for an business
enterprise to development in the direction of its imaginative and prescient and fulfil its desires. It
guarantees proprietors and control can speak the significance of personnel paintings and their
contribution to reaching enterprise targets. The Role of Strategic Direction in Organizational
Design is that the number one duty of pinnacle control is to decide an enterprise's desires,
approach, and design, therein adapting the enterprise to a converting environment. Strategic
direction refers back to the foundational thoughts or movements that permit for extra consistency
in approach over time (Crovini Ossola and Britzelmaier, 2021). It in the end allows a business
enterprise reap its imaginative and prescient and allows it fulfil the desires of its organizational
approach. It additionally allows unite a business enterprise's techniques and offers for extra
balance into the destiny. When an enterprise has a strategic direction, it allows decide the
business enterprise's targets and the way it plans to perform them, it allows decide the desired
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assets and it allows become aware of how an enterprise wishes to perform for organization to
locate success. In relation to Bryson numerous styles of techniques carried out inside an
enterprise has been defined as follows:
Mission
A assignment establishes business enterprise's cause and explains why it exists.
Companies use their assignment as a manual for assembly its desires (Adla, Gallego-Roquelaure
and Calamel, 2019). In context of Bryson, in case of business enterprise has a assignment to
offer the best high-satisfactory hospitality services as compared to different businesses at the
market, this permits for a extra long-time period strategic direction that specializes in high-
satisfactory in place of specializing in desires like saving costs.
Culture
Company tradition refers to worker attitudes and behaviours inside an enterprise. While it
is difficult to extrude business enterprise tradition, tradition itself allows to form a business
enterprise's strategic direction (Guest and et.al, 2021). In context of Bryson, when organization
have a business enterprise with a carrier tradition concerning the business enterprise's customers,
organization may without difficulty enhance customer support wherein different businesses
don't.
Vision
A business enterprise's imaginative and prescient highlights what the enterprise hopes to
be and reap within the destiny. It in the end offers strategic direction along a business enterprise's
assignment statement. When a business enterprise has a selected imaginative and prescient, it
could use it to alter its modern-day marketing strategy and spending in a manner that higher
aligns with its imaginative and prescient (Aboramadan and Karatepe, 2021). In context of
Bryson, if a business enterprise envisions pollution, it could use this imaginative and prescient to
prioritize the business enterprise's modern-day making plans and spending ventures. It's really
well worth noting that businesses want a particular imaginative and prescient so its personnel can
decide whether or not or now no longer they are in the end assisting the business enterprise flow
forward.
Values
Values talk over with a business enterprise's essential beliefs. In different words, they talk
over with a business enterprise's ideas which might be proper or wrong. Values assist manual
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enterprise and assist personnel paintings higher towards desires. Some examples are business
enterprise values encompass integrity, equity and accountability.
A stakeholder analysis with a critical evaluation of the expectations of the different stakeholders.
Stakeholder analysis can be referred to as one of the most effective frameworks that helps
the organisation to find out the people who can be affected by the operations of the business. It is
a very important analysis that should be carried out in the organisation in order to find out which
are the people who supports the decision of the organisation ( Iborra, Safón and Dolz, 2020). On
the other hand stakeholders can be defined as those people of the organisation who has direct
interaction with the activities of the business. They are mostly involved in each and every
activities of the business. This analysis is very beneficial for the organisation as by
implementation of this, they can find out that which people of the organisation are more
supportive in order to achieve the goals and targets of the organisation. Stakeholder are the key
people of the organisation who should have to be satisfied with the results and outcomes of the
organisation. In relation to the Bryson organisation, they can implement this analysis in order to
find out the key stakeholder of the hospitality organisation. This analysis mainly includes four
components with it. Stakeholder analysis is mentioned below in relation to the Bryson
organisation:
 High Power, Low interest: This is the first matrix of the model which defines those
people of the organisation who have high power but low interest in the operations of the
organisation. In relation to the Bryson organisation they are carrying out the operations in
the hospitality sector and for that policies of the government has high power and low
interest with the activities of the business. As they can affects the operational activities of
the hospitality organisation to a great extent. In this category of the analysis government
comes under who have high power to influences the activities at the workplace.
 High power, High interest: High power and high interest of this matrix shows that the
interest of the individual towards the values of the organisations. These people are
directly connected with the operational activities of the business and are mainly involved
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in accomplishing the goals and targets (Agwu, 2018). In relation to the Bryson
organisation, they are doing their business in hospitality sector and for that investors and
upper level for that upper level of the management comes under this category. As they
have the power to influences the decision regarding the future activities. They have
invested huge funds in the business so it means that they have high interest in the
operational activities of he organisation.
