Strategic Planning and Stakeholder Impact: Azadea Group Report

This report provides a comprehensive analysis of the strategic planning process for the Azadea Group, a leading retailer in the Middle East and North Africa. It begins by defining strategic planning and outlining the aims and objectives of the organization, including its goals of expansion and market share growth. The report then explores various strategic options available to the Azadea Group, such as market penetration, market extension, product development, and integration strategies, using models like Bowman's Strategy Clock. It also analyzes the impact of stakeholder expectations, considering their power and stake in the organization, and assesses the feasibility and priorities of different strategic options. Furthermore, it includes PESTEL and SWOT analyses to evaluate the external and internal factors influencing the company's strategic decisions, and discusses risk assessment and the development of a comprehensive strategic plan. The report concludes by examining the organizational and market factors relevant to the implementation of the plan, as well as models for monitoring and reviewing its effectiveness, and the impact of the strategic plan on the organization's objectives and direction.

STRATEGIC
PLANNING
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
1.1 Strategy aim and objectives of organisation..........................................................................3
1.2 Strategic option and their implication on organisation..........................................................4
1.3 Impact of stakeholder expectation on strategic planning......................................................5
Task 2...............................................................................................................................................6
2.1 Strategic option available for organisation............................................................................6
2.2 Priorities and feasibility of alternative options......................................................................8
2.3 Risk assessment of preferred strategy and alternative.........................................................10
2.4 Plan and address potential problems in strategies...............................................................11
2.5 Strategic plan.......................................................................................................................11
TASK 3..........................................................................................................................................13
3.1 Organisation and market factors considered for implementation of strategic plan.............13
3.2 Model and concept to monitor and review strategic plan....................................................14
3.3 Impact of strategic plan on organisation objectives and direction......................................14
CONCLUSION..............................................................................................................................14
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INTRODUCTION
Strategic planning is defined as the process followed by an organisation to document and
defines strategies on the basis of organisational goals, mission and values so that accurate
business decisions can be taken. Along with the various theoretical approaches organisations also
used to take stakeholders and other perspectives into considerations for the strategic planning.
For achieving the organisational goals it is vital for the business to effectively accomplish the
strategic planning. The report will discuss the strategic planning approach and strategies of
Azadea group which is one of the leading retailers in North Africa and Middle East. The study
will also evaluate different strategic options available for the organisations and their
implications.
TASK1
1.1 Strategy aim and objectives of organisation
Strategic planning is a process that record mission, values and vision of company that it
need to achieve in order to gain competitive advantages and increase its market share. Strategic
plan describe various steps that company in planning to take in near future to achieve its desired
goals and objectives (Orna, 2017). There are various objectives and aims of strategic planning of
Azadea group are as follows:
Aims:
To grow and expand business by formulating effective strategy to meet needs and demands of
customers.
Objectives
 To provide qualitative products in order to provide best customers experience and build
strong brand image till 31 march 2021.
 To increase revenue and market share till 2020 by targeting new market segment.
 To become a leading brand in retail industry by 2020.
Approaches used for strategic planning
Various approached that can be used by Azadea group for strategic planning of company
to increase its market share and gain competitive advantages are as follows:
Top down approach: In such approached all decision of company are taken by top management
and department, employees have to perform various function as per guideline and direction of
such authority.
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Bottom-Up Approach: In such strategies top management does not provide any direction and
guideline to sub ordinate employees and encourage their idea, views, and opinion in formulation
of various strategies (Ogbuji, 2018). Therefore plan contain information related to opportunities,
capital requirement, threats, objectives that are analysis and evaluated by top management for
smooth operation of business.
Mixture of Top-down and Bottom approach: In such approaches the top management provide
guideline to divisional head so that it can formulate its own plan. Top management by
coordinating with divisional manager formulate strategy and plan in respect of sales and return
on investment.
Team approach: Top management of company that formulate various strategies by interacting
and meeting with other employees or executive such that work as team so that it can gain
competitive positioning in the market.
On basis of various approaches Azadea group has use mixture of Top down and bottom
approach while formulating various strategies in order to expand its business and market share.
To management of company coordinate with division manager so that appropriate strategy can
be formulated within limited time and effort so that firm can enhance its market share and
achieve its objectives (Sugiono, 2018). Continuous supervision and monitor helps in effective
operation of business and achievement of goals as performance of divisional head is measured
and appropriate strategy is form to improve performance of company.
