Business Strategy and Strategic Planning Report: MacDonald, M&S, Honda

This report provides a comprehensive analysis of business strategies, focusing on MacDonald, Marks & Spencer (M&S), and Honda. It begins by exploring the formulation of strategic mission, vision, goals, and core competencies, emphasizing their role in strategic planning. The report then delves into organizational and environmental audits, including SWOT analysis and the significance of stakeholder analysis. It evaluates the effectiveness of various strategic planning techniques, such as the Ansoff Matrix, and analyzes the appropriateness of alternative strategies for M&S. Furthermore, the report assesses the roles and responsibilities in strategy implementation, resource requirements, and the contribution of SMART targets. Overall, the report offers valuable insights into strategic positioning, planning, and implementation for these major companies.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Formulation of strategic mission, vision, goals and core competency inform the strategic
planning.......................................................................................................................................1
1.2 Analysis of the factors that have to be considered when formulating
strategic plans for business.........................................................................................................2
1.3 Evaluation of the effectiveness of techniques which are used when
developing strategic plans for business......................................................................................3
TASK 2............................................................................................................................................5
2.1 Organisation audit for analysis of strategic positioning........................................................5
2.2 Carry out an environment audit.............................................................................................6
2.3 Significance of stakeholder analysis when
formulating a new strategy.........................................................................................................7
2.4 Present a new strategy for a company...................................................................................8
TASK 3............................................................................................................................................8
3.1 Analysis of the appropriateness of alternative strategies related with M&S........................8
3.2 Justification of the strategy which is appropriate for business.............................................9
TASK 4..........................................................................................................................................10
4.1 Assessment of the roles and responsibilities of personnel who are
charged with strategy implementation.....................................................................................10
4.2 Analysis of the estimated resource requirements for implementing a new
strategy for Honda....................................................................................................................10
4.3 Evaluation of the contribution from SMART targets to the achievement
of strategy implementation.......................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
For any business it is necessary for them to formulate appropriate strategies through
which they can sustain at market for long term. It is helpful in growth and development of a
company (Acquaah, 2013). Every firm prepare their targets for long term purpose of a company
in which they can combine each and every factor which is appropriate for accomplish targets.
This assignment is based on MacDonald, Marks and Spencer and Honda which are largest
organisations in their field. The reason behind this existence is preparation of appropriate
strategic planning in which all the mission, vision, goals, objectives and core competency is
clearly defined. Moreover, company also formulate a plan in which they are going to prepare a
mapping for their stakeholders and conduct an audit for analysing the environment. Moreover,
company also have to prepare some alternative plan for any difficult time. This aid them in
managing their activities. All three companies have to adopt appropriate strategy which is helpful
for them in their long term. This work get done through senior management of a company.
TASK 1
1.1 Formulation of strategic mission, vision, goals and core competency inform the strategic
planning
For every company it is necessary for them to formulate strategic plan through which
they can sustain at market for long term. For this, active participation for a company is must. It
used to assist in working in appropriate manner. Strategic planning is a process which adopt by a
company in defining their strategy or direction in which whole business is going to commenced
and allocate resources according to requirement of strategy implementation (vision statement,
2017). It is completely based on setting priorities for a business and choose appropriate energy
for that. In this context, mission, vision, goals, objectives and core competency will lead to
described (objective, 2017). Every industry and business have distinct strategic planning which
leads to get done in more adequate manner.
Key words Definition Example
Mission It is a written statement of
organisational purpose and
identify the scope of
We take pride in making a
perfect pizza and providing
courteous and helpful service
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operations. It leads to provide
a direction in which whole
activities are going to take
place.
on time all the time – Pizza hut
Vision It is an aspirational description
would like to achieve and
accomplish in their future
course of time. It is helpful in
understanding the present and
future operations of business.
Google’s vision statement is
“to provide access to the
world’s information in one
click.”
Goals These are consider as key
specification for all such facts
which are beneficial for
company growth. This is a
written statement with a clear
purpose to ascertain targets.
Following are some written
goals of Google:
Provide best search result.
Maximise user experiences.
Eliminate low quality content
from SERP'S.
Objectives A specific aim which have to
get ascertain in appropriate
time frame with available
resources. A company over all
objective is just to maximise
their profit by reducing
expenses.
One of a major objective of
Honda is to promote
development and minimise the
chances of accidents by
implanting airbags in their
vehicle.
Core Competencies A harmonised combination of
variety of skills and resources
which lead to establish a firm
different from others at market
place.
