HND Business Strategy: Understanding the Strategic Planning Process

This report provides an overview of the strategic planning process in business, emphasizing the importance of mission, vision, objectives, goals, and core competencies. It analyzes internal and external factors affecting strategic plan formulation, including value systems, employee skills, political, economic, and social factors. The report evaluates techniques like the BCG matrix and Porter's five forces for developing strategic business plans, highlighting their effectiveness in assessing product performance, supplier power, customer influence, threat of substitutes, new entrants, and industry rivalry. The document concludes by referencing relevant academic sources, offering a comprehensive understanding of strategic planning for business development.

Business Strategy
(Understanding the process of strategic
planning)
Task 1

Table of Content
• Introduction
• Mission vision
• Goals & Objective
• Core competencies
• Factors affecting business
• Techniques for strategy evaluation
• References

Introduction
 Strategic planning is a process of setting priorities or
main goals which firm wants to achieve.
 For increasing the effectiveness of this process Jack &
Jerry need to consider factors exist in the business
environment.

Mission, vision
Vision: Vision is the place where a firm or person wants to
see itself after some years. Vision of Jack &Jerry is to offer
safe and environmental or sound friendly vehicles to its
customers.
Mission: Mission is the objectives a firm wants to achieve
by undertaking various commercial operation. Mission of
the company is to create or maintain strategic partnership
with its customers

Goals & Objectives
Goals: Goals of Jack &Jerry is to become environment
friendly and economic leader in the automotive sector.
Objectives: Objectives of firm is to use innovative
technology to achieve a position of global leader in auto-
mobile sector and to achieve the award of best employer.

Core competencies
Core competencies: Core competencies are that skills or
abilities of firm which made it different from other. It
help firm in providing better services to its customers
than its competitors.

Factors to be considered while formulating
strategic plan
Internal factors:
 Value system of the firm
 Employee's skills
 Stakeholders
External factors:
 Political factors
 Economic factors
 Social factors

Effectiveness of Techniques
It is a technique which helps the firms in evaluating profits
of different products sold by the firm. It helps the
manager in identifying products growing at a fast speed
which are providing effective results to the organisation.

Cont..
This is divided into four categories which are stated as follows:
• Star: Under this category, the product which grows at a fast
speed is included.
• Question mark: These types of products capture a low
market share but grows at a fast speed.
• Cash Cow: These types of products require large number of
promotional activities or company's support for achieving
the success.
• Dogs: Products having low market share and growth
come under this category.

Porter's five force analysis
This is another technique which
can be used by Jack &Jerry for
developing strategic plans for
the organisation.

Cont..
This technique includes the following:
 Bargaining powers of suppliers: Suppliers of raw
material also create some kind of pressure under the
operations of a business.
 Bargaining powers of customers: This is known as the
customer's ability to put the organisation under pressure.

Cont.....Cont.....
 Threat of substitutes: Products having similar quantity
and quality called substitutes. This affect the sale of firm's
product.
 Threat of new entrants: Under this, growing industry
having opportunity of earning large profits attract new
entrants to join the industry.
 Industry rivalry:Level of competition exist in the market
sometimes create pressure on the firm.