Strategic Planning Process and Business Strategies

This assignment provides an in-depth analysis of the strategic planning process and various business strategies that can be adopted by an enterprise. The report includes suggestions on how to increase market share and foster growth. References are provided from books and journals, including 'The Strategy Planning Process' by Grünig and Kühn, as well as articles from 'Business Strategy and the Environment' and 'International Journal of Productivity and Performance Management'.

Strategy and Entrepreneurship

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Tows analysis for determining current situation of company......................................................1
Evaluating The threat, weakness, opportunities affecting operation of an organization.............3
Strategies For market growth and increasing market share ........................................................5
Analyzing the way selected strategy can be implemented listing Canvas approach ..................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategies plays very important role in driving firm towards achievement of success.
Entrepreneur with high level of optimism as well as enthusiasm establish company. Many
entrepreneur fails to run their business successfully due to ineffective strategies. Strategic
management is a systematic procedure which involves identification as well as descriptions of
strategies which are required to be implemented in order to accomplish desired objectives. In
present highly competitive as well as dynamic business environment, an effective strategic
management is very much crucial for providing suitable responses to changes.
The present report has focus on analyzing the current situation of Iceland supermarket.
An organization is a British supermarket chain based in Wales, with emphasis on the sale of
frozen foods, including prepared meals. Study also emphasizes on identifying the threats,
weaknesses and opportunities which is effecting the business operations.
MAIN BODY
Tows analysis for determining current situation of company
The TOWS Matrix is aimed at developing strategic options from an external-internal
analysis and is a practical tool, particularly in the fields of business administration and
marketing.
. It is considered to be as an effective strategic tool which assist management in
identifying the suitable techniques for overcoming weakness, converting strength into
opportunities, and reducing the threats. Tows can be utilized by management in Iceland
supermarket for examining the external business opportunities and threats (Baird and Baird ,
2017). By utilizing Tows as strategic business tool can compare opportunities and threats to that
of strength as well as weakness. Tows analysis helps manager in making the suitable plan for the
future.
Iceland supermarket is British company. Business entity has achieved leadership position
in retailing industry.
TOWS analysis of Iceland Supermarket
 Strength and Opportunities:
Innovation skills. Iceland supermarket
has an opportunity to attract customers
Weakness and opportunities:
Decline in sales. This weakness can be
overcome by developing products or services
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by developing innovative products. In
addition to this, launching new product
in new market firm can capture wide
market share.
 An organization has its stores located at
different places which provide Iceland
supermarket an ease in delivering
goods or services to customers. As
Iceland supermarket have good brand
image in the market firm can form
strategic partnership with other
companies in an industry, as this tactic
will help an enterprise in delivering
products or services to wide number of
customers.
 Iceland supermarket has already
achieved leadership position in
domestic market. An organization has
an opportunity to move into the
growing organic food market using
their established brand name and
market position.
 An organization offers diversified
products. Business entity by
concentrating on quality can capture an
opportunity of increasing sales as well
as profitability (Christ, Burritt and
Varsei, 2017. ).
 Iceland supermarket has team of highly
skilled as well as talented workforce.
With the support of skilled as well as
according to the present trends as well as
customer demand.
Profitability as well as liquidity issue. These
problems can be resolved by developing
concentration on emerging health food market.
Iceland organization is still utilizing traditional
technology, an organization has an opportunity
to implement advance technology in its
business operation. As this strategy will help
an enterprise in bring positive improvement in
business procedure and system.
Low market shares and growth. Iceland
supermarket has an opportunity to enter into
new market. In addition to this, firm can form
joint venture with other companies, as this will
help business entity in fostering growth.
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experienced employees firm can easily
expand business.
Strength and threats: Iceland supermarket is
market leader, An organization has competitive
advantage over discounting stores. Competitors
can implement discounting pricing strategy
which might have effect on the financial
performance of an enterprise.
Weakness and Threats: In sufficient market
experience. There is high risk of failure due to
selection of inappropriate market segmentation
strategy. As organization has less market
experience, business entity might have to face
difficulty in sustaining in new market.
Little marketing as well as less investment on
research and development. There is threat of
decline in sales as well as profitability
(Johnson, 2017). In addition to this, Iceland
supermarket might face difficulty in
maintaining balance between demand and
supply. In such case, changes in social factors
might have negative influence on the demand
for company products.
Changes in economic factors have direct as
well as significant effect on the profitability of
company.
Increase in competition. An organization by
collaborating with competitors can reduce
competition. This strategy will support
business entity in increasing market share.
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Evaluating The threat, weakness, opportunities affecting operation of an organisation
There are two biggest issues faced by Iceland supermarket these are customer’s
complaints related to the poor quality of products and other is increase in operational costs. Use
of traditional technology by Iceland supermarket is considered to be the major cause of increase
in cost of operations as well as quality issues. It is required by business entity to implement
advance technology at workplace, as this strategy will support an organization in dealing with
such issues.
