Strategic Planning- HND in Business

Management (RQF)

Introduction to the
Organisation

Organisation mission/Vision /
Objectives

Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies

1. Situational
Analysis

Brief explanation on Situational

Analysis

o Macro Environmental Analysis (should provide critical evaluation how the

identified

factors impact on decision

making)

▪ PESTEL
analysis

Need to provide brief introduction to the macro environmental analysis and explain the
importance of

PESTEL
analysis.
Threat
PEST
EL

Fact Impact
or Level
rganization Opportunity Impact
Level
or
 (L/M/H) l
(L/M/H)
o

P
Reduction
of

Increase
in

c developme
nt
i

Tax War Crime

Accusation

conomic
E

l
a

Analyse the internal environment and capabilities of a given organisation using appropriate frameworks

Environmental Analysis (critical evaluation should be conducted and final

outcome should be link with the organizational capabilities)

Need to provide brief introduction to the micro environmental analysis and explain the importance of

different analysis that can be conducted through different models/ techniques

▪ RBV

Explanation on RBV

Resource Category Resource Physical Financial Human

▪ VRIO analysis

Explanation on VRIO

VIRO Factor Resource Capability Value • Which activities lower the cost of production without
decreasing perceived customer value?
• Which activities increase product or service
differentiation and perceived customer value?
• Have your company won an award or been
recognized as the best
in something? (most innovative, best
employer, highest customer retention or best
exporter)
• Do you have an access to scarce raw materials
or hard to get in distribution channels?
• Do you have special relationship with your
suppliers? Such as tightly integrated order and
distribution system powered by unique software?
• Do you have employees with unique skills
and capabilities?
• Do you have brand reputation for quality,
innovation, customer service?
• Do you do perform any tasks better than your
competitors do? (Benchmarking is useful here)
• Does your company hold any other strengths
compared to rivals?
Rarity • How many other companies own a resource
or can perform capability in the same way in your
industry?
• Can a resource be easily bought in the market
by rivals?
• Can competitors obtain the resource or
capability in the near future?

Imperfectly

• Do other companies can easily duplicate a

resource?
• Can competitors easily develop a substitute
resource?
• Do patents protect it?
• Is a resource or capability socially complex?
• Is it hard to identify the particular processes,
tasks, or other factors that form the resource?

Organizational (whether the resource or competencies

exploit or manager appropriately)

• Does your company has an effective strategic

management process in organization?
• Are there effective motivation and reward
systems in place?
• Does your company’s culture reward innovative
ideas?
• Is an organizational structure designed to use a
resource?
• Are there excellent management and control
systems?
 ▪ Mc Kensey’s 7 s model

Explanation on the model

is the management/leadership style?

Eleme • Do employees/team
nt members tend to be competitive or cooperative? Staff What positions or
Type specializations are represented within the team?
• What is the corporate/team culture? Skills
represented within the com
• Are there any skills
gaps?

• How effective is that

leadership?
s

l
H
i a
k r
S d
t

S
f k
o i
S l
Shared Values What are the core
values? l

• What
• How do the various departments coordinate activities? How do the
wn for doing well? Style How participative
and align themselves? System What are the main systems that run the organization?
Strategy What is our strategy?
• How do we intend to achieve our objectives?
• How do we deal with competitive pressure? Structure How is the
company/team divided?
• What is the hierarchy?

Consider financial and HR systems as well as communications and document stora

▪ Value Chain analysis

Explanation on model and the importance

Firm
Infrastructure

Human Resource
Management
Technology
Development ▪ BCG Matrix

Impotence of BCG
Procureme matrix
nt
BCG matrix of the selected
organization.
Primary Activities
Inbound Logistic Operations Outbound
Logisti
cs ▪ Stakeholder
Servi Analysis
ce Marketing
and Sales
Marketing
and Sales
Who are stakeholders and importance of stakeholders in an organization

Type Stakeholder Impact on organization Power level

l anretn l
I

anretx
E
econdary Activities
S

Stakeholder Matrix (need to draw)

▪ Capabilities
What are capabilities and types of capabilities

Important on identifying the capabilities to achieve organizational goals/ Objectives

