Envisioning the Future of A2B Company: Organizational Strategy and Development

Organizational strategy is crucial for A2B Company to maintain a positive approach to employee performance and boost production capacity. The company can support the implementation of its organizational strategy through systematic processes, stakeholder analysis, and strategic control. An administrative manager plays a key role in designing and implementing organizational strategies across functional areas of an organization. Effective management of these factors will help A2B Company achieve future growth and development.

Strategic management

TABLE OF CONTENTS
INTRODUCTION.................................................................................................................................1
SECTION 1...........................................................................................................................................1
Concept of strategy............................................................................................................................1
Elements of the strategic management process..................................................................................1
Role of values, vision and mission statements in the strategic management of organisations............2
Different approaches to formulating strategy.....................................................................................2
Influence of the external environment on strategy formulation.........................................................3
SECTION 2...........................................................................................................................................3
Differentiates between organisations’ general competitive and internal environments......................3
The tools available for the analysis of the general, competitive and internal environments...............4
Appropriate tools to analyse actual organisational environments......................................................5
Role of organisational strategy in achieving competitive advantage..................................................6
SECTION 3...........................................................................................................................................7
How organisational processes can support implementation of organisational strategy......................7
Evaluation of different approaches to strategic change......................................................................7
Place of strategic control and reward systems in supporting the implementation of organisational
strategy..............................................................................................................................................8
Role of administrative manager in designing and implementing organization strategy.....................8
How administrative management can be used to facilitate implementation of strategy across the
functional areas of organisations.......................................................................................................8
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

LIST OF FIGURES
Figure 1Porter's five forces....................................................................................................................7

INTRODUCTION
In today’s highly competitive environment most of the organizations are trying to
adopting some of the best strategies through which they can gain higher competitive
advantage. Strategic management can be defining as a most important strategy of company
that manager carry out to achieve better performance. With the help of better strategic
implementation as well as formulation organization can achieve their target market and
enhance their sales equally (Learning, 2005). The present report is based on the case of A2B
Company which has been growing rapidly over the past 18 months. This is a family owned
business which has been passed through several years. They have been making policies and
taking all the strategic decisions. Due to the various emerging opportunities and changing
time they are planning for further growth and development. This study suggests the main
element of strategic management to the owner and director of A2B firm. With the help of
better strategic decision they can successfully apply strategic management to maintain growth
and gain from these developments.
SECTION 1
Concept of strategy
Strategy can be defined as a plan or action that is particularly designed to achieve
goals as well as objectives of organization. The top management of organization is highly
concerned about the selection of a course of action through which they can meet the
organizational objectives (Hill, 2012). It can also be define as a process under which
objectives are formulated and achieve is known as strategic management. In addition to this,
company can easily move towards the set of objectives by using its resources. It is the best
way under which they can design the overall plan to achieve those goals. Further, formulating
appropriate strategy helps the company to meet its uncertain situation with due diligence.
Elements of the strategic management process
The process of strategic management can be define as a important part of organization
under which top management team can consider how various resources such as money,
personnel and time impact the environment (Bloodgood, 2008). There are basically four key
elements of the strategic management process:
Environmental scanning: This is essential element which involved in looking
forward at how internal and external factors affect the success of organization. This involves
creating a SWOT analysis as well as further strategic planning accordingly.
1

Strategy formulation: It is the next element of strategic management process under
which management team can move on to formulating or drafting its strategies. These
strategies are developed on the basis of treats, opportunities, strength as well as weaknesses
outlined by company.
Strategy Implementation: After formulating a strategy plan, it is then up to the
organization’s management team to put that strategy into action (Grant, 2008). Under this
step, company can create a specific action plan for how the strategies will be achieved.
Strategy Evaluation: Once the implementation has been done then management team
moves towards the next and the last step of strategy evaluation. Under this, they can evaluate
the strategy’s longevity as well as effectiveness.
Role of values, vision and mission statements in the strategic management of organisations
In the strategic management of organization, their values, vision and mission
statements play a crucial role. Eventually, the mission statement of company is its purpose
which serves guide for the company’s entire decision making. The main role of setting
mission statement is to offer appropriate information about what decisions company leader’s
need to take align with it (Crain and Abraham, 2008). On the other hand, vision statement
provides appropriate direction for the company for their future and provides commitment to
integrity and transparency. It also helps to provides inspiration to employees to go through
the higher level of productivity. In addition to thus, a set value of organization motivates their
workers to results in faster way and also provides better decision making. It results into cost
savings and provides clear objectives and directions to all those workers.
Different approaches to formulating strategy
Formulation of strategy is one of the most important concepts of strategic planning.
Under this, firm’s manager evaluates the future perspectives and decides appropriate
strategies to achieve long term success as well (Kaplan, 2005). There are varied approaches
to formulating strategies such as:
Economic imperative: Company should go through the worldwide strategies that are
based on the cost leadership as well as segmentation.
Political Imperative: Under this, company can utilize various strategies that are
country responsive and designed to protect local niche markets. Further, company need to
design various strategies in order to protect their brand image as well as position.
Quality Imperative: This is considered as a most important approach of the strategic
formulation. Under this companies need to employ strategies of total quality management in
2