Little marketing as well as less investment has negatively affected the sales. It is required
by manager in an organization to develop an effective marketing strategies for promoting goods
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I
llustration 1: TOWS analysis
(Source: TOWS Matrix : Developing strategic option , 2018 )

or services. In addition to this, firm need to make investment in research and development, as
this strategy will assist entity in developing the understanding about the needs as well as
demands of customers in the market. Market research is considered to be as an effective strategy,
as it helps an enterprise in exploring as well as capturing business opportunities (Kueng, Li and
Yang, 2016.).
Changes in the regulation by government has direct as well as significant effect on
business operations of company. It is required by business entity to develop the understanding
about the various laws as this strategy will aid enterprise in preventing legal issues (Johnson
2017).
Inefficient market experience, this factor can provide competitors an advantage to create
pressure. Marketing manager in Iceland market considering the expansion strategies of other
companies need to make an effective marketing plan.
Implementation of discounting pricing strategy can lead to decrease in sales as well as
profitability of an enterprise. Iceland supermarket has an opportunity to provide high value
proposition to customers by developing new products. As this strategy will aid business entity in
reducing the negative effect of changes in economic factors on financial performance of
company.
Effective distributional channel has supported business entity in delivering goods as well
as services to customers. A company good relationship with suppliers has enabled firm to deliver
timely as well as quality services to clients.
Good brand image in the domestic market has provided firm an opportunity to expand
business operations.
High talented as well as trained workers has helped an organization in bringing positive
as well as drastic improvement in business procedures.
Due to increase in the competition, Iceland supermarket is facing difficulty in
concentration on core business operations which has negative effect on performance of an
Organization. Iceland supermarket can adopt diversification strategy for reducing the negative
effect of competition on the business operations (Amran, Ooi and Devi, 2015).
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Strategies for market growth and increasing market share
Iceland supermarket has slow market growth as compared to other organizations. There
are several strategies which can be adopted by Iceland supermarket for fostering growth these
are:
Market penetration: This strategy is considered to be as an effective for increasing sales
as well as profitability. By utilizing market penetration strategy Iceland supermarket can launch
its existing goods into existing market. Market penetration strategy will assist business entity in
increasing market share. In addition to this, Iceland supermarket can increase its marketing share
by offering goods or services at lower price to customers. For instance, market penetration
strategy can be applied at market place where there is less differentiation among goods, a low
cost pricing strategy can assist business entity in increasing market share.. Market penetration
strategy will support an organization in attracting more number of customers. This strategy has
been suggested to Iceland supermarket considering the intensity of competition in the market.
Product development : as per this strategy, a new product is launch by company into existing
market. This is considered to be as an effective strategy for increasing sales and profitability.
Product development strategy also support an enterprise in attracting more number of customers.
It also helps business entity in fostering market growth. Product development strategy can be
utilized By Iceland supermarket for launching of new product in existing market. This strategy
has been suggested to Iceland super market considering the innovation skills of an organization.
Product development strategy will assist business entity in differentiating its products from that
of competitors (Burns and Dewhurst, 2016). It will also help an enterprise in gaining the
competitive advantage in the market. This strategy is considered to be quite risky. It is very
much important for marketing manager in Iceland supermarket to make an effective plan. Market
research is considered to be very crucial activity, as this tactic will assist business entity in
determining that if consumers in the new market will potentially like the new products.
.
Iceland supermarket has been provided with suggestion to formulate as well as
implement product development strategy. The strategy will assist business entity in achieving
business goals, such as entering new markets, selling more to existing customers or winning
business from competitors. A successful product development strategy can also support an
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organisation in increasing revenue and profitability, but careful planning is essential to minimize
the risk of costly mistakes.
Analysing the way selected strategy can be implemented listing Canvas approach
Business canvas is considered to be as an effective framework which can be utilized by
manager in Iceland supermarket for developing the understanding about business model.
Manager in Iceland supermarket can utilize for developing an effective plan for product
development. Business model canvas will also support an enterprise in evaluating the feasibility
of innovative goods or services. Business model canvas, as this will provide them a structure
Implementation of product development strategy using the Canvas business model.
Key partners : The key business partners are distributors. Iceland supermarket has also formed
strategic partnership with other retail companies. In addition to this, Iceland company has
entered into a strategic partnership with online retailers which has provided an enterprise ease in
distribution of goods.
Key activities: One of the important activity which is required to be executed is that manager in
Iceland supermarket need to ensure that innovation is synergistic with the organization existing
business operations and relationships. It is very much important for manager in an enterprise to
conduct the internal assessment, as this strategy will support management in identifying the
factors which can create hindrance in product development procedure. In addition to this it will
enable manager to ensure that all the resources are available which are required for product
development (Kamthania, Pawa and Madhavan, 2018.). Manager can also can conduct
stakeholder analysis, as this tactic will help management in identifying the people who have high
power to influence particular procedure. Another important activity which firm should execute is
market research before launching the products. As this strategy will support an organization in
identifying the customer group who will buy specific products or services. It will also help firm
in addressing the suitable market for positioning goods or services.
