Key principles of strategic planning mechanisms

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The reason for strategic planning is to organize your future. There is a step by step process for organizing a strategy, the first thing what you need to do will be


Environmental analysis lets you see the internal and external parameters in which the organization operates. By doing this the board will be able to position the organization and will be able to identify the crucial issues to the membership. It is said that it is best to take environmental analysis every 2 years. Depending on the organization's size, availability of time and budget you can conduct an environmental analysis, either by telephone or face to face in groups, and many more ways. By identifying the key social, political, economical and technological threats with strengths and identified threats and their weaknesses, strategies for the future can now be developed

Now its time to develop the strategy:

Develop a vision: picture how your organization should be in another 10 years.

Develop a mission statement: it tell us who the organization represents and the person making the organization.

Develop a goal: describe what the organization will do in the next 10 years. Try to limit your goals to 4

Set objectives: this tells us what needs to be completed in each goal for the next 10 years

Develop strategy and tactics: this tells what are al the strategies and tactics you will be following to achieve the objectives set under each goal

Keep the plan relevant:

If possible try to update & review the strategies every year. In any case it would be best to update the strategy every 2 to 3 years since the world keeps on changing.

Once the strategy is made the main thing that you need to keep an eye on is the trends











Competitive analysis.


When it comes developing a organization strategy there are four major things that you have to keep in mind they are:






Sainsbury's is an effective and professional service organization that provides priority to the stake holders and proving support to them


Sainsbury's provide high quality service to all its customers. It develops its skills by forecasting social and economic development. it makes best use of its assets and investments


It provides a healthy and supporting environment where the staffs are respected, valued and encourages the employees to develop its full potential. it is further classified in to 4 types they are




Social responsibilities.


There are many tools, techniques and models that can be used in developing a strategy. But most of the tools used for developing a strategy as almost the same so it's best to stick with one tool while developing a strategy. Few tools that can be used for developing a strategy are

SWOT analysis

PEST analysis

Scenario planning and so on


It is one of the tools used for developing a strategy, it's mainly used when you are doing the environmental scan. It helps to find the external factors that needs to be planned for and the internal factors mainly the strength and weaknesses by using the SWOT analysis you will be able to find the strengths, weaknesses, opportunities and threats. SWOT analysis can be done independently or as part of strategic planning. Since you will be able to find the strengths and weaknesses by using this tool you will have an advantage when the danger comes.


It's an another tool used for calculating strategy, its more or less like SWOT analysis, but it concentrates mainly on the external environment that affects the business, it deals with the political, economic, social and technological issues



When it comes to sainsbury's it has got a wide variety of general and marketing strategic options, which helps them to improve their business. The few general and marketing strategies available to sainsbury's are

Nectar card

Taste the difference


Nectar card:

It plays a very important role in sainsbury's marketing strategy. The card is issued to the customers as to encourage them to buy more products, so that they will get more points & win some prices. It's a type of marketing strategy introduced my sainsbury's, but there is more to the card then just collecting points. It's like a data base it tell us what the customer's buy most of them time, how many times they buy that product in a week and many more information about the customer shopping. Using this the company know what the customer heeds are, what they want the most. The company makes sure that the product is got in a bulk since it's a fast moving product.

When it comes to disadvantages of nectar card, there is not much disadvantage in it the only problem is that some customers does not like this idea, they don't want the company to know there things that's because some customers like there privacy and they do not want any 1 to know about them.


Its an another marketing strategy that sainsbury's uses to attract more customers. People like to try new things all the time. So what sainsbury's does is that with the help of some worldwide chef's they try to create new tastes which will attract more customers.

The disadvantage is that it fades away very quickly. People will be happy to try at first but as the time passes they will lose interest it. Most people will like to stick to their regular products. They don't try new things often.


Sainsbury's does a lot of donation to the orphanages. They have conducted many camps to collect money for the children. The products which are about be expired is take to the orphanages as a donation. Where other shops are like tesco they sell those products to a cheaper price to the employee's. The advantage is that is builds the image of the organization.