1.2 Strategic option and their implication on organisation
Strategic option refers to process that formulate various possible alternative strategies that
can be used by Azadea group to increase its sales and achieve objectives. Manager evaluates
various strategy options and selects the most suitable option for growth and expansion of
business in the industry. Various strategy options for Azadea group can be explained through
Bowman’s strategy clock model:
Low price- Low value: It stated that company offer inferior products at lower price to meet
needs of people and increase its profitability. This strategy is not used by Azadea group as it
objective is to provide qualitative products in order to satisfy needs of customers.
Low price: In such type of strategy firm plan to gain differentiate position by offering products
and services at lower cost to attract large number of customer to prefer products of particular
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company over other competitors (Gagné, 2018). Azadea group by using innovative technologies
and enhancing skill and knowledge of employees is able to bring economic of scale and provide
qualitative product at reasonable rates.
Hybrid positioning: This strategy stated that company is planning to choose medium price and
moderate value of products and services to satisfy need of middle class people.
Differentiation: Company by launching new products is able to differentiate itself from other
competitors in the market. Azadea group is a large organisation that continuously manufacture
qualitative and innovative products to get differentiate positioning.
Focused Differentiation: Company has planned to select high class people for sales of premium
value products and services and increase its market share thus by using focused differentiate
strategy able to gain competitive advantages.
Increase price: Azadea group is able to charge competitive pricing from customers as it have
strong brand image to render standard and qualitative products and services.
High price- Low value: Sometime firm can charge high price for low value product and
services as individual is sole producer of such goods. Azadea group by introducing innovative
and creative product that are able to meet need of unsatisfied customers is able to charge high
price.
Low value- standard price: Company charge standard price or low quality of products and
services to increase its sales and profitability (Heinemann and Uskov, 2017). It is not adopted by
Azadea group as it results in loss of market share and impact on long term growth and survival of
company.
Thus, manager of Azadea group by analysing and evaluating various strategies option is
able to select most appropriate strategies that can be used by firm to gain competitive advantages
and achieve its predetermined objectives.
1.3 Impact of stakeholder expectation on strategic planning
There are various stakeholder of company such as shareholders, investors, government,
trade union, customers and employees. Therefore impact of stakeholder expectation on strategic
planning can be analysis and evaluated on basis of their level of participation and interest in the
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functioning of organisation. Stakeholder interest and participation in Azadea group can be
analysed through stakeholder analysis model such as:
High power, Low stake: It included stakeholder that have high power but low stake such as
employees and consumer of Azadea group so their need to be handle with care while formulating
various strategies to gain competitive advantages.
Low influence and High stake: Consultant of Azadea group has low power but high stake as
company while formulating various strategies has to consult with such stakeholder for effective
performance in particular situation. Therefore company support their active participation in
formulation of innovative strategies in order to increase sales of company.
High power and High stake: It included directors, investors that have high power and high
stake as they have invested large amount of money for establishment and operation of business.
Azadea group give top priority to needs and requirement of such stakeholder while planning
effective strategies for expansion of business.
Low power and Low stake: Distributor of Azadea group have low power and low stake within
company so low priority is given while manager formulate different strategies of firm (Khan and
et.al., 2016). Therefore, it can be illustrated that they have less expectation for planning effective
strategy of company.
It can be analysed that stakeholder expectation in strategy planning depend upon their
level of participation and interest within firm.
Task 2.
2.1 Strategic option available for organisation
Management of the Azadea Group carry the strategic options such as PESTEL Analysis
tool and SWOT Analysis tool to form potential strategies to improve the growth potential of
company.
PESTEL Analysis
PESTEL Analysis comprises the external analysis associated with the company consisted
in business environment. This is a macro environment tool drives corporate organisations to
frame suitable business strategies to expand the growth potentials in target market.
Political Factor: Political factor comprises with policies and strategies frame by government in
order to promote corporate cloture in country (Fujiwara, 2016). All policies frame by Kuwait
Government related to the retail market is a part of the political factor.
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Economical Factor: Economic factor is a crucial PESTEL Analysis factor consisted with
economical aspects such as currency rate, GDP growth rate and all associated factors with
economy of country
Social Factor: Social factor involve fashion, trend, cultural values, belief of people in society,
attitude of people and other social aspects. All the factors directly influence the sales of the
Azadea Group.
Technological Factor: Technological factor involve all technological advancement in the
society. Technological advancement in this factor is considers as the revolution in the business
environment as it expanded the growth potentials of all corporate houses across the globe.
Environment Factor: Environment factor is also a crucial business environment factor impact
on the growth potential of company. This factor drives company management at Azadea Group
to focus on eco friendly products.
Legal Factor: Legal factor involve all laws of Kuwait such as equality act and other applicable
on the organisation. All policies and operations are framed as per the legislative requirements of
the Kuwait Laws.
All the above factor involves in PESTEL Analysis drives company to frame suitable
strategies for the business development.
SWOT Analysis
SWOT Analysis is consider as the internal analysis of the company.
Strengths of company
 Diversified products range.
 Low pricing strategies (Abeck, 2017).
 Effective brand value.
Weakness of company
 Inflation in economy is a huge threat for company.
 Outdated technology of company.
 Low customer satisfaction rate.
Opportunity of company
 Business expansion opportunity.
 Product expansion opportunity.
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Threat of company
 Competition is a huge threat for company.
Strategic options for company
Strategic options available for the Azadea Group can be summarised in the following
manner.
Market penetration: Market penetration is an effective strategic tool can be channelized by the
company. Company management of Azadea Company can focus on expanding the sales
potential of company in existing dealing market (Fildes, Ma and Kolassa, 2019). Company can
follow discount strategies to improve the sales turnover.
Market extension strategy: Market extension is also an effective growth strategy management
of Azadea Group can channelize. This strategy drives company to expand the business in new
geographical locations. Retail sector is growing rapidly at global level. This strategy can support
company in improving the growth potential of company at global level.
Product development: Company management can also emphasis on product development
strategy. Product development strategy involves improving the products quality to attract new
customer base. This also involves launching new products to cater more diversified customer
base.
Horizontal and vertical integration: Horizontal and vertical integration is also an effective
strategic option available for the management of Azadea Group. In this option company
management can take over another organisation belongs to retail sector (Buttkus, 2019). This is
an effective strategic tool allows company to expand the consumer base by acquiring other
organisations and brand in the same market sector. This option enables company management to
take competitive advantages in the market.
All the above strategic options can support company in expanding its growth potentials.
2.2 Priorities and feasibility of alternative options
Different strategic options consisted different priorities and feasibilities that can be
summarised in following manner.
Market penetration option: Market penetration strategy is an effective option available for the
management of Azadia Group. This options drives company management to make strategies to
improve to sales turnover of all existing products of the company. This option enables company
management ot follow strategies like discount or low pricing strategies. In this option company
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management give priority to expand the sales potential of all the existing product portfolio of
company (le Roux, 2018). Company also offer free shipping options in order to improve the
sales of existing products. This is a feasible options as in this strategic options company
management do not get engage with much investment and also it provide opportunity to improve
the sales of existing products offer by company.
Market extension option: Market extension is also a strategic option available for the Azadea
Group in order to expand the growth rate of company. In this strategic option company
management give priorities to make strategic partnership and collaboration with other
competitors operate in new locations. Framing partnership supports company in establishing
customer base at the initial level. Company management also give priorities to raise potential
funding requirements as this strategic option seeks effective funds to establish business in new
geographical locations. This option provides opportunity to expand the brad image of the
company at global market and also to establish new customer base for its business.
Product development option: Product development is an effective strategic option available for
the Azadea Group. In this option company management focus on improving the quality of all
existing products. Company management also focus to expand the product line by launching new
products. Priorities on research and development are also become huge in this option. This is an
effective option as it provides opportunity for the company in improving the consumer base in
the existing dealing market.
Horizontal and vertical integration: This is an effective strategic option available for the
company management that also provide competitive edge in the existing market (Phadnis,
Caplice and Sheffi, 2016). In this strategic option company management give priority to market
research about all the competitors based on the market share, growth rate, brand value and other
respective factors. Company also prioritise financial analysis to assess the investment decision.
Future trend of the market also evaluate under this option by company.
All the above factors demonstrate about all the priorities and feasibility associated with
different strategic options available for the company in order to achieve higher growth rate.
