Business Strategy: Environmental Analysis and Strategic Planning

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This report provides a comprehensive analysis of business strategy, focusing on the macro and micro environments of an organization. It utilizes frameworks such as PESTLE, Ansoff Matrix, and Stakeholder Analysis to assess the external impacts and influences on One Delivery, a UK-based restaurant purchasing service. The report also delves into the internal environment and capabilities of the organization using SWOT analysis, resource-based view, and value chain analysis. Furthermore, it applies Porter's Five Forces model to evaluate the competitive forces within the market sector. The study culminates in the interpretation and devising of strategic planning for the organization, incorporating various theories, concepts, and models to improve market position and achieve sustainable development. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.
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Unit 32
Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................3
M1. Critical analysis of the external environment.................................................................6
TASK 2............................................................................................................................................7
P2. Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks..........................................................................................................7
M2. Critically evaluate the internal business environment..................................................13
TASK 3..........................................................................................................................................13
P3. Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.....................................................................................................13
M3. Strategies to improve market position..........................................................................15
TASK 4..........................................................................................................................................15
P4. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organization........................................................................................................15
M4. Strategic management plan...........................................................................................17
D1. Critique and interpret prominent information to develop strategies..............................18
REFERENCES..............................................................................................................................20
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INTRODUCTION
Management strategy is a component which supports a firm in developing a strategy in order
to maximise the utilisation of its resources and generate higher wealth creation (Carroll and
Goponenko, 2019). In addition to achieve a good company performance in a competitive market
a firm must develop an acceptable tactical strategy. One delivery is chosen for this investigation
since it is a UK-based restaurant purchasing service which conducts online meals providing
services in 90 various locations across the UK. Craig Pollack founded the company in 2013. This
research would look at the various ways for assessing internal business environment.
TASK 1
P1. Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies
Business environment is basically related to effective sum of collection and make
appropriate growth in internal and external environment. All of these factors affect the growth of
the business which are related to make employees success, customer need, and expectation for
the growth of the employee. While working on macro environment of the company, the company
needed to do pestle and analyse their basic characteristic. This may be related to achieve
effective growth and start with major changes and evaluation. Major challenge for the company
while doing pestle is that, factors are influencing and changes as per the nature of external
environment and this seem difficult for monitoring those factors. One delivery is the company
that needed to be analyse and make effective growth in the organisational aspect of the company.
For the use of internal environment the company use resources analysis for considering the effect
and make changes as per the growth of the company.
PESTLE Analysis-
Evaluation of the technique for studying the impact of the overall economy on a business ’
performance such that management can create the correct judgements feasible in terms of tactics
to stay in conformity with the actual requirements. Amongst the conclusions of this study are the
following-
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Political factors: These are the major elements that influence political turbulence,
global corporate strategies, commercial obstacles, taxation system, and commercial
regulations. In order for One Delivery to run its nation effectively, all of the laws and
regulations issued by the government must be followed. That's the highest key worry in
order for the company to cope with the present political environment in the European
Union and stay relevant for an extended period of time.
Economic factors: Inflation expectations, price levels, real wages, and other
factors all have a substantial consequence on the financial success. One delivery is
sending its goods to a number of many other nations throughout the world in order for the
company to leads to financial prosperity.
Social factors: All of these factors affect the purchasing culture facet, the
consumer's monetary base, the recipient's purchasing patterns, and a variety of many
other factors which have a major effect on the company's operations. One delivery is
always stressing these traits, and also paying attention of any potential customers, in
attempt to create a positive impact on overall strategies by supplying high standard things
in the neighbourhood (Cozer, 2019).
Technological factors: Every one of these reasons contributes to the
corporation's acceptance of technical breakthroughs and advancements in technology in
order to thrive in a very dynamic industry. In order to meet the changing needs of its
potential customers, one delivery is implementing smart and new methods in its health
operation.
Legal factors: It is vital for any companies to implement all of the rules and
practises imposed by the UK government. In addition to operate business lawfully, one
delivery must abide by several rules like employment law, privacy laws, economic
efficiency, and information safety legislative changes.
Environmental factors: These would be the elements which are truly engaged in
ecological climatic factors like climate change, overcrowding, and contaminants. One
delivery is required to apply ecological ownership interests and to start others via which
ecological awareness may be raised.
Ansoff Matrix-
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Market penetration: It is a strategy that entails boosting overall selling in current areas.
It is an advertising strategy employed by businesses aiming to extend their business. One
delivery company is using this strategy to gain market domination and focus on servicing
a large number of customers. Furthermore, the company expands its marketing processes
and manufacturing networks (Evins, 2016).
Product Development: It is a method of introducing novel items and services into
a pre-existing industry. The corporate strategy is founded on a deep understanding of the
present industrial situation, and this understanding supports us in delivering unique
service to meet the requirements of the contemporary market. One delivery service also
employs this strategy, limiting research and innovative development but enabling it to
increase their product portfolio.