One of a core competency of
Apple is their security feature.
This is consider as the USP for
business.
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1.2 Analysis of the factors that have to be considered when formulating
strategic plans for business
Every business get affected due to some number of resources which are present in
business environment. At the time of strategic planning, various number of factors are consider
as important aspect for carrying out operations. Management frame their strategies on the basis
of their strategic planning. All their goals, objectives, mission, vision and core competency
consider as important factor. There are two major factors: internal and external.
Internal factors are those which are related with business internally and external factors
are such aspects which are associated with business outside (Astrachan, 2010). Authority have to
prepare their goals by considering them both as an essential term. Their appropriate analysis is
compulsory for sustainability of business in long term and attain targets which frame by senior
management. Both these factors have several number of advantages and limitations which have
to understand by the company properly. This aid them in formulating their strategic plans and
action plan for their long term purpose.
Basis Advantages Disadvantages
Internal A educated and trained
employee will lead to support
in attain all objectives of a
company and provide strength
by accomplishing targets on
time.
Few of the times, employees
do not get satisfy with the
policies of a company and this
will lead to enforce them
towards strike. This affect
brand image of company and
their operational activity will
not take place.
External Technology is consider as
external factor and support in
enhancing the productivity.
This get obsolete on frequent
basis and thus management
have to create a separate
account for this by maintain
sufficient balance.
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1.3 Evaluation of the effectiveness of techniques which are used when
developing strategic plans for business
There are various number of suitable techniques are measure which are helpful in
formulating appropriate business strategy. For every adequate plan it is essential to follow a
technique through which company can attain their targets. There are various number of
approaches are identified which is helpful for the strategic plan for business: Boston Matrix,
SPACE, Ansoff Matrix (Bharadwaj and et. al., 2013).
These are helpful in entering into a market and attract large number of user base for a
company. As from them Ansoff matrix is consider as useful technique while dealing with future
course of business and growth. This technique is also signifies as the Product/ Market expansion
grid, in which four strategies are defined for the growth. The idea for this is about that each time
when a company move into a quadrant, risk increases (Ansoff Matrix - Product Development &
Market Growth Strategies, 2014).
In this growth strategy, the market penetration means to develop existing product at
existing market by applying several new techniques. For this, organisation have to improve their
sales promotion, price strategy of business etc. as per this, company only focus on market and
customer which they well known.
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Illustration 1: Ansoff Matrix, 2014

Market development growth strategy is one in which company is going to sell their
products at new market. For this, company do not develop their products but use suitable strategy
through which they can attract new users.
Product development growth strategy signifies as when an organisation is going to
developed their product at existing market. This get done through adding some more values and
create offer through which more and more users can consume their goods and services.
Diversification growth strategy is when an entity will lead to introduce new product at
new market. In such aspect, all users are new and products are new.
TASK 2
2.1 Organisation audit for analysis of strategic positioning
MacDonald is one of a largest food chain from last 77 years. Its establishment was took
place in 1940's and still a one of a finest restaurant and most profit generating company than
others. They have outlets all over the world and have a good public relation. Moreover, this is a
public sector company but not from its existence. It is completely measure that from last few
years, management have good strategies formulation and their senior authority is actively
participate in company working (Campbell, Edgar and Stonehouse, 2011).
Hence, management have to adopt appropriate steps through which they can analyse all
the pros and cons of business. For this, SWOT analysis is best method for conducting an
organisational audit. MacDonald have to identify all of their strength and weakness so that they
can prepare themselves. Moreover, by identifying diverse opportunity, management will lead to
attain targets in an appropriate manner. Following is a SWOT analysis on MacDonald for
preparing more appropriate strategic plans (SWOT analysis of McDonald, 2016):
Strength Weakness Opportunities Threats
It is a second largest
food restaurant
company than any
other 36,899
restaurants in 120
countries.
As according to
market share of
MacDonald which get
decline from 39.8 to
39.4 in last few years
is one of a weakness
for a company.
They are operating
their business
internationally which
aid them in opening
many new outlets all
over the world.
As consumer are
getting more health
conscious as compared
to previous time. As
many customer do not
want to consumer
unhygienic food.
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It is a most
recognisable restaurant
brand than any other.
This provide them
strength in operating
effectively.
They are not going to
developed their
products which state
that they have weak
product development.
They are still serving
previous range of
products but their
prices are getting
changed.
Focused on CSR and
reducing the impact on
environment and
community linkage.