 Low power, High interest: In this matrix of the analysis all those people come under
who shows in activeness in the operational activities of the business. These people can
not involved in the decision-making process of the organisations. In relation to the
Bryson organisation, employees of the organisation comes under this matrix who have
dedication towards the work but on the other hand they do not have power in the decision
making process. They are carrying out the operations in the hospitality services and
employees are the valuable assets of the workplace. So in this matrix employees of the
company.
 Low power, Low interest: In this matrix of the analysis customers comes under this. As
customers of the organisation have low power in the organisation because they cannot
take decision in the operational activities (Hauser, Eggers and Güldenberg, 2020). In
relation to the Bryson organisation, customers of the hospitality organisation comes under
this matrix.
Based on the critical evaluation of the impact of internal and external environmental identify
available strategic growth choices.
There are various strategic options available for the organisations which will helps the
Bryson organisation to increase their profits in the marketplace (Guertler and Sick, 2021). Some
of the strategic growth choices that are available for the organisations are as follows:
 Market penetration: It is one of the effective strategic options that helps the
organisation to increase their sales in the marketplace with the existing products and
services. This facilitates the managers of the organisation to increase the sales number. In
relation to the Bryon, they are providing hospitality services to the customers. This
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strategy can be implemented by the managers of the company in order to increase the
level of income.
 Market development: This strategic options can be defined as selling the existing
products and the services of the organisation into the new marketplace (Pour and Asarian,
2018). This helps the organisation to increase their sales and brand values in the new
boundaries. In relation to the Bryson organisation, they can adopt this strategic strategy at
the workplace in order to increase their sales. As they are providing hospitality services
to the customers in the marketplace and they are well established hospitality chain that is
present in the marketplace. Market development strategy can prove to be beneficial for
the organisation in order to grab new opportunities in the new markets. They can move
into the new countries through which they can increase the number of customers which
will ultimately results in increasing the revenues of the organisation.
 Product development: This strategic options is also effective one which means that the
organisations should offer new products and services into the existing market. It can be
stated as one of the most beneficial strategies for the company through which they can
effectively introduce new products and services into the marketplace (Aidoo and et.al,
2021). This can helps the organisation to increase their sales and profits in the market.
 Diversification: It is one of the most challenging strategies for the organisation in which
they introduce new products or services into the new market. In relation to the Bryson
organisation, they are dealing in the hospitality industry and for them it can comes out to
be the biggest challenge in order to implement this strategy ( Ferreira and Franco, 2019).
On the other hand, it can help the organisation to increase the customer base.
A critical evaluation of strategic growth choices to assess their feasibility.
Strategies Suitability Acceptability Feasibility
Market penetration This strategy can prove
to be suitable for the
Bryson organisation.
As they are carrying
out operations in the
hospitality industry.
It can be accepted by
the managers of the
company through
which they can
increase the sales of
their business. This
This strategy is
feasible for the
organisation as they
wanted to increase the
sales of the business.
This can helps them to
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can be accepted at the
workplace by
implementation of this
strategy.
introduce new services
into the existing
marketplace.
Market development This strategy is highly
suitable for the
organisation as it can
helps them to enter
into new marketplace.
This part of the model
will help the
organisation to find out
whether the particular
strategies for the
company is suitable or
not.
Yes market
development
strategies is feasible
for the organisation as
it will help in
increasing the sales of
the organisation. It
will also helps Bryson
organisation to
increase their brand
values in the new
market.
As Bryson is one of
the well established
hotel chains present in
the marketplace (Rua,
França and Ortiz,
2018). This strategy
should be accepted by
the mangers of the
company as they
wanted to increase
their sales and
customer base. This
will helps the
organisation increase
the number of
customers in their
hospitality business.
Product development This strategy is not so
much suitable for the
organisation as it
require so much
development on the
product which is a time
taken process. This
strategy is not suitable
for the organisation.
This strategy should is
not acceptable by the
organisation as it will
be challenging for the
organisation to offer
new and effective
services in relation to
the hospitality
services.
This strategy is not
feasible for the
organisation
(Garbellano, and Da
Veiga, 2019). As they
want to increase the
sales and customer
base in the
marketplace. In order
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to develop new
services in the
marketplace, research
and development is
requires in order to
develop new services.
