Strategic Planning Report: Vista's Multinational Business Expansion

This report provides a comprehensive strategic plan for Vista, a multinational firm aiming for business expansion. It begins with an introduction to strategic planning and outlines Vista's mission, vision, and business plan. The report analyzes external factors affecting the organization using a PESTLE analysis and explores the influence of stakeholder expectations on Vista's operations. It then presents Vista's mission and vision statements and delves into strategic options for the company, including market penetration, market development, product development, and diversification, with a recommendation for diversification. The report evaluates the strategic direction, considering both the risks and potential benefits of diversification. Finally, it details the structure of the strategic plan, stakeholder involvement, dissemination processes, and monitoring systems to ensure successful implementation.

STRATEGIC PLANNING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.Organizational vision, mission, strategy and business plan.....................................................1
2. External factors that affect the organization............................................................................2
3. Influence of stakeholder expectations on organization...........................................................3
TASK 2............................................................................................................................................3
4. Mission and vision statement of the organization...................................................................3
TASK 3............................................................................................................................................5
enclosed in ppt.................................................................................................................................5
TASK 4............................................................................................................................................5
Strategic options for the company...............................................................................................5
Potential strategy option available to firm...................................................................................5
Evaluation of strategic direction..................................................................................................5
TASK 5............................................................................................................................................6
Structure of plan..........................................................................................................................6
Involvement of stakeholders........................................................................................................6
Dissemination process to inform stakeholders............................................................................6
Monitoring system for successful implementation of strategic plan...........................................6
Strategic plan...............................................................................................................................7
CONCLSUION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic planning is the systematic pan of achieving the business goal. Companies
implements effective strategies in systematic manner so that it can meet with its organization
goal. Present study is based on Vista which is a multinational firm and want to expand its
operations. Present study will explain vision, mission of Vista company. It will evaluate how
expectation of stakeholders influence the organization. Furthermore, report will describe
importance of review in developing firm’s strategy and business planning. Strategic direction
available to business will be analyzed. Strategic plan will be prepared for Vista alone with
monitoring strategies to ensure successful implementation of this plan.
TASK 1
1.Organizational vision, mission, strategy and business plan
Mission – VISTA is focused on making the world cleaner by balancing the ecosystem and
saving the energy and providing economic stability to the people and the organization. The
company is providing solutions related to the energy conservation and protecting environment by
providing quality products and excellent services to their customers and clients worldwide.
Vision - The main purpose of this company is to reduce efficiency of carbon and fulfilling the
necessities of the global community (Wolf and Floyd, 2017). Their vision is to make the planet
earth green and pollution free by improving the environment, their legacy is to make the world
better than earlier.
Strategy – Vista uses two types of strategies that help them to expand their market in different
countries which are as follows:
 Vertical expansion (Manufacturing) – With the use of this strategy, Vista lower their
production costs and increases the profit when expanding their business in other
countries.
 Horizontal expansion (Production) – Vista uses this strategy to set up their production
units in the host country and distribute in the same country which saves transportation
costs and operation costs.
Business plan – The business plan gives the direction and purpose to the organization in order to
move forward. Vista gives first priorities to the mission and vision of the company which helps
1

