Corporate Strategy and Planning Report: Analysis and Evaluation

This report provides a comprehensive analysis of corporate strategy and planning, encompassing key concepts and frameworks essential for business success. It begins by defining corporate strategy and the importance of resources, followed by an examination of the VRIO framework for assessing competitive advantages. The report delves into organizational analysis, exploring its activities and purposes, including value chain analysis. A significant portion is dedicated to comparing and contrasting the SWOT matrix with Michael Porter's 5 Forces model to generate competitive advantages. The report further investigates the connection between organizational strategy and structure, emphasizing their interdependence. Finally, it concludes with an exploration of Management by Objectives (MBO) and Activity-Based Costing (ABC), outlining their concepts and aims. The report highlights the relevance of resources and the VRIO framework in organizational analysis and emphasizes the differences and similarities between the SWOT matrix and Porter's 5 Forces model. It also clarifies the relationship between organizational strategy and structure, as well as the concepts and aims of MBO and ABC, providing a holistic view of corporate strategy and planning.

Corporate
Strategy and
planning

Contents
INTRODUCTION............................................................................................................... 2
Q1...................................................................................................................................... 2
(I). Resources and VRIO Framework..................................................................2
(ii). Activities along with purposes of Organizational
analysis...............................................................................3
Q2...................................................................................................................................... 4
Comparison and Contrast among SWOT Matrix and Michael Porter's 5
Forces models assists in generating competitive advantages..................4
Q3...................................................................................................................................... 5
Connection between strategies and structure of organization................5
Q4. .................................................................................................................................... 5
Concepts addition to aims of MBO as well as Activity Based Costing....5
CONCLUSION..................................................................................................................... 6
REFERENCES..................................................................................................................... 6
INTRODUCTION
Corporate strategy is characterized to long tern vision which are set
by entities for building corporate value as well as encouraging staff members
to execute proper actions for attaining satisfaction of customers (Arasti
Khaleghi and Noori, 2017). Planning is said to thinking process that is
required to accomplish desired objectives. Present booklet includes
information about resources as well as VRIO framework in relevance to
Organizational analysis. It further includes explanation of activities addition
to purpose of organizational analysis. Further, differences and similarities
between SWOT Matrix with Michael Porter's 5 Forces model is done. It also
discusses connection among organizational strategy as well as organizational
structure. At last, concepts and aims related to Management by Objectives as
well as Activity based Costing are clearly explained.
Q1.
(I). Resources and VRIO Framework.
Resources: Organizational resources are defined to elements
including materials, money, employees, information addition to other things
which are utilized for functioning properly and to increase wealth of
business. In other words, resources are productive factors which are required
for completion of tasks as well as undertaking enterprise operations for
achieving desired results. When resources are analyzed by business
managers in holistic manner then it results in infallibility of organizational
strategies over time. Resources have huge relevancy with Organizational
analysis as organizational analysis comprises of assessment of resources
which influences organizational performances at huge level (Argenti,
2018). The evaluation of resource base and their potentiality is done
through organisational analysis. For instance, entities like Intercontinental
Bank Ghana, organisational analysis is done by determining potentiality or
capability of resources to attain results within set time.
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In short, resources have huge relevance in organizational analysis as
they ensure that managers develop competitive advantages to sustain in
future.
VRIO Framework: It is defined to one of the strategic tool that is designed
for uncovering as well as protecting resources together with capabilities
which aids in long term advantages in competition. It includes value of
resources, rarity of resources, imitability of resources and organized. Using
such framework, effective business decisions are made by managers of
company. While internal analysis of organization, the framework is used so
that resources are identified and evaluated properly. The framework has
relevancy with organizational analysis as VRIO framework assists in
analyzing and evaluating resources and capabilities of company. For
example, managers of Intercontinental Bank Ghana while performing
organizational analysis practices they ascertain that they are able to exploit
rare opportunities as well as neutralize external threat with capabilities or
resources. Further they also analyses that activities are easy or difficult to
imitate or the control of resources is in relative few hands and determine
whether firm organizes capture value or not. In short, the framework has
huge relevance with Organizational Analysis as it helps in uncovering
competitive advantages by analyzing internal capabilities of organization for
achieving ultimate goals.
(ii). Activities along with purposes of
Organisational Analysis.
