Business Strategy Report: Strategic Planning and Analysis

This report delves into the intricacies of business strategy, commencing with an introduction to strategic planning and its pivotal role in organizational success. It outlines the steps involved in the strategic planning process, emphasizing the development of a strategic vision, setting SMART objectives, crafting effective strategies, implementing plans, and continuous monitoring. The report then explores key concepts such as core competencies and competitive advantage, providing examples to illustrate these principles. Furthermore, it examines strategic positioning techniques, including the BCG matrix, and delves into organizational and environmental audits, with a focus on SWOT analysis and stakeholder analysis. The report also addresses market entry strategies, discussing the differences between vertical and horizontal growth strategies and exploring potential future market entry approaches. Finally, it examines the implementation of strategy and provides a timeline for execution, culminating in a comprehensive understanding of the strategic planning process.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
a. Steps of strategic planning process.....................................................................................2
b. Informational promotional brochure..................................................................................4
c. Strategic positioning techniques.........................................................................................6
TASK 2............................................................................................................................................7
a. Organizational audit............................................................................................................7
b. Environmental audit...........................................................................................................8
c. Significance of stakeholder analysis...................................................................................9
TASK 3..........................................................................................................................................11
a. Difference between vertical and horizontal growth strategy............................................11
b. Future market entry strategies..........................................................................................11
TASK 4..........................................................................................................................................12
a. Implementation of strategy...............................................................................................12
b. Time-line for implementing strategy................................................................................13
CONCLUSION..............................................................................................................................13

ILLUSTRATION INDEX
Illustration 1: Strategic planning process.........................................................................................3
Illustration 2: Mintzberg 5Ps strategy..............................................................................................5
Illustration 3: BCG matrix...............................................................................................................6
Illustration 4: Porters five forces model...........................................................................................9
Illustration 5: MENDELOW Matrix..............................................................................................10
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INTRODUCTION
The main purpose of this study is to assess the understanding regarding the strategic
planning process in order to organize and plan the tactics for future outcomes with the aim to
become successful. Further, there are different models such as stakeholder mapping, strategic
positioning, micro and macro environmental tools etc. helps in implementing effective results
within organization. Moreover, different roles and responsibilities are assigned to stakeholders in
order to implement the strategy so that resource requirements can be assessed and attain
outcomes. At the end, proper process of strategic planning has been developed and mission,
vision and objectives of companies have been assessed. In the report, being a consultant it is
essential to evaluate the clients corporate vision and environmental analysis so that best strategic
approach can be developed.
TASK 1
a. Steps of strategic planning process
Strategy can be stated as the direction and scope of business over both short and long
term in order to attain competitive advantage within business. Strategy definition given by
Mintzberg (1987) states that it is a plan of getting from here to there. Also, it involves decision to
offer specific products for particular markets. Furthermore, strategic planning can be evaluated
as a management tool that helps in fulfilling the purpose of firm in order to carry out effective
job. Also, it helps in carrying out disciplined effort to produce the best decisions and actions that
shape and guide what an organization is required to focus in the future. Following is the steps of
strategic planning process which are as follows-
 Developing a strategic vision- It is essential for business enterprise to formulate
strategic vision so that business can attain desired objectives in the future. Here, business
is required to prepare a strategic vision so that long term goals can be attained.
 Setting objectives- Further, it is essential for business to set SMART objectives so that
they can be attained effectively and efficiently. Further, effective objectives are required
to be set so that profits and sales can be enhanced.
 Crafting a strategy to achieve the objectives and vision- Here, strategy is required to
be formulated so that best objectives and visions can be attained within enterprise. Here,
management of firm is required to prepare effectual strategy so that objectives and vision
can be attained effectively.
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 Implementing and executing the strategy- Thus, the identified tactic need to be
implemented in order to achieve results. Here, the plan prepared need to be implemented
effectively so that best actions can be attained.
 Monitoring developments- At the end, of the process the strategy need to be monitored
effectively so that performance can be evaluated at regular time intervals. At the end, the
develop strategy need to be monitored carefully so that continuous results can be
attained.