Steak holders are the key people you need to keep in mind when you want to start any business to if you want to develop any existing business. Any decision that you make regarding the welfare of the organization the people whom you have to keep in mind are the stakeholders. They are your customers, your financers, your supporters. Without their approval you can run an organization big or small. The major stakeholders in an organization are;


Share holders



Governmental & non-governmental organizations


A retail organization like sainsbury's customers plays the top role. They 1st thing what they want is customer satisfaction; everything else revolves around that fact. Any decision you take this will be first thing that you will have in mind, how to satisfy our customers.

Share holders:

They also play a very important role in organization development. They are the people who financially support the organization from behind the screens. Once a decision is made regarding the welfare of the organization they have to be consulted first, since they are people who will be proving financial support for that plan.


They play a very important role as well since they are the people who come directly in contact with the customers. They carry the reputation of the organization a simple mistake in front of the customer can ruin the company's reputation over all.


They also play a important role in the organization. It's their responsibility to deliver the products in time for the customers. Customers don't not like to wait so they just move on to the next store & that's a lose for your organization. If it happens regularly you will lose the customer's over all.


Stake holders are none other than customers, staffs share holders, suppliers and so on. The people who support the organization for its growth are called stake holders. For the stake holders to participative in the development of organizational strategy they are few things u need to keep in mind.

If you want to staffs to participate in the organizational strategy they main thing what you need to do motivate them by saying that if they reach their tarket they will be given a bonus are things like that. The person who performs well gets a bonus. that is how you make the staffs to participate in the organization strategy

As for the customers to participate in the strategy u have give them lots of offers, schemes that motivates them to buy more products. All the organizations are mainly base on only one thing that is customer satisfaction.

Share holders are vital people who need to participate in the strategy, by making them participate you will be able to follow the flow of strategy since they will be with you in each and every step. You can make them participate in the strategy by give them special interests and by giving them more shares. For any to participate in something all you need is to give something that motivates them.


Define mission, vision and objectives in layman's language:

Mission statement:

According to layman's language, the statement that clearly identifies the purpose of the organization, that the company wants to establish them self in the future is called mission statement. Every organization should define them self before ging to the mission statement. They should know whether it benefits the stake holders are not, customer's needs and wants, there strength and weaknesses and so on

Vision statement:

Vision statement is like a picture of your company in the future, its acts as your inspiration. While developing a strategy vision statement acts as a framework. It can be either applied to a entire company or a single person in the company. Its tell us where do we want to go in the near future.


Objectives are short or long term goals that are designed to give you directions within the organization. The objectives that you set should be concrete and specific.


You have started to measure these things the movement you thought of a vision for your organization. Set goals make sure there is someone who keeps track of all the activities. Set a goal keeper in each department the one who takes responsibilities. Know where you are standing this helps you to move ahead, keep on stretching. If you thing you are achieving your goal easily set a little higher goal.



At present sainsbury's vision is to improve the performance of the core UK supermarket chain. And at the same time continue to explore and develop growtn opportunities in other supermarkets as well. By implementing the "managing for values" we will challenge the conventional wisdom within the organization which helps us to unlock the full potential and delivering values.


"Our mission is to be the consumer's first choice for food, delivering products of outstanding quality and great service at a competitive cost through working 'faster, simpler and together."


Organizational culture in complex and enduring, it determines the survival of the organization in many ways. It has got both positive and negative things.

"Cultures that can be a liability to an organization include those that create barriers to change, create barriers to diversity or barriers to mergers and acquisitions."

(Stephen P. Robbins. Organizational Behavior, 8th ed., 602-603.)

By understanding the organization culture you will be able to see why the changes takes place and a project fails, I also tell you where to struggle to make changes in the culture. As a manager if you want to make changes you need to understand what organizational culture is, it shows you what type of work is being done.


It plays a very important role in protection the company assets. Employees who take pride in working for the organization and its ethics, will surely respect the assets of that organization

Staffs who have respect of the organization and there colleges will not do such things as:

Taking of supplies home

Untidy break area, restroom and work area

Excessive breaks or sick days and so on

The vision, mission and strategy is constructed with keeping the stakeholders in mind. The stake holders are none other than staffs, customers, etc. if the staffs foes not cooperate properly then there will be a major setback in achieving the vision. For example: when you take ASDA the reason it came down the rank is that its staffs took too many holidays as sick, thus the efficiency of the company came down and they have to climb down the ladder. Now they have a major setback in what they have planned for in the future. Thus ethical & cultural values play an important role in developing the vision, mission and strategy.



