Business Strategy EXERCISE

7/23/2019 Business Strategy EXERCISE

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Business Strategy


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Business Strategy


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Corporate Culture


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Analysis


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Strategic Planning


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Types of Strategy


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Evaluation


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Corporate Culture

The beliefs and values shared by people who work

in an organisation

How people behave with each other

How people behave with customers/clients

How people view their relationship with stakeholders Peoples responses to energy use, community involvement,

absence, work ethic, etc.

How the organisation behaves to its employees training,

professional development, etc.


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May be driven by:

Vision were te organisation

wants to go in te future

Mission Statement su!!aryof te beliefs of te organisation

and were it is now

Corporate Culture


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Corporate Culture

May be reflected in:

Attitude and beaviour of te leadersip

Attitude to te role of individuals in tewor"place open plan offices# tea! basedwor"ing# etc$

%ogo of te organisation

Te i!age it presents to te outside world &ts attitude to cange


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Corporate Culture

'at corporateculture do you tin"te following

businesses ave!anaged todevelop(

Virgin Group

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The Body Shop

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McDonalds

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Nike

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Strategic Planning

1irst Stage of StrategicPlanning !ay involve:

1utures Tin"ing

Tin"ing about wat te

business !igt need todo +-*- years aead

Strategic &ntents Tin"ing about "ey

strategic te!estat will infor!decision !a"ing

2Te tic"er te planningdocu!ent# te !ore uselessit will be3 4Brent 5avies: +6667

Ta"ing ti!e to tin" and reflect!ay be !ore i!portant tan !anybusinesses allow ti!e for8

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Strategic Planning

The VisionCo!!unicating to all staff were te

organisation is going and wereit intends to be in te future

Allows te fir! to set goals

Aims and b!ecti"es:

Aims long ter! targetb!ecti"es te way in wic you

are going to acieve te ai!


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Strategic Planning

E/a!ple:

Aim!ay be for a cocolate!anufacturer to brea" into

a new overseas !ar"et b!ecti"es:

5evelop relationsips wit overseas suppliers

&dentify networ" of retail outlets

Conduct !ar"et researc to identifyconsu!er needs

1ind location for overseas sales tea! 9


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Strategic Planning

;nce te direction is identified:

Analyse position

5evelop and introduce strategy

Evaluate:

Evaluation is constant and te resultsof te evaluation feed bac"into te vision


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S';T

Strengths identifying e/istingorganisational strengts

#eaknesses identifying e/istingorganisational wea"nesses

pportunities wat !ar"etopportunities !igt tere be

for te organisation to e/ploit( Threats were !igt te treats

to te future success co!e fro!(


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PEST $olitical:local# national and international

political develop!ents ow will tey affectte organisation and in wat way.s(

%conomic:wat are te !ain econo!ic issues

bot nationally and internationally tat!igt affect te organisation(

Social:wat are te developing social trendstat !ay i!pact on ow te organisation

operates and wat will tey !ean for futureplanning(

Technological:canging tecnology cani!pact on co!petitive advantage very 0uic"ly8


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PEST

E/a!ples:


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1ive?1orces De"eloped by Michael $orter: forces that shape and

influence the industry or market the organisationoperates in&

Strength of Barriers to %ntry? ow easy is it

for new rivals to enter te industry( %'tent of ri"alry bet(een firms ow co!petitive

is te e/isting !ar"et(

Supplier po(er te greater te power# te less controlte organisation as on te supply of its inputs$

Buyer po(er ow !uc power do custo!ersin te industry ave(

Threat from substitutes wat alternative productsand services are tere and wat is te e/tentof te treat tey pose(


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@e0uired &nputs Canging strategy will i!pact on te resources

needed to carry out te strategy:

Specifically te i!pact on:

%and opportunities for ac0uiring land fordevelop!ent green belt# brownfield sites#planning regulations# etc$

%abour ease of obtaining te s"illed and

uns"illed labour re0uired

Capital te type of capital and te cost ofte capital needed to fulfil te strategy


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Evaluation

5ata fro! sales#profit# etc$ usedto evaluate teprogress andsuccess of testrategy and toinfor! of cangesto te strategy inte ligt of tatdata

&nfor!ation fro! a wide variety of sourcescan elp to !easure and infor! te i!pactand direction of te strategy$

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Types of Strategy

)ompetiti"e Ad"antage so!etingwic gives te organisation so!e

advantage over its rivals )ost ad"antage A strategy to see"

out and secure a cost advantageof so!e "ind ? lower average costs#

lower labour costs# etc$


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Types of Strategy

Market Dominance: Acieved troug:

&nternal growt Ac0uisitions !ergers and ta"eovers

Ne( product de"elopment:to"eep aead of rivals and set te pace

)ontraction*%'pansion focus onwat you are good at 4core co!petencies7 orsee" to e/pand into a range of !ar"ets(


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Types of Strategy

$rice +eadership trougdo!inating te industry oters follow

your price lead Global see"ing to e/pand

global operations

,eengineering tin"ing outside te

bo/ loo"ing at news ways of doingtings to leverage te organisation>sperfor!ance


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Types of Strategy

&nternal business level strategies

Do(nsi-ing selling off unwantedparts of te business si!ilarto contraction

Delayering flattening te!anage!ent structure# re!oving

bureaucracy# speed up decision !a"ing ,estructuring co!plete re?tin"of te way te business is organised

Documents

Business Strategy EXERCISE