Organisational Analysis is termed to the ongoing process of assessment of
developments, personnels, business operations, work environment or other
associations. It focuses on design addition to structure of entity and the ways
the systems, capacities as well as functionalities of organisation influences
outputs (Cook, 2015). It is among the diagnostic business procedure which
helps firms to understand their performances, identify opportunities, looking
problem areas and devising action plans to improve performances.
Undertaking procedures of organisational analysis in effective ways helps
managers in assessing existing well being together with capacity, planning
Activities of Organisational Analysis are explained through Values Chain
Analysis as it comprises primary activities and supporting activities. In
context to primary activity, it represents internal activities that are engaged
by entities while transforming inputs towards final outputs and adds vales in
production processes. Activities like inbound logistics, operational activities,
outbound logistics, marketing & sales and service are part of primary
activities. In contrary, supporting activities are those activities that important
to run business but not related with products. Firm infrastructure activities,
human resource management activities,procurement activities, research and
development activities as well as technology are said to supporting activities.
The strategic factors that should be assessed within such analysis are
production or operational factors, marketing factors, human resource factors,
research and development factors, information system factors and finance
related factors. In context to production factors, it comprises labour, land as
well as capital. In context to finance related factors, it includes funds
sources, financial control and funds usage associated factors. Considering
marketing factors, these are related to integrated as well as control related
factors, price related factors, promotion related factors, production related
factors, promotion related factors and promotion related factors. Within
human resource management factors, it comprises employment related
factor, industrial relations and maintenance related factors. In context to
General management factor, it includes factors related to strategy, external
relationship, organisation change, organisational culture as well as climate
factors.
The purpose of organisational analysis are to identify
inefficiencies addition to problems which have arised but not addressed
properly and further developing strategies to deal or overcome from them. It
addition, the purpose of such concept are to enhance general understanding
about organisational functions, planning for growth as well as
diversification, to improve effectiveness of entity and to solve problems of
organisation.
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Q2.
Comparison and Contrast among SWOT Matrix
and Michael Porter's 5 Forces models assists
in generating competitive advantages.
Comparison among SWOT Matrix as well as Michael Porter's 5 forces
model
Basis of
Comparison
SWOT Matrix Michael Porter's 5 forces
model
Meaning SWOT Matrix is defined
to the framework that
looks deeply within
business entity for
analysing internal
potentials (Harding,
2017).
Porter's 5 forces model is
said to comparative
strategy which analyses
competitive environment
pertaining within industry.
Emphasis SWOT matrix is general
and involves overall
assessment. It paints
picture of existing
position of firm in market
and later emphasising on
future strategic options.
Michael's 5 Forces model
emphasis towards single
growth decision. It only
assesses viability of
particular commodity or
industry expansion.
Competition SWOT matrix is
related to business
along with its
position. It helps in
assessing current
position together
with future
endeavours.
Five forces analyses
competition level as well as
the ways firms inhibits
them. It helps in
understanding existing
competition and making
future decisions.
How they assists to
generate
competitive
advantages
SWOT Matrix assists
business managers
regarding what they
can as well as cannot
do externally along
with internally by
outlining the ways to
accomplish goals
along with aspects
that stands in the path
to achieve them and
generating
competitive
advantages.
Porter's 5 forces matrix
assists organisational
managers in determining
competition level within
industry addition to
weaknesses and strength of
industry that helps
managers to frame strategy
for generating competitive
advantages.
Similarities among SWOT Matrix as well as Porter's 5 Forces model
Both the framework emphasis on environmental factors that may impact on
organization. Both the analysis helps entities to identify key areas that
requires improvements so that firm can generate competitive advantages. In
addition, both analysis framework helps in devising effective strategies that
provide path towards generating advantages within huge competition.
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Q3.
Connection between strategies and structure of
organization
Organisational strategy is defined to action plan that helps in
reaching specific goals addition to staying in best stead with vendors along
with clients. Where as organisational structure is said to the way internal
resources gets connected with others within premises of entity (Johnson,
2016). For example, if an entity has functional structure then they will
operate via distinct functions including manufacturing, marketing as well as
finance. Structure of organisation is all about positions, culture, technology,
people and associated elements which comprises organisation. Structure is
closely aligned with organisational strategy for achieving its goals.
Organisational structure is connected with organisational strategy as
strategy assist business managers to define as well as build its structure. The
structure of firm is related to the results analysed through organisation
strategy. Without strategy, no structure can be formulated and vice versa.
