Business Strategy Report: Strategic Analysis and Planning

This report provides a comprehensive analysis of business strategy, covering various aspects of strategic planning and implementation. It begins with an introduction to strategic planning processes, including mission, vision, objectives, and core competencies. The report then explores the application of the BCG matrix as a strategic positioning technique, illustrating its use with examples. It includes an organizational audit using the Ansoff matrix, followed by an environmental audit using PESTLE analysis. The significance of stakeholder analysis is also discussed, with the Mendelow matrix. The report further delves into alternative strategies and selection of future strategies, alongside a comparison of roles and responsibilities for strategy implementation. A Gantt chart is included for time planning. The document concludes with a discussion of merits, distinctions, and critical reflection on the findings, along with a creative approach to understanding the market.

Business Strategy
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TABLE OF CONTENTS
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
1 A) Description of stages of strategic planning process.............................................................4
B).................................................................................................................................................5
C ) Utility and application of BCG matrix as strategic positioning technique...........................8
TASK2.............................................................................................................................................9
A) Produce an organizational audit for organization .................................................................9
B) An environmental audit .......................................................................................................11
C) Significance of stakeholder analysis....................................................................................12
TASK 3..........................................................................................................................................14
A) Alternative strategies...........................................................................................................14
B) Select an appropriate future strategy for the organization...................................................14
TASK 4..........................................................................................................................................15
A) Comparison of roles and responsibilities for strategy implementation and evaluation of
resource requirements................................................................................................................15
B) Gantt Chart...........................................................................................................................16
........................................................................................................................................................18
Merits and distinction....................................................................................................................18
M1 Identifying and applying strategies to find appropriate solutions......................................18
M2 Applying markets and business strategy methods..............................................................19
M3 Presenting the appropriate findings....................................................................................19
D1Conduting critical reflection and justifying your conclusion ..............................................19
D3 Adopting creative approach and theoretical models to understanding of market ..............20
Conclusion.....................................................................................................................................21
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INDEX OF TABLES
Table 1: BCG matrix........................................................................................................................8
Table 2: Time plan.........................................................................................................................16
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ILLUSTRATION INDEX
Illustration 1: Brochure of strategic planning..................................................................................7
Illustration 2: BCG Matrix of Apple................................................................................................9
Illustration 3: Ansoff Matrix for Coca Cola..................................................................................10
Illustration 4: Mendelow Matrix ...................................................................................................12
Illustration 5: Gantt Chart..............................................................................................................17
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INTRODUCTION
Business organizations are required to develop effective strategies for operational
activities in order to achieve their aims and objectives in an effective manner. By the
applicability of these strategies, organization can make significant improvement in their
performance for better growth and success. Present study is based on the description and
applicability of strategic planning process. For this aspect, various tools will be used such as
BCG matrix in organizational context.
TASK 1
1A) Description of stages of strategic planning process
In accordance with the Mintzberg, strategy is a plan formed to attain specific objective. It
involves decision for offering particular products to the particular markets. It is supported by
vision and direction. Further, strategic planning can be defined as process of specifying the
mission, vision and objectives of organization through a plan in order to make optimum
utilization of available resources. Steps of strategic planning is as follows
Mission
It provides improved level of understanding regarding key purpose of organization in the
market. It also facilitates business firm in diverse manner and provide correct direction to
business activities. For example, Apple key mission is to render computer and other services to
the society with improved consideration of quality standards and reliability factors. Company
key aim is to bring various innovations in its products in order to attract more and more
customers.
Vision
Initially organizations are required to create vision that must be followed by vision of
company. It is a statement which provides detailed information about the organizational needs. It
is considered as aspirational organizational description that assists in effective accomplishment
of organizational goals. It also provides great support to long term objective. For example, Apple
vision is to become leader at global computer and digital market.
Objective
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On this basis of vision, objectives for the plan are set out. These objectives are required to
be supported by SMART approach. For instance, the objective of Apple is to reduce the
pollution and non degradable waste resulting from its operations upto 10% by 2030. Smart
objectives are considered as combination of diverse factors that can amend the business
opportunities. In other aspect, SMART objectives are classified in five key factors such as
specific, measurable, achievable, result focused and time scale. Another key example of Smart
objectives can be an objective of Apple is to increase the sales up to 15% using online marketing
till the end of December 2015.
Core Competencies
Core Competencies of company are mostly considered as unique abilities that its
management acquires or develops by its hard work and it cannot be copied by any other firm.
Every firm has its own competencies which leads business to impressive success. In this support,
Apple’s core competency is to focus on differentiate strategy and offer unique features and
characteristics in its products. High prices of product also present innovative products as
premium product in the market. Enhanced level of customer service is also one of key core
competencies of firm.
Strategic planning
Furthermore, formed strategy is implemented in the organization as per the planning
process. In order to assure standard outcome, monitoring is done by managers and supervisors.
They evaluate the performance of employees to make corrective adjustments. This step is
essential because there is continuous change in environment and actual performance is not
always as per the expectation. By considering this aspect, suitable modification is done in
strategic planning.
Central idea of strategic planning is development of key areas of expertise that can be
used by commercial entity as competitive an understanding the position of organization in the
market. For example, Apple is continuously focusing on modifications in its policy to build better
relationships with supplier. Moreover, company is also looking forward to reduce supplier cost by
self production of key sources.
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B)
Promotional brochure about the role of strategy and issues involved in Strategic Planning
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Illustration 1: Brochure of strategic planning

