Strategic Management: A2B Coach Hire Company Report Analysis

This report provides a strategic management analysis of A2B Coach Hire, a small family business. It explores the core concepts of strategic management, including the strategic management process, and the roles of values, vision, and mission statements. The report identifies and evaluates different approaches to formulating strategy, emphasizing the influence of the external environment on strategy development. It differentiates between the organization's general, competitive, and internal environments, and discusses tools for analyzing these factors. Furthermore, the report compares and contrasts various approaches to organizational strategy formulation, assessing the role of organizational strategy in achieving a competitive advantage. It analyzes the role of organizational processes in supporting strategy implementation, evaluating different approaches to strategic change, and the role of administrative managers in designing and implementing organizational strategy. The report provides a comprehensive overview of strategic management principles applied to a real-world business context.

STRATEGIC MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
SECTION 1......................................................................................................................................4
1.1 Concept of Strategy..........................................................................................................4
1.2 Elements of Strategic management Process.....................................................................5
1.3 Analyzing the role of values, vision and mission statements in the Strategic Management.7
1.4 Identifying and evaluating different approaches to formulating strategy........................8
1.5 Influence of External Environment on Strategy Formulation..........................................9
SECTION 2....................................................................................................................................11
2.1 Differentiate between Organizations’ general Competitive and Internal Environments11
2.2 Tools for the analysis of the General, Competitive and Internal Environment Factors. 12
3.1 Compare and contrast different approaches to the formulation of Organizational Strategy
..............................................................................................................................................13
3.2 Assessing the role of organizational strategy in achieving competitive advantage.......15
3.3 Applying appropriate tools to analyze actual organizational environments..................16
SECTION 3....................................................................................................................................17
4.1 Critical analysis of how Organizational processes supports in implementation of
Organizational Strategy........................................................................................................17
4.2 Evaluation of different approaches to Strategic Change................................................18
4.3 Evaluation of Strategic control and Reward system in implementation of Organizational
Strategy.................................................................................................................................19
4.4 Critical analysis of role of Administrative managers in Designing and implementing
Organizational Strategy........................................................................................................19
4.5 Administrative management used in facilitating Organizational Strategy.....................20
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

Illustration Index
Illustration 1: Elements of Strategic Management Process.............................................................6
Illustration 2: Strategic Management...............................................................................................7
Illustration 3: External Environmental Factors..............................................................................10

INTRODUCTION
Strategic management plays an important role for any organization to run their business
smoothly in the target industry. It is a method which is used by company for identification and
description of strategies which are being carried out in the firm. An organization is said to have
an effective competitive advantage if its profitability is higher than the average profitability for
all companies in its industry. It can also include decision making process. This process helps
them to evaluate the business and set their objectives and goals. Major importance of this method
is to adapt various functional areas of the organization completely as well as to ensure that
whether these functional areas matches with each other well. Another role of strategic
management is to keep a continuous look on the goals and objectives of organization. This report
will talk about Coach Hire Company named as A2B which is a small family business. It will
focus on the concepts like strategic management process and its role of values as well as vision
and mission statements. It will identify and evaluating different approaches to formulate strategy
in the organization. It will also explain the external factors which have a great impact on
company. This report will also discuss about different approaches to strategic change and the
role of administrative manager in designing and implementing organizational strategy.
SECTION 1
1.1 Concept of Strategy
For any organization, strategy is a long term future planning to accomplish company's
objectives and goals. An effective strategic planning requires imagination, smart thinking and
capability to visualize the future for firm and its employees. It is a process which is used by
organization to achieve their targets in the future. It is a comprehensive and an integrated plan
whose main objective is to accomplish their mission (Strategic Management - Meaning and
Important Concepts, 2018). Some key features of strategy are as follows,
 It is a mixture of internal and external factors which exist in environment. It is very
important because this gives them information related to opportunities and threats.
 It is always future oriented and gives company the direction to work effectively.
 Strategy provides overall framework for guiding the organization’s thinking and action.
 The main purpose of this method is to identify and help the organization to work
effectively and earn a good amount of revenue (Robson, 2015).

 Strategy is composed of several key factors in it. For example: long term objectives of the
firm, its competitive advantages, opportunities, etc.
Strategic planning is important for an organization as it provides them direction and helps
to identify the measurable goals. It is a type of tool which is very useful for them to guide day-to-
day decisions and it also helps to evaluate the whole process and changing approaches when
implementing any planning in the system. It is very crucial to have a focused strategy as it is
important for success of their business in industry. It also ensures to set mission and goals for the
organization (Robson, 2015).
1.2 Elements of Strategic management Process
It is a type of process which helps the organization to plan their strategies for future
which enables them to achieve their goals and work in a better and effective manner. This
process is very useful for company to run their business smoothly and it helps to compete with
their competitors in industry. There are basically four steps in strategic management process
which are explained as below:
1. Environmental Scanning: This is the initial step of the process and most important
factors as it helps to identify internal and external factors which can affect the functioning
of organization. Internal factors can include organizational structure and its environment,
operational potential of the firm, etc. External factors consist of competitors in the
industry, customers, etc. Environmental scanning helps A2B to identify their strengths
and weaknesses (Strategic Management Process - Meaning, Steps and Components,
2018).
2. Strategy Formulation: This method helps A2B to decide the best strategy for them
which can help them to accomplish their objectives and fulfill organizational purpose to
run business. Strategy formulation has several steps which have to be followed by
company to plan an effective strategy. These steps are as follows:
 It helps to set organization's goals and objectives,
 It evaluates organizational environment of company,
 Also, this method helps in setting quantitative targets.
 It evaluates the performance analysis of firm, etc.
3. Strategy Implementation: This process helps organization to implement chosen strategy
into action. Strategy implementation method includes designing organization’s structure,