Increase in number of
competitors. This is a
major threat for a
company because this
lead to shift in user.
They have highly
trained employees and
maintain appropriate
environment at their
franchises.
As with declining in
market share,
company growth and
revenue is also getting
decline.
International
expansion more in
emerging market like
India and China.
Fluctuation in foreign
exchange or in
economies of scale.
rates
2.2 Carry out an environment audit
Business environment is not stable and get changed as per the time. For this business
have to identify the external business factors and all such relevant aspects which are going to
affect an entity performance and operation (Gandolfi and Hansson, 2010). This process is helpful
for a company in formulate a strategic plan under which company set their priorities and factors
which aid them in attain all targets of a company which are usually for long term. MacDonald
have to conduct a external analysis in which all of the factors which are harmful for the company
have to determine which is associated with a business. For this purpose, organisation have to use
Portal five forces analysis in which all the factors which are not appropriate from outside
environment are going to be discussed.
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Porter five forces analysis is helpful in determine the structure and level of competition in
industry (Porter's Five Forces, 2013). As per this, MacDonald have to measure all of their
rivalries in their industry. As food industry in one of a most profit generating sector and many
people start their operations. Hence, for Mac D, number of rivalries are increasing as per days.
Along with this, company have a threat of many new firms into this sector and for this,
management have to create appropriate user base which do not lead to shift on others. Threats of
substitute is also high in which shifting from burger to pizza will affect business of MacDonald.
Thus, many user find a substitute for their product with little cost (Gollakota, Gupta and Bork,
2010).
MacDonald have good user base which signifies that their buyers bargaining power is
high because there are many other organisations are already operating in same sector. Thus,
bargaining power of buyer affect the business and for this management have to prepare their
strategic plans.
Bargaining power of suppliers signifies that when number of suppliers for a product are
more in numbers. As with this, they lead to take as what prices they want to. MacDonald have
this fear is low as company have large number of suppliers which lead to sale more raw material
for their products.
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Illustration 2: Porter five forces analysis, 2013

2.3 Significance of stakeholder analysis when
formulating a new strategy
Stakeholders are such bodies who lead to aid an organisation in their growth. All the
employees, customers, government bodies who are responsible for operating activities are
consider stakeholders of a company. Management have to map their stakeholders according to
demand and take appropriate actions for them. MacDonald have to identify their key
stakeholders and divide them according to priority so that they can take appropriate decision for
their interest.
MacDonald is operating their work in a well defined manner in which management want
to increase their market share. As their business is declining as per days and years and for this
management have to take appropriate steps. In such consent, company want to prepare a new
strategy for a business. Hence, at the time of action plan, authority have to take each and every
individual in their account and take necessary steps for such sort of activity. For this purpose,
MacDonald have to divide their stakeholders into three parts which are: Connected stakeholders,
Internal stakeholders, External stakeholders.
2.4 Present a new strategy for a company
According to the opportunity of a company, management have to formulate appropriate
strategy through which they can sustain at market for long term. In this, company have to
investment more and more money in the market of India and China. As both these countries have
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Illustration 3: Stakeholders mapping, 2017

emerging and expanding market and thus market share for a company get rises (Jocovic and et.
al., 2014).
They can open their outlets and make appropriate changes in their product which is must.
From last few years there is not a single innovation get found in product and for this
diversification of all such products is essential. As company having a stable market but from last
few years their share of market get decline. As one of a major strategy for them is to introduce
new products with new range at market by using new market development growth strategy.
TASK 3
3.1 Analysis of the appropriateness of alternative strategies related with M&S
Marks and Spencer is one of an oldest retail company around the world with a
establishment from 1884. Company have good market growth. Now, company want to introduce
themselves as a one of a finest food chain in the world. Hence, for this management have to
prepare alternative strategy. In this consent for entering into market entry they require to frame
some number of alternative strategies which are as follow:
Alternative Strategy Option Explanation
Market Entry Strategy It is a n option for Mark and
Spencer in which they have to
deal at new market by
delivering more and services.
As this can be helpful for a
business in which company is
going to target new market and
gain benefit of new users for
their innovative products and
services.
Substantive growth strategy For M&S, food industry is all
new and for this, they can
merge their business with
other organisations.
As business want to expand in
new field and for this, they
have a option to adopt
substantive growth in which
they can use others as a base
for generating more profit.
Limited growth Strategy Managers have to use their
revenue for further growth.
As this is another option which
can use by reference company
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