Successful Strategic Thinking: Theories and Processes Report

This report provides a critical literature review of key theories on how strategy is developed and implemented, focusing on the relationship between strategy, innovation, and change. It analyzes Porter's Five Forces model and the Ansoff Matrix as strategic tools. The report includes a critical analysis of strategic processes within an organization, assessing the extent to which people are engaged with the strategy and offering recommendations for improvement. The introduction defines strategic processes and their impact on organizations, while the main body delves into various strategic models and their application. The conclusion summarizes the key findings and insights regarding strategic thinking and its practical application within an organization to enhance performance and achieve goals. The report emphasizes the importance of strategic planning and decision-making, drawing on academic research and real-world examples to illustrate key concepts.

Successful Strategic
Thinking

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
A critical literature review of key theories of how strategy is developed and implemented,
and the relationship between strategy, innovation and change..............................................3
Porter's strategy theory criteria:.............................................................................................4
Asoff matrix:..........................................................................................................................6
A critical analysis of selected strategic processes within . organisation, or an organisation
of . choice, related to relevant theories..................................................................................8
An assessment of the extent to which people within the organisation are engaged with and
contribute to a selected strategy.............................................................................................8
Recommendations about how strategic processes within the organisation could be
improved................................................................................................................................8
CONCLUSION..........................................................................................................................8

INTRODUCTION
Diverse definitions represent different perspectives on the principles of strategy
processes and their consequences for businesses and non-profits. Strategic processes are high-
level processes that companies and institutions face in their day-to-day operations. They
might include duties that require a high degree of intellectual capability and have a broad
impact on the structure and operation of businesses, organisations, or corporations. The
nature, organisation, and operation of these strategic processes can be likened to those
performed by the human brain, which are primarily concerned with intellectual talents and
talents. Within and outside the company, several aspects of strategic processes may be
noticed.
The policies, plans, and planning objectives that an organisation incorporates into
operations to improve its performance have a significant impact on strategic processes. This
paper will consider the characteristics of strategic processes in general, the theories and
models that are essential in implementing strategic processes, and recommendations that are
relevant to the implementation of these processes to improve the functioning and
performance of a business organisation in order to better understand strategic processes.
MAIN BODY
A critical literature review of key theories of how strategy is developed and implemented,
and the relationship between strategy, innovation and change
As per the view point.......A business strategy is the method through which a company
sets out to accomplish its goals. Long-term business planning is the simplest way to express
it. A corporate plan is usually written for a period of three to five years (sometimes even
longer). A business strategy is a collection of guiding principles that, when communicated
and implemented throughout a company, results in a desired pattern of decision-making. It is
therefore about how employees at all levels of the business should make choices and allocate
resources in order to achieve critical goals.
As per the view point of ....... There are number of authors who provided there contribution
in business strategies Because of his willingness to challenge previously hallowed principles

in business and management, Henry Mintzberg has been dubbed "the great management
iconoclast." His common sense approach to management difficulties has won him a large
following, and he is arguably most recognised for his work on company strategy, which is
credited with exposing the gaps between academic ideas of strategy and reality. Michael
Porter, the other major modern-day strategist, has published numerous successful books on
business strategy, with a special focus on organisational and governmental competency and
competitiveness. Igor Ansoff, like him, is a well-known contributor to the evolution of
corporate strategy thought and practise. He was a prominent proponent of the 'Planning'
school of thinking, and was widely regarded as one of the pioneers of strategic planning. His
1965 book 'Corporate Strategy' focused primarily on external, rather than internal, concerns
of organisations, such as product matching to various types of markets - for which Ansoff
introduced his well-known Matrix (Ansoff's Matrix), another strategic planning tool that is
still widely used today.
Porter's strategy theory criteria:
Porter's five forces model is intended to discover and evaluate five competitive factors
that assist businesses understand their industry and identify their strengths and weaknesses.
This approach may be applied to any industry to detect and analyse the degree of competition
in the marketplace, as well as to create a company's long-term profile. This model is
commonly used or utilised to analyse a company's structure and business strategy. The five
forces are commonly used to assess and quantify a company's competitive intensity, profile,
and profitability. Porter identifies five forces, which are listed below:
Competition in the industry:
This is the first of the five forces models, and it is based on the number of competitors
and rivalry, as well as their capacity to undercut an organisation. Williamson (Williamson,
2018). If an organization's competitor is capable of providing modified offerings at a cost-
effective pricing, the buyer and supplier look for it. Conversely, when competitive
competition is low, opportunities abound, and the organisation has far more ability to offer
and establish high pricing in order to maximise profit and sales.
Potential of new entrants into an industry:

Organizations have power, and new entries into the market space have an impact on
that power. It takes less time and money for a competitor to enter the market and become a
more effective competitor. Existing organisations within that Marketplace benefit from
organisations with strong barriers to entry because they may establish significantly higher
costs or prices and negotiate different conditions.
Power of suppliers:
This approach considers how provider may raise material and input costs. This factor
is influenced by the number of major input providers for a product or service, which indicates
how distinctive the product or material is and how much it would cost an organisation to
switch providers. If a company must provide due to its financial soundness, it is more reliant
on its suppliers. According to the research, the company's suppliers have more leverage to
raise input costs and obtain sales benefits. On the other hand, if the firm has several suppliers
or has a difficult time switching prices among competitive suppliers, this technique might be
advantageous to the firm in order to maintain their input costs low and boost profits.
Power of customers:
This is another model of the five forces that explains the capacity of customers to
decrease prices and their levels of power as one of the components of this force. This is also
influenced by the number of buyers or customers a company has, which helps to define how
significant a customer is to the firm and how much it will cost to analyse and select new
consumers or markets for the firm's outputs. A smaller and more powerful client base has
greater negotiating leverage to get better rates. Small and medium-sized businesses find it
simple since their customers are self-sufficient.
Threat of substitute
This is the fifth and last model in the five-force model, and it focuses on substitutes.
Substitute products and services for those used by the firm to create a threat. Customers will
have the choice to forego acquiring and buying a company's goods if closed-won substitutes
are accessible on the market, and the company's power will be diminished. They are mostly
focused on industry rivalry in order to obtain competitive advantages and become more
successful. The organisation is concentrating on determining the best path or direction to

develop and gain additional competitive advantages, allowing them to improve productivity
and income. They are primarily concerned with industry competitiveness in order to assess
the strength of competitors and the possibility of new entrants.
The competitors of the company
Catering by design and sogeres are the company's greatest rivals, and they are
working heavily on them in order to enhance their profitability and efficiency. It is critical for
a firm to analyse its rivals' strategies in order to get a competitive edge. Sogeres provides the
catering services. There are fruits, herbs, snacks, beverages, and other products to choose
from. The organisation provides services to institutions, nursing homes, hospitals, business
marketplaces, and others.
Asoff matrix:
Ansoff's methodology will be appropriate for HSBC in the context of these goals.
This strategy can help a firm achieve its commercial and corporate goals in a more efficient
manner. It is a tool that assists businesses in determining the most effective growth plan.
There are four techniques in this measure that help the firm assess the risk of each strategy.
These are the guidelines that Company A can utilise.
Market penetration:
Firms mostly utilise it to increase market share. In this technique, the firm lowers
product pricing in order to attract and keep clients for a longer period of time. It is typically
used by companies who have recently entered the sector and wish to meet their goals. It is
computed by comparing the quantity of sales volume to the market of targeted clients. It is
split down into components that must be connected with favourable market circumstances in
this regard. To acquire a foothold in the market, company A might employ a market
penetration strategy. It will enable the business to attract clients who are eager to acquire
items in order to get a competitive edge.Organization A may also suffer various
disadvantages, such as a tarnished brand, a saturated market, reduced industry pricing, and so
on.
Product Development:

This is a component of Ansoff's strategy, which focuses on producing new products to meet
the needs of current clientele. For this reason, the corporation invests in research and
development so that it is aware of changing client tastes and preferences (Kiss and Barr,
2017). Many businesses desire to expand their product line, therefore they use a development
strategy. It is beneficial to businesses with long-term industry sustainability goals. It can help
achieve greater profitability, customer happiness, a good reputation, lower staff turnover, and
so forth.This strategy can help Organization A since its target consumers are those who value
innovation and creativity. It is also helpful for internal management. Completion, additional
costs, and other risks that the firm may face.
Market Development
The goal of this strategy is to break into a new market by selling current items. It's
commonly employed by major multinational corporations that want to succeed in the
worldwide market after dominating their home market. Because it discovers and creates new
places to market current items, this technique is often referred to as a growth strategy. This
sort of strategy may be used by Organization A to expand into new markets and generate
income. Capital requirements, increased marketing efforts, and the construction of new
locations are some of the obstacles that this approach will face.
Diversification
It refers to the creation of dissimilar parts that are entirely distinct for a business. It
seeks to maximise returns by leveraging resources across several business sectors (Trang,
2018). Organizations that wish to reduce risk by investing in distinct components typically
choose this method. This will assist the company in achieving its long-term financial goals
by decreasing the risk of loss . Organization A may choose this technique since its structure
is complicated and it can achieve its desired goals using this method. The firm may
encounter difficulties such as quality decline, mismanagement, and so on.
A critical analysis of selected strategic processes within organisation, or an organisation of .
choice, related to relevant theories
A new product is one that has a new brand name, or one that has been launched as a new item
or line extension; it is also used to refer to an enhanced product, an existing brand, or a new

