Business Strategy Report: Challenges and Implementation

This report provides a comprehensive analysis of business strategy, particularly within the context of the UK financial industry and using Standard Life Aberdeen as a case study. It begins by defining business strategy and strategic planning, emphasizing their importance for organizational success. The report then explores the strategic planning process, including environmental analysis and resource allocation, and examines the challenges faced by financial institutions, such as technological changes, regulatory pressures, and increasing competition. It delves into the strategic implementation process, outlining key stages and activities. The report also contrasts retail and wholesale banking models, highlighting their differences in target customers, loan types, and operational structures. Finally, it evaluates the effectiveness and application of strategic options models, such as the Ansoff matrix, in fostering business growth. The report offers valuable insights into the complexities of strategic management in the financial sector.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
1. Strategic planning....................................................................................................................2
TASK 2............................................................................................................................................4
2. Challenges to the UK financial industry ................................................................................4
TASK 3............................................................................................................................................7
3. Describing the strategic implementation.................................................................................7
TASK 4 ...........................................................................................................................................8
4. Evaluating the effectiveness as well as application of strategic options model .....................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business strategy is considered as the important part of management activities. Strategy
is effective tool that drives organisation towards achievement of business goals and objectives.
Business strategy is also recognised as the high level of plan that is made to achieve various
targets. The manager in business entity required to develop plan, policies, strategies considering
the need of business and situation. The effective strategy help enterprise in achieving long or
short term objectives. It also enables firm to ensure effective as well as efficient utilisation of
resources.
The purpose of the report is to develop depth knowledge about strategic planning process
in context of Standard Life Aberdeen company which in dealing in finacial sector.The project
have focus on identifying the challenges faced by cited business entity in implementing
strategy.It will also include the evaluation process in order to analayse the effectiveness of
stratergy.
TASK 1
1. Strategic planning
Changes in Exteranl business enviromenty have major effect on organisation dealing in
financial sector.It is very essential for manager in business enrtity to develop effective as well as
appropriate strategy for firm as this may have great impact on the growth and suistainability of
organisation.Strategic management establishes a set of ongoing practices to ensure that the
organization's processes and allotment of resources support the vision established in the strategic
plan. Strategic planning is defined as procedure in which the company is required to describies
oits plans, establish its objectives.It aslo includes various activities such as providing direction to
employees and making decisions on allocating its resources to pursue this strategy.This
procedure may also considered as controlling method or technique thta is required to manage
various activities dfuring strategy implementaion.Strategic planning emphasizes on energy as
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well as resources, making improvement in opeeration etc.This method or procedure assist
organisation in ensuring that workers nd other important stakeholders are working towards
achievement of business mision nad vision (Granados and Gupta,2013)
Strategic planning in context of financial industry include the activity of determining the
way organisation will afford to accomplish is strategic objectives and goals. Strategic financial
management planning is defined as specific preparation related to the utilisation and
management of various resources for achieving business targets. Strategic planning procedure
involves defining the firm objective, recognising the resources, designing or preparing a plan for
making investment in order to achieve desired outcome or for gaining high return on investment.
It also includes process of collecting as well as analysing data, making financial decisions,
identifying the variance between standard and actual output. The strategic planning of Standard
Life Aberdeen company emhasizes on recognising the consequences of criscis and analysing the
ways to renewing economic growth.The various tactics are designed by goverment in order to
contribute towards stabilisation of finacial industries in UK.The present stratergy of cited
organisation have focus on supporting the recovery of financial sysytem and strengthening its
resilience against the economic downturmn thta may occur in the future.Stratergy ios designed
by manager in Standard Life Aberdeen company for improving the effectiveness of organisation
and for achieving business goals as well as objectives (Hall and Wagner, 2012)
Standard Life Aberdeen company operates its business opreartion worldwide.The
business entity has approx. 669 billion management.The company has been ranked as second
largest fund manager.The cited venture has offices in appromately 49 cities which provides
sdervices to customers in approximately more than 79 countries.IOt has more than 999
professionla investors. Standard Life Aberdeen company also recognise as world's leading
sustainability-driven publicly listed companies.The objective of cited enterprise is to become
expertt in particular field.The other purpose of organisation is to look after their client
investment, offer their staff members a career path.The effective stratergic planning donmer by
the manager has supported firm in achieving such targerts.It has also supported business entity in
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ensuring that the business operation arte suistainable and will able to provide enterprise loing
term benefit.The stratergic planning of Standard Life Aberdeen company isa to assist their
customer in making effective investment decisions, so thta they can get benefit in the future.The
cited venture offer propositions and active asset management services designed to meet their
needs today, tomorrow, and for the long term.Due to the effective stratergic planmning the
business entity is able to develop the high standards of corporate governanace.The various
Stratergies has assisted the firm in managibng various peeople and activities in effective as well
as systematic manner.Effective stratergic planning has supported organisation in ensuring the
effective as well as effecient utilisation of business resources.The stratergic planning proicedure
has been executed by manager considering the business Structure.This activity has enabled
employees to align their goals with business objectives (Helms and Whitesell, 2013)
TASK 2
2. Challenges to the UK financial industry
The major issues faced by organisation dealing in financial sector are changes in
technology, amendment in government regulation as well as policies, economic situations etc.