Illustration 1: Strategic planning process
Core competencies
Furthermore, the core competencies of businesses are required to develop main areas of
expertise so that distinctive competitive edge can be attained in order to gain long term growth.
Here, strategy is the best approach which is required by firm in order to evaluate the core
competencies of firm.
Competitive advantage
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It occurs when firm is required to implement a value so that firm can obtain benefits in
order to achieve desired outputs. Competitive advantage is the benefit that firm possess and it is
not easy for firm to easily copy it. For instance, Coke has the competitive advantage regarding its
brand name in market. Further, Marriott possess competitive advantage in order to deliver
effectual consumer service to its guests and attain satisfaction.
Key terms Definition
Mission It can be stated as it reflects the aim of business that involves the nature
of the business and it also assesses the target customers.
Vision Here, it evaluates that the firm is required to attain in future in order to
accomplish in long term goals.
Objectives Further, specific results that business is required to attain through
carrying out their own actions.
Example of British Telecommunication Plc
 Mission- The mission of firm is to provide world class telecommunication services to
clients.
 Vision- It plans to become the most successful telecommunications brand. Objectives- The objectives is to earn that much to satisfy the needs of shareholders.
Example of Ryanair
 Mission- The mission of firm is to provide low fare that generate enhanced passenger
traffic.
 Vision- It aims to become Europe's number one airline.
 Objectives- Its objective is to give tough competition to rivals by reducing the fare rates
and thus enhance the sales of firm in market as compared to other rivals.
b. Informational promotional brochure
Strategic planning is the management tool which is being used by the manager with an
aim to direct the efforts of all employees towards the same goal. It is very essential for the firm
that it must prepare an effective strategic plan. In accordance with the given context, following
role of strategy identified:
 It plays the role of director and in this regard it encourages the long term view of
company.
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 It also helps in improving the communication between the departments.
 It gives description about the objectives which needs to be achieved by the firm within
given specified time limit.
Besides this, there are some problems involved in strategic planning: Unavailability of sufficient time: It is being regarded as one of the most common
problem which is being faced by manager while preparing the tactical plans. In order to
attain some strategy, manager will require sufficient amount of time. However, he/she
will not get that at that time it will become difficult for them with regard to carry out the
practical implementation of assessed plans in an effective manner. Unavailability of trained and skilled employees: For the enterprises, it became difficult
to attain their strategic goal if it does not possess the team of competent and talented
employees who have significant knowledge with regard to attain the objectives of
enterprise in an appropriate manner.
Two planning techniques
 BCG matrix SPACE matrix
Mintzberg 5 Ps for strategy
Mintzberg (1987) has given definition of strategy in terms of 5 Ps.
Illustration 2: Mintzberg 5Ps strategy
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 Strategy as plan: It is being regarded as one of the most crucial part of strategy planning
process. This is because, before reaching on to the other steps of strategy manager have
to prepare an effective plan. Strategy as ploy: This is being used by firm with an aim to establish as well as maintain
their competitive position in market. Strategy as position: It is another way of defining the strategy. Thus, this depict that how
company position itself in the market where it is working. Strategy as pattern: It is another way of defining the strategy. This states that the
behavior which is being carried out by the firm in past many years plays crucial role in
the development of new tactics.
 Strategy as perspective: The perspective of organization also leads to prepare the base for
the development of new strategy. For example, if manager of firm give support to all the
innovative activities that is being carried out within firm. Then in the given circumstances
manager will always engorge its employees with regard to suggest the innovative ideas in
front of them.
c. Strategic positioning techniques
BCG matrix is the framework which is being developed by Boston Consultancy Group
and it is basically used with an aim to evaluate the strategic position of firm in market which is
highly competitive. The given matrix has four quadrants such as start, cash cow, dog and
question mark.
Utility and application of BCG matrix
 This matrix is used with an aim to analyze the current business portfolio of company.
Here, on the basis of this manager can make the decision about the business which is
giving more profits.
 The matrix also help in giving information about that specific product which is being
consider as the strength of the company.
