The Impact of Business Strategy

This assignment analyzes the role of business strategy in boosting the growth and competence of a service-based company. It highlights the significance of strategic planning for achieving objectives and identifies key factors for successful implementation, including internal and external analysis, stakeholder considerations, and clear understanding of roles and responsibilities. The report emphasizes the importance of monitoring operational performance through techniques like SMART goals.

BUSINESS STRATEGY

TABLE OF CONTENTS
BUSINESS STRATEGY.................................................................................................................1
INTRODUCTION...........................................................................................................................3
Formulation of New Strategy...........................................................................................................3
2.1 Organizational Audit..............................................................................................................3
Strengths:................................................................................................................................4
Weaknesses:...........................................................................................................................4
Threats:...................................................................................................................................4
2.2 Environmental Analysis.........................................................................................................4
2.3 Significance of Stakeholder Analysis....................................................................................7
2.4 NEW STRATEGY.................................................................................................................9
STRATEGY EVALUATION........................................................................................................10
3.1 Appropriateness of Alternative Strategies...........................................................................10
3.2 Justification..........................................................................................................................10
Implementation of Strategy ...........................................................................................................10
4.2 Resource Requirements.......................................................................................................11
4.3 Contribution of Smart Targets.............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategy is not just a word it is a means of action which drives an organization towards
achieving the desired objectives. Strategic planning is as important for individuals and
organizations as food for the human body. Through strategic planning, complex objectives may
look easy as well as convenient and can be achieved in an appropriate manner. TNT business
providing delivery services to its large base of customers globally have achieved good reputation
among its stakeholders and customers through high quality of services (Astrachan, 2010). By
having a sound set of business strategies, TNT has been able to achieve its desired aims and
objectives.
FORMULATION OF NEW STRATEGY
Establishing a New strategy is a big task and to achieve it an organization needs to have
good Knowledge of its internal and external environment so that the strategy formulation
becomes easy. In order to formulate a strategy, TNT should go through certain set of analysis to
make sure that the strategy formulated will achieve desired objectives.
2.1 Organizational Audit
Knowing strength and weaknesses is what makes an Organization able to achieve its aims
(Meskendahl, 2010). If company does not know what its capabilities are then they end up
making a strategy which needs more resources than required which will be a big blunder and this
will result in wastage of time and resources introduced to make those strategies.

Thus, in Order to have a Good look at the present condition or situation TNT should
undertake SWOT analysis which will give TNT an idea about his Strength, Weaknesses,
Opportunities and Threats. SWOT will help TNT in getting insights about different concepts of
Organization and will help in finding out new opportunities in the new markets.
Strengths:
 Customer Loyalty.
 Supporting Staff.
 Employees are Goal-oriented.
 Available Every time.
Weaknesses:
 Aging Technology Infrastructure.
 Packaging Problems. Delay in Deliveries due to transportation.
Opportunities:
 New markets to be encountered.
 New supply chains (Verbeke, 2013).
 Use of new Technology (online Branding).
Threats:
 New Competitors.
 Unclear strategy.
 Government Policies.
 Weather conditions affect deliveries.
2.2 Environmental Analysis
After having a clear look on the internal factors of the organization, they need to have a
look on external environment which can affect company's growth in both positive and negative
way. To have its strategies on the right track organization has to study its environment where
they are operating. For TNT to develop a new strategy, they have to understand its outside
environment because being so old in the delivery business TNT may use old resources which
takes time to deliver the parcels. So in order to cope up with time and technology, PESTLE