The changes in economic condition has great effect on the profitability and growth of financial
organisations. These environmental variables have great effect on investment policies, strategies
and decision of firm. The other issues faced by organisation are increasing consumer
expectation, increasing level of competition from financial technologies' organisation, regulatory
pressure etc. (Kalyani and Sahoo, 2011)
Profitability- Due to increase in competition level and changes in business environment many
financial institution are facing difficulty in increasing their profits. The business entity are not
able to get enough amount of return on their investment.
Client Expectation- In present scenario the major challenges that is faced by financial institution
is to meet or fulfil the expectation of client and provide them satisfaction. Due to change in
demands of service user has made difficult for firm to deliver effective and suitable service to
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their clients. This factors have lead to increase in pressure because the organisation are not able
to deliver the standard or level of services to consumers particularly in context of technology.
Increase in intensity and level of competition- Financial technology organisations are considered
or recognised the start ups enterprise. Such business units are adopting or utilising technology for
providing financial services to people. This factors have helped such firm in gaining popularity
and establishing good position in the market. The increase in popularity and demand of such firm
by consumer has created issues for financial institution those who are using traditional methods
for delivering financial services to customers. This factors have major impact on the success and
growth of organisation. It also has great impact on the business operation of other financial
institutions (Goll and Rasheed,2011)
Regulatory pressure-It has become essential for financial institution to fulfil the regulatory
requirement. This factor has lead to increase in cost of organisation. The financial institution like
need to spend a large part of their discretionary budget on being compliant, and on building
systems and processes to keep up with the escalating requirements (Moseley III,2017)
Strategic implementation process
Strategic implementation is a procedure through which selected strategy in put into
action. This procedure includes various activities such as designing and management of system.
It also involves integration of people, procedure, structure and resources that assist enterprise in
achieving its business goals and objectives. Strategic implementation can also be defined as
term that can be utilise to define the business activities. This procedure helps enterprise in
managing various operation, procedure that are associated with the delivery of strategic plan.
Strategic implementation is considered as very complex as well as critical process which have
great effect on the organisation success and growth (García‐Rodríguez and et. al., 2013) Before
the implementation of the strategy manager in Standard Life Aberdeen company require to
conduction various activities such as enviromenta analysis, internal as well as external audit, etc.
(Murano and et. al., 2011. ) As this activity will asist manager in recognising the various barriers
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thta can occuer in sucessful implementation of strategy.It will also supporet managerr in making
plan in order to minimise the influence or impact of internal as well as external variables on
stratergic implementation of process. The manager in Standard Life Aberdeen companyrequired
to use shareholder matrix as this will aid organisation in recognisimng the share holder those
who have power nad influence on the stratergic managament planning procedure.All the
activities will help firm in ensuring the desired outcome in context of implementaion of
strategy.Stratergic implementation procedure include various stages (Murano and et. al.,
2011)These are:
Evaluating the stratergic plan-It is very esential step to be performed by the manager.As this
stage will support manager in recognising or measuring the efgfectiveness of plan.It will also
allow manager to ensure that the stratergic plan will help organisation in achieving its mission
and vision.
Estavblishing objective-The Smart goasls or target are to be established.As this will help firm in
measuring actual performace with standard.It will aid business entity in identifying the
performance gap and analysing the suitable ways for making improvement in various field.
Formulation of policies and planning tactics or execution of strategies
Allocation of resources-It is very important stage in which the employees and other stakeholders
have important role to play.Thye function of workers and other stakeholders to arrange various
resources that are required for sucessful implementation of strategy.
Recogning the stakeholders or employees those who will perform the task.
Facilitaing meeting in order to make discussion -This meeting is faciliated for evaluating the
performance nad nalysing the outcome propduced by implementation of strategy.
Leading and controlling the performance (Rahbar and Abdul Wahid, 2011)
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TASK 3
3. Describing the strategic implementation.
Stratergic implementation includes business resources and motivation of employees to
accomplish orgnaisational goals and objectives.Strategy implementation refers to a stage in
which procedures as well as system are positioned in order to gather data or ionformation thta
allows the evaluation of stratergic plan.This procedure involves several management activities
thta are essential to put strategy into action.it also facilitates stratergic contreol, aids manager in
monitoring progress.Stratergic implementaion helps Cited venture in achievement of business
goals and objectives (Dandira,2011)This procedure covers all the aspects of mangerial
activities.It involves various subject maters like compensation, motivartion, control procedure
and compensation.
The diffrence between reatil and wholesale banking
Standard Life Aberdeen company which is reatil organuisation Verses BNP which is
wholse baking institution.
Retail banking is banking organisation or finacial institution who targers people.Such
business unit emhasizes on reatail customers.On the other hand BNP which is dealing in
Wholesale banking targets high income consumer group.such enterprise objective is to provide
services to business person.
Small size of loans are provided by retail banks whereas big loans are granted by the
wholesale organisation (Galpinand Lee and Whittington, 2012)
The various types of loans thta re provided by retail banking institution are house, car,
educational, personla loan etc.On the other hand the sevreal types of loans such as machinery
advances, export credit, industrial loans are provided by enterprise dealing in whole sale banking
sector.
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In retail banking cost of deposit is low.In such industry the barganing power of buyer is
lows bbeaciuase of low cost on the other hand the wehjolesale baking institution have to offer
high interest rate in order to encourage client to make investment.
Retail banking institutions required to develop wide networks of branches for reaching to
the wide rrange of consumers.Due to this factor firm has to bear high operational cost.Whereas
The wholesale banking enterprise has very few brances and sop the venture has to bear less
operational cost (Schaltegger and Wagner,2011)
TASK 4
4. Evaluating the effectiveness as well as application of strategic options model
The objective of Anshoff matrix is to assit management team in developing their focus on
the various methods or techniques for fosteerting business growth.It is considered as effective
and popular model.This matrix emphasizes on development of extisting item and manaufacturing
of new product.It encourages business entity to gain various benefits fronm present market.This
matrix enable firm to enter into new market nad explore as well as capture several business
opportunities (Ferreira and et. al., 2011)
The important four growth option provide by Ansoff matrix are marketing penetration
strategy, Product as well as market development, and diversification Stratergy.
Markert penetration strategy- It is effective as it allows fiorm tio grow and it is the safet
option.This strategy emphasizes on selling more of the exiting goods to existing clients,
completitiotors customers etc.This is the effective strategic optioon as it allows business unit to
increase their market share through utilising the effective market promotion techniques.The
various marketing or promotional techniques are offering dicounts, providing cash back schemes
etc will help cited venture in attracting more number of customers (Schaltegger and Wagner,
2011)
Marketing penetration strategy- This straterguy is efective as it will assist cited venture in
increasind its market share.It will also provide firm an opportunity to ifoster market growth nad
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explaore various business opportunities by entering into new market.If in case the business entity
already have high market share than in such case the growth opportunities will be limited.The
market penetration stratergies encourages enterprise to increase its competitive strength and
uniqueness in order toi gain competitive advantage.It will also provide firm an opportunity to
increase its sales and profitability.According to the Anshoff matrix the Cited venture is required
to increase its market share, if the organisation has wilingness to drive its competitors out of the
market.raising exposure to the sigle product market segment will make the enterprise more
vurnurable tomajor changes in the future.
Product development strategy-as per this strategic option the Cited organisation needs t6o
emhasize on identifying the demand of customer.As this activity will help business entity in
identifying the opportunities for product development.as per this strategy the firm is required to
replace its existing product with new or innovative item.The cited business entity need to have
focus on providing complementary product to its customer.This action will help organisation in
developing and maintaining healrthy relationship with clients.It also will provide firm a chance
to gain customer loyalty (Elhamma and Zhang,2013)
This option in the Ansoff Growth matrix suits businesses following a customer intimacy
strategy in the three value disciplines.
Market development strategy- This plan will assist cited venture in expanding its core business
activities.It will support enterpriise in developing or identifying effective distribution and
marketuing channel.Entering new markets by moving from local to regional to national and
finally international. This may require the orgation to gain new capabilities including exporting,
understanding different cultures and language skills.
Diversification strategy- This strategy helps organisation in minnimising the vraious risk and
reducing the negative effect of enviromental factors oin business operations (Sprengel and
Busch,2011)
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CONCLUSION
This has been concluded from the study that strategic plkanning is very essential
activity.As it assist organisation in achiving sucess and fostering growth.Strategic planning
drives enterprise towards achievement of business goals and objectives.It has been concluded
from the report that stratergic implementation is very complex andd critical process.The internal
as well as external enviromental factors have great influence on stratergic implementation
process.
It has been suggested to managher in cited venture thta it should conduct internal as well
as external audit.As This activity will help organisation in recognising various barries thta may
occur in stratergy implementation procedure.The various stratergy has been suggested by report
which will assit company in fostering grroeth and achieving sucess.
ny the delivery of customer service
and make recommendations
for improvement
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REFERENCES
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