Strategic Innovation and Analysis Report: Heaven Scent Floral Design

This report analyzes the strategic options available to Heaven Scent Floral Design, a floral business founded in 1996. It explores the outside-in strategy, focusing on customer values and relationship building, detailing its advantages, disadvantages, and implementation through social media, feedback forms, and website analysis. The report also examines the differentiation strategy, highlighting its potential to create competitive advantage through unique product offerings, along with its associated costs and risks. Furthermore, it discusses Bowman's strategy clock as a positioning tool and recommends a suitable strategy for Heaven Scent Floral Design based on the SAF matrix. The analysis includes resource allocation, budgeting, and monitoring procedures for both strategies, aiming to provide a comprehensive evaluation and recommendations for improving the company's business performance. The appendices include visuals for the value proposition and Bowman's strategy clock.

Strategy and innovation

Table of Contents
Introduction......................................................................................................................................3
Outside in strategy...........................................................................................................................3
Advantages ............................................................................................................................3
Disadvantages.........................................................................................................................4
Implementation.......................................................................................................................4
Identification of general objective...................................................................................................4
Formation of specific plan...............................................................................................................5
Resource allocation and budgeting..................................................................................................5
Monitoring and controlling procedure.............................................................................................6
Differentiation strategy....................................................................................................................6
Advantages.............................................................................................................................6
Disadvantages.........................................................................................................................7
Implementation.......................................................................................................................7
Identification of general objective...................................................................................................8
Formation of specific plans..............................................................................................................8
Resource allocation and budgeting..................................................................................................8
Monitoring and control procedure...................................................................................................8
Bowman's strategy clock.................................................................................................................9
Recommended strategy..................................................................................................................10
SAF matrix.....................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
Appendix........................................................................................................................................13
Value proposition.................................................................................................................13
Bowman's strategy clock......................................................................................................14

Introduction
Strategy and innovation is defined as process where an organisation is reinvest and
redesign its corporate strategy in order to drive business growth. This process helps to generate
value for company, customers and create competitive advantage in company (Ali, 2021). This
type of process is essential for an organisation to adapt to the speed of technology change. It has
so many advantage like it helps to set clear goals for an organisation, it helps to identify
competition in an industry, helps to promote innovative culture in an organisation and many
more. In this report, Heaven scent floral design is taking into consideration which was founded
in 1996 having headquartered in United Kingdom (Cao and Chen, 2019). This report will
include different strategic options use by company in order to make its business performance
better and what strategy should recommanded to management of company in order to make their
business profitable. At the end of report a detailed conclusion will be made on the basis of
relevant data.
Outside in strategy
This is a strategy in which companies consider customer values as their starting and end
point. Companies generally use this strategy mainly focussed on creating and nurturing their
clients by provide high quality service to them. Generally under this strategy companies
considered themselves in a place of customers and view things from their point of view (Chen,
Wang, and Wang, 2018).
Advantages
By applying this strategy is business, Heaven scent floral will get different benefits.
 It will help company to make better relationship with customers which will eventually
help to increase sales of company.
 This will help respective company to understand the demand of customers in market and
make changes in product accordingly.
 By understanding the view point of customers, given company can develop its marketing
and selling strategies accordingly which will help to attract customers for business.
Disadvantages
There are certain disadvantages Heaven scent floral will get by applying this strategy.

