Business Strategy As The Direction For Organisations Business Essay

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Strategy is the direction and scope of an organisation over a long term. Strategy is a better way of utilizing the resources of the business, meeting the needs of the market, fulfilling the requirements of the stake holders leading the business in an effective and profitable way. Strategy is a long term plan of action which is designed to achieve a particular goal or set of goals. It will be best described as a management plan in order to achieve the desired goals.

Business strategy is a long term approach to implement the plans for business in order to achieve the business objective. It is concerned more with how a business competes successfully in a particular market.

How strategy can be constructed and carried out effectively, even by small business: -

Nowadays according to many companies many small business firms face the reality of global competition. According to many companies restructuring themselves helps them to face competition in the world markets. After conducting organizational reviews over 100 business associations and with the experience 18 years in the project management, i realise all the organizations tries to implement their operations effectively. According to a study in 2004 (small business administration) 580900 small business small firms opened in 2005 576200 close, SBA states that 67% of the new companies were able to survive for at least 2 years, remaining 44% of the companies survive for at least 4 years .

Four important factors for competitive advantages:-

1. Vision

2. Basic skills

3. Strategy thinking

4. Conjuction with staff

Vision: -

It is an important factor for a company to continue it on the track. According to the analysis made by James Kouzes and Barry Posner, authors of the leadership challange, on more than 60000 heads of the organization, they stated that the leaders who are effective should inspire a shared vision. A leader has to support a clear vision in his leadership of the organization. Now days many of the managers are busy with the present problems and lacking time for building of vision. This makes both employees and organization to be left open, with a shared vision small businesses gain a competitive advantage. According to critics vision is the vital factor to maintain success for small businesses. Vision is referred as considering the national resources in to the physical limits. A leader who is effective for a small business should inspire his team with a vision which is familiar to fulfil their needs.

Core competencies: -

Basic skills of the manager should be clarified with workers changing past. In the mean time of restructuring, and organization as to maintain it core mission. Large companies computing the market which will be rapidly expanding, which makes their employees confuse because the contradictions and uncertainties. Companies which tries to do things that are beyond their organizational capacity, which makes them to face the failure. Many companies which are trying to compete with global competition are losing their basic skills in the market. According to Ck prahlad, author of competing for the future states that managers do not complete their tasks to compete with rapid market changes. He states that restructuring initiative his defines as a dead end, reengineering removes unnecessary work and improve the advantage of processes as it is defines as the societal goals like customer satisfaction or total quality directed initiative.

Strategic Thinking: -

Employees wanted their leaders to be significant in the market and competition which is valid in the industry. The enormous change which is demographic the 21st century U.S work force has created the individual concern which made the organization not to change their paradigms. Companies which are the best think strategically and work in double. Watts Wacker, Jim Taylor, Howard Means, author of visionary guides as warned that we are in leaving in era where the individual ability impose their own future. Many of the companies pursue planning, where as few organizations are appropriately busy with the strategic thinking. It is defined as a competitive improvement for small businesses in the market. Strategic thinking is defined as a careful planning in an organization. The two main components of the strategic thinking were knowledge of the present and viewpoint for the future. This is called as duality by the organizational strategies. Duality is followed by many of the successful companies regularly. Most of the small businesses are customers of today or tomorrow regarding for the future consequences. Characteristics of a strategic thinking which is effective mainly focus on maintaining an approach which is long standing to appreciate the consequences which are flexible. Strategic planning and vision works together, as a appropriate planning of the bases and the causes for shaping the track of an organization.

Relating to employee: -

The importance of linking with a culturally diverse work force can be understood by the organizational leaders who are effective. On many occasions phrase of new technology businesses were devalued by workers in the processes. Follows of the mechanical parts for achieving the organizational objectives should be considering by the leaders.Jeeffrey pfeffer author of the human equation accepts that success of an organization depends upon directly to the implementation. Currently emergent of work force crosses the gender age race and geography. For the first time in the American history employees must deal with 4 generations of work. The leadership style which can be effective for newly upcoming employees fails with the employee generation X.In small business firm's leader who is effective as to maintain good relationship with his employers.