distributing resources, developing decision making process and managing human
resources in firm to make it effective (Hill, 2017). There are several steps while
implementing any strategy like:
 This method helps to develop the organization to carry out the strategy successfully in the
market.
 It manages the availability of sufficient resources to perform strategy-essential activities
in the organization.
 Helps to create strategy-encouraging policies for their employees.
 It provides the best policies and programs for their employees for constant improvement
in the organization.
 Linking reward structure to accomplishment of results.
 Making use of strategic leadership in the organization to achieve their targets and goals in
time.
4. Strategy Evaluation: This is last step in the strategic management process. This method
helps to identify efficiency and effectiveness of planning which is implemented into
system (Hill, 2017). It evaluates overall performance of the organization and helps to take
correct actions which are beneficial for A2B.
1.3 Analyzing the role of values, vision and mission statements in the Strategic Management
In strategic management, it is very important to have a clear vision and mission to
accomplish in the future. It can help them to analyze the internal and external factors influencing
Illustration 1: Elements of Strategic Management Process
Source : (Strategic Management Process, 2018)

an organization. For an effective strategic management, it is mandatory for A2B to critically
analyze role of values, vision and mission statement for the firm.
 Vision Statement: A vision statement is a future oriented idea of the organization’s
purpose and aspirations. It helps to set the long term goals and objectives for A2B. It
motivates and encourages firm's workforce by giving them directions and guidance to
achieve their tasks. Vision statement also includes the organizational values (Hill, 2017).
It helps the organization to set a vision which can be achieved by them in effective
manner which will enhance their brand image and reputation in the market.
 Mission Statement: In this method, it helps the organization in setting their objectives
and goals and to identify purpose. It includes the complete information about company's
overall performance. A mission statement helps their employees to understand where
their contribution fits in company's objectives. It also helps other stakeholders to decide
whether they want to do business with the organization or not (The Roles of Mission,
Vision, and Values, 2014).
Role of values in vision and mission statement
There is a great importance of both these statements as these help to decide the objectives
and goals for A2B to be achieved in the future. Key features of these statements are as follows:
Illustration 2: Strategic Management
Source : (Vision & Mission Statements in Strategic Management Process, 2018)

 Provides a healthy work environment and treats each other with respect and dignity.
 Embraces diversity as an essential component in the way we do business.
 Develops enthusiastically satisfied customers all the time.
 Contributes positively to our communities and environment.
 Recognizes that profitability is essential to future success.
Purpose and Benefit
There is a purpose behind every mission or vision statement which is to identify and set
future long term goals for the organization (Hill, Jones and Schilling, 2014). These help to
evaluate and analyze the overall performance of A2B. The vision statement helps to provide
inspiration to employees.
1.4 Identifying and evaluating different approaches to formulating strategy
A clear, effective and well defined strategy formulation and implementation is very
important to enhance the overall impact of strategy. It is a process which is used by organization
to choose the most appropriate strategy to accomplish or achieve organizational goals and
objectives. The process of strategy formulation basically involves six main steps which are
explained as below:
1. Organization's Objectives: This is the first step of formulating strategy in company.
This has to be done carefully by the management team of A2B to achieve their targets. It
helps to set the long term objectives. Before setting the organizational objectives, it is
crucial to analyze all the factors which can affect their strategic planning.
2. Evaluation of Organizational Environment: After deciding objectives of organization,
it's time to evaluate organizational environment of company. This will help them to
identify their position in industry. It will also determine their as well as its competitor's
strength and weaknesses. This method will ensure that all the factors have been analyzed
properly (Environmental Factors in Strategic Planning, 2016).
3. Setting Quantitative Targets: In this method, company sets their quantitative targets for
their employees to achieve in the future. It will help them to compare their targets with
their customers of organization.
4. Aiming in Context with the Divisional Plans: This method evaluates overall
performance of each department which is involved in strategic management process. This
will help them to check whether all the tasks is going in smooth way or not.