size. New product development (NPD) is a phrase used in business and engineering to
represent the whole process of bringing a new product or service to market. This description
begins with the discovery of a market opportunity and concludes with the successful launch
of the product. Many tasks are intertwined in an NPD project, including categorising needs,
creating and testing a product concept, completely defining and developing the product,
finding suppliers, establishing manufacturing processes and supply chains, and building
marketing campaigns. ..... is credited as one of the most extensive studies on NPD, in which
the NPD is shown as a stage-gate system. An NPD system may be thought of as a series of
development stages interspersed with assessment stages. And each step has a link to a gate,
which has criteria for determining if certain activities have been completed efficiently and
successfully. The performance of the NPD endeavour may then be evaluated, and
management can make any necessary modifications. Various sectors in many countries use
NPD management to maintain competitiveness. They are now transitioning their industrial
structure from labor-intensive to technology-intensive, service-oriented patterns, with a focus
on industrial innovation and new product development capacity. Taiwan's industrialisation
achievement has resulted in a "economic miracle" that has captured the world's attention. The
lessons learned from Taiwan's industries can be recovered and applied by other emerging
Asian countries.
Product development strategy examples
Amazon is a good example of a customer-focused product development strategy. Its whole
product strategy revolves around the demands of their customers. Amazon like to start with
the target market and move backwards. They start by writing the product's press release and
fine-tuning it until the language is clear enough for everyone to grasp. There is no technical
jargon regarding technology or user interfaces in the press release. After that, they work their
way backwards from the press release to the product. This is a product development approach
that focuses on Amazon's internal method of connecting with consumers to build a specific
product that addresses a specific need.
Apple is an example of a platform/derivative approach that links top-level strategy to product
development. The IT behemoth is mostly focused on its products. Apple develops things and
then seeks for a market for them. Customers don't always know what they want, according to
Steve Jobs. Apple believes that people would pay a premium for exceptional items, therefore

it focuses on improving existing products. It relies on brand loyalty and is content to let
competitors control the market for lower-cost alternatives to Apple's products.
The majority of Google's new product development strategies are technology-driven. Google
believes in the power of technology to “solve a large problem in a big way.” This is a market-
oriented strategy since Google prefers to increase the market for everyone, which helps
Google maintain its position as the market leader. Google likewise prioritises expansion
above income. Google's product development approach is long-term, as it should be for a
firm that has been a market leader for so long.
Microsoft is a great example of a partnership-based product innovation method. Microsoft
CEO Satya Nadella remarked, "Our industry does not respect history; it only appreciates
innovation." In 2014, the mature IT behemoth began its strategic shift. It gave up the
smartphone business to its competitors and put its money on AI and the cloud. It established
an artificial intelligence section with tens of thousands of engineers and scientists. It also
stopped being so pushy and started emphasising relationships. It embraced open-source
software and by 2017 had become the largest contributor to open-source technology. Unlike
Google, Twitter, and Facebook, where user data is the product, Microsoft now offers a
distinct product.
To increase adoption and retention, Netflix has a profit and margin-driven approach.
Netflix is the world's most popular streaming service. Netflix's main offering is a membership
that includes limitless content access. Its product approach prioritises profit expansion. A
crucial statistic is monthly retention. It has been more focused on producing high-quality
original content in order to keep viewers glued to their screens. Netflix has built a strong,
trustworthy brand that promises "movie enjoyment made simple." Competitors will find it
tough to match its strong brand, simplicity of use, and customisation.
Product development growth strategy
There are several product development strategies that concentrate on various aspects
of the new product development process (including what to do with current goods) and the
product development organisation. Three types of market position are frequently used to
guide product development strategy:

Products that is high-end, unique, and inventive. High Cost/High Value
Competitively priced items that differ only in minor details, such as price.
When it comes to low-cost items, the quality is frequently adequate.
The first category above will have the greatest product development or R&D
expenditures, generally in the range of 10-20%, the competitively priced approach will be in
the 5-10% area, and the low cost category will require less engineering and R&D spending
will be below 5% of sales. Software businesses generally spend 10-25 percent of revenue on
development and testing, making tech product development techniques costly. This is also
true for businesses that specialise in new product launches. It's worth noting that the
company's risk tolerance may play a role here, and it's typically better to consider a product
portfolio management strategy. By concentrating on time to market, technology and market
risk, a solid platform that spins-off families of goods, or customer insights and internal
procedures to generate the best current solution, product development strategies either
complement or empower those positions.
Approach based on the passage of time
When it comes to product development, one method focuses on when . new product offering
hits the market. Entrants compete on time to market under this strategy. Either a firm is an
innovator, creating a whole new product category, or it is a quick follower, with the objective
of speedy commercialization, or it is a “me too” product.
The following are three product strategies that are frequently used:
First time on the market
Laggard
the Quick Follower
According to the findings, firms who are first to market receive the benefits. There is a
significant link between innovation and long-term product development success. One
approach that is often used to reduce the amount of time it takes to complete a task is to
shorten time to market is an escalation process.

Approach based on the market
Another typical way to think about product development methods is to think about the
dimensions of target market or target audience (marketing strategy focussed). This is
frequently shown as a focus on technical or market innovation. A new product development
reflects either a technological innovation inside an existing market, the discovery of new
commercial uses for existing products, or the creation of completely new market Five main
sorts of product development strategies emerged from market-oriented research
Innovators who make new technologies with their current resources and offer them in
existing markets.
Technology investors, primarily through acquisitions or joint ventures with other
companies (for example with a university research center).
Existing items are taken by new market searchers and used to try to identify new
markets for them. A game design business, for example, may market a game-like
software that helps HR screen new applications.
Companies that are doing business as usual continue to put out existing products into
established markets, attempting to compete on price, margins, or distribution.
Companies in the middle of the road are content to adopt a step-by-step approach to
product and market innovation, preferring to focus on updating current items.
An assessment of the extent to which people within the organisation are engaged with and
contribute to a selected strategy
Every product began with an idea. Product innovation can start with a team member
proposing a notion that finally makes it to the other side of the arduous product development
cycle: the market. However, not all ideas suffer the same fate since not all ideas are great or
even excellent. Product-driven businesses have an on-going struggle in generating viable
ideas and shepherding the finest ones into the hands of customers. This may be the final
objective, but creativity and execution are difficult to come by. While 75% of executives are
concerned about a lack of ideas, Patrick Tickle, Chief Product Officer at Plainview, believes
that too many terrible or average ideas clog the project funnel and come from a small number
of people. With too many projects and not enough time, resources become overburdened, and
the incorrect projects frequently monopolise that time.

Collecting additional ideas from the same individuals, particularly those on the
innovation team, isn't necessarily the key to product innovation. Instead, businesses should
cast a wider net and then focus on the most promising and low-risk concepts. According to
recent research, 31% of suggestions come from outside the group attempting to address the
problem. Companies that restrict product innovation within the four walls of R&D are
missing out on a third of the potentially game-changing ideas, whether the objective is to cut
product maintenance times or to build new, smart, connected goods to enter adjacent sectors.
How to Engage Employees
Learn about them: It appears to be straightforward, and it is. Spending time with and
getting to know r workers is a simple and effective method to engage them. Learning about
their families, histories, and personal objectives allows to build a deeper relationship with
them as a manager. Make time during the day to greet them, inquire about their families, and
learn about their interests. This is a simple and easy way to let r employee know that their
presence is appreciated and that care about them as a person. Employees who feel
appreciated are more interested in their work and perform better, according to research.
Give them the resources they need to succeed: As a manager, must not only
supervise various aspects of the firm, but must also ensure that r staff understand what they
are doing. Training tailored to their unique job descriptions might help employees feel more
confident in their abilities. When one of r team members is unclear of what to do or how to
handle a problem, productivity might suffer as they try to figure out what to do. It's possible
that a little snag will turn into a major one if it becomes too overpowering. Even if more
coaching or training is required, laying a solid foundation for r workers' future duties is a
smart first step.
Inform them of the company's progress: They are the company's backbone, and
their success or failure is often dependent on them. They should be informed about the
company's accomplishments, problems, and challenges in order for them to have a vested
stake in its success. Give workers a rundown of not only the company's successful projects,
but also the ones that didn't turn out. Allowing r staff to understand what works and what