Business Strategy EXERCISE
Business Strategy EXERCISE
Business Strategy
Corporate Culture
Analysis
Strategic Planning
Types of Strategy
Evaluation
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.
Corporate Culture
Corporate Culture
May be reflected in:
Attitude and behaviour of the leadership
Attitude to the role of individuals in the
workplace open plan offices, team based
working, etc.
Logo of the organisation
The image it presents to the outside world
Its attitude to change
Corporate Culture
What corporate
culture do you think
the following
businesses have
managed to
develop?
Virgin
The
McDonalds
Nike
Body
Group
Shop
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Strategic Planning
First Stage of Strategic
Planning may involve:
Futures Thinking
Thinking about what the
business might need to
do 1020 years ahead
Strategic Intents
Thinking about key
strategic themes
that will inform
decision making
Strategic Planning
The Vision
Communicating to all staff where the
organisation is going and where
it intends to be in the future
Allows the firm to set goals
Strategic Planning
Example:
Aim may be for a chocolate
manufacturer to break into
a new overseas market
Objectives:
Develop relationships with overseas suppliers
Identify network of retail outlets
Conduct market research to identify
consumer needs
Find location for overseas sales team HQ
Strategic Planning
Once the direction is identified:
Analyse position
Develop and introduce strategy
Evaluate:
Evaluation is constant and the results
of the evaluation feed back
into the vision
SWOT
Strengths identifying existing
organisational strengths
Weaknesses identifying existing
organisational weaknesses
Opportunities what market
opportunities might there be
for the organisation to exploit?
Threats where might the threats
to the future success come from?
PEST
PEST
Examples:
Growth of China and India as manufacturing centres
Concern over treatment of workers and the
environment in less developed countries who may be
suppliers
The future direction of the interest rate, consumer
spending, etc.
The changing age structure of the population
The popularity of fads like the Atkins Diet
The move towards greater political regulation of
business
The effect of more bureaucracy in the labour market
Five-Forces
Developed by Michael Porter: forces that shape and
influence the industry or market the organisation
operates in.
Strength of Barriers to Entry - how easy is it
for new rivals to enter the industry?
Extent of rivalry between firms how competitive
is the existing market?
Supplier power the greater the power, the less control
the organisation has on the supply of its inputs.
Buyer power how much power do customers
in the industry have?
Threat from substitutes what alternative products
and services are there and what is the extent
of the threat they pose?
Required Inputs
Changing strategy will impact on the resources
needed to carry out the strategy:
Specifically the impact on:
Land opportunities for acquiring land for
development green belt, brownfield sites,
planning regulations, etc.
Labour ease of obtaining the skilled and
unskilled labour required
Capital the type of capital and the cost of
the capital needed to fulfil the strategy
Evaluation
Data from sales,
profit, etc. used
to evaluate the
progress and
success of the
strategy and to
inform of changes
to the strategy in
the light of that
data
Types of Strategy
Competitive Advantage something
which gives the organisation some
advantage over its rivals
Cost advantage A strategy to seek
out and secure a cost advantage
of some kind - lower average costs,
lower labour costs, etc.
Types of Strategy
Market Dominance:
Achieved through:
Internal growth
Acquisitions mergers and takeovers
to
Contraction/Expansion
focus on
what you are good at (core competencies) or
seek to expand into a range of markets?
Types of Strategy
Price Leadership through
dominating the industry others follow
your price lead
Global seeking to expand
global operations
Reengineering thinking outside the
box looking at news ways of doing
things to leverage the organisations
performance
Types of Strategy
Internal business level strategies