Market Development: It is a method which focuses on developing a newer
business with present commodities and it has shown to be extremely successful because it
has allowed the business to understand how to use modern software in a booming area.
Diversification: The Company’s strategy focuses on entering additional
industries with new product development. Because both the commodities and the
business are new, the system is especially risky. It is estimated that the organization
perform extensive research in order to increase its revenues in a worldwide industry.
Evaluation:
As per above Ansoff Matrix it is explained to analyses the restaurant perspective market
and product assessment, in which Product development strategy would plays an important role
to assess new product in restaurant base in food and beverages. As the company need to make
their product customized with new specification added and promote in existing market for gain
more competitive advantages.
There are some of challenges which reflect about Holistic Environment that creates challenges
within Restaurant Company:
New customer taste and preference can be considered as well as accept the culture to
specify innovation along with values matters
Environmental factors are also creates major role if the climatic condition is preditiable it
will create more challenges to the restaurant business.
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To arranging funds for expansion which would create challenge in competitive
advantages.
Stakeholders Analysis
According to this strategy review the organization’s stakeholders and develop prominent
groups based on the company’s participation, interests, power, and related activities and other
important characteristics. Some of the steps mentioned are as follows -
Step 1 - At this stage, One delivery inspects the company’s stakeholders, considering the
government, shareholders, customers, etc.
Step 2 - Stakeholders are classified as follows:
High power and high interest - These people mainly participate in the appropriate
activities of the company and are also satisfied with the appropriate activities of the
company, including shareholders.
High power, low interest - These people have little interest and tend to influence
important activities of organizations such as the government.
Low Power, High Interest - You have high interest, but you can't influence the excellent
activities of the company and customers.
Low interest, high power - These people are not interested, nor do they want to show any
interest in affecting suitable activities such as suppliers.
Step 3 - This stage mainly communicates with the appropriate development of stakeholders,
taking into account the goals and objectives being achieved.
M1. Critical analysis of the external environment
External environment components are those that cannot be changed and significantly
controlled, but they also tend to influence the business strategy that should be changed in order
to get the most benefit from the possible factors. As on the other side there will be gaining
significant in the market Competitive advantage is achievable. One delivery must change its
possible business strategy to adapt to dynamic environmental conditions, which helps to achieve
long- term sustainable development in the market area as effectively.
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TASK 2
P2. Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
It is necessary for an organisation that they should analyse their internal strengths and
weaknesses as that they will take decision in order to improve their weak areas. For that purpose,
SWOT analysis is an important tool which can be used by an organisation for analysing their
internal strengths and weaknesses.
STRENGTHS One delivery is one of the largest fast food fast food and restaurant in
UK.
WEAKNESSES They have a good brand image in national and international market.
This company is lacking in marketing so that's why they are lacking in promoting goods
and services.
OPPORTUNITY It is the organisation which needs to use technology in their business
practice so that they can promote their business.
THREATS Competition is the biggest threat as it creates difficulties for One delivery.
They may be face problem of stay competitive in the market.
Each company must have the correct approach for analysing the apprenticeship
environment and the institution's success. One stage is to identify a particular strategy for
examining the internal ecology and assessing its potential for the country's continuing growth.
The One Delivery highlights the following architecture and engineering processes that are used-
Resource based Review- A better strategy is produced to assist informal messages of the
firm consultant's specific expertise in order to gain a relative advantage on the international
economy. It is the theory proposed by B Wernerfelt and Hamel during the 1980s and the 1990s.
Importance of resource-based view- It is vital that practically all companies use the
assets roadmap strategy to gain a foundational layer and a distinct competitive advantage. This
research describes resources and assigns these into different organizations so that the resources
that are appropriate can be employed. One Delivery can adopt this strategy because it improves
awareness of important and effective financial planning. In the globalized economy, the entire
arrangement has a positive corporate image, helping the companies to grow competition (Jiang
and Sun, 2020).
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Resource based view analysis- This study is crucial to the company because it brings
attention of the institution's economic performance as well as that of its competitors in the
difficult field. Private emails have been utilized to illustrate how a certain company is helpful in
analysing a company's advantages and shortcomings and also monitor would determine its
people contents. To gain a better understanding of this method, the firm analysed a variety of
financial commodities perspectives that are as follows-
Tangible Assets: These products are centred on the company's visible, measurable
capabilities. It includes innovation, luxury products, new tech, and other resources that
rivals can easily access and offer a diminished tactical advantage in a globalized
economy. These are the resources that a corporation will collect in attempt to obtain a
competitive advantage in a specialized environment.
Intangible assets: These are the types of resource-based assessments which might
or might not have a physical appearance and are complex. Patents, confidential data, and
brand strategy are instances of items that are unaffected by competition in a large
industry.
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Value chain analysis
Every organisation wants to create some value from each of the products to their
customers so that they are able to achieve their goals and objectives effectively and efficiently.