 It is time consuming process as mentioned company have to spend so much of their time
to understand the view point of customer.
 Customer demand are ever changing it keeps on changing every time. Therefore Heaven
scent floral has to always keep an eye on demand of customer, which will somewhere
affect the operational functionality of company.
 This strategy will not mentioned company immediate positive effect, it will take some
time.
Implementation
There are different ways by which mentioned organisation can implement given staregy
in their organisation (Dodgson, 2018). Firstly, an organisation can make their social media page
on different platform such as Facebook, Instagram and many more. Through this they can ask
their customer feedback regarding their product. Moreover, those customers who visit shop for
purchasing flowers can ask to fill up feedback form so that they can get to know what customer
definitely expect from business. On the other hand, company can also send thanking email to
their customers for purchasing product from them and can ask to give their feedback regarding
product and customer service. Mentioned company can also make their websites in which they
can read customer views and work on it to provide better service to them. By these ways Heaven
scent floral can get in touch with customer and make changes in their product accordingly (Gao,
Hsu and Li, 2018).
Identification of general objective
General objective behind implementation of given staregy are.
 To identify the need and demand of customer.
 To cut off competition from industry and attract customers towards business.
 To offer best service to customers.
Formation of specific plan
For implementing given staregy in organisation, mentioned company have to set different
plans which are as follows.
 Heaven scent floral can make their social media on different platform. For successfully
implementation of this idea, company can convince customers those who visit shop for
purchasing flowers to follow their business page on Facebook and Instagram and can

read customer views from there. This will help mentioned company to identify customer
behaviour and make modification in products accordingly.
 For all those customer those who visit shop for purchasing can ask to fill their feedback
form so that business can get to know what customer exactly want. Feedback form can
include several things such as service rating, product rating and problem solving rating.
By this way given company can get to know how they are performing and what changes
they need to make in order to success in market.
 Mentioned company can ask for customer e-mail id. By this business can send thanking
e-mail to their clients. Moreover they can also ask to give valuable feedback or changes
does business need to make in order to provide better service to customer. It can also
send birthday or any special event best wishes to their customer. This will make customer
feel very important and valuable.
 By making their website they can ask customer to give their valuable feedback like what
they feel about company and products they offer. By this company can get to know what
customer exactly want or expect from business.
Resource allocation and budgeting
Resources Budget allocation( amount in $)
Social media pages $500
Feedback forms(100 papers) $2 each paper(2*100)$200
SEO and other expenses related to website
building
$1000
Total expenses $1700
Monitoring and controlling procedure
This is defined as process in which management of an organisation oversee the overall
performance of an organisation and compare it with predefined standard to know whether
performance is better or worse. If it is worse than what sort of actions can firm take to make it

better. In the terms of mentioned company, management of an organisation can take several
actions for monitoring and controlling of organisation performance are (Hanifah and et.al2019).
 They can set up different technical department for handling social media pages to know
review of customers. Moreover a technical team can appoint for handling website of
company to know what type of reviews are given by customers from market so that
relevant changes can make in business functionality.
 Management of company can appoint SEO expert from a market who will do SEO of
website of an organisation to make it among top ranking and they can also compare the
performance of SEO expert by comparing it with predefined standard to see if
performance is better or not.
Differentiation strategy
It is strategy in which business provide something different to its customers than its
competitors. The major aim of business behind implementing this strategy is to increase
competitive advantage. Businesses generally implement this staregy by analysing the strengths
and weakness, need of customers and overall value they can provide (Kraus, Rehman and
García, 2020).
Advantages
Following advantage mentioned firm will get after implementing given strategy in
business operations are.
 By implementing this strategy, Heaven scent floral can offer low cost price products
to their customers than their competitors. This will help to attract lot of customers
towards business and will increase the revenue of business.
 Mentioned firm can sell unique products to their customers which competitors don't
have. By this firm can achieve greater competitive advantage.
 When firm will offer different or unique products to their customer this will help to
achieve greater profit margins for company.
 It will make good image of company in market because company is selling something
unique in market which other firms don't have.
 It will increase the profitability of company only if customer like their product or
service whatever they are offering in market.