C) Utility and application of BCG matrix as strategic positioning technique
BCG matrix is framework developed for the evaluation of strategic positioning by Boston
Consulting Group. Applicability of this model ensures long term value creation by business by
analysis of strengths and weaknesses of the company. Through this model, organizations are able
make their decision regarding investment and divestment. Furthermore, growth strategies are
developed by them through addition of new products in portfolio of business.
BCG matrix provides assessment of business products on the basis of two dimensions i.e.
growth and market share. Basically this matrix is bifurcated into 4 quadrants derived on factors
of market growth and relative market share.
Table 1: BCG matrix
Cash cows
 Products generating high profits
 Products generating high cash
 Established market for revenue
generation
Stars
 Market leader
 Good growth rate
 Large investment is required for growth
and profits
Dogs
 Static market
 Fewer opportunities of growth and
profitability
Question marks
 Good growth rate
 Low profits
 Large investment is required
 High risk
Furthermore, the dogs have low market share and minimum growth. Further, they does
not yield more profit or consume cash. Thereafter, by giving proper consideration on question
marks they can be converted into future cash cows or stars. The stars reflect the ability of
company to excel in its operations and thus generate significant amount of profits. Further, cash
cows states, products generating high cash and profits which are fruitful for business.
Organizations are required to have ideal mix of cash cows and stars in order to enhance strength
of their product portfolio. Furthermore, they should make high investment on these products in
order to make increase in their liquidity and profitability.
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Illustration 2: BCG Matrix of Apple
As per above example of Apple it can be said that the Iphone is considered as a star in the
market as it provides good opportunities to business such as advancement in profit margin ratio.
Laptops and Mac-book are taken into account as cash cows because it is a product generating
high cash and profits which are fruitful for business. Apple TV is refereed as question mark as it
has potential to be converted into future cash cows or stars. Moreover, IPod is categorized as dog
because it does not yield more profit.
TASK2
A) Produce an organizational audit for organization
Ansoff matrix
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Illustration 3: Ansoff Matrix for Coca Cola
(Source: Oakley, T., 2015)
It is a strategy which provides enhanced level of information regarding diverse
organizational products and services. It is a strategic tool which provides frameworks in order to
help the executives, senior managers and also the marketers for devising the strategies for the
future growth. There are 4 dimensions of this matrix that is market penetration, market
development, product development and diversification. Thus, this matrix helps company to draft
the strategies as per the given matrices. Therefore, in market penetration, Coca Cola is growing in
an existing market by increasing its market share in current market scenario. Further, in market
development, firm is planning to expand in the new market that is geographically by using its
existing offering that is diet coke and zero coke is offered in new emerging market. Moreover,
company is introducing new product in product development and targeted in existing markets in
order to achieve growth. In this, company has introduced coca cola cherry and coca cola vanilla,
however, company has extended its product line. Lastly, for diversification, this enterprise has
diversified its product into a new market. Thus, coca cola has diversified into related and unrelated
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goods that are healthy drinks are included in related diversification and merchandising in an
unrelated diversification.
B) An environmental audit
PESTLE analysis is to analyze the external marketing environment of the business. It
includes Political, Economic, Social, Technological, Legal and Environmental factors. PESTLE
analysis of organization is as follows-
 Political- Change in government causes the change in rules and policies which were laid
down by the previous government. This has a direct impact on the soft drink industry
because due to this, industry has to bring changes in the older policy and has to work
according to the new rules. Issues faced by the whole industry is that, every company has
to bring changes and if any firm resist this change may impact the complete industry.
 Economic- There is an economic crisis going on in UK market which has a greater
influence on the soft drink industry. Due to recession, consumer's purchasing power has
reduced and they are not willing to spent other than necessity goods. Thus, soft drink
industry has to reduce its prices in order to increase the sales. However, losses are faced by
the company which has resulted in the exit of a firm.
 Social- Social factors include changing lifestyle, education level, culture, etc. This industry
is facing the social issue that consumers have got aware and there is paradigm shift in a
lifestyle. Younger customers have become more conscious about the health and they have
reduced the consumption of soft drinks and moved towards healthy drinks that is juices.
Soft drink industry is facing such issues and its sales have been lower down.
 Technological- Technologies are growing at faster pace and every other day new
technology is getting introduced. Thus, industry has to adopt new technologies in order to
remain first in the growing competition. This has good as well as bad impact on the firms
of this industry that is new technologies shows the ways to improve the procedure and also
due to this cost of production have lower down. On the other hand, implementation of new
technology leads to the increase in cost.
 Legal- Soft drink industry had to operate in restricted environment due to legal forces
which are prevailing in a local, global and national environment. Laws implement new tax
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