order to meet or exceed consumer expectations (Dent, 2012). There are various strategies
through which company can easily improve the quality of their products as well as services.
Influence of the external environment on strategy formulation
Identification of strategic factors requires systematic analysis of both external as well
as internal environment. With the help of this company can easily set their strategic future
directions and maintain their long run success. External environment consists of micro
analysis under which various factors takes place such as political, social, legal, technological,
environmental as well as economical (Rainey, 2010). These factors clearly indicate the
opportunities and threats in the business environment. Due to the various changes in
technologies organization might face several threats. Further, understanding the needs and
demands of the customers is quite essential for company. Competition comes under the major
influence of external environment. By knowing who else is competing and how they are
giving tough competition is also a key to success. Further, it can be stated that with the help
of the micro analysis company can easily identify the factors which affects their business
operations (Morden, 2007). With the help of this they can easily set their strategies as per
these factors and maintain their positive business environment as well.
SECTION 2
Differentiates between organisations’ general competitive and internal environments
The general environment is composed of various elements in the broader society that
influence the overall industry. Under the general environment basically six elements is
segmented i.e. demographic, economic, political/legal, socio cultural, technological and
global. A2B Company will not be able to control the general environment segments as well
as elements. For this, they need to gather the types and amount of data and information that is
required to understand the each segment as well as its implications (Learning, 2005). It helps
them in developing better and appropriate strategies. On the other hand, competitive analysis
defines various factors which directly influence the company. This is consists of various
factors such as threat of new entrants, suppliers, buyers, product substitutes, and the intensity
of rivalry among competitors. All these factors help in determining the industry’s profit
potential as well as their future growth. Further, understanding the firm’s competitor
environment complements the insights provided by general environment. In addition to this,
internal environment composed of all the internal elements which affect their future growth
such as company’s strength, weaknesses as well as threats and opportunities. Moreover,
3

general environment is focused with the future whether industry environment is focused with
the conditions and factors which might influence the firm’s profitability (Dent, 2012).
However, competitor analysis is focused with predicting their competitive edge as well as
existing rivalry within their area of industry. It defines the dynamics as well as actions and
intentions of competitors.
The tools available for the analysis of the general, competitive and internal environments
There are different tools through which A2B Company can easily analyse their
competitive and internal environments. With the help of these tools they can go through the
appropriate as well as future development such as:
Porter’s five forces: This is considering as a most important tool through which
company can easily identify their industry competitiveness. It suggests that corporate strategy
should meet out the opportunities and threats in the organization’s external environment.
Porter has identified five competitive forces that shape every industry (Morden, 2007). With
the help of identifying these forces A2B can easily go through the existing rivalry within the
same industry as well as several other threats. Typically the five forces help their
management team to decide how to influence the particular characteristics of their industry.
Further, the development of A2B as well as its competitor analysis can be done by as follows:
Figure 1Porter's five forces
(Source: Competitive environmental analysis)
4