Analysis is undertaken for TNT among different environmental analysis (Campbell,Edgar and
Stonehouse, 2011).
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Political Factors: Global factors affect TNT in terms of legislation acts, taxes and how stable a
company is, in which it operates. Government encourages TNT to create jobs and in turn it
increases demand for its services.
Economic Factors: Since TNT is operating globally, TNT should be aware of the change in
policies which can impact demand, prices, profits, etc. Change in taxation policies can affect
financing capabilities of TNT (Eccles and Krzus, 2010).
Social Factors: Due to Income level, lifestyle factors of people, they are more getting use to
technology and wants to have delivery of products and services at their doorstep. So in this the
TNT can get benefit from those potential customers who are ready to take these kinds of
services.
Technological Factors: Due to the ever changing technology and rapid advancements in it, it
has created many opportunities for TNT business. Now TNT with use of new technologies can
deliver more promising services to its customers and can hit new customers and markets (Chang,
and Chuang, 2011).
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Legal Factors: Government policies as well as rules and regulations of different countries are
different from one another so TNT has to keep a balance between them so that it does not impact
the performance in a negative way.
Environmental Factors: Doing operations on one side with the other side being managing your
work does not harm the society as well is to be done precisely. Adopting the ways of operations
which benefit society as a whole.
2.3 Significance of Stakeholder Analysis
For TNT to keep growing as it is very crucial to carry out the stakeholder analysis. Since
stakeholders are the one which will help in improving current growth. This technique is used to
build the team that helps in getting success (Cinquini and Tenucci,2010). Through stakeholder
analysis, TNT can improve its quality of services and introduce new technologies further; it can
hit new markets globally and domestically. Through Stakeholders analysis you can anticipate
what people perceive through services, what people think about organization which will strive
TNT to make new plan of actions that goes on winning people's heart. There are certain steps
through which stakeholder analysis can be carried out and so it can be done for TNT also:
 Identify the Stakeholders: Making a move to know who your stakeholders are is the
key. All the people who have ever affected the work in a positive way, who are interested
in work, who have opinions about the company's work. They can be any customers,
friends, families, boss, analysts, community, Government, many more (Pagani, 2013).
Making right decision about who stakeholders are who have genuine interest in the
business operations is the key.
 Prioritize Your Stakeholders: After identifying the potential stakeholders of the
organization who are having genuine interest in the operations of the business, it is time
to categorize them according to the perceptions they are taken as stakeholders. For
example, some people may be are on the list because they have interest in the operations,
some are those who can impact business through their powers, so in order to get those
segregated Power-Interest Matrix, can be used.
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High Power interest people should be taken care of because they can make/break the
organization. Having high power and but who are less interested in proceedings of business
should also be taken care of but not so much (Connor and Lande, 2012). Low Power but having
high interest people should be engaged and informed about the proceedings. Those who are less
interested and having less power people are to be monitored but company should not bore them.
 Understand key Stakeholders: The firm need to identify the elements that drives key
stakeholders. What they feel and react to the organization's projects. For this, enterprise
needs the best possible way to engage with them. Company should find the sources of
motivation for employees. what is the opinion of stakeholders about current work of the
company.
2.4 NEW STRATEGY
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After having a deep understanding of internal factors through swot analysis, external
factors through pestle analysis, and stakeholder analysis now TNT can make its strategies for the
future through which operations can be continued (Burlton,2010). For the purpose of
presentation of strategy Ansoff matrix has been taken into account.
Through Ansoff TNT can expand its services and market. Here this matrix showcases the
opportunities a product is having in relation to its business. Talking about TNT, they can
diversify into new markets globally by introducing new services in their domain. If they do not
want to switch ton new markets they can diversify their product into the existing markets and
vice-versa. If TNT does not want to move into either both of them new markets or new services
then they need keep innovating their current practices. As per MY view TNT being the service
industry Providing Delivery services to its customers should implement its new strategy in the
form of Diversification so that TNT with Diversifying in both markets and services will achieve
rapid growth with the reputation they possess (Verbeke, 2013).
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STRATEGY EVALUATION
3.1 Appropriateness of Alternative Strategies
Market Entry Strategies: Through these strategies a company is entered in the new
markets. Possible strategies for entry to new markets are through the routes of mergers,
acquisitions, Joint ventures, Franchising, Organic Growth. TNT can opt for the Franchising
strategy to move into the new markets.
Substantive growth Strategies: Substantive growth strategies are applied through
horizontal integration, Vertical integration, diversification.
Limited growth Strategies: Through market penetration, market development, Product