Future directions:-

Ignoring worldwide press and front line competitions small business firms can achieve success with the right approach.21st century offers the challenges for the human resources such as virtual organizations, outsourcing and financial constraints of budgets in many federal agencies. Small business firms have 5 important key factors such as vision goals, strategic thinking, basic skills and connecting with employees. Such problems can be utilised as an opportunity for small firms to increase the rate of success. These methods are logical, practical process provide for the creation, growth and ensure a successful small business.

Different types of perspectives models and approaches or utilised in the strategic planning. Way of developing a strategic plan mainly depends on the nature of the organization leadership, size of the organization, culture of the organizations, complexity of the organization environment, expertise of planners etc. There are different types of strategic planning models which includes goals based, issues based, organic, scenario etc. The most common of the strategic planning modal is goals base planning. It mainly focus on the vision of the organizations, strategies to achieves the goals to work towards the machine. Issues based strategic planning model mainly examines the issues which are faced by the organization, strategies to refer those issues and action plans. Organic strategic planning starts by articulating the vision and values of the organizations and then the required plans to reach the vision while holding to those values. Some planners mainly prefer a particular approach to planning for example appreciative enquiry. Some plans are design to one year some to three years some to five to ten years in the future. But many of the plans include only top level information but no action plans are available where as some plans are 5 to 8 pages long. Strategic planning process his schedule depending upon the nature of the organization, needs of the organizations and then its external environments. Strategic planning should be followed frequently in an organization. Planning might be carried out once or twice area in a comprehensive and detailed fashion. If the organization has been established for many years and has a stable position in the market place then planning can be carried out once a year .Following guide lines are considered strategic planning

1. Strategic planning should be done in the initial stage of organization when it is started.

2. Strategic planning should also be done when developing a new division, department are introducing a major new product.

3. Action plans should be updated every year

4. Progress of the implementation of a strategic plan should be supervised on a quarterly basis by the board.

There are different processes served by the strategic planning in an organization. Purpose of the organization should be clearly defined to establish goals and objectives in a define time frame within the capacity of the organization for implementing. Those goals and objectives are communicating to the constituents of the organization and sense of honour ship over the plan has been developed.Resources of the organization are effectively use by focusing on the key priorities. Progress can be measured and mechanism is established to inform the change when needed.

There are many other reasons which include the strategic planning serving and organizations. Strategic planning provides clear focus of organization and helps in improving its efficiency and effectiveness it also bridges staff and board of directors increasing productivity from increase efficiency and effectiveness. It also helps in solving major problems.

The value of using key analytical tools to help in the strategy-making process:-

Many tools are included in the strategy making process. Many analytical tools are developed to assist the organization with the planning processes, nonprofitable organizational these tools modifying the questions and criteria with their own specific services and markets.

Environmental scan:-

It is performed to gather data to find out answers questions about the present and future district's common perception is developed and it identifies strengths, weaknesses trends and conditions. Environmental scans is a key for ongoing process for internal and external honesty and openness to changing condition. There are many approaches to environmental scanning which includes service, questioners, focus groups and open forums.

SWOT analysis:-

SWOT analysis is another tool used for strategy process. It is one of the strategic planning methods which is used to evaluate strengths, weeknesses, opportunities and threats which are involved in a project. SWOT analysis mainly indicates the objective if a business venture are a project which helps in identifying the internal and external factors which are favourable and which are not favourable to achieve that objective. A SWOT analysis starts with a defining a end state or objective it may be included in to the strategic planning model.

Strengths: - Characteristic of a person or a company which helps in achieving the objective.

Weaknesses: - Feature of the person or a company which are harmful to achieve the objective.

Opportunities: - External conditions which are helpful to accomplishing the objective.

Threats: - External conditions which may cause damage to the objective.

Identifying SWOT's is essential is important because alternate steps in the process of planning to achieve the selected objective can be derived from the SWOT's. Main aim of any SWOT analysis is categorizing the important internal and external factors which play a key role in completing the objective. SWOT analysis is a collection of important information is classified into two main categories.

Internal factors: - Internal strengths and weaknesses of the organization.

External factors: - Opportunities and threats which are subjected to the external environment organization.

Strengths and weaknesses can be considered as the internal factors of the organizations depending on their force on the organization objective. When strength is considered with respect to an objective it may becomes weaknesses another objective. External factors may include macroeconomic matters, technological changes and social cultural changes including changes in the market and competitive position. SWOT analysis is one of the methods of differentiation with its own weaknesses. Importance of the individual SWOTs will be exposed by the value strategy generates.

Task 2

As per the case study, MIB is a small scale business which proved to be successful when it was started. Cynthia had started her business on the strength of a single inspiration as mentioned . She stated that she did not start her business with a long term plan. Her vision was not strong enough . Even though in 2001, sales had exceeded $2.3 million, which was an increase of 12 percent ,the sales were not the same in recent times. Cynthia was very much concerned about the financial figures . She stated that she would be interested in following new methods of sales by taking the ideas and concerns of other people in the company.

Cynthia had long been the sole driving force behind MIB. In the 1980s, there were few manufacturers of super size clothing. Cynthia was very well aware about the frustration of large women whose choices were limited .She believed fat people, and especially women ,were oppressed and made miserable by a society that treated them as lazy . MIB offered a full line of clothing and accessories in four main categories; career wear, casual sportswear, formal wear and outerwear.

Cynthia had long been the sole driving force behind MIB. In the 1980s, there were few manufacturers of super size clothing. Cynthia was very well aware about the frustration of large women whose choices were limited .She believed fat people, and especially women ,were oppressed and made miserable by a society that treated them as lazy . MIB offered a full line of clothing and accessories in four main categories; career wear, casual sportswear, formal wear and outerwear.

The vision of MIB began on a trip up the California coast. Cynthia stopped in a small used clothing store and discovered a selection of drawstring army surplus plants, which were 100% cotton, inexpressive, and dyed in fashionable colour. Cynthia's retail business, meanwhile, was thriving without labour intensive. The same sales came easy but took too much time in finding the right product to send. As per the Quarterly summery of all the units if MIB, we can know the setback of the company. As coming to the point of the strength there are certain point that we can notice.

MIB was started as a small scale business with one man team. It has been started as a retailed cloth store and a became a customer focused business at all levels providing different types of clothes by the end of 2001. I would like to categorize of the strengths and weaknesses of the company based on below five priorities.


Even though Cynthia started the company on her own. Her main inspiration had begun from when she was graduated from Sonoma State University. As she stated it was not plan to turn the company into a large scale industry. I think her vision was poor. She stated that she learnt everything from ordering, advertising, promoting and dealing with cash flow when she joined women's book store called Rising Women's Books. It was only the experience she gained from a book stored that enabled her to begin her own business. In 1980 she said there were very limited choices for the large women clothing. MIB offered a full line of clothing and accessories by the late 1990's .Cynthia knew from her own experience that large women would love the casual style, trendy colours and flattering fit. Women of all sizes and shapes bought these clothes but it was clearly the big women who benefited. As stated Cynthia was the only one behind the foundation of her business. She was unsure of her goal and tried to implement her ideas only with a short term plan.

2. Strategic planning:

Cynthia started her business with an initial amount of $4,500, but at this time she didn't see herself as an entrepreneur. As per her ideas Making It Worth was an opportunity to combine her personal goals with the political beliefs. She stated that if adequate clothing would contribute to better self esteem it would then be worthy by giving a go. Cynthia had no experience in establishing credit. So, she started the business only with the amount what she had and with one other partner Janet. She only realised later, that it would become a great source of income or profit as the competition was not much. Her plans were only limited to her skills and conceptually she was still lacked with essential skills. She felt that growing a business would need different skill set than starting one. Planning was not perfect and she only acted as per that situation. Even though, the company has a good customer focused service, with initial levels of profits, it has seen a sudden fall in their retail sales. This can be because of improper planning of their workflows.