Alternative option
Apart from all the above options company also consist the strategic option call
diversification. In this strategic option company management give emphasis on developing a
unique brand image in target market. In order to implement this strategic option company
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management launch campaigns, utilise innovation and technology, creativity and other
alternative tools to support the diversification strategy.
2.3 Risk assessment of preferred strategy and alternative
Risk associated with different strategic options can be summarised in the following
manner.
Market penetration: Market penetration is an effective option available for the Azadea Group.
This strategic option is considered as the least risk factor as it do not involve much investment to
implement the strategic option (Singh and Murphy-Scanlon, 2018). Company also target the
customers in existing dealing market so this option also not seek any new campaign as company
can utilise the ongoing strategic campaign to get success under this strategic option. Risk in this
strategic option can be defined as even by achieving high sales turnover company management
can sacrifice the profitability ratio in this option.
Market extension: Market extension is an effective strategic option available for the Azadea
Group. This option also consists with high risk as it involves huge investment of money, capital
and time as well. In this option companies plan to expand the business places by opening new
outlets. This option is much riskier in term of loosing capital and financial resources of company.
This option also carry the risk of losing brand image of company as it is also possible that in new
location company might not get the effective business which can also resulted into loosing brand
image in existing market.
Product development: Product development is also an effective strategic option available for
the company. Product development strategy seek investment in research and development and to
produce such new products. Due to high investment involve in implementing strategic option this
is also consisted as a riskier option in term of achieving high growth in market.
Horizontal and vertical integration: Companies avail the horizontal and vertical integration in
order to achieve the high growth potential in the market. This option seeks investment to acquire
other competitors in the market. This option considers as risky option as it involves investment
of company’s resources. In this option risk is high as it involves acquiring companies belongs to
the similar sector. Many times corporate houses do not get any strategic advantage even after
successful implementation of this strategy.
All the above aspect demonstrates about risks involved in all the strategic options.
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2.4 Plan and address potential problems in strategies
Planning and addressing problems associated with different strategic options can be
summarised in the following manner.
Market penetration: Market penetration is an effective strategic option available for the
company. This option also comprises with problems like lack of results, ineffective strategy, low
sales and other relatable issues. Company management can deliver effective marketing campaign
to address all the problems involved in this strategic option.
Market extension: Market extension is an effective strategic option used to improve the growth
opportunities of corporate houses (Bell, Gallino and Moreno, 2018). This strategic option also
involves many problems like funding issue, skill human resources issue, market analysis problem
and other associated problems that restrict the competitive advantage under this strategic option.
Product development: Product development comprises with plenty of problems. Company face
problem in conducting effective market research, time management, analysis problem, time
management problem, funding problem and other associated problem create hurdle in
implementing this strategic option. Company can reduce all such problem with the support of
proper planning.
Horizontal and vertical integration: This is also an effective strategic option available for the
company. This option comprises with problems such as cultural diversities issues, negative brand
image challenge and other respective problems.
All the above aspects indicate about challenges associated with different strategic options
available for the Azadea Group in order to expand the growth potential of company.
2.5 Strategic plan
Management of the Azadea Group follow the strategy of market penetration and market
extension in order to improve the growth potential of company.
Aim and Objectives
 To improve the sales turnover of company.
 To improve the existing growth rate of company.
 To improve eth company’s brand image.
 To improve customer loyalty.
 To expand the profitability.
 To enhance existing market share of company.
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Strategies
Following strategies can be implemented to achieve all the objectives.
Technological advancement: Company management will utilise new technologies to
channelize the strategic option. Company will promote the discount strategies over social
media network with the support of technological advancement.
Secondary Research: In order to implement the market extension research play huge role to
get success in the strategy. Company will channelize secondary research to assess the needs
of the customers.
Customer feedbacks: Management of the Azadea Group will follow the strategy of taking
customer feedbacks to identify the needs of the customers (Warnaby and Shi, 2018). Taking
feedbacks also guide the company about the customer satisfaction.
Collaborations: Company management will also follow the collaboration strategies with
small organisations to expand the product volume of the company. Company will also give
free products along with the existing products offer by company to attract customers
(Montoya and et.al., 2018). This will support company in giving such benefits to customers
on the sales.
Social media marketing: Company management will promote the products over social
media channels. Social media is an effective tool that enables company to attract potential
customers in the retail sector. Market extension also requires effective brand image and this
strategy will empower company to improve the brand image.
Evaluation
Company management will evaluate the advantage of the strategies on the basis of
sales fluctuation and profitability analysis.
Monitor and Control
Company management will frame a team of experienced professional to assess the
impacts of the strategies. Experts professional will also make potential changes in strategies
on time to time to get more growth in the market.
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TASK 3
3.1 Organisation and market factors considered for implementation of strategic plan
Various internal and external factors are considered by manager of Azadea group while
implementation strategic plan in order to achieve predetermine objective (Millar and Doherty,
2016). Therefore various factors such as culture, risk, change activities, structure and nature of
business that impact on implementation of strategies are as follows:
Internal factors
Organisational culture: Manager of Azadea group has to formulate strategies as per culture of
organisation as it has large number of employee with different tradition, culture and preference.
Therefore company while implementing strategic plan has to understand culture and tradition of
each employees to achieve company goals.
Human resource: Implementation of strategic plan also depend upon human resources available
within firm such as Azadea group has high motivated, skilled and knowledge employees so it can
easily implement strategic plan in order to gain competitive advantages.
Organisation structure: Azadea group has functional organisation structure so manager while
implementing plan has to considered organisational structure to assign duties and responsibilities
to other employees (Birkinshaw, 2017). Therefore it helps in quick and effective delivery of
services and product to customer within limited time and cost.
External factors:
Technology: Continuous change in technology and increasing awareness of innovative
technology among people forces company to use such technology while delivery services to
customers. Therefore Azadea group has to consider technological development such as use of
social media and online sites to offered products by implementing strategy.
Legal: It included legal laws and rules of government that need to be followed by company
while implementing strategies in order to avoid penalty, impose of fines and to build strong
brand image in the market (Jordán and et.al., 2018).
Competition: Another factor that needs to be considered by Azadea group manager is level of
competition in retail industry for effectiveness of strategic plan and growth and success of firm.
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There is large competition in retail industry thus company in order to get competitive pricing has
to introduce innovative and qualitative products.
3.2 Model and concept to monitor and review strategic plan
Various model and concept can be used to monitor and review strategic plan of Azadea
group so that objective of company can be achieved and its market share can be expand. Such as
pestle, swot, balance score card and objective and key result are some of the method to monitor
and review strategic plan of company. Such as:
Balanced score card: This model analysis and evaluates organisational mission, vision and
strategic focus areas and map strategy planning that are used to visualise each objective of
company. Azadea group by using balance score card model is able to monitor and control
various strategy of firm and able to survive and grow its business in the market.
Pestle and Swot analysis tool: Azadea group by conducting swot and pestle analysis able to
indentify various internal and external factors that impact on functioning of company. Swot helps
in planning strategy that protect company from various threats and take advantages of various
opportunities available in the market (Jordán and et.al., 2018). Thus, company by using this tool
is able to continuous monitor its strategic and plan appropriate steps for achievement of goals.
3.3 Impact of strategic plan on organisation objectives and direction
Strategic plan determine goals and objective of company and helps in effective utilisation
of available resource so that it can gain competitive advantages. It plans direction and step that
need to be taken by Azadea group in order to achieve predetermine objective. Company by
planning in advance about various steps that need to be take protect itself from different threats
and able to take advantages of available opportunities so that it can gain differentiate positioning.
Strategic planning helps in improving performance and productivity of employees and
achievement of goals (Woods and et.al., 2019). It helps manager Azadea group to formulate
appropriate and clear direction for smooth operation of business. Strategies helps in reducing
conflict between employees as there are aware of company objectives, roles and responsibilities
to be performed by each individual within firm. Therefore, strategies help in bringing new
changes and innovation within Azadea group in order to meet need and requirement of customers
and gain competitive advantages in the market.
CONCLUSION
It can be concluded from the study that strategic choices are greatly influenced by
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stakeholders and internal as well as external business environmental factors. It has been also
analysed from the study that for successful implementation of the strategies organisation must
also evaluate the feasibility of strategic options. The strategic plan can achieve the long term
business goals only if effective monitoring and controlling strategies are followed by the
organisation. It can also be concluded that without successful strategic planning organisations
may fail to gain competitive advantage and profitability
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