Diversification It is not suitable at all
for the Bryson
organisation as it is so
challenging for the
organisation to offer
hospitality services in
the new marketplace.
Managers of the
organisation will not
accept this strategies
as it will require so
much time and
resources to establish
themselves into the
new marketplace.
This strategy is not
feasible for the
organisation as it
requires team of
professional in order
to establish in the new
marketplace with new
services.
Provide key strategic recommendations for the organisation for future developments.
 One of the main recommendations for the Bryson organisation is that they should expand
their hospitality services into the international marketplace.
 Another main element that they should consider while carrying out the activities is that
they should regularly analyse the level of competition in the marketplace (Senaratne,
Wang and Sarma, 2021). This will facilitates the managers of the organisation to offer
competitive edge to the competitors in the marketplace.
 Another main recommendation for the organisation is that they should provide innovative
services to the customers. This will help the company to increase their number of
customers.
CONCLUSION
From the above report it has been analysed that it is very important for the organisations
to make effective strategies in order to achieve the goals and targets of the business. In the above
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report, current strategies of the chosen organisation has been analysed. After that stakeholder
analysis has also been analysed. Along with that various strategic growth choices has been
analysed after implementation of the various internal and external environmental variations.
Along with that there will be the analysis of the strategic growth choices through which
organisation can assess the feasibility, suitability and acceptability. At the end of the report,
recommendations has been given to the organisation for the future development.
REFERENCES
Books and Journals:
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Aboramadan, M. and Karatepe, O.M., 2021. Green human resource management, perceived
green organizational support and their effects on hotel employees’ behavioral
outcomes. International Journal of Contemporary Hospitality Management.
Adla, L., Gallego-Roquelaure, V. and Calamel, L., 2019. Human resource management and
innovation in SMEs. Personnel Review, 49(8), pp.1519-1535.
Agwu, M.E., 2018. Relevance of information technology in the effective management of
selected SMEs in Lagos State Nigeria. Academy of Strategic Management Journal, 17(1),
pp.1-15.
Aidoo, S.O., Agyapong, A., Acquaah, M. and Akomea, S.Y., 2021. The performance
implications of strategic responses of SMEs to the covid-19 pandemic: Evidence from an
African economy. Africa Journal of Management, 7(1), pp.74-103.
Crovini, C., Ossola, G. and Britzelmaier, B., 2021. How to reconsider risk management in
SMEs? An advanced, reasoned and organised literature review. European Management
Journal, 39(1), pp.118-134.
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de Araújo Lima, P.F., Crema, M. and Verbano, C., 2020. Risk management in SMEs: A
systematic literature review and future directions. European Management Journal, 38(1),
pp.78-94.
Ferreira, A. and Franco, M., 2019. The influence of strategic alliances on human capital
development: A study applied to technology-based SMEs. EuroMed Journal of Business.
Garbellano, S. and Da Veiga, M.D.R., 2019. Dynamic capabilities in Italian leading SMEs
adopting industry 4.0. Measuring Business Excellence.
Guertler, M.R. and Sick, N., 2021. Exploring the enabling effects of project management for
SMEs in adopting open innovation–A framework for partner search and selection in open
innovation projects. International Journal of Project Management, 39(2), pp.102-114.
Guest, D.E., Sanders, K., Rodrigues, R. and Oliveira, T., 2021. Signalling theory as a framework
for analysing human resource management processes and integrating human resource
attribution theories: A conceptual analysis and empirical exploration. Human Resource
Management Journal, 31(3), pp.796-818.
Hauser, A., Eggers, F. and Güldenberg, S., 2020. Strategic decision-making in SMEs:
effectuation, causation, and the absence of strategy. Small Business Economics, 54(3),
pp.775-790.
Iborra, M., Safón, V. and Dolz, C., 2020. What explains the resilience of SMEs? Ambidexterity
capability and strategic consistency. Long Range Planning, 53(6), p.101947.
Pour, M.J. and Asarian, M., 2018. Strategic orientations, knowledge management (KM) and
business performance: An exploratory study in SMEs using clustering
analysis. Kybernetes.
Rua, O., França, A. and Ortiz, R.F., 2018. Key drivers of SMEs export performance: the
mediating effect of competitive advantage. Journal of Knowledge Management.
Senaratne, C., Wang, C.L. and Sarma, M., 2021. Commonalities and specificities of dynamic
capabilities: a mixed methods study of UK high‐tech SMEs. R&D Management.