Both are dependent on each another. If strategies are changed then structure
of organisation also changes for supporting new strategy (Schaltegger,
Burritt, and Petersen, 2017). When changes in strategy are not supported by
structure then structure acts as bungee cord as well as pulls firm back to old
strategies. Changes in strategies are said to changing all aspects in
organisation performances. Both affects each other in many ways such as if
strategies are not framed as per the existing structure then structure will
affect the implementation of strategies in proper format. In addition, if
structure is not devised as per the strategies then the working of hierarchical
positions will get affected resulting in huge impacts on organisational
structure. As organizational structure are derived from strategies, it
depends on the structures that may develop as changes in strategies. For
instance, if organization has strategy to improve growth rate then they should
change their structure to flexible or adaptable to environment. Furthermore,
organizational structure should be followed by strategy.
When managers makes changes in existing strategies then they are required
to modify structures for accommodating as well as supporting changes.
Q4.
Concepts addition to aims of MBO as well as
Activity Based Costing.
Management By Objective (MBO): The concept of MBO is
associated with personnel management technique in which superiors and
subordinates performs together for setting, recording as well as monitoring
objectives for particular time period. It is systematic organises approach
which enhances business performances by aligning subordinate goals with
organisational goals (Oriesek and Schwarz, 2016). MBO concept states
that all managers must take part in procedures of strategic thinking before
executing plans. It comprises procedure to determine organisational
objectives, translating objectives to staff members, stimulating employee
participation in determining objectives, monitoring progress and evaluation
of reward achievements.

Aims of MBO is to encourage managers participation on objective setting
procedures as well as implementation of systems. It also aims to emphasis on
achieving results within set time scale, identifying performance gaps,
clarifying employees duties, improving competitiveness, securing
commitment and devising benchmarks for the performances. Other then
these, other aims are to set preliminary objectives, reviewing performances
periodically, match goals with resources as well as appraising workings as
per objectives established beforehand.
Activity Based Costing: The concept of activity based costing states
that it is one of accounting method which is used for ascertaining total cost
associated with activities for making final product. It assigns costs to
activities which undergoes into production cycle. It traces overhead costs for
activities and further assigns them to commodities. Aims of activity Based
Costing are to allocate overheads as per basis of activities, rectifying
inaccurate cost information and helping management to frame quality
together with timely decisions. In other words, activity based costing is
characterised to collection of operation addition to financial performance
information tracing important activities of business to product costs (Quirke,
2017). It is considered as new term developed in order to ascertain relevant
cost. With this costing, managers are provided with detailed information
which is useful for the purpose of costing. In addition, it provides exact cost
related data that improves quality of decision making by management
authorities of organisation. Activity based costing is also said to an approach
related to costing together with monitoring activities that includes
discovering resource consumption along with costing final outputs.
CONCLUSION
The mentioned booklet concludes that corporate strategy provides
guidelines as well as outlines measurable goals. It determines scope of
various activities along with ways organisational procedures supports long
term goals and objectives. At same time, planning enables administrators to
look ahead as well as anticipate changes.
Resources along with VRIO Framework have huge relevancy with organisational
analysis as both assesses capabilities of available resources for business performance.
Primary activities together with support activities are part of organisational analysis
activities. SWOT Matrix as well as Porter's 5 Forces model are different from each
other as they both posses distinct aspects that benefits entities in generating
competitive advantages. Without organisational structure, no strategy can be
implemented properly and without strategy, organisational structure lacks working in
effective manner.
REFERENCES
Books and Journals:
Arasti, M., Khaleghi, M. and Noori, J., 2017. Corporate-level technology strategy and
its linkage with corporate strategy in multi-business companies: IKCO case
study. Technological Forecasting and Social Change. 122. pp.243-252.
Argenti, J., 2018. Corporate planning: a practical guide. Routledge.
Cook, N. D., 2015. Crisis management strategy: Competition and change in modern
enterprises. Routledge.
Harding, S., 2017. MBA management models. Routledge.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Oriesek, D. F. and Schwarz, J. O., 2016. Business wargaming: securing corporate
value. Routledge.
Quirke, B., 2017. Making the connections: using internal communication to turn
strategy into action. Routledge.
Rugman, A. M. and Verbeke, A., 2017. Global corporate strategy and trade policy.
Routledge.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate
environmental management: Striving for sustainability. Routledge.
Online:
MBO Concept. 2019. [Online]. Available through:
https://www.toolshero.com/management/management-by-objectives-drucker/