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 Star: It is the stage in which product enjoys high market share as well as growth. Thus, it
can be said that the specific product of the company is playing crucial role in enhancing
the profits of company. For example, bottled water of Coca Cola named as Dasani
belongs to the given phase. However, the product that belongs to the star phase will be
converted into cash cow if market growth starts to decline. Cash cow: It consists of product which market share is high but it has very low growth
rate in market. With respect to Coca Cola, all the soft drink of the company belongs to
the given phase. However, by performing significant changes in the existing product firm
can increase its product growth rate. Question mark: It consists of product which has low market share but possess the ability
to achieve growth in market. Full throttle brand of Coca Cola resides in given phase. The
market share of these products can be enhanced by launching it in some other market.
 Dog: It consists of brand which is resulting firm into losses as the product that belongs to
given category have low growth as well as market share. Sweetened juice of Coca Cola
resides in given category. Thus, for the firm it is necessary that it must not make any kind
of investment with regard to raise the sales of such product. This is because, if it is done
then it would only increase the cost of corporation.
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Illustration 3: BCG matrix

Overall, it can be said that with the use of BCG matrix manager can make the decision
about the type of strategy which it must adopt. This will help corporation in terms of raising the
profits of firm in an effective manner.
TASK 2
a. Organizational audit
SWOT analysis is the method which is used by the firm with an aim to analyze the
business, resources as well as environment of the company. This tool is important for the firm.
Here, with the help of given approach firm can gather information about the elements which are
proving as the biggest strength of the company. The identified strength can be used by enterprise
with an aim to mark effective presence in the environment which is highly competitive. In
addition to this, the given tool also provides information about the varied opportunities which are
available with the company. Furthermore, it also warns company about several threats which
may affect the operation of company.
In accordance with the given context, SWOT analysis of Coca Cola as an example is
depicted in below:
Strength Weakness
 It is highly recognized brand
 Have good financial stability
 Have global presence.
 Have good number of loyal customers.
 Lack of popularity of many Coca Cola
brand.
 The health issues which are associated
with the soft drinks is creating
complication in front of company.
Opportunities Threats
 To perform innovation in existing
product.
 To launch product in some new market.
 Changes in the health perspective of
customers.
 High level of competition in market
Hence, it can be concluded from the SWOT analysis that the main strength of Coca Cola
is a recognized brand. The weaknesses of firm is the it provides health issues to individual. Thus,
it is essential for business to perform the operations in order to launch the product in new market.
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b. Environmental audit
For the firm it is very essential that it must gather the information about the factors which
are prevailing in the external environment of company. This is because, by assembling such
information firm can make the decision about the strategy which it can use with an aim to
mitigate the factors which are creating problem for the company. In this regard, environmental
audit of Coca Cola is carried out with the help of tool such as Porters five forces model.
 Threat of substitute: This is moderate for Coca Cola. In this regard, it can be said that all
the healthy or fresh juices can be consider as substitute for the company. However, an
individual cannot retain juices for the longer period of time as they contaminate. For
instance, Real juices. Threat of new entrant: This is very insignificant because of the high saturation of global
carbonated drink market. In addition to this, threat of new entrant is low for Coca Cola
because of the many complications which are associated with the given business. It
consists of high capital requirement and changing government policies etc. Bargaining power of supplier: This is high for Coca Cola because of the concentration
of some suppliers who can fulfill the specific product related needs and demands of the
company. For instance, Coca Cola possess varied competitors and thus clients posses
chance to switch over other rivals.
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Illustration 4: Porters five forces model

 Bargaining power of customers: This is high for cited firm because of the presence of
number of competitors that provides similar type of goods and services. For instance,
there are varied options available to select for clients such as Pepsi.
 Rivalries among existing competitor: This is also high for Coca Cola. Here, firm is
facing competition from the enterprise such as Pepsi. For instance, Pepsi attracts
consumers by reducing its prices and give tough competition to Coca Cola.
c. Significance of stakeholder analysis
According to Freeman (1984) stakeholder is the group of person who affects and being
affected through the goals and objectives as being made by the manager of company. The
common group of stakeholders consists of customers, employees, suppliers, government and
investors etc. For the firm it is very necessary that it must conduct the stakeholder analysis. This
is because, by complying with given type of activity manager can identify needs and demands of
its stakeholder and on the basis of this they can select an effective strategy for their company.
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