Another most effective tool available for the analysis internal environments is known
as SWOT analysis (Learning, 2005). This tool helps in understanding the strengths,
weaknesses, opportunities and threats involves in the project as well as business. With the
help of this tool A2B can easily identify new opportunities have emerged for further growth
and development. They can also go through their capabilities as well as their unique selling
points. In addition to this, analysis of general is focused with the future under which company
can go through the Swot analysis as well as value chain analysis. This is the best tools
through which company can easily go through their future marketing activities.
Appropriate tools to analyse actual organisational environments
The whole organizational environment can be analyzed by using appropriate tools i.e.
Porter’s five force analysis:
Supplier power: It is an assessment that how easy it is for suppliers to drive up the
prices (Jeffs, 2008). It determines the cost of switching from one supplier to another. A2B is
a well established family business due to which they already have their set suppliers. Under
this concern, bargaining supplier power is low for local authority for school coaches.
Buyer power: It determines the importance of each individual buyer to the
organization. The buyer power of A2B Company is moderate due to their switching cost.
There are fewer competitors in the market so that buyer power is quite moderate for the well
established family business.
Competitive rivalry: It gives the clear assessment of number of competitors in the
market. A2B is a family business but most of the people nowadays moving towards the
family business and it gives the clear assistance that there is a moderate competitive rivalry in
the fields of school coaches (Freeman, 2010).
Threat of substitution: In case of increasing substitutes customers of company can
also switch to alternatives in response to increasing prices. Threat of substitution is low in the
field of school coaches as it requires higher technical specialized people as well as various
other resource capabilities.
Threat of new entrants: Profitable market attracts new entrants due to which
companies might decrease their target market. Threat of new entrant is moderate due to the
high financial capabilities as well as resource capabilities (Sadler, 2003).
Different approaches to formulating organisational strategy and analysis how markets
influence strategy formulation
5

There are different approaches of formulating organizational strategy such as: Porter’s
generic strategy under which firm can position itself by leveraging its strengths (Bloodgood,
2008). With the help of this formulation Strategy Company can outline the three major
strategic options through which they can achieve sustainable competitive advantage.
The cost leadership strategy: According to this strategy company can increase their
profits by reducing their cost. Moreover, they can also increase their market share through
charging lower prices to their customers. It is the initial step of strategic formulation which
must be followed.
The differentiation strategy: With the help of this approach A2B can make their
products or services different and more attractive (Freeman, 2010). In order to make success
of a differentiation strategy organization strategy need good research as well as development
and innovation.
The focus strategy: Companies that are highly focused with the focus strategies are
highly concentrated on particular niche markets. Under this, company can understand the
dynamics as well as needs and demands of customers.
In order to formulate appropriate organizational strategies the above given process
must be followed. It can be stated that markets highly influence the strategic formulation due
to the changing needs and demands of the customers. A2B need to go through the proper
market analysis before formulating any of its marketing strategies as well as plan. The overall
strategic formulation is being influenced by the changing consumer preferences (Griffin,
2002). Further, markets consist of A2B competitor’s analysis. Under this, company can set
their strategies as per their competitors plan. It is the best way through which they can
enhance their consumer base and increase their sales. Further, it can be stated that
Role of organisational strategy in achieving competitive advantage
Achieving competitive advantage is one of the most important tasks for any
organization. Companies need to implement better organizational strategies as it helps them
in achieving higher competitive edge. It is the process by which companies can plan for their
future development as well as growth. It is an expression under which organization can
evolve over time in order to meet their objectives (Lane, 2007). At the time of formulating its
strategy business need to compare its present state to its targeted state. It is the best way
through which they can identify the differences and then state the requirements. It is quite
important to set the organizational strategy as envision the future of A2B Company as well as
its development and growth opportunities. It is quite important for them to develop better
6

organizational strategy as it provides appropriate understanding about the company as well as
growing and changing world. Further, it can be stated that it plays a most important role in
achieving higher competitive advantage as it provide clear vision and direction for the whole
organization.
SECTION 3
How organisational processes can support implementation of organisational strategy
Organizational process is an enabling factor to performance improvement. The overall
organizational process can support the implementation of organizational strategy. With the
help of this company can formulate various strategies through which they can maintain
positive approach to the employee performance (Huang, 2001). In addition to this,
Organizational process acts as a method in which organizational activities are conducted on
daily basis so that ultimate objectives can be attained. Considering the scenario of A2B
Company, it follows systematic process where roles and responsibilities of individuals are
determined in specific manner. With the help of it, organizational strategy of producing
coaches with optimum utilization of resources can be implemented by dividing whole work
in appropriate manner. Further, the company is able to boost its production capacity by
allocating the resources in optimum manner. Also, cited firm uses systematic process that
aids in fulfilling the requirement of tender that been given by local authorities for school
coaches in the required manner.
Evaluation of different approaches to strategic change
In order to enhance the understanding of implementation of organizational strategy it
is quite essential to go through the various approaches of strategic change. These approaches
are stakeholder analysis, organizational analysis, designing change, implementation,
monitoring and sustainability. These are considered as a most common approach through
which A2B can plan its vision as well as program management. Further, it is essential for
company to identify all the stakeholders and their needs in order to implement change. A
detailed organizational analysis represents the examination of particular company. Under this,
purpose and process of the company will be identified. Designing a change is most important
approach which consists of different staffing needs as well as evaluation process. By taking
several ideas from employees leads to the implementation of organizational change (Rainey,
2010). The final approach carries out the monitoring process under which appropriate data
will be gathered about the success. In order to become sustainable and acquire several
changes it is essential for company to go through the strategic change approach. In addition to
7