them to set strategies to accomplish the objectives, manage cash flow and make decisions related
investment.
The mission and vision of the organization is dependent upon the strategies and business
plan as the objectives and goals of the organization can only be achieved through marketing
strategies which is implemented to improve the economic condition of the world. The vision is
something the Vista wants to achieve, mission gives the statement to achieve that vision whereas
strategies and business plans are the ways to use that mission to achieve the vision of the
organization, therefore, they all are inter-related with each other.
2. External factors that affect the organization.
Pestle analysis will helps the organization to collect the details about the challenges that
Vista is going to face in the macro environment other than competition in the marketplace.
Political factor – This factor plays a important role as it directly impact on the profitability of
the company. Vista is operating in more than 12 countries so it exposes itself to the political risks
such as taxation, wage legislation, trade regulations and tariff. The changes in political factor
such as rules and regulation will affect the organization as it vary from country to country, if a
country implement tariffs, taxation or environmental regulations then changes like this can affect
the organizational strategy to expand their business.
Economic factor – The factors like inflation rate, foreign exchange rate helps to determine the
demand and investments within the economy (Nickols, 2016). Vista company can affected if the
country's economic stability and exchange rates are not good, it will directly affect their
productivity. The changes in this factor like inflation rate and exchange rates can affect the
organization strategy in raising their profitability and growing their business.
Social factors – The culture of the society, attitudes and shared beliefs can affect the
organizational culture. The changes in the demographics and population of the country can affect
the organizational strategy in recruiting qualified candidates which is the main resource in
achieving the organizational mission and vision.
Technological factor – The rate at which use of technology is developing by the competitors of
the Vista can affect its cost structure and offering of products and services to the customers. It
also impact on the structure of value chain. The changes in this factor can affect the operations
and functions of the organization which overall affect its strategies and business plan.
2

3. Influence of stakeholder expectations on organization.
Stakeholders are the internal and external entities which are the part of the business in its
operations and functions or implementing the strategies to increase the business performance and
profitability. Therefore, the consideration of stakeholders expectation is crucial for the
organization and give equal importance to the owners and investors and can influence the
organization.
Vista has internal, external and connected stakeholders and are important for the business
and must plan according to the needs and expectations. For example, the owner, board members
and employees are the internal stakeholders and the owner must consider the expectations of it
employees like flexible working hours, rewards and benefits which will influence the
organization goals and objectives. It will overall affect the business plan as the stakeholders have
the ability to carry out the operation and functions of the organization.
The business in the market only exist to meet the needs of stakeholders so that the owners
and investors can gain profit though operations and functions. For example, the local community
existence which are the external stakeholders must be given consideration in fulfilling their
expectation as they are the reason that improves the brand recognition and its presence in the
marketplace (How Do the Needs & Expectations of Stakeholders Influence a Program's Plan?,
2019). The organization must consider only those stakeholders which are beneficial and have
interest in working and less influence on operations of the organization.
The connected stakeholders like suppliers must be given equal importance and profit as
they are the main source of delivering the raw materials for the company and if there
expectations are not maintained then it will influence the quality of products and services and
overall influence the reputation of the company (Albrechts, 2015). This can drive the values and
influence decision-making process of the management and impact on their sales and consumer's
loyalty.
TASK 2
4. Mission and vision statement of the organization.
Mission statement – Vista is a multi-national company which is focused on providing various
solutions to the country in order to improve short and long term goals related to infrastructure
and will try to invest excess of time in understanding the project and considering the various
aspects like project sustainability, employment and environmental concerns and to achieve their
3

mission they are planning to use advance technologies which will help in production and
managing the workforce efficiently and effectively (Buehring and Liedtka, 2018). The main
objective of the Vista is to ensure safety and gaining the loyalty of their customers by providing
quality products and services with the help of teamwork and integration. The financial team of
the organization aims in dealing the products and services at reasonable rates to their customers
and clients.
Vision statement – The company's vision is provide quality services to the community and their
employees. Vista has acquired some beliefs and values which is used to make the business
climate and profit level efficient. The organization has also developed some initiatives which
helps the people to make self-sufficient and secure. For example, the organization started the
program called AmeriCorps VISTA which can help to improve the lives of communities and
strengthening them and boost employee engagement in providing professional services. They are
also developing programs to engage ethical young adults which can work with compassion and
courage in order to implement changes in the global community. With this vision statement they
can eliminate poverty within the community and make the world better to live again.
The well structured mission and vision statements can help the stakeholders to understand
the business objectives and goals and what are their roles in the organization (What Do Clear
Vision & Mission Statements Contribute to the Strategic Management Process, 2019). With
these statements the company can implement new strategies or business plans to resolve the
problems and expand their services worldwide. The vision statement provides guidance to the
employees which will motivate them in order to successfully implement that strategy. With these
statements , managers are able to set strategic plans which can accomplish organizational long-
term goals and objectives.
The external influences like social, technological, political and economical changes can
impact the organizational strategies as the changes in political factor will affect the business to
expand their business in other countries such as changes in rules and regulation will affect the
strategies to grow their business globally.
4

