The Importance Of Business Strategy Theory Business Essay


Business strategy plan introduced for Aitken Spence Travels Pvt Ltd (ASTL) Nature Wing "NAT SWAT" to develop "ECO Tourism" in the Organization. "NAT SWAT" was the Nature brand of ASTL, which focus on four core areas such as Sustainability, Wild Life, Adventure and Team Building.

ASTL needs a proper strategic management Plan for an effective operation and better results.

Having a proper business strategy in ASTL, they could focus on target markets in Eco Tourism Segment and to concentrate on how to enter that new business in future.

Discussion in below explain the process of formulating business Strategy for "NAT SWAT"


It is important that a strategic plan is in place for effective operations at "NAT SWAT" the vision focuses on the organizations long term plan. In general the core function of the management is to formulate the strategy to be followed on a long-term and short term basis.

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The strategic analysis is essential in developing the business strategy.

Figure 1 - Strategic Analysis


The Strategic analysis is essential in developing business strategy. Both segments of strategic analysis need to be covered in order for business strategy to be accurate

PEST Factors

Political, Economic, Social and technological factors need to be taken into account in order to develop a comprehensive business strategy for "NAT SWAT"

The Market

A good understanding with regards to the market the residence operates in should be gained through analysis so "NAT SWAT" will have clear cut market for focus to enhance their performance.

General Business Environment

By studying Overall Business environment status of "ASTL" will allow NAT SWAT place their correct business strategy at correct time.

Internal Audit

Figure 2 - Internal Audit Analysis

Source: (

As per the above figure the internal audit consists of seven sections. Below explanation core areas that "NAT SWAT" should criticality analyse.

Resource Audit -

Internal resources available are required in the implementation. With inadequate resources the business strategy would not be practical for "NAT SWAT"

Value Chain Analysis -

Identifies the activities within a business and relates that to the competitive value of business, which will align "NAT SWAT" in correct Strategic Path.

Core competence analysis -

The factors in the business that helps to achieve a competitive advantage, which align business strategy of "NAT SWAT", enhance competitive advantage in the market.

Performance analysis -

Strategic capabilities of the business can be identified through resource audit, value chain analysis and core competence analysis; will help to evaluate current business strategy performance of NAT SWAT.

Business Strategy

In the formulation of a business plan it is vital that an accurate strategic analysis is conducted in order to present an effective, comprehensive business plan. This section will determine the company's current position. This section will cover the following;

The strategic analysis is essential in developing the business strategy. Both segments of strategic analysis need to be covered in order for the business strategy to be accurate.

Strategic management is undertaken in order to understand the topic better. According to Johnson, Scholes and Whittington (2009), strategic management is the vehicle that is capable of transporting an organization from its current position to a desired position in a given time-frame and strategic management includes an understanding of topics such as: strategic options, strategic choice, and converting strategy into action. Wheelen and Hunger (2005) argued that strategic options require an understanding of underlying issues at corporate, business and functional levels, so that an appropriate strategy/ strategies may be formulated, and that a course is set to achieve the pre-determined objectives of the organization.


Cooperate Level Strategy

E.g. Anosff's Matrix

Operational Level Strategy

E.g. Porter Generic Strategies

Tactical Level Strategy

E.g. Mintzberg's Strategies

Chart 1 - Strategy Levels in NAT SWAT

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3.1 Appliance of Business Strategy of Ansoff Growth Matrix for "NAT SWAT"

Ansoff Growth Matrix

Existing Products

New Products

Existing Markets

Market penetration

To increase existing market shares with the DMCS existing products, any chance of existing customers going to competitive DMCS should be prevented and by doing so clients should be offered benefits the competitors don't offer.

Product development

Concentrate more on new Eco Tourism Products

New Markets

Market development

Sending sales people to attend international ECO Tourism trade shows & Exhibitions


Building New Luxury Apartments

Camping sites developments

Table 01- Ansoff Growth Matrix

3.2 Appliance of Operational Level Strategy of Porter Generic Strategies "NAT SWAT"

Porter Generic Strategies (Michael Porter 1985)

In 1985, in his book Competitive Adavatage:Creating and Sustaining Superior Performance, Michael Porter,outlined a set of generic strategis that could be applied to all or services. Porter called these generic strategies "Cost Leadership", "Differentiation" and "Focus".


Figure 03 - Porter Generic Strategy Form

Cost Leadership Strategy

NAT SWAT Performing value-chain activities in more a cost-effective manner as follows

NAT SWAT use its bargaining power to drive down suppliers costs;

NAT SWAT had Invest in technology to increase production efficiency (EG - Operating system called Travel Assist System)

Differentiation Strategy

Having differentiation Strategy in NAT SWAT, able to deliver better quality services for the valuable clients

Focus Strategy

NAT SWAT reduce cost across by engaging with specialist suppliers;

Concentrating on a narrow segment and attempting to achieve either the cost advantage or differentiation is referred as focus strategy.

3.3 Appliance of Tactical Level Strategy of Mintzberg's Strategies in "NAT SWAT"

Mintzberg's Strategies

Figure 4 - Mintzberg and Waters Strategy Model


According to Henry Mintzberg usual way of strategy implementation reveals a deliberate strategy.

He argues that, for some organisations strategy implementation actually precedes strategy formulation as they start implementing strategies before they clearly formulate mission, goals and objectives.

The strategies that do not fall into the category of deliberate strategy are referred as emergent strategy. This is a type of strategy where decisions are made from the complex process in which the management get involved demonstrating the need for an intended strategy and the need to change for a changing external environment.

NAT SWAT makes use of both intended strategy and deliberate strategy.

The strategy conceived by the top management is referred as the intended strategy so NAT SWAT aligns their business strategy for company mission & vision.

Top of Form

Value Based Management Strategy

Value Based Management Strategy essential for NAT SWAT , following benefits could be achievable having proper Value Based Management Strategy in NAT SWAT.

Benefits of Value Based Management for NAT SWAT

Can maximize value creation consistently in NAT SWAT

It increases corporate transparency in NAT SWAT

It Helps Organizations to deal with globalized and deregulated capital market in NAT SWAT

Improve internal communication about strategy NAT SWAT


Ethics is concerned with the acceptable set of behaviour which will provide advantage for individuals and society in an organisation, ethics should be part of company's mission statement, long term plan and code of conducts in order to integrate its aspect into the business strategy

5.1 Advantages of Ethical Aspects of Business Strategies for NAT SWAT

Avoid unethical practice when formulating strategies to achieve superior organisational performance

Obey the law and rules when formulating strategies

Clearly demonstrate the values as a key component to the strategy

5.2 Advantages of ethical business practices

The Moral of employees high feel obligated to out in their all to continue success

Attract customers to the firms products there by boosting sales & profits

Make employee wants to stay with business, reduce labour turn over and therefore increase productivity

Following are the main determinants of strategic options Recommended for ASTL

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Past and current strategies of an organization

Capabilities and constraints of an organization

Strengths and weaknesses of an organization

6.0 Benefits of a business strategy process

A business strategy should clarify company's direction and strategic changes required for long term success

The process of creating a Business strategy forces an organization to thoroughly analyze structure its business

It will improve profitability within present business model.

It creates pro active organization

Analyze Strengths & Weaknesses

Determine Core Values

7.0 Conclusion

The Aitken Spence Travels is the Market Leader Travel Trade in Sri Lanka.

Even though they do not have proper business strategic plan for tap the" ECO Tourism segment "which their core competitors such as Nature Oddessy & Jetwing Eco Holidays are way ahead on this segment.

This report has identified the opportunities and weakness of "NAT SWAT" and formulating the business strategic plan for enhance their Eco Tourism segment.

Suggests more appropriate multi-product/service and multi-segment strategies for competitive advantage. Having visionary business plan Aitken Spence Travels definitely take their nature wing 'NAT SWAT" level of Nature Oddessy & Jetwing Eco Holidays pioneers of Eco Tourism segment in the country.

There is huge demand and tremendous potential for Eco Tourism segment in the destination proper business strategic plan is need of hour for "NAT SWAT"

Reference , Access on November 02, 2012, Access on November 05, 2012 Access on November 08, 2012 Access on November 08, 2012

Personal Interviews:

'General Marketing of Aitken Spence Travels, December 02, 2012'