Value chain analysis is the model which needs to be used by One Delivery in which they need to
identify their primary and support activities that add values to finished products. This will helps
in reduction of cost.
McKinsey 7 S Framework
Strategy- This is the initial stage of this method, which may help to the
development of methods to accomplish as many outcomes as possible. This stage is
helpful in addition to gain a competitive margin over rivals which could also ultimately
increase the organisational effectiveness. One delivery is from a well-known services
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supplier who can actually stick to a schedule in attempt to offer the business a
competitive edge over its rivals. A shared characteristic which might lead to favourable
consequences and increased economic domination. This strategy was primarily seen as
one of the design's difficult aspects (Juhász, Samiee and Engelbrecht, 2019).
Structure- It is critical to develop a logical structure which will assist in the
preservation of corporate coherence. The organisational individual's duties throughout
this procedure are to create a theoretical structure which allows it to offer appropriate
guidance to its employees as well as other colleagues. One delivery uses a planned
strategy that provides staff with a thorough understanding of its duties.
System- It is vital for every organization to pay regard to its processes while also
effectively managing all duties and operations in an appropriate manner in order to attain
greatness. One delivery keeps a statistical basis and develops a strategy method that such
personnel should undertake in addition to meet a present goal in an equitable way. With
the assistance of a logical programme, all personnel can complete their tasks
appropriately.
Shared value- This element is helpful for building an influential aspect which
will assist in the operating process of the business In addition to achieve excellent value
and maintain the institution's productivity and effectiveness, one delivery should
disseminate material within the scope of the business culture and maintain ethical
principles on the task (Khan, Sharma and Pemmasani, 2016).
Style- With the help of such aspects, businesses may create a unique style which
distinguishes them besides the competitors. To preserve the institution's brand value, one
delivery should manage all operations and also have an appropriate operational
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environment. The company have to provide an effective evaluation programme so all
workers can use any strategy to complete their everyday activities.
Staff- This strategy allows businesses, especially its directors and executives, to
give their employees more analysis in order for them to do their jobs more effectively.
One corporation focused on its employees and pushed employees to complete their
responsibilities without worry by providing prizes and cash incentives.
Skills- This strategy is extremely beneficial to each and every employee in the
company because, given the current financial situation; it may help workers develop new
skills and competencies. One delivery must provide appropriate education to its
employees in order to effectively improve their expertise and performance.
The McKinsey 7-S Strategy is a methodical strategy for increasing a company's effectiveness
while still guaranteeing that each laborer's assignment is completed. The primary purpose of this
method is to improve the well-being of a particular purchase business even while assisting in the
improvement of products and services. This method is effective for determining the impact of
individual factors on the productivity and profitability of an organization (Ozcanhan, Unluturk
and Dalkilic, 2016).
VRIO Model-
Valuable- It is the first aspect that really might affect the importance of specific abilities
which the company can generalize. The numerous components of opportunity that are plainly
visible from both inside and outside the business sector are housed in a single presentation.
Companies could use options to maintain their leading position and eradicate any threats. Each
of these abilities is helpful to business communications and also recognizing the numerous
factors which might significantly add to the institution's efficient implementation. One delivery
to look at both intrinsically and extrinsically possibilities which might help the company enhance
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its value and gain a competitive advantage. The company has a good business position in the
industry which helps it to attract a large amount of new consumers and increase revenues.
Rare- The essential part of this factor is that goods are gained mainly by an organization.
Both costly and unusual resources provide a temporary tactical advantage that enables a firm to
keep operating in the industry. Businesses with comparable resources and skills keep the
economy in balance. Environmental elements are incorporated into the company's products and
activities in addition to meet the needs and expectations of potential customers (Parsa
Gharamaleki, 2017).
Inimitable- In considerations of this component, evaluating the gathered information to
ensure the challenges of duplicating and advantageous to provide more cash is unusual and
critical. If all resources are expensive for yet another business, some resources are exceedingly
difficult to replicate. As a result, commodities give the organisation a competitive advantage in
the industry.
Organized- When the business requires to support its employees, operations research are
suitably designed and beneficial in this element to gather the most substantial value in an
expensive situation. Companies should have well-organized procedures, attitudes, and
procedures that can affect the long-term effectiveness of the company.
The above discussion states that it is necessary for an organisation that they should ensure
about their resources and capabilities. It helps them to analyse their internal environment. For
that purpose there are some model which discussed are SWOT, VRIO, Value Chain analysis,
McKinsey's 7s framework, etc. These models are very helpful in order to analyse the internal
environment and capabilities. Organisation is able to know the weak areas so that they will take
an important corrective action.
VRIO Analysis:
It is mentioned as the strategic management technique that will help for an effective
functioning of the management by determining the innovative factors of the management that is
useful in terms of gaining competitive benefits in the field of the marketplace. As there are some
of the factors of VRIO analysis in terms of the One delivery that are as follows -
Capabilities Valuable Rare Inimitable Organised
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