TASK 3
enclosed in ppt.
TASK 4
Strategic options for the company
Ansoff matrix is the tool which supports in identifying strategic options available to
business which can support them in improving their performance in the market.
 Market penetration: This is the option or strategy in which small organisation can sell its
products in existing market, this supports in attracting local consumers and increasing
market share in existing market.
 Market development: This is another direction in which Vista can develop its market and
can enter into new location to sell its existing products (Floros, 2015). This would be
beneficial in expanding business across the world and increasing profitability as well.
 Product development: In this option Vista can implements innovation and can enhance
range of consumers by considering needs of different buyers. This would be beneficial in
targeting new consumers and enhancing its number of buyers as well.
 Diversification: Vista can enter into new market and can sell new products as well. This
diversification will help in gaining competitive advantage.
Potential strategy option available to firm
Vista should take assistance of diversification strategic option, though it can increase risk
but development of products and market will give amazing results to the organization, as it will
be able to establish its branch into new location and will be able to target mass audience by
offering them variety of products. It is fact that high risk has high return as well. Companies can
attract new potential buyers by taking support of diversification strategy and also it may help in
sustaining in the market for longer duration.
Evaluation of strategic direction
Diversification is the risky task because sometimes companies may get fail to analyses
external market effectively which gives negative results to the firms. If enterprises evaluate the
market condition properly before entering into such location then It would be beneficial in
gaining competitive advantage and sustaining in market for longer duration. This diversification
strategy may give positive results in term of raising its profitability and raising number of
potential buyers as well. It is beneficial in establishing itself successfully in global market but if
5

Vista fails to understand needs of different consumers significantly then it might get fail to run
its business successfully. Even though, Diversification leads to high risk ratio for most of the
companies, but capturing a great market share will enable Vista to operate consistently in wide
economies of scale which eventually will lead to greater synergy in marketing and production.
Besides this, if vista is able to use this strategy effectively then it will drive down its unit cost
apart from administrative expenses and overhead costs. In terms of expansion, Diversification
would result in enhanced linkages with varied production stages which would increase the
relations with suppliers and hence will empower them to produce quantity at low cost and better
custom-made services at affordable price.
TASK 5
Structure of plan
It is very important for the firm to deliver the strategy plan in significant manner and for
that they require proper structuring. Management are required to coordinate with employees
properly and involve them before making the final strategic plan. Involvement of all level of
workers may help in gaining some interesting and innovative idea which may help in
accomplishing goal of Vista successfully (Bieler and McKenzie, 2017). Management has to pay
attention on quality and raising the brand value by making correct strategic plan. Planning must
be done in such manner so that needs of all stakeholders can be met. There should not be any
kind of communication gap between any level of workers. This structuring will help to deliver
strategy in systematic manner.
Involvement of stakeholders
There are many stakeholders of Vista such as mangers, employees, investors etc.
Involvement of all level of stakeholders help in analysing their interest and making plan in such
manner so that their needs can be met. Vista can send email to all employees and management
people in order to involve them in strategic planning process or in formation of plan. Investors
can be involved by sending them fax of telephonic communication. this would be great efforts
which would aid in involving all stakeholders and making great plan.
Dissemination process to inform stakeholders
Vista group has systematic dissemination process in initial phase it enhances awareness
among all stakeholders about the strategic plan. It involves description of plan, its benefit and
entire process. In second phase firm involve stakeholders and engage them so that effective plan
6