3. Information thinking (skills):

As the business was started only by Cynthia, her skill set was limited. She utilised all her skills in leading the company from cheap frills to MIB but she stated that her skill set alone was not sufficient for MIB's growth. In order to achieve certain goals or to lead a company as large scale it is essential to have different knowledge sets ,and different ideas .As Cynthia was alone while she started her business she was sufficient with her skill set and she established a way for her own business. But , in order to develop the company and achieve the targets a company needs more skilled people in different categories of the business development plan.

4. Staffing:

Exhibit 6 provides a profile of distribution channels for women's apparel in the United States in 1997. Most retailers of large size clothing offered their goods through catalogs, and an increasing number had set up web sites that created personal profiles for repeat customers. In 2002, there were over 2,000 manufacturers of large size women's clothing in the United States, and few of these only offered clothing in supersize range. In 2001,MIB employed five managers , a research and development team of three members ,three supervisors and a team of 10 workers. MIB is a very labor -intensive business and everyone works exceptionally hard, at all levels. But as the sales were falling down Cynthia started thinking of taking more appropriate people for her business. She thought that by implementing the new ideas ,the company would see some better changes. Cynthia believed she needed " an experienced management team to help manage the risk that's needed to get to the next level." It is very important to any company to place right people at right levels. This makes the company more progressive and helps to achieve the targets. As we know when the marketing plans does not work out ,it proves to be more expensive and depressing. Cynthia knew that ,even with her 20 years of experience ,she still lacked essential skills.

5. Future directions :

Every Company has its future directions ,like how it will be positioned in the market ,what would be the goal and aim of the company. MIB also had its long term conventional plan in order to meet the estimated targets. Once the drop in the sales resulted Cynthia decided to employ new team members to support her views and help in the growth of MIB.

I want to categorize the strengths and weaknesses of the business with three things, people ,customer and finance.


• High quality management

It is very important that we take right people for the right position. The Company's growth is depended on the management team. " How well they manage the business that way they get the results".

• Relatively stable, highly committed Workforce:

As per the MIB management team , Cynthia was very much happy with her management team. She described the qualities of each person, who were equally talented in their corresponding fields.

MIB is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.

MIB has grown substantially over recent years, and has experienced global expansion for example its purchase of the United Kingdom based retailer ASDA.

The company has a core competence involving its use of information technology to support its international logistics system.

A focused strategy is in place for human resource management and development. People are key to MIB's business and it invests time and money in training people, and retaining a developing them.

• Excellent quality in workforce:

It is very important that each individual works for the progress of the company.

Celebration of staff's achievements:

Low manager to staff ratio

Unique product

Location of your business

Patents, know-how, trade secrets

Worker's unique skill set

Corporate culture, company image

Quality of your product

Access to financing

Operational efficiency

Location of your business

Lack of quality and customer service

Poor marketing and sales

Access to resources

Undifferentiated products or services


Since MIB sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.

Training on procedures not skills

Absence from work

Stressful conditions

Communications strategy

Team Leaders and Managers too stretched


• Finding a money strategist

For any new investment

• Improve selection techniques

• Improve job flexibilities

• Lack of staff in residential care

• Staff morale

• Retention of social workers

• Stress for staff and foster carers

• Perception of job satisfaction


• Quality of social work applicants


• Maintaining a qualified workforce

• Gender imbalance

• Single status

Opportunities and threats are external value creating (or destroying) factors a company cannot control but emerge from either the competitive dynamics of the industry or market or from demographic, economic, political, technical, social, legal, or cultural factors.

An opportunity in the SWOT model could be for example:

A new emerging or developing market (niche product, place - new country, less competition)

Merger, joint venture, or strategic alliance

Market trends

New technologies

Social changes (for example demographics)

New competition in the market, possibly with new products or services

Price wars

Economic conditions

Political changes

Competitor oligopoly or monopoly


Availability