There Is a major credit crunch that is affecting the strategy of my organization. Not only my organization. Organizations all around the world has be affected by this credit crunch. It has made a sudden increase in the cost of obtaining the loans for financial instructions. The freeze in lend between bank despite the cut in interest rate.


Now the organization has to work extra hard to demonstrate to funders the need for new existing service in order to secure sustained investment. This will make the work areas to be more risky. Several key income sources will be facing increase in pressure in the next few years as the U k market growth slows considerably.


The things that sainsbury's followed to got out of recession is that

It reduced the number of recruitments. It used be one of the largest recruitment firm in up, but now it has reduced a lot to cut cost. Because when your recruit a member of staff you have to invest money for his training and development .

It reduced all the unnecessary cost cutting, like incentives have be reduced, hikes have be reduced, Bonuses percentage has been reduced. It reduced it budget it takes orders of the products that are fast moving only to maintain budget.

There are the few things that sainsbur's followed to got away from the recession. And as for the response of all this sainsbury's is still surviving inspire of all the hard ships that is going on in the U K. thus we can say that the things what sainsbury's did helped her to maintain its standard as the top 3rd retail market in the united kingdom.


There are three major functional areas in an organization they are:

Human resource management

Marketing function


Human resource management:

Human resource management plays one of the major roles in an organization. Its takes care of all the recruitment & selection process. Once an employee has been recruited it's the job of human resource management to train them till they are ready to work on their own. It makes sure that the employees are fully aware of all the products and procedures that they need to follow on the shop Flore in front of the customer. They check there performance by keeping tests now and then.

It also takes care of all the wages of the staff . it also deals with the employee enquiries, if there is any problem for the employee the human resource management takes care of it. It takes care of all your incentives your bonuses. Almost everything that is concerned with the employee are taken care by the human resource management .

Marketing function:

It is the place where the organization collects data by doing some surveys or one to one interviews as for in sainsbury's. The 1 way of collecting data is by nectar card. The marketing depart works closely with the finance, purchasing, production and transportation department. The main job for marketing department is sales, promotion, advertising and so on.


It plays a major role on the retail industry. All the retail shops would like to sell more of there products for example sainsbury's got basics its their own product. The production department takes care of the in store products. Its there job to make sure all the products are in good quality. They have to check which product sells the most and keep a data base of it separately.


Timetable with the Mile stone to be achieved: 



Positive outcome

Important lessons

Time frame

Protecting the environment

To reduce the recycle wastage by giving instructions to the suppliers to reduce in wastage of packaging

Taking steps to executive the plan in order to wastages and protect the environment

They should careful in this reducing  the wastages

It is under the process it takes a minimum 2years if keep continuing the plan implementation

Plan to be executed

Giving instructions inside the stores, in taking steps to reduce the waste.

Packaging the products reduced

The waste was also sent for recycling

Sustainable materials from the suppliers failed to match

Technology blindness has to be reduced

By 2012

Every employee participating in this plan

Plan influencing the waste management methods and also the materials for construction

5% of the construction waste was recycled

Contractors use SMART waste tools.

Further work required for understanding the waste economics.

By 2011


How to manage the Wastage disposal

Technology advancing in the lighting, control, metering and also refrigeration.

Cultural barriers.

By 2012


How to dispose the wastages Through demolition and materials send for recycling

No waste to the landfill

More research needed

By 2012


Once a strategy has been implemented monitoring and evaluation of any strategy is a must. In this case the strategy that sansbury's follows need to be monitored and evaluated in a periodic manner. This help to find out if the implementation of the strategy was up to the expected standard. It tells us weather the strategy is according to the plan or has ther been any set many if so why are the cases. My monitoring your current strategy you will be able to develop a much larger strategy in the future so my monitoring the strategy you not only keep an eye on it but also improve or marketing skills. the implementation of the plan can be done by the management with the help of a periodic check. This could be a weekly one. This will help in close monitoring of the plan. The evaluation of the plan can be done with the help of a survey, this survey should include the employees and the customers.