Strategy and Innovation Report: Silver Birch Florist Analysis

This report provides a strategic analysis of Silver Birch Florist, a flower shop located in the UK, examining its operating environment using PESTLE analysis and exploring strategic options through the Ansoff Matrix. The report evaluates the company's objectives and capabilities using Porter's generic strategies and VRIO analysis. It identifies valuable, rare, inimitable, and organizable resources to determine competitive advantages. The analysis culminates in a recommendation for the most viable strategic direction for Silver Birch Florist, considering market penetration and other growth strategies to enhance profitability and market share.

Strategy and innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critically examine operating environment of Silver Birch Florist and analyse future strategic
options which can take. ..............................................................................................................1
Critically evaluate company's objectives and capabilities:.........................................................3
key challenges and make decisions relating to strategy is one of the key skills of strategic
thinking. .....................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy is defined as general plan which is made to attain one or more long terms goals
under situation of uncertainty. It is important because it describe the pattern in which it helps in
decision making with a view to provide overall benefits to organisation. It is a blueprint which
defines decisions of company that highlights goals and objectives, reduction in key policies and
plans which helps in attainment of goals.
Innovation is defined as develop of new idea which is made for either by strategy and
means which helps in shape of future. The main objective of innovation is to contribute new
ideas so that tendency to made fast decisions rather than failure of plans. It plays an important
role in business operation as innovation of new technology leads to encouraging employees in
terms to achieve goals. In this report it covers Silver Birch Florist, as a shop of flower which is
situated in Lutan, United Kingdom. In addition this reports considers analyse of operating
environment and examine future strategic operations. Furthermore, it covers evaluation of
relevance and usefulness of organisation strategic capabilities and objectives of industry
development and also challenges and decisions which are related to strategy for strategic
thinking.
MAIN BODY
Critically examine operating environment of Silver Birch Florist and analyse future strategic
options which can take.
Operating environment is also called task environment which refers as specific
stakeholder of outside business having interaction with them and leads to direct impact on
business operations. For this manager of respective company use Pestle analyse which is
describe below:
Pestle analysis
It is framework which analyse factors such as political, economic, sociological,
technological, legal and environmental factors which influence company externally. Below is
discussion of all factors in terms of Silver Birch Florist: Political Factor: This factor deals with current political direction of parties and how
much is intervention of government. It mainly includes level of bureaucracy, tax policy
and so on. In context of respective shop, UK is considered as constitutional monarchy
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that runs in political system. In this firm can enjoy fair, stable and various opportunities
for influencing inner workings. Economic Factor: Mainly this factor is related to performance of economy and have
impact on operations of small business and decision making process. In mainly includes
business cycle, economic growth, consumer confidence and so on. In terms of UK, as it
has strong economic position in relation to other countries. As it has high GDP, distinct
economy. This leads to increasing FDI and diversification of economy in both private
and public sectors. Social Factor: This factor examines cultural, ethical and demographic aspects that have
impact on demand of products of small business. It includes factors such as immigration,
age distribution, lifestyles and so on. In terms of florist shop, this factor is important as
due to standard living is high and also many free public services. It mainly includes
family, friends, neighbours and media. Technological Factor: This factor affects how small operations brings their products
and services to market segment. By innovation in technology is helpful in increase
current status of business. As in terms of Florist shop, they should be consider online
shopping of their shops for bring productivity and profitability of firm. Legal Factor: This factor mainly considers laws and regulations that can be affect small
business operations in both negative and positive manner on profitability of it. In terms
of respective firm, as many regulations are made in UK for decide marketing in country.
As various disease which may effect the health of people.
 Environmental Factor: This factor includes environmental and ecological aspects that
effect small business profitability and operations. It mainly include weather, climate,
pollution and so on.
Ansoff Matrix Analysis:
This matrix is also called market/ product expansion grid, is a method which is used by
firm to examine strategies for growth of company. There are four strategies which is involved in
matrix in terms of Silver Birch Florist are discussed below: Market Penetration: This matrix is refers to increase in sales volume in existing market.
By this strategy business have to promote their current products or services in existing
market segment. This strategy have lowest risk of all four strategies of matrix which
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helps in increase in number of conversion and transaction & enquiries. This can be done
by decrease in price for attract new customers or increase in distribution and promotion
effort. Product Development: This matrix considered as when business develops new products
in existing market. So for this there must be extensive involvement of research and
development & expansion in product of company. For implement this stage business
have to involve investment in R&D for develop new products in existing market segment
and also by forming strategic partnership with other firms for increase overall
productivity and profitability of business. Market Development: This point of matrix mainly considers as when firm enters in new
market with their existing products. It may includes expanding business in new customer
segments, geographic regions and so on. The business can use approaches like
engagement of different segments of customers and also entering into new foreign or
domestic products.
 Diversification: This segment mainly considered as firm enters new market segment by
new products. This strategy is considered as most difficult task because it may lead to
risk for new products. This also includes opportunities for business that vary revenue for
business.
