HND Level 5 Business Strategy: Strategic Planning & Formulation

This report delves into the intricacies of business strategy, focusing on strategic planning and formulation. It assesses how business missions, visions, objectives, goals, and core competencies inform strategic planning. The report analyzes factors considered when formulating strategic plans and evaluates the effectiveness of techniques used in developing these plans, including SWOT analysis and nominal ranking. Furthermore, it emphasizes analyzing an organization's strategic positioning through organizational and environmental audits, alongside the significance of stakeholder analysis in formulating new strategies. This comprehensive analysis provides a solid foundation for understanding and implementing effective business strategies.

Business Strategy
TASK 1

1.1 Assessing business missions, visions, objectives, goals & cor
e competencies informing strategic planning
•Business Vision-:A vision gives a thought of what the organization want to acc
omplish. It is related to accomplishment of something in future. It should be an i
nspiration for the people in organizations.
• Mission-:It is about what can be done in order to achieve vision(Aitken,2016
). A mission statement do not need intuition,it gives a clear picture about what o
rganization can do and what it can't. A good mission statement should be-:

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• Objective and goals :It is a type of statement will help to achieve the desired
goals of the organization. Goals can be achieved through the hard work done
in the organization. Various example of business goals include-:
• Increment of gain margin
• Increment in skillfulness
• Improvement in employee training
• Core Competency Theory of Strategy:This is a strategic theory that provide
action that need to be taken by the firm to accomplish welfare in the
competing market.
• The concept states that the firms should work only with their strengths in
the places where they face competition.

1.2 Analyzing the factors that can be considered when
formulating strategic plan
• Companies around the world generally acquire strategic plans. They
generate a sight of their future and develop plans requires to go there.
• Some of them are unable to realize their vision and this leads to
failure of delivering the desired outcome.
• The execution department cannot find out there reason fof the failure
so they repeat the strategic plan again and again,in the hope that the
next plan will provide good outcomes.
• There are 4 factors that can be utilized for ensuring strategic plans-:

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• Engagement :Planning of strategies is a process not an event. A major
element of any process is the involvement of the entire workers in the
organization.
• Involvement of workers is important in planning strategy and direction for
the organization. Input from employee's will provide knowledge on
issues,opportunities,concerns that have not been known or understood
before.
• The strategies are not executed by the senior management,this work is
done by staff.

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• Communication-:Planning of strategies are successful when
the communication approaches can be added. The
communication starts by informing the employees about the
strategic planning that will be undertaken..
• Communication can be of 2 types bottom up and top down.
The involvement of the employees in the process is bottom
up communication.
• Employees will produce the input according to strategic
planning by giving surveys or feedback. This accompanied
by the top down communication.

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• Innovation:The strategic plan provide ideas to produce a different
product or to give new service or rebuilding of a department etc.
• These put up the team to work together to apply their knowledge
on important initiatives and provide them with money to establish
success.
• Innovation plays a very important role in organization. They
develop new plans for creating new products and services. Many
organizations ask their employees to be more innovative.

1.3 Evaluating the effectiveness of techniques used for developi
ng strategic business plans
• The important activity for any company is business planning besides
the size,industry or region.
• The business process can be sometimes discouraging as people with less
experience in this field can make utilization of variety planning
techniques.
• The usage of these techniques effectively will ensure that idea has
enforced and output will be achieved.
SWOT Analysis
• It is one of the element of business plans,either for the entire business
or for specific function we perform SWOT analysis. It is an acronym
for strength,weaknesses,opportunity and threat.

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Nominal Ranking
• This is also like SWOT analysis which is done to produce the long list of
unit.
•The participants are provided with the quantitative amount of votes that they
can utilize for any unit on the list,by providing various votes for one unit if
they want.
•They offer sticky dots to participants to use them on flip charts where the unit
have been put.
•Once voting is done by all participants,the votes are counted for every unit
are checked and find out the highest raring unit.

REFERENCES
• Sia, S.K., Soh, C. and Weill, P., 2016. How DBS Bank Pursued a Digital
Business Strategy. MIS Quarterly Executive. 15(2).
• Siedel, G.J., 2017. Leadership Competencies for Business Lawyers: Using
a Framework that Links Strategy, Law, and Ethics.
• Soltanizadeh, S. and et.al., 2016. Business strategy, enterprise risk
management and organizational performance. Management Research
Review. 39(9). pp.1016-1033.

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