• Threshold capabilities

• Distinctive capabilities

Distinctive Factor Distinctive Capability Architecture Reputation

Innovation o SWOT Analysis

Explanation and Importance of conducting SWOT

Strengths Weaknesses
Description about the identified Strengths
(All strengths must be matched with
corresponding opportunities)
Description about the identified
Weaknesses (Take each weakness and
discuss plans as to how that can be
converted to a Strength)

Opportunities Threats
deploy)
Description about the identified Threats
(How to

exploit the identified

threats)
Description about the identified
Opportunities

(How better opportunities can

Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for an org

Messo Environmental Analysis (appropriate evaluation should be conducted to identify

the impact of each driver and mention how each driver can effectively use to achieve

organizational goals / objectives)

▪ Porter’s Five Forces

Explanation on the model and mention the importance of this analysis

Force: (impact level- H/M/L)

Force: (impact level- H/M/L)

Force: (impact level- H/M/L)

Force: (impact level- H/M/L)

Force: (impact level- H/M/L)

2. Strategic formulation

o Ansoff Matrix
Explanation

Existing product New product

Existing Market Market Penetration strategy with an

example
Explain how the Diversificati
selected on
organization can use Explain how the
this selected
strategy with an organization can use
example this
New Product
Development strategy with an
example
Explain how the
selected

organization can use

this
Summary on the
strategy with an findings
example
o Bawman’s Strategic
clock
New Market Market Development

Explain how the Explanati

selected on

organization can use

this

Analyze the organization with the use of diagram and need to provide an explanation
o Porter’s Generic Strategy

Explanation

Target/ Market Scope Advantage

Low Cost Uniqueness

Broad (Industry Wide) Cost Leadership Strategy Explain how the

 selected Explain how the
selected
organization can use
this organization can use
this
strategy with an
example strategy with an
Differentiation example
Strategy

Explain how the

selected

organization can use

this
o Cost
strategy with an Leadership
example
Explanati
on
Narrow (Market Segment) Focus Strategy

(Low Analyze the organization with the use of

Cost) strategy

Explain how the

selected

organization can use o Hybrid

this Strategy

strategy with an Explanati

example on
Focus
Strategy
Analyze the organization with the use of
(Differentiatio strategy
n)
Applying a range of theories, concepts and models, interpret and devise strategic planning for a given o

Strategic plan

• Organisation Vision, Mission and Objectives

• Strategy to be implemented
 3. Strategy Implementation

Explanation on Strategic implementation

• Setting annual objectives;

• Revising policies to meet the objectives;

• Allocating resources to strategically important areas;

• Changing organizational structure to meet new strategy;

• Managing resistance to change;

• Introducing new reward system for performance results if needed.

• Budget plan

4. Monitoring

o Balanced Score Card (monitoring tool)

Department Areas
Finance Return On Investment
Cash Flow Return on Capital Employed Financial Results (Quarterly/Yearly) Internal
Business Processes Number of activities per function
Duplicate activities across functions Process alignment (is the right process in the right department?) Process
bottlenecks Process automation Learning & Growth Is there the correct level of expertise for the job?
Employee turnover Job satisfaction Training/Learning opportunities Customer Delivery
performance to customer Quality performance for customer Customer satisfaction rate
Customer percentage of market Customer retention rate
o Benchmarking

1. Determine current practices

▪ Select the problem area.

▪ Identify key performance factors.

▪ Understand your own processes and the processes of others

▪ Select performance criteria based on needs and priorities

2. Identify best practices

▪ Measure the performance within the organization

▪ Determine the leader(s) in the criteria areas

 ▪ Find an internal or external organization to benchmark with

3. Analyze best practices

▪ Visit the organization as a benchmark partner

▪ Collect information and data of the benchmark leader

▪ Evaluate and compare current practices with the benchmark

▪ Note potential improvement areas

4. Model Best Practices ‘

▪ Drive improvement changes to advance performance levels

▪ Extend performance breakthroughs within the organization

▪ Incorporate the new information in business decision making

▪ Share results with the benchmark partner

▪ Seek other benchmark leaders for further improvement

5. Repeat the cycle