Strategic Planning - Assignment

Strategic Planning Assignment
Task 1
Introduction
A vision at some point in the future a clear, comprehensive picture of a company.
It defines the direction of the business and involves what the company should be
like in order to succeed.
A clear and effective vision is of strategic importance to an organisation. A
strong vision helps to define organisational values and guides the behaviour of all
employees. A strong vision also leads to increased productivity and efficiency.
A mission statement in contrast A statement of mission communicates why the
organisation is and how it seeks to serve the key stakeholders of the organisation.
The most highlighted stakeholders are customers, employees and investors.
Statement of mission is often longer than statement of vision. Sometimes mission
statements include an abstract of the values of the company.
The strategy should be closely connected to organization vision and mission,
since the strategy is proposed to answer the question “How will the organization
achieve its vision?”
The relationships between Mission, Vision, and strategy
Vision and Mission of the organisation are key elements of a corporate strategy
and are the basis for the setting of corporate objectives.
Vision and Mission statements, for example, play a vital role:
• Provide organisations with unanimity of reason for being and explain the
context in which the organisation operates.
• Communicate to stakeholders the reason for being of the organisation.
• Specify the direction the organisation should follow in order to achieve its
vision and the declarations of the mission.

• They create the sense of ownership and identity for their employees.
The influence of external environment factors on organisational
strategy
The following can be grouped into multiple external environmental factors:
 Political-legislative factors: There is an organisational policy and legal
framework. All laws, legal provisions and policy framework include the
relationship between political power and business. The legal context refers to
that relational system. Example: tax trade law, law of labour, environmental
law, etc. In this context, we can talk about the need to guarantee a climate of
political and legal stability that can encourage or discourage businesses,
prevent risks.
 Economic factors: directly affect the rates of business organisation, inflation,
fiscal policies, price fluctuations, etc.
 Technological factors: today we reach productivity very quickly with the new
technology, create and consume new products. There is no market requiring
the exercise of change in technology pressure and subsequently market
generation.
Field specialists divided as follows to make it easier to analyse external
environments:
 Micro-environmental: organisations consisting of actors, stakeholders in the
immediate public authority, vicinity customers, suppliers, and competitors;
 Macro-environmental: composed of socially active factors and trends that
cannot be assigned as "Remote" from afar to other organisations.

The outside environment must diagnose the following steps effectively:
 Analyse the influence macro-environment;
 Competitive environmental analysis;
 External environment development perspectives.
 Interest analysis expectations.;
Stakeholders
Every individual or group of persons who believe in and are interested in the
ability of an organisation to deliver the desired findings and influence or are
affected by their results are referred to as stakeholders. Stakeholders play an
essential part in the organization's development and final success.
A company generally bears responsibility for a wide range of parties, including
shareholders, which form part of the strategy execution of an organisation. This is
why managers have to take account of the interests, needs and preferences of
stakeholders. Anybody who can influence a corporate, project or strategy or who
is affected is a stakeholder. They can be both outside and inside and be at higher
or lower levels of management.
Types of Stakeholders
Stakeholders are individuals whose authority in any way affects an organisation
or project.
Stakeholders can be of two types:
Primary or Internal stakeholders
External stakeholders

Primary or Internal Stakeholders
They are groups or individuals directly involved in business transactions, such as
staff, owners, investors, suppliers and creditors.
For example, staff contribute skills and expertise to earn and retain high salaries.
In order to maximise the profit of the company, owners control the company.
Secondary or External Stakeholders
These groups or people do not necessarily have to enter into transactions with the
company, but are somewhat affected by the decisions of the company, such as
customers, suppliers, creditors, communities, trade unions and the government.
The trade unions, for example, are interested in the welfare of the organisation,
and the workers are well-paying and fairly treated. Customers want the company
to produce quality products at fair prices.
The factors which impact on the creation of organizational vision
The vision of an organisation is influenced by four key factors. The ideology,
purpose, key value and management are all factors. These factors are
thematically analysed in the topics. These factors are shown in the table below
together with their own dimensions.