The other key activities which are required to be executed by Iceland supermarket is
promotion of goods which is very much essential in order to achieve desired objectives.
Key resources : There are lot of resources needed for formulation as well as implementation of
strategies. The different types of resources which are required for development as well as
execution of product development strategy includes capital, technology, human, machinery and
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other technology. It is required by Iceland supermarket to employ advance technology, as this
will provide firm an ease in developing innovative products. In addition to this, Iceland super
market before launching a new product in the market need to enhance its brand image. It is very
much crucial for Iceland company to built strong retail network , as this will assist business
entity in successful launch of products.
Value propositions :The new products will be distributed to all retail stores in order to provide
customer a convenience in buying specific goods or services. Innovative product will be offered
to customer at reasonable price.
Channel of distribution : Iceland can utilize social media platform for promoting goods. As by
utilizing the social media platform an organization can promote its goods or services at large
scale. In addition to this direct marketing can be done, as this will help business entity in
influencing people to buy specific product or service. In addition to this, Iceland supermarket can
organize trade shows. as this will provide firm an ease in reaching to target audience. Through
trade shows company can facilitate discussion or can interact directly with customer group.
Customer relationship: Iceland can offer discounts on new products for attracting customers.
Customer segment : Iceland intends to target all customer groups. In addition to this, Iceland
supermarket can target families.
Costs : There are two types of costs these are variable as well as fixed expenses associated to
development of products. For instance, installation of technology, Salaries of workers, purchase
of raw materiel and other equipment etc. The major administrative cost is related to promotion of
goods or services in the market (Kapoor, 2018).
Revenue : There are mainly two sources from where Iceland supermarket can generate revenues
these are through sales of goods or services and other source is franchising fees. In addition to
this, addition cost might be associated with seeking permission from legal authority related to the
development of specific products.
CONCLUSION
It has been concluded from the assignment that an effective strategy is very important for
smooth running of business. Study has also concluded that Tows analysis is an appropriate tool
which can be utilized for comparing the internal strength and weakness with threats as well as
opportunities. It has been concluded from the assignment that success as well as growth of firm
is completely based on the strategic management. Diversification is considered to be a strategy
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which involved high risk. It has been concluded from the study that an organization is
performing well but still there are certain area such as marketing as well as management where
improvement can be done.
Business entity has been provided with suggestion to adopt product development
strategy, as this plan involves less risk as well as requires little investment as compared to other
growth strategies. Few other strategies has been suggested in the report which can be adopted by
an enterprise, as this will help firm in increasing market share as well as fostering growth.
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REFERENCES
Books and Journals:
Grünig, R. and Kühn, R., 2015. Strategy Planning Process. In The Strategy Planning Process.
Springer Berlin Heidelberg
Kueng, L., Li, N. and Yang, M.J., 2016. The impact of emerging market competition on
innovation and business strategy (No. w22840). National Bureau of Economic
Research.Halal, W.E., 2015. Business strategy for the technology revolution: competing at
the edge of creative destruction. Journal of the Knowledge Economy. 6(1).pp.31-4
Christ, K.L., Burritt, R.L. and Varsei, M., 2017. Coopetition as a potential strategy for corporate
sustainability. Business Strategy and the Environment.26(7). pp.1029-1040.
Chatterjee, S., Narayanan, V. and Malek, W., 2016. How strategy execution maps guided Cisco
System’s Sales Incentive Compensation plan. Strategy & Leadership. 44(6).pp.25-34.
Lai, G.C., Chou, L.Y. and Chen, L.R., 2015. The impact of organizational and business strategy
on performance and risk in the insurance industry. Applied Finance and Accounting.1(2).
pp.107-128.
Baird K. & Baird K. 2017. The effectiveness of strategic performance measurement
systems. International Journal of Productivity and Performance Management 66(1). pp.3-
Johnson G. 2017. Exploring strategy: text and cases. Pearson.Knowledge management as a
factor for the formulation and implementation of organization strategy. Journal of
Knowledge Management 21(2) pp.308-329
Amran, A., Ooi, S.K. and Devi, S.S., 2015. The Impact of Business Strategies on Online
Sustainability Disclosures. Business Strategy and the Environment. 24(6). pp.551-564.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Kamthania, D., Pawa, A. and Madhavan, S.S., 2018. Market Segmentation Analysis and
Visualization Using K-Mode Clustering Algorithm for E-Commerce Business. Journal of
computing and information technology. 26(1). pp.57-68.
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Kapoor, S., 2018. Mergers And Acquisitions: Current Scenario And Emerging Trends In India.
International Journal of Advanced Multidisciplinary Scientific Research (IJAMSR) ISSN:
2581-4281 Vol. 1. pp.69-88.
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