Successful Strategic Thinking

Successful Strategic
Thinking

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
A critical literature review of key theories of how strategy is developed and implemented,
and the relationship between strategy, innovation and change..............................................3
Porter's strategy theory criteria:.............................................................................................4
Asoff matrix:..........................................................................................................................6
A critical analysis of selected strategic processes within . organisation, or an organisation
of . choice, related to relevant theories..................................................................................8
An assessment of the extent to which people within the organisation are engaged with and
contribute to a selected strategy.............................................................................................8
Recommendations about how strategic processes within the organisation could be
improved................................................................................................................................8
CONCLUSION..........................................................................................................................8

INTRODUCTION
Diverse definitions represent different perspectives on the principles of strategy
processes and their consequences for businesses and non-profits. Strategic processes are high-
level processes that companies and institutions face in their day-to-day operations. They
might include duties that require a high degree of intellectual capability and have a broad
impact on the structure and operation of businesses, organisations, or corporations. The
nature, organisation, and operation of these strategic processes can be likened to those
performed by the human brain, which are primarily concerned with intellectual talents and
talents. Within and outside the company, several aspects of strategic processes may be
noticed.
The policies, plans, and planning objectives that an organisation incorporates into
operations to improve its performance have a significant impact on strategic processes. This
paper will consider the characteristics of strategic processes in general, the theories and
models that are essential in implementing strategic processes, and recommendations that are
relevant to the implementation of these processes to improve the functioning and
performance of a business organisation in order to better understand strategic processes.
MAIN BODY
A critical literature review of key theories of how strategy is developed and implemented,
and the relationship between strategy, innovation and change
As per the view point.......A business strategy is the method through which a company
sets out to accomplish its goals. Long-term business planning is the simplest way to express
it. A corporate plan is usually written for a period of three to five years (sometimes even
longer). A business strategy is a collection of guiding principles that, when communicated
and implemented throughout a company, results in a desired pattern of decision-making. It is
therefore about how employees at all levels of the business should make choices and allocate
resources in order to achieve critical goals.
As per the view point of ....... There are number of authors who provided there contribution
in business strategies Because of his willingness to challenge previously hallowed principles

in business and management, Henry Mintzberg has been dubbed "the great management
iconoclast." His common sense approach to management difficulties has won him a large
following, and he is arguably most recognised for his work on company strategy, which is
credited with exposing the gaps between academic ideas of strategy and reality. Michael
Porter, the other major modern-day strategist, has published numerous successful books on
business strategy, with a special focus on organisational and governmental competency and
competitiveness. Igor Ansoff, like him, is a well-known contributor to the evolution of
corporate strategy thought and practise. He was a prominent proponent of the 'Planning'
school of thinking, and was widely regarded as one of the pioneers of strategic planning. His
1965 book 'Corporate Strategy' focused primarily on external, rather than internal, concerns
of organisations, such as product matching to various types of markets - for which Ansoff
introduced his well-known Matrix (Ansoff's Matrix), another strategic planning tool that is
still widely used today.
Porter's strategy theory criteria:
Porter's five forces model is intended to discover and evaluate five competitive factors
that assist businesses understand their industry and identify their strengths and weaknesses.
This approach may be applied to any industry to detect and analyse the degree of competition
in the marketplace, as well as to create a company's long-term profile. This model is
commonly used or utilised to analyse a company's structure and business strategy. The five
forces are commonly used to assess and quantify a company's competitive intensity, profile,
and profitability. Porter identifies five forces, which are listed below:
Competition in the industry:
This is the first of the five forces models, and it is based on the number of competitors
and rivalry, as well as their capacity to undercut an organisation. Williamson (Williamson,
2018). If an organization's competitor is capable of providing modified offerings at a cost-
effective pricing, the buyer and supplier look for it. Conversely, when competitive
competition is low, opportunities abound, and the organisation has far more ability to offer
and establish high pricing in order to maximise profit and sales.
Potential of new entrants into an industry:

Organizations have power, and new entries into the market space have an impact on
that power. It takes less time and money for a competitor to enter the market and become a
more effective competitor. Existing organisations within that Marketplace benefit from
organisations with strong barriers to entry because they may establish significantly higher
costs or prices and negotiate different conditions.
Power of suppliers:
This approach considers how provider may raise material and input costs. This factor
is influenced by the number of major input providers for a product or service, which indicates
how distinctive the product or material is and how much it would cost an organisation to
switch providers. If a company must provide due to its financial soundness, it is more reliant
on its suppliers. According to the research, the company's suppliers have more leverage to
raise input costs and obtain sales benefits. On the other hand, if the firm has several suppliers
or has a difficult time switching prices among competitive suppliers, this technique might be
advantageous to the firm in order to maintain their input costs low and boost profits.
Power of customers:
This is another model of the five forces that explains the capacity of customers to
decrease prices and their levels of power as one of the components of this force. This is also
influenced by the number of buyers or customers a company has, which helps to define how
significant a customer is to the firm and how much it will cost to analyse and select new
consumers or markets for the firm's outputs. A smaller and more powerful client base has
greater negotiating leverage to get better rates. Small and medium-sized businesses find it
simple since their customers are self-sufficient.
Threat of substitute
This is the fifth and last model in the five-force model, and it focuses on substitutes.
Substitute products and services for those used by the firm to create a threat. Customers will
have the choice to forego acquiring and buying a company's goods if closed-won substitutes
are accessible on the market, and the company's power will be diminished. They are mostly
focused on industry rivalry in order to obtain competitive advantages and become more
successful. The organisation is concentrating on determining the best path or direction to

develop and gain additional competitive advantages, allowing them to improve productivity
and income. They are primarily concerned with industry competitiveness in order to assess
the strength of competitors and the possibility of new entrants.
The competitors of the company
Catering by design and sogeres are the company's greatest rivals, and they are
working heavily on them in order to enhance their profitability and efficiency. It is critical for
a firm to analyse its rivals' strategies in order to get a competitive edge. Sogeres provides the
catering services. There are fruits, herbs, snacks, beverages, and other products to choose
from. The organisation provides services to institutions, nursing homes, hospitals, business
marketplaces, and others.
Asoff matrix:
Ansoff's methodology will be appropriate for HSBC in the context of these goals.
This strategy can help a firm achieve its commercial and corporate goals in a more efficient
manner. It is a tool that assists businesses in determining the most effective growth plan.
There are four techniques in this measure that help the firm assess the risk of each strategy.
These are the guidelines that Company A can utilise.
Market penetration:
Firms mostly utilise it to increase market share. In this technique, the firm lowers
product pricing in order to attract and keep clients for a longer period of time. It is typically
used by companies who have recently entered the sector and wish to meet their goals. It is
computed by comparing the quantity of sales volume to the market of targeted clients. It is
split down into components that must be connected with favourable market circumstances in
this regard. To acquire a foothold in the market, company A might employ a market
penetration strategy. It will enable the business to attract clients who are eager to acquire
items in order to get a competitive edge.Organization A may also suffer various
disadvantages, such as a tarnished brand, a saturated market, reduced industry pricing, and so
on.
Product Development: