HND Business Strategy: Strategic Planning and Strategy Formulation

This report assesses business missions, visions, objectives, goals, and core competencies in informing strategic planning. It analyzes factors considered when formulating strategic plans, evaluating the effectiveness of techniques like Ansoff's Matrix and the BCG growth-share matrix. The report also analyzes strategic positioning through organizational and environmental audits, assessing the significance of stakeholder analysis in formulating new strategies for a given organization. The document provides insights into strategic business planning, covering market penetration, market development, product development, and diversification strategies.

Business Strategy
TASK 1

1.1 Business vision, mission, goals and objectives to inform
strategic planning
• Business strategy is long termed action plan that is designed to
accomplish a particular goal or set goals or objectives.
• Strategy is considered as the management's game plan that is used
for strengthening the performance of enterprise.
• In present context, there are some important elements of business
that have been discussed in order to pitch for finance in front of
Dragon den group.

Cont..
• Mission: This statement of organisation determines the things and
action plans which they will apply in order to achieve the vision in
near future.
• Vision: This statement of company will describe the reason behind
its existence in market. Further, the new business regulates with the
vision: “To be most successful and widely recognised brand in auto
mobile sector by providing unique design and fuel-efficient cars to
customers in order to achieve their satisfaction

Cont..
• Goals and objectives: Goals are considered as the purpose towards
which the project of company has been directed and objectives are
efforts or action of enterprise intended to attain accomplish ;
purpose and target.
– Maximising profits at increasing rate.
– Gaining rise in sale up to 10% in every 6 months.
– Hiring qualified employees at workplace.
– Expansion of business in Asian countries.

Cont..
• Core competencies: These are abilities of company to develop and
implement business strategies that provide positive results. If the
organisation has competencies, then it will be able to survive in the
present competitive market.
• It can be measured in monetary and non-monetary terms. In present
context, innovation and unique design of cars is major competency
of our business which provides support in accomplishment of these
goals and objectives.

1.2 Important factors recognised in order to formulate strategic
business plan.
• Strategic planning is process of organization in order to define its
strategy or ways and making effective decisions on allocation of its
resources to implement the strategy.
• Further, For development of effective business strategy, the
organisation needs to make an effective research and should analyse
the factors that provide influence, in order to take successful
business decisions.

Ansoff's Matrix
• These are also considered as alternative corporate growth strategies
that concentrates on firm's present potential products and new
products as well as customers in market.
• This matrix has provided four different strategies of growth which
are as follows:
Existing Products New Products
Existing
Markets Market Penetration Product Development
New
Markets Market Development Diversification

Cont..
• Market penetration: It is the strategy in which the organisation seeks
to achieve the growth with its existing products in present market and
should try to sustain its position in competitive business environment.
• Market development: In this, strategy of market development is
effective for enterprise in which they will target their existing
products and services in new market segments. Auto- mobile
company will also concentrate on this strategy and expands its
business in other Asian countries’ market.

Cont..
• Product development: In this, company will develop its new and
unique designed cars by targeting its existing market segments in
European countries. Competencies of company like innovation and
technology will support them in implementation of this strategy.
• Diversification: It is also a strategy in which the firms tend to grow
by diversifying in new businesses through development of new
products for new markets

1.3 Effectiveness of techniques in development of strategic
business plan.
• Business planning is considered as necessary for organization in
achievement of growth and success in business operations as they
are getting various financial resources in order to formulate effective
business plans.
• Strategic business plans provide important tools to organization for
tracking the growth, establish a budget, preparation for unforeseen
changes in market.
• A strategic business plan includes many elements which the
organization can use to attract the financing and managing
company’s objectives
•

BCG growth share matrix
• Cash cow: A business unit that has a large market share in mature
and low growth industry. This is market situation in which the
company has high growth but industry has not achieved the much
growth. Company in this stage requires fewer investments and
generate cash that can be used to invest in other business units.
• Star: Company in this stage posses high market share in fast
growing industry like Auto-mobile industry.

Cont..
• Question mark: In this stage, enterprise will arrive in this stage when it
has low market share in rapidly growing industry. Further, company in
the situation requires more resources to grow its market share in auto
mobile industry, when they achieve success, then they will arrive in
star category.
• Dog: A business that has a small market share in low growth or
matured industry is considered in the dog stage. In this stage, if
company will arrive then will only have the way to deploy their
investments and employ it in other market to achieve profits.