Disadvantages
There will be different disadvantages of given strategy to mentioned company are.
 Every time when given organisation think to sell something unique or different to their
customer this will increase the overall cost of an organisation.
 Sometimes for offering something unique to customer involve lot of cost and resources
which is not affordable for firm. Hence, respective organisation have to think so much
before implementation of any staregy.
 In so many cases, firms produce so much differentiated products that it reduce the sales
of its existing products. Therefore firm need to make balance between differentiate
products and existing products.
 It is not necessary that every time customer like unique or different product offer by firm.
Therefore, an organisation should be ready to bear the loss of cost of production in case
customer doesn't like the product (Liao and Tsai, 2019).
Implementation
For implementing above staregy in business, Heaven scent floral can offer different and
unique products to their customer. They can ask customer regarding purpose for which they are
purchasing flower so that they can make flowers specially for that purpose. For example if
customer want flower for their wedding they can make red fresh flower for it. Moreover, while
selling flower to customers, given organisation can send special message to their customer for
the purpose they are purchasing flower. For example- if customer is purchasing flower for their
birthday party they can give happy birthday message along with it, by this customer would feel
more delighted and happy (Santos, Borini, and Júnior, 2020).
Identification of general objective.
General objective behind implementation of given staregy are.
 To achieve competitive advantage in market.
 To offer something unique to customers than its competitors.
 To attain large pool of customers from market.
 To attain profitable situation in market.

Formation of specific plans.
For formulation of specific plans. Mentioned firms need to consider following plans.
 Management of company can set up production department for production of flower as
per demand of customer. Management of mentioned organisation must keep consider that
production of flower must happen on time, they should be effective and efficient
regarding production of flowers.
 For sending special message to customer they can set up different department which will
type message for customer according to the purpose for which they are purchasing
flower. By this way, an organisation can delegate work among different individuals.
Resource allocation and budgeting
Resources Budget allocation(amount in $)
Production of flowers(1000 flowers) $20 for each flower (1000*20) $20,000
Paper used for writing message( 1000 papers) $50 for each paper (1000*50) $50,000
Total $1,00,000
Monitoring and control procedure
Monitoring means to check whether business performance of an organisation. Whereas
controlling means to comparison between actual performance and defined criteria to know
reason behind variations and correct it as soon as possible. For monitoring and controlling
mentioned organisation will take following steps.
 For testing the quality of flowers which company manufacture as per demand of
customer. Management can set up special quality department for which they can compare
actual quality with predefined quality tell by customer and get to know if it is happen
according to customer demand or not. If it not happen they they can take some days more
from customer to produce according to demand of customers (Song and Yu, 2018).

Bowman's strategy clock.
This strategy is a comprehensive and easy to use strategic tool used by companies that
provide options for positioning to the product in market on the basis of price and perceived
value. There are eight steps involves in this staregy are.
 Low price and low added value- Under this staregy firms set low price of their
products and on the basis of that it give low value of their products to customer in market.
 Low price- In this staregy, company sell large quantities of products to their customers
with low price. When customer purchase large quantity of products firm will get profit
and when customer purchase smaller quantity of products firm will get less profit.
 Hybrid- By applying this strategy, company offer unique and different products to their
customer along with lower price then competitors in market.
 Differentiation- This strategy focuses different products to their customer by offering
best quality than average quality to them.
 Focusses differentiation- Under given strategy, firm focuses on selling luxury and high
quality products to their customer at high price.
 Risky high margins- In this staregy, firms will offer products to customer at higher price
without making any changes in quality of product. This strategy will not give any specific
result to firm in long term.
 Monopoly pricing- In this staregy, firms generally create monopoly of their product in
market. Due to which they have no fear of competition as they are the one who are
determining price of product in market.
 Loss of market share- This strategy does not work out for any company. The customers
do not indulge in purchases as price are very high. The companies in this staregy offer
standard prices of their product to stay relevant and competitive in market and in the
minds of target customer (Wijethilake, Munir and Appuhami, 2018).
On the basis of above strategies, Heaven scent floral designs should use hybrid staregy in their
business model because by applying this strategy firm can offer unique and different products
than competitors at lower price, which will attract customer to purchase product of given
organisation and increase profitability of company.

