Importance of Review in Developing Organizational Strategy and Business Plans

This presentation discusses the importance of reviewing a business plan and the tools that can be used to review organizational strategy and business plan. It also analyzes the competitive strengths and weaknesses of the current business strategy and plan with the help of SWOT analysis. The presentation focuses on Zara, one of the leading retail companies, and evaluates its position in the current market using the Porter Five Forces framework.

STRATEGIC PLANNING
TASK 3

TABLE OF CONTENTS
• Importance of review in developing organizational strategy and business plans
• Tools which can be used to review organizational strategy and business plan
• Position of company in current market using tools
• Analysis of competitive strengths and weakness of current business strategy and plan

IMPORTANCE OF REVIEW IN DEVELOPING
ORGANIZATIONAL STRATEGY AND BUSINESS PLANS
The importance of reviewing a business plan is explained underneath:
• It helps in tracking progress and stay updated.
• IT helps in analysing and evaluating more effective approaches through which business
development can be ensured.
• This will be helpful in evaluating progress with enhancing profitability of business over time.
• It also supports in adjusting to changes and markets conditions and affect profitability.

TOOLS WHICH CAN BE USED TO REVIEW
ORGANIZATIONAL STRATEGY AND BUSINESS
PLAN
Some of the tools for reviewing business plan are- SWOT, PESTEL, VRIO, Value chain and many
others. As it is essential to review the business plan and strategy, the Porter Five Forces of Zara is
discussed below:
Porter Five Forces
In context of Zara, a Porter Five forces in order to review organization strategy and business review is
stated below:
Bargaining power of suppliers- Similarly, "supplier negotiating strength" might be said. The purpose
is to determine the number of suppliers and the things they provide as manufacturing inputs.
Bargaining power of buyers- The "customer bargaining power" topic's purpose is to create a list of a
company's customers. It requires figuring out how many there are and how powerful they are in
influencing company decisions.

Contd.
Competitive rivalry- In order to evaluate the company's position in a given market, competitors
must be recognised, identified, and investigated. The market becomes more competitive as the
number of rivals increases.
Threat of new entrants- It is also critical to be involved in the discussion regarding the threat of
new entrants. To estimate the risk, a list of current barriers to market entrance must be created.
Threat of substitution- "The risk of replacement products" refers to the evaluation of the range
of possibilities for using an alternative product or service to that provided by the company.

POSITION OF COMPANY IN CURRENT
MARKET USING TOOLS
• Zara is one of the leading retail companies which is offering quality product at affordable price
range.
• There are other competitor companies as well which are offering similar products and in order to
evaluate the position and competitiveness of Zara, the porter five forces framework has been used.

ANALYSIS OF COMPETITIVE STRENGTHS AND
WEAKNESS OF CURRENT BUSINESS STRATEGY AND
PLAN
In order to evaluate the strengths and weakness of current business strategy and business plan is
evaluated with the help of SWOT analysis. In context of Zara, SWOT analysis is discussed below:
STRENGTHS
• Unique designs
• Global presence
WEAKNESS
• Advertisement
OPPORTUNITIES
• E-commerce
THREATS
• High competition