From above analysis, Silver Birch Florist may consider Market Penetration Strategy as by using
variety of flowers in existing market. As customers are attract by varieties of flowers. This may
increase profitability and productivity of shop. So this strategy increases overall sales volume of
shop by satisfying needs and wants of customers.
Critically evaluate company's objectives and capabilities:
The main objective of respective company Silver Birch Florist is to stay profitable and
productive in the market. They are making marketing plan to increase their market share and
customer base. Company is focused on maintaining their production position in the market so
that they can gain competitive advantages in the market. Thus to achieve goals and objective of
the company they can use porter's generic strategies. It could help the organisation to achieve its
goals and targets. Below is the use of porter's generic strategies to achieve the objectives of the
organisation(Li and et. al. , 2019).
Porter's generic strategies:
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This strategies helps an organisation to understand and determined whether a firms
profitability is above or below the industry averages. It help to understand that which strategies
company can use achieve its goals and objectives. These strategies are important for Silver Birch
Florist so that they can achieve their objectives effectively and efficiently.
 Cost leadership: In this strategies company aims to become lowest cost producer in the
industry so that they can gain competitive advantages. Cost leadership is techniques is
used by the many organisation so that they could stay profitable in the market. Silver
Birch Florist can use this strategy to achieve their objectives by charging minimum
charges for delivery services(Schilling and Shankar, 2019)
 They can also reduce the cost of product so that they can gain more profit in the market.
Thus this strategy is useful for Silver Birch Florist, they could achieve their objectives by
being an lowest cost producer of online delivery services.
 Differentiation strategies: This strategy involve making different product and services
in the market for achieving the competitive advantages. Silver Birch Florist could use this
strategy by introducing innovative online services so that customer could attract towards
the brand. Company should use good research for making innovative development in
their online services. Customers are more attracted towards innovation and development
in their daily services. Thus company can use these strategies so that they can achieve
competitive advantages for better customer experience.
 Focus strategies: In focus strategy company is more focused on particular group of
market, they divide market into small segment and stay focus on their needs and wants
from the particular industry. Respective company Silver Birch Florist can use this
strategy for target market of customer using online delivery for long time these customers
could be more beneficial for the organisation.
Thus, respective company Silver Birch Florist can use differentiation strategies for achieving
organisational objectives. This strategy can help their organisation to attract more customers in
by using innovative development in their current services. By using highly creative approach
they could gain more profitability and stay more competitive in the market(Dodgson, 2018).
Silver Birch Florist is established many plan to build its organisational capabilities , the
collective skills and ability of their firm represent the way that people and resources are brought
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together to achieve goals and targets of the organization. To understand the capabilities of
respective company Silver Birch Florist below is the study of VIRO analysis.
VIRO analysis:
This analysis helps in understand the framework and tools that is designed to protects
resources and capabilities of organization that help company to gain long term advantages.
Respective company Silver Birch Florist can use VRIO model to analyse their capabilities and
strategies that provide an growth to the organization. VRIO analysis help an organization to gain
competitive advantages and profitable potential of an organization. Below is the detail
examination of VRIO analysis to understand the capabilities of Silver Birch Florist(Bichurova
and Yordanova-Dinova, 2018).
RESOURCES VALUABLE RARE INIMITABLE ORGANISABL
E
COMPETITIV
E
ADVANTAGE
S
Brand
attractiveness
Market shares - - - Temporary
competitive
advantage
Global
presence
Services Services - - Equality
competitive
advantage
Product
innovation
Advancement Advancement Advancement - Sustainable
competitive
advantage
Supply chain
management
Resources Resources Resources Resources Sustainable
competitive
advantage
Valuable resources:
These resources define that company is providing valuable resources to their customers
or not. These resources are seen valuable when the company are enable to implement strategy
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that are useful for the growth, efficiency and effectiveness. In the terms of respective company
brand attractiveness is most valuable resources that company used to achieve their market shares
in the industry. Company also has global presence and provide their services to the customers
they targets it is also valuable resources for the organization. Furthermore, product innovation
and supply chain is also valuable resource for the Silver Birch Florist. These resources are most
useful and important for the organisation. Thus, the valuable resources are the capabilities of
Silver Birch Florist that help company to achieve its objective effectively and
efficiently(Cusumano, Gawer and Yoffie, 2019).
Rare Resources:
It involve the resources that can be acquire by one company. These resources can not be
acquire by the other competitive brands because of rareness of product and services and they are
processed by the large amount of competitors in the industry. In the context of Silver Birch
Florist, company has global presence of its online services which is rare resource for the firm and
it include globalization of online delivery services. Company has innovative products in the
market that helps them to achieve competitive advantages in the industry. Innovativeness and
creativity is rare resource for the organization. Furthermore, supply chain management of
company is also an rare resources, their supply chain has unique strategies that help in attracting
the customers. Thus company is focused on making their resources rare(Peñalver and et. al.,
2018)..
Inimitable Resources:
These resources are unique and innovative and can not be copy by the other competitive
industries. Inimitable resources are designed by the company in most unique way so that other
can not copy them. In the terms of respective company Silver Birch Florist, company is well
known and well established already and has most unique services that includes product
innovation. It is an most useful advantage for the organization that could use in customer
attraction strategies. Furthermore, company has innovative supply chain management that can
not be copy by other and other brands who wants to copy requires larger amount of investment to
match the level of Silver Birch Florist(Gao, Hsu and Li, 2018).