this, it can be stated that formulating change management strategy is the critical step in
implementing a change management methodology. After going through the whole
organizational analysis A2B can design appropriate strategies for change management.
Place of strategic control and reward systems in supporting the implementation of
organisational strategy
In order to support the implementation of organizational strategy A2B need to place
different reward system for their employees. With the help of this they can share different
ideas about the better strategic formulation. It is the best motivation factor through which
company can motivate their employees and boost their performance as well. It helps in
enhancing sales as well as growth of company (Huang, 2001). Further, it can be stated that
strategic control and reward system is the most important part which must be placed at the
time of implementation of organizational strategy. By appropriate reward system employee
can motivation can be enhanced.
Role of administrative manager in designing and implementing organization strategy
Administrative managers play most important role in converting strategic vision into
strong steps, this helps the organization in implementing strategies. For an organization to
succeed, good administration is very necessary (Cattani, 2011). Implementation of strategies
succeeds only when it heavily depends on its administrative manager's interpersonal skills
and how they manage to get their job done from others.
How administrative management can be used to facilitate implementation of strategy across
the functional areas of organisations
At the time of designing and implementing organizational strategy, strategy
implementer is also one of the duties of an administrative manager. It helps in creating a
suitable plan of action and to be the change by taking the right approach through the
organization. They are also responsible in determining an appropriate change in leadership
style depending on the context of the firm (Jeffs, 2008). Most of the people do not accept
change, people prefer just not to go through change and especially the older people mostly
don't undergo changes. In short, adopting something new in an organization has become a
greatest challenge for administrative manager to deal.
8

CONCLUSION
From the above report it has been concluded that strategic management is one of the
most crucial element through which A2B Company can easily adopt new opportunities.
Company can also achieve future growth and development, as a result of new tenders being
published by the local authority for school coaches. By adopting best strategic management
Process Company can go through the future development.
9

REFERENCES
Books & Journals
Bloodgood, J., 2008. Competitive analysis of industry history to enhance planning. Strategic
Direction. 24(11). pp.3 – 5.
Cattani, G., 2011. Project-based organizing and strategic management. Bingley, U.K.:
Emerald.
Crain, D. and Abraham, S., 2008. Using value-chain analysis to discover customers' strategic
needs. Strategy & Leadership. 36(4). pp.29 – 39.
Dent, B., 2012. Dimensions of sustainable value chains: implications for value chain analysis.
Supply Chain Management: An International Journal. 17(6). pp.575 – 581.
Freeman, R., 2010. Strategic Management: A Stakeholder Approach. Cambridge University
Press.
Freeman, R., 2010. Strategic Management: A Stakeholder Approach. Cambridge University
Press.
Grant, R., 2008. Contemporary Strategy Analysis. Blackwell Pub.
Griffin, C., 2002. Strategic planning for the internal marketing and communication of
facilities management. Journal of Facilities Management. 1(3). pp.237 – 246.
Hill, A., 2012. The Encyclopedia of Operations Management: A Field Manual and Glossary
of Operations Management Terms and Concepts. FT Press.
Huang, T., 2001. The effects of linkage between business and human resource management
strategies. Personnel Review. 30(2). pp.132 – 151.
Jeffs, C., 2008. Strategic Management. SAGE.
Kaplan, R., 2005. How the balanced scorecard complements the McKinsey 7-S model.
Strategy & Leadership. 33(3). pp.41 – 46.
Lane, S., 2007. A new competitive analysis tool: the relative profitability and growth matrix.
Strategy & Leadership. 35(2). pp.30 – 38.
Learning, P., 2005. Business Environment. Routledge.
Morden, T., 2007. Principles of strategic management. Aldershot, England: Ashgate
Plant, R., 2000. Ecommerce: Formulation of Strategy. Prentice Hall Professional.
Rainey, D., 2010. Enterprise-wide strategic management. Cambridge, UK: Cambridge
University Press.
Sadler, P., 2003. Strategic Management. Kogan Page Publishers.
10

11