You are required to produce and write a work based assignment that reports on an organisation of your choice.

Assignment Brief

Strategic Business Management and Planning

Tasks:

You are required to produce and write a work based assignment that reports on an organisation of your choice. This can be your own organisation, but can instead be a different organisation with which you are familiar.

In this report you must:

1. Demonstrate that you understand strategies and strategic thinking. You might choose to do this by identifying the goals and values of your strategic business unit (SBU), by discussing the role of strategic business planning and by evaluating classic and contemporary models used in developing business strategies and plans.
2. Analyse how internal and external environments influence management and planning strategies. You might for example choose to explore the impact of internal and external risk factors on strategic business activities and identify influences of organisational policies on management and planning strategies.
3. Evaluate and analyse how your chosen organisation might investigate competitor activities and strategies which could create advantage in emerging, maturing and declining markets and also define how your organisation develops strategies to outperform its competitors.
4. Analyse, evaluate and discuss ways in which organisations respond to environmental factors when making strategic plans; the impact of stakeholder interests in the development of strategic planning activities and the impact(s) of emerging global issues on any such planning activities.

1. Understand the role of strategic planning in organisations

• 1.1 Evaluate processes by which organisations identify their goals and values
• 1.2 Discuss the purpose and role of strategic business management and planning in an organisation
• 1.3 Evaluate the classic and contemporary models used in developing business strategies and plans

2. Understand the impact of internal and external factors on organisations

• 2.1 Analyse ways in which the internal and external environment can influence organisational management and planning strategies
• 2.2 Discuss the influence of organisational governance requirements on management and planning strategies
• 2.3 Explore the impact of internal and external risk factors on strategic business management activities

3. Understand the strategies that organisations use to achieve competitive advantage

• 3.1 Analyse ways in which an organisation positions itself to outperform its competitors
• 3.2 Evaluate appropriate competitor advantage strategies for emerging, maturing and declining positions

4. Understand the environmental factors that affect strategic business management and planning

• 4.1 Discuss how emerging global issues can impact upon on the strategic management and planning activities in an organisation
• 4.2 Evaluate the impact of stakeholder interests in shaping strategic management and planning activities in an organisation
• 4.3 Analyse ways in which organisations respond to environmental factors, when making strategic plans

Sample Answer

Strategic Business Management and Planning: A Case Study of XYZ Ltd

Introduction

Strategic business management and planning are essential for any organisation seeking long-term success and sustainability. This report analyses XYZ Ltd, a medium-sized technology firm based in the UK, to demonstrate understanding of strategic thinking, the impact of internal and external environments, competitive strategies, and environmental influences on business planning. Through this case study, the report evaluates models and processes used in formulating strategic plans and assesses how the company positions itself to maintain competitive advantage in a dynamic global market.

1. The Role of Strategic Planning in Organisations

1.1 Identifying Goals and Values

Organisations often begin their strategic planning process by clearly identifying their core goals and values. XYZ Ltd’s mission is to provide innovative tech solutions for small businesses, aiming to enhance productivity and customer engagement. Its values include innovation, customer satisfaction, and ethical responsibility. These values guide internal decision-making and external market positioning.

1.2 Purpose and Role of Strategic Planning

Strategic business planning at XYZ Ltd involves setting long-term goals, allocating resources effectively, and aligning operations with market demands. The strategic plan outlines the company`s direction for the next five years, focusing on expansion into new markets and investment in research and development (R&D). This approach helps the company remain adaptable and forward-thinking, ensuring sustainability in a competitive industry.

1.3 Models of Strategy Development

XYZ Ltd uses several strategic models, including Porter’s Five Forces to assess industry competitiveness, and SWOT analysis to evaluate internal strengths and weaknesses against external opportunities and threats. The Ansoff Matrix is also applied to explore market penetration, product development, and diversification. These models support structured decision-making and allow the organisation to anticipate challenges while exploring growth opportunities.

2. Impact of Internal and External Factors

2.1 Internal and External Environmental Influences

Internal factors such as employee skill levels, organisational culture, and financial resources significantly influence XYZ Ltd’s strategic planning. Externally, the company faces rapid technological change, economic fluctuations, and regulatory challenges. For example, the increasing demand for data protection compliance (e.g., GDPR) has prompted investment in cybersecurity and staff training.

2.2 Governance and Strategic Planning

Organisational governance at XYZ Ltd, led by a board of directors, ensures that planning aligns with legal and ethical standards. Governance frameworks help maintain accountability and transparency, which in turn builds trust with stakeholders. Regular audits and strategic reviews ensure compliance and effective risk management.

2.3 Risk Factors and Strategic Activities

Internal risk factors include reliance on key personnel and potential delays in product development. Externally, the threat of new competitors and changing customer preferences pose challenges. To mitigate these risks, XYZ Ltd uses scenario planning and contingency strategies, such as diversifying suppliers and creating flexible project timelines.

3. Competitive Strategies

3.1 Positioning Against Competitors

XYZ Ltd positions itself through differentiation by offering customised software solutions and exceptional customer support. By focusing on niche markets and building strong customer relationships, the company creates barriers to entry for competitors and enhances client loyalty.

3.2 Competitive Advantage in Market Phases

In emerging markets, XYZ Ltd uses a market penetration strategy, investing in marketing and partnerships. In maturing markets, cost leadership and efficiency improvements help maintain margins. For declining markets, the company evaluates exit strategies or repurposes products for alternative uses, thereby maintaining profitability.

4. Environmental Factors Affecting Strategy

4.1 Emerging Global Issues

Global issues such as climate change, geopolitical tensions, and supply chain disruptions affect strategic planning. XYZ Ltd addresses environmental concerns by investing in energy-efficient operations and promoting remote working to reduce its carbon footprint. Additionally, global economic shifts, such as inflation or recession risks, are monitored to adapt financial planning.

4.2 Stakeholder Interests

Stakeholders, including employees, customers, investors, and regulators, influence strategic decisions. For instance, customer demand for ethical business practices led XYZ Ltd to implement sustainable sourcing policies. Shareholders’ interest in profitability has also driven efficiency initiatives across departments.

4.3 Organisational Response to Environmental Factors

To respond effectively to environmental changes, XYZ Ltd conducts regular PESTLE analyses and maintains flexible planning frameworks. The company is proactive in adjusting strategies based on economic forecasts, social trends, and technological developments, ensuring it remains agile and competitive.

Continued...