Organisable Resources:
The can not gain advantages if they are not able to organize their resources in effective
way. These resources includes strategic planing, reporting structure and budgeting system. Silver
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Birch Florist is focused of organisable supply chain function so that they can gain competitive
advantages. Thus, company is focused on the effective way to achieve its goal and targets.
key challenges and make decisions relating to strategy is one of the key skills of strategic
thinking.
 Lack of time: This is most common challenge faced by the mangers in an organization.
Manger are often not enable to complete their decision making process due to busy
working environment. Businesses are effected by this challenge and not able to complete
given task on time(Varadarajan, 2018). Thus mangers should focus on the strategies that
make their decision making process faster and easy for them.
 Lack of reliable data: in many organizations mangers did not get reliable data according
to the work they are doing. It often make difficult for them to understand the problems
they are facing in their organization. Thus, manger should get proper information about
the problems organization is facing so that manger can take right decision on right time.
Manger can also take help of pre existing data it could help them to analyse the decision
making process of the organization(Briones Peñalver, Bernal Conesa and de Nieves
Nieto, 2018).
 Risk taking ability: Many mangers dose not have ability to take risk on the time of
decision making. It can make difficult for the organization to take right decision on right
time. Mangers of Silver Birch Florist should be ready to take risk for better growth and
gain more competitive advantages. Risk taking ability is must for every organization that
can improve decision making process of the company. Thus mangers should focus on the
process of their decision making for the profitability of the organization(Lysek, 2019)
(Chen and Liu, 2019).
 Lack of resources: Mangers usually face this challenge in the organization. Lack of
proper resource management could effect the decision making process of their firm.
Silver Birch Florist should train their employees and managers so that they can arrange
their resources in proper way. Thus, respective company Silver Birch Florist should
arrange their resources in proper manner so it could not effect the decision making
process of mangers(Ge and et. al., 2018).
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CONCLUSION
From the above information it can be conclude that the market essentials are important in
the growth of the organization in effective way. Silver Birch Florist company can use various
models to understand and analyse the external factors of the organization. PESTEL analysis help
the organization to analyse the external environment of the company. Strategic decision making
help the company to improve their effectiveness and efficiencies of the organization.
Furthermore, to understand the capabilities and objectives of organization can use porter's
generic strategies and VRIO model help the company to analyse external environment and
competitive advantages(Guo, Pérez-Castrillo and Toldrà-Simats, 2019).
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REFERENCES
Books and Journals
Bichurova, I. and Yordanova-Dinova, P., 2018. Company innovation policy and
strategy. Knowledge International Journal. 28(5). pp.1517-1520.
Briones Peñalver, A.J., Bernal Conesa, J.A. and de Nieves Nieto, C., 2018. Analysis of corporate
social responsibility in Spanish agribusiness and its influence on innovation and
performance. Corporate Social Responsibility and Environmental Management. 25(2).
pp.182-193.
Chen, J. and Liu, L., 2019. Profiting from green innovation: The moderating effect of
competitive strategy. Sustainability. 11(1). p.15.
Cusumano, M.A., Gawer, A. and Yoffie, D.B., 2019. The business of platforms: Strategy in the
age of digital competition, innovation, and power. New York: Harper Business.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation (Vol. 11). Routledge.
Gao, H., Hsu, P.H. and Li, K., 2018. Innovation strategy of private firms. Journal of Financial
and Quantitative Analysis. 53(1). pp.1-32.
Ge, B. and et. al., 2018. An empirical study on green innovation stra(Li and et. al. , 2019)
(Schilling and Shankar, 2019)(Dodgson, 2018)(Bichurova and Yordanova-Dinova,
2018)(Cusumano, Gawer and Yoffie, 2019)(Gao, Hsu and Li, 2018)(Varadarajan,
2018)(Lysek, 2019)(Chen and Liu, 2019)(Ge and et. al., 2018)(Guo, Pérez-Castrillo
and Toldrà-Simats, 2019)(Briones Peñalver, Bernal Conesa and de Nieves Nieto,
2018)(Peñalver and et. al., 2018)
tegy and sustainable competitive advantages: Path and boundary. Sustainability. 10(10). p.3631.
Guo, B., Pérez-Castrillo, D. and Toldrà-Simats, A., 2019. Firms’ innovation strategy under the
shadow of analyst coverage. Journal of Financial Economics. 131(2). pp.456-483.
Li, J. and et. al. , 2019. Search broadly or search narrowly? Role of knowledge search strategy in
innovation performance. Journal of Knowledge Management.
Lysek, M., 2019. Disguising diversification for innovation. International Journal of Innovation
Science.
Peñalver, A.J. and et. al., 2018. Innovation management and strategy.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Varadarajan, R., 2018. Innovation, innovation strategy, and strategic innovation. In Innovation
and Strategy. Emerald Publishing Limited.
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