Development and innovation strategies Limited growth can be achieved in an organization.
Disinvestment Strategies: Through Retrenchment and divestment strategies company
can extract what is left over for him in the markets (Eccles and Krzus, 2010).
3.2 Justification
Talking about TNT looking at the nature of business it possess, diversification will be a
great strategy for TNT to pursue. TNT can move into new markets through more additional
services. They can add more services in their portfolio related to their nature of business. This
will help them to hit new customers. Since having a good reputation at the global level TNT can
easily generate enough funds to meet the expansion costs.
IMPLEMENTATION OF STRATEGY
4.1 Roles and Responsibilities of Personnel
1. Person implementing the strategy needs to have a understanding of the impact of
new strategy on the job role and duties related to it.
2. He/she should keep in mind that communication process remain as convenient as
it was before (Chang and Chuang, 2011).
3. He/she should consider relevant factors needed to be taken into account during
implementation of the strategy.
4. Strategy implemented should be monitored accordingly by the personnel.
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5. He/she needs to ensure that every department is highly involved in the
implementation process and having a knowledge of that.
4.2 Resource Requirements
There are so many resources which are required to be considered at the time of strategy
implementation and they are Human resources, Financial resources, Marketing and distribution,
Physical resources, External stakeholders, Intangible resources, management, many more.
Through these resources it is ensured that strategy is implemented as per the plan and with
appropriate factors in consideration. some of the resources are discussed below:
 Human Resources: TNT should make sure that he has the required resources to perform
his new strategy (Cinquin and Tenucci, 2010). TNT needs to make sure that to maintain
the quality, quantity of operations there is sufficient workforce in the organization.
knowledge, expertise, flexibility are all the areas that needs to be analyzed.
 Financial Resources: In order to implement the new strategy into the system proper
funding is their or not needs to be analyzed before implementation of strategy. Funding
for the strategies can be generated through financial institutions, external stakeholders,
etc.
 Physical Resources: Physical resources here refer to the infrastructure, machines,
production facilities, plant, equipment and so on. For TNT the physical resources will be
the packaging of parcels and documents, etc.
4.3 Contribution of Smart Targets
 S-Specific: TNT needs to evaluate what were the objectives for the strategy formation
were? and have they been achieved or not (Pagani, 2013). Every strategy has been
implemented to achieve some objectives or aims, so those specific objectives needs to be
monitored.
 M-Measurable: Objectives which are set for strategy implementation should be set in
such a manner that afterwards they can be measured accordingly. in a simple way the
objectives set should have a measurable nature.
 A-Achievable: Objectives or aims which are set for strategy implementation should not
be too complex to understand and can be achieved within a certain time period.
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 R-Realistic: Goals should be realistic goals not imaginary goals which are not even able
to perform.
 T-Timely: Objectives which are set for strategy implementation are to be completed in a
particular period. The time for particular delivery should not exceed the standard time
(Connor and Lande, 2012).
CONCLUSION
With the help of this report, it has been found that Business strategy plays a significant
role in boosting the growth and competence of the company. With the help of it, strategic plans
have been developed for achieving the desired objectives. It has been found from this report is
that for proper implementation of strategy in a service based company various factors are needed
to be considered which are: internal factors, external factors, stakeholder analysis for the finance
purposes. In this report it has been found that person implementing the strategy should have clear
understanding of the objectives knows his/her roles responsibilities. In order to achieve desired
goals proper set of techniques should be implemented for monitoring the operations like SMART
goals.
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REFERENCES
Books and journals
Astrachan, J.H., 2010. Strategy in family business: Toward a multidimensional research
agenda. Journal of Family Business Strategy,1(1). pp. 6-14.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project Management, 28(8).
pp. 807-817.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Eccles, R.G. and Krzus, M.P., 2010. Integrated reporting for a sustainable strategy: One Report
has the potential to significantly change how companies operate and investors think,
shifting the focus from that of meeting short-term financial goals to developing a long-term
business strategy that not only makes a commitment to corporate social responsibility, but
also to a sustainable society. Financial executive, 26(2). pp. 28-33.
Chang, T.C. and Chuang, S.H., 2011. Performance implications of knowledge management
processes: Examining the roles of infrastructure capability and business strategy. Expert
systems with applications, 38(5). pp. 6170-6178.
Cinquini, L. and Tenucci, A., 2010. Strategic management accounting and business strategy: a
loose coupling?. Journal of Accounting & organizational change, 6(2). pp. 228-259.
Pagani, M., 2013. Digital business strategy and value creation: Framing the dynamic cycle of
control points. Mis Quarterly, 37(2). pp. 617-632.
Connor, J.M. and Lande, R.H., 2012. Cartels as rational business strategy: crime pays.
Burlton, R., 2010. Delivering business strategy through process management. In Handbook on
Business Process Management 2 (pp. 5-37). Springer Berlin Heidelberg.
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