Recommended strategy
On the basis of above discussed strategies like outside in strategy, differentiation strategy
and Bowman's strategy clock . The management of mentioned organisation should adopt outside
in strategy because by this strategy an organisation can study behaviour of their customer by
looking things from their perspective and can make changes their product or service on the basis
of their demand. Hence this strategy helps an organisation to clearly understand the demand of
customer to make changes in their product accordingly.
SAF matrix
SAF stands for suitability, feasibility and acceptability. This strategic model helps an
organisation to measure the return, risk and stakeholder reaction while applying particular
strategy in an organisation. The risk and return on any strategy can analyse on the basis of
following table.
SFA matrix Strategic option
Outside in strategy Differentiation
strategy
Bowman's strategy
clock
Suitability 10 5 4
Feasibility 20 6 5
Acceptability 18 9 2
Total 48 20 11
On the basis of above SFA matrix analysis it has known which strategy should given
higher number of weightage. The strategy which has higher number of weightage should be

adopted by management of mentioned company. In above table it can be seen that outside in
strategy has got highest number in SFA matrix. Therefore management should adopt this strategy
in their organisation. By this strategy firm can achieve its long term goals and profitability in
market (Zhou, Shan and Li, 2018).
Conclusion
On the basis report it has been concluded that strategy and innovation play a very crucial
role in overall success of an organisation. By selecting appropriate strategy a firm can achieve its
long term goals and by making innovation in their products or service firm can sustain in market
for longer duration of time. In this report it has been discussed that which strategy must be use
by an organisation out of outside in strategy, differentiation staregy and Bowman's strategy clock
to sustain in market for longer period of time. Moreover SFA matrix have also been discussed to
know which staregy is getting higher weightage among all three.

References
Books and journals
Ali, M., 2021. Imitation or innovation: To what extent do exploitative learning and exploratory
learning foster imitation strategy and innovation strategy for sustained competitive
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Cao, H. and Chen, Z., 2019. The driving effect of internal and external environment on green
innovation strategy-The moderating role of top management’s environmental
awareness. Nankai Business Review International.
Chen, M.H., Wang, H.Y. and Wang, M.C., 2018. Knowledge sharing, social capital, and
financial performance: The perspectives of innovation strategy in technological
clusters. Knowledge Management Research & Practice, 16(1), pp.89-104.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Gao, H., Hsu, P.H. and Li, K., 2018. Innovation strategy of private firms. Journal of Financial
and Quantitative Analysis, 53(1), pp.1-32.
Hanifah, H., Halim, H.A., Ahmad, N.H. and Vafaei-Zadeh, A., 2019. Emanating the key factors
of innovation performance: leveraging on the innovation culture among SMEs in
Malaysia. Journal of Asia Business Studies.
Kraus, S., Rehman, S.U. and García, F.J.S., 2020. Corporate social responsibility and
environmental performance: The mediating role of environmental strategy and green
innovation. Technological Forecasting and Social Change, 160, p.120262.
Liao, Y.C. and Tsai, K.H., 2019. Innovation intensity, creativity enhancement, and eco‐
innovation strategy: T he roles of customer demand and environmental
regulation. Business Strategy and the Environment, 28(2), pp.316-326.
Santos, L.L., Borini, F.M. and Júnior, M.D.M.O., 2020. In search of the frugal innovation
strategy. Review of International Business and Strategy.
Song, W. and Yu, H., 2018. Green innovation strategy and green innovation: The roles of green
creativity and green organizational identity. Corporate Social Responsibility and
Environmental Management, 25(2), pp.135-150.
Wijethilake, C., Munir, R. and Appuhami, R., 2018. Environmental innovation strategy and
organizational performance: Enabling and controlling uses of management control
systems. Journal of Business Ethics, 151(4), pp.1139-1160.
Zhou, X., Shan, M. and Li, J., 2018. R&D strategy and innovation performance: the role of
standardization. Technology Analysis & Strategic Management, 30(7), pp.778-792.

Appendix
Value proposition
Source: Inertia Product Development
Value proposition.

Bowman's strategy clock
Source: Marketing91
Bowman's strategy clock