can prepared. In third phase final results are acknowledged and best practices are coordinated
with all stakeholders.
Monitoring system for successful implementation of strategic plan
In order to monitor the progress of strategic plan Vista has to do financial analyses. By
reviewing annual reports and comparing it with other competitors and previous performance
Vista would be able to analyses whether this strategic plan has given desired results or not.
Furthermore, customer and stakeholder analyses is another monitoring strategy in which entity
can take feedback of consumers and its stakeholders whether they are satisfied or not (Vecchiato,
2015). These monitoring strategies will be helpful in analysing the success of plan. If plan is not
giving satisfactory results, then Vista and make contingency plan and can make necessary
changes to achieve its goal.
Strategic plan
Mission
To gain the global brand image is the mission of Vista.
Vision
To become market leader in this industry is the vision of Vista.
Environmental analyses
Strong distribution network is the main strength of Vista. Strong brand image is strong
point of the company. High staff turnover is the major weakness of the firm due to which
enterprise is facing issues in gaining competitive advantage. Poor investment strategy is another
drawback of Vista. Globalisation can create opportunities for Vista and it can expand its business
globally. But changes in law and economic conditions can create threat to the business unit.
Strategy formulation
Vista can take support of skimming pricing strategy this would help in gaining attention
of mass audience in Singapore. Furthermore, it can promote the brand through social networking
sites. By this way consumers will know more about the brand and will take interest in buying its
products.
Monitoring and controlling
Customer feedback and financial analyses will the monitoring strategies that will be
implemented by Vista in order to analyses success of strategic plan.
7

CONCLSUION
From the above study it can be articulated that effective planning support company’s in
gaining positive results. If strategies of the firm are worthwhile then it may help in increasing
profitability of the enterprise to great extent. Diversification is the great option that may help the
firm in gaining attention of mass audience and enhancing their satisfaction level as well.
Appropriate monitoring and controlling supports business unit is identifying issues in existing
plan and entity can make necessary changes in planning so that overall goal of the firm can be
accomplished.
8

REFERENCES
Books and Journals
Wolf, C. and Floyd, S.W., 2017. Strategic planning research: Toward a theory-driven
agenda. Journal of Management. 43(6). pp.1754-1788.
Nickols, F., 2016. Strategy, strategic management, strategic planning and strategic
thinking. Management Journal. 1(1). pp.4-7.
Buehring, J.H. and Liedtka, J., 2018. Embracing systematic futures thinking at the intersection of
Strategic Planning, Foresight and Design. Journal of Innovation Management. 6(3).
pp.134-152.
Albrechts, L., 2015. Ingredients for a more radical strategic spatial planning. Environment and
Planning B: Planning and Design. 42(3). pp.510-525.
Vecchiato, R., 2015. Strategic planning and organizational flexibility in turbulent
environments. Foresight. 17(3). pp.257-273.
Bieler, A. and McKenzie, M., 2017. Strategic planning for sustainability in Canadian higher
education. Sustainability. 9(2). p.161.
Schiffer, M. and Walther, G., 2018. Strategic planning of electric logistics fleet networks: A
robust location-routing approach. Omega. 80. pp.31-42.
Floros, J.D., 2015. Academic Leadership through Strategic Planning. Academic Leadership in
Higher Education: From the Top Down and the Bottom Up. 161.
Ford, M.R. and Ihrke, D.M., 2019. School Board Member Strategic Planning Prioritization And
School District Performance. Leadership and Policy in Schools. pp.1-13.
Salas, J. and Yepes, V., 2018. Urban vulnerability assessment: Advances from the strategic
planning outlook. Journal of cleaner production. 179. pp.544-558.
Online
How Do the Needs & Expectations of Stakeholders Influence a Program's Plan?. 2019. [Online].
Available through<https://smallbusiness.chron.com/needs-expectations-stakeholders-
influence-programs-plan-36119.html>
What Do Clear Vision & Mission Statements Contribute to the Strategic Management Process
.2019. [online]. Available through<https://smallbusiness.chron.com/importance-planning-
organization-1137.html>
9