Strategic Planning: Developing Effective Techniques for Business

This report provides an overview of strategic planning, emphasizing its importance for organizational success. It assesses how elements like business goals, vision, mission, aims, SMART objectives, and core competencies inform strategic planning. The report also examines factors to consider when formulating strategic plans, such as resource availability, consultant collaboration, and the impact of decisions on managers and targets. Furthermore, it evaluates the effectiveness of techniques like the BCG growth share matrix, SPACE matrix, and directional policy matrix in developing strategic business plans. The analysis includes real-world application, with a focus on Tesco PLC and its strategic investment decisions. Desklib provides this and other solved assignments for students' reference.

BUSINESS STRATEGY

Introduction
In order to succeed in a long run, strategy plays an essential role that supports and
directs the organization towards attaining their objectives and missions. Strategy may
also be defined as path through which organization engages in managing their resources
so that they can easily carry out their operations and activities. In addition to this, for
succeeding in the competitive market and gaining competitive edge among the rival
companies, it is essential for business organization to select an effective strategy.
Presently, the report focuses on understanding the strategic planning process through
assessing the organization’s mission and vision that support them to proceed their
activities in the competitive environment.

TASK 1
(a) Assess how the following elements inform strategic planning
Strategic planning is considered as a procedure that generally focuses on allocating
resources and selecting suitable strategy that assist the organization in accomplishing
their stated objectives and overall goals. In order to ensure effective strategic planning
for the organization, there are certain elements on which management should focus so
that it can assist in attaining the objectives.
Business Goals- It is defined as a specific activity that needs to be accomplished in the
specific time period so that company can easily succeed in accomplishing the overall
objectives of firm.
Vision and mission- Another essential element of strategic planning includes
determining the vision and mission of organization. Vision is the future perspective of
organization that they want to accomplish in the coming time. However, in order to
achieve the vision of organization, management focuses on creating mission that
supports in achieving the organizational vision.

Contd.
 Aims and SMART objectives- Aims and SMART objective also support the
management in strategic planning through which they can easily allocate the
required resources within the organization.
 Core competencies- It is considered as key components that assist the organization
in achieving organizational success. It is also defined as significant aspects that
support the organization gaining competitive edge among their competitors.

TASK 2
(a) Range of factors that need to considered while formulating strategic plans
Availability of resources- The foremost factor that needs to be taken into consideration while
formulating strategic plan includes measuring the availability of different resource. It supports
management in formulating and devising strategic plan for the public limited company that
support them to survive in a long run.
Collaborating with consultant- Another range of factor that needs to be considered while
formulating strategic plan for public limited company includes taking advice from the consultancy
for the same. Thus, it results in getting proper advice regarding formulating the plan so that
organization can easily achieve their objectives and make effective strategy as per their needs.

Contd.
 Impact of decisions on manager- In addition to this, management must also measure
the effect or impact of plan on the activities and performance of manager. However,
taking effective decisions regarding developing strategic plan for the public limited
company will outcome in affecting the manager.
 Its influence on targets- Another factor that need to be considered when formulating
strategic plans for public limited company include analyzing the affect of
formulated plans on the targets of the organization. Therefore, if the formulated
strategic plan influences the target that is sales or profits of the company than it
result in modifying the plan according to the requirement.

(b) Effectiveness of techniques while developing
strategic business plans
 BCG growth share matrix- Boston Consultancy Group (BCG) is an effective
technique that is being used by the organization for developing strategic business plan
as it assists them in measuring their product portfolio. This technique benefits the
commercial entity in developing effective business strategy that supports them to
succeed in a long run. Effectiveness of using BBCG matrix is that it helps
organization in allocating optimum resources among the unit so that they may increase
the growth with respect to raise their market share. In addition to this, BCG matrix
while developing strategic business plans will also help in taking better decisions
related with resource management.

Contd..
 SPACE- SPACE matrix is also termed as a strategic position and action evaluation
technique that is being used to examine or study the whole company and different
business strategies that company can undertake to perform their activities. In
addition to this, while developing strategic business plan for the public limited
company, SPACE matrix plays a significant role as it provides proper guidance to
make an effective strategy that will support in attaining competitive edge among the
rival companies.

Directorial policy matrix

Contd..
The effective planning technique that assist in
measuring the overall market and strength of the
company so that management can recommend the
organization to invest within the future market. I
would apply directional policy matrix in Tesco plc
that would resu;t in indicate the future investment in
the retail segment so that they can become leading
organization within the retail indusry.

References
 Butler, D., 2012. Business development: a guide to small business strategy. Routledge.
 Chaiprasit, S. and Swierczek, W. F., 2011. Competitiveness, globalization and technology
development in Thai firms.Competitiveness Review: An International Business Journal
incorporating Journal of Global Competitiveness. 21(2). pp.188 – 204.
 Cinquini, L. and Tenucci, A., 2010. Strategic management accounting and business strategy: a
loose coupling?. Journal of Accounting & organizational change. 6(2). pp.228-259.
 Edwards, V. and Ellison, L., 2009. Corporate property management: aligning real estate with
business strategy. John Wiley & Sons.
 Figge, F. and et. al., 2002. The sustainability balanced scorecard–linking sustainability
management to business strategy. Business strategy and the Environment. 11(5). pp.269-284.

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