5. Performance Analysis: It is a process which is used to measure and analyze the final
results or outcomes between planned or desired performance. A critical evaluation of
company's past performance, present and the future conditions must be done by A2B to
identify their position in industry (Bettis and et.al., 2015). It will also help them in
improving their services.
6. Choice of Strategy: This is the final step in strategic management process. This method
helps organization to choose the best strategic planning for A2B which can enhance their
performance in market and help them to increase their overall revenue.
1.5 Influence of External Environment on Strategy Formulation
For any organization, it is very important to analyze all the key factors which can affect
their strategic planning. One of the aspect is environment which consists of internal and external
factors. Internal environment is associated with the organization, its employees, etc. On the
other hand, external factors are environmental elements which includes, competitors, politics,
legal, economic condition, etc. A2B cannot control these factors but they can manage them to
minimize its impact on the organization. Some factors in the external environment and their
effect on organization are explained as below:

1. Competitive Market: This is the most common factor which can affect organization. It
has to be analyzed by A2B very carefully in order to run their business smoothly and
effectively. Competitive environment helps to grow in the market and improve their
services and products.
2. Economic Condition: It is very important for organization to understand economic
condition of country in which they are operating their business as it will help them to
manage their business. Economic conditions are global as well as national which have a
huge impact on the business (Madsen and Walker, 2015).
3. Political Factors: Change in government policies can also affect the proper functioning
of organization. There are many rules and regulations which they have to follow in their
business to run smoothly. They have to keep their system updated with the current
government policies.
4. Legal Factors: Legal factors are one of the most important elements which can affect the
business. For example: change in taxation system, inflation, etc.
Illustration 3: External Environmental Factors
Source : (Environmental Factors in Strategic Planning, 2016)

5. Technological Change: Technology is continuously changing and so, it is very important
for the organization to update their system with the latest technology.
6. Media: This is the most important factor for any organization as it can help to promote
their products and services in the market. There are various methods which can be opted
by the organization like for example, newspaper, magazines, television, etc.
SECTION 2
2.1 Differentiate between Organizations’ general Competitive and Internal Environments
It is very important to have an effective business strategy in organization which can help
them to grow their business in industry and gain good profit. It will also help them in
sustainable competitive analysis. It is crucial for A2B to maintain their standards in the industry
for which they have to analyze their competitive and internal environment. It is very important
to create, capture and maintain value of the organization (Arabian Journal of Business and
Management Review, 2018). It helps to understand internal strengths and weaknesses of firm
and to analyze how they can use that strength to produce a competitive advantage. An
organization's internal environment consists of factors within the organization which can include
their current employees, management and especially corporate culture which defines employee
behavior. These factors have a huge impact on the working of organization which can affect
their functioning as well. A2B has to maintain a positive relationship with their employees to
make them feel safe and secure in the organization. It is very important to work effectively to
sustain a good position in the market (Sakas, Vlachos and Nasiopoulos, 2014).
Whereas in competitive environment, it includes various factors in which a business
competes and functions. More the sellers of a similar product or service, more will be its
competitive environment in which they competing. It becomes mandatory for organization to
look after all factors which can affect them in some or other way. These factors help the
organization to grow their business by knowing their strengths and weaknesses. For example: if
A2B wants to grow their business more than they have to provide their services in different way
which unique from its competitors as there are so many options available for customers to
choose from. Internal environment helps to identify various factors such as company culture,
their access to natural resources, brand awareness, market share, financial resources, etc.

2.2 Tools for the analysis of the General, Competitive and Internal Environment Factors
It is very important to analyze all factors which can affect functioning of company. These
can be general, competitive or internal environmental factors. There are various tools and
techniques which are useful to identify these factors. For example: SWOT analysis is used to
analyze internal strengths and weaknesses of the organization. Ansoff matrix is also one of the
effective techniques used to evaluate the competitive environment in target industry.
SWOT Analysis
It is used to identify the overall performance of organization such as its strengths,
weaknesses, opportunities and threats in environment. It is a useful tool to enhance and improve
the existing services of A2B. It starts by defining the objective of project or business activity and
identifies the internal and external factors that are important to achieving their objective (Role of
Strategy, 2018).
 Strengths: It identifies the strong factors in the organization which can help them to
increase their business in the market. A2B has good leadership and management skills in
their employees. It has sufficient resources to meet their objectives. It is very important to
have a good market position.
 Weaknesses: It is very important to work on the weak factors of the organization. A2B
does not have sufficient amount of workers to fulfill the task. They need to work om it
(Molina-Azorín and et.al., 2015).
 Opportunities: This give the organization about the opportunities which can be achieved
by them. There are chances to introduce new products and services in their business.
There is a great scope of market growth. Threats: The huge threat which can be faced by them is the technological threat which
has to be managed by the company. Demographic can also be a threat for the
organization.
 Ansoff Growth Matrix : This method is very useful in analyzing the competition in the
industry. This will also help in understanding the risk factors in the business (Meyer,
Neck and Meeks, 2017).
Market Development
 This method helps to develop new
products targeted to its existing market
Diversification
 It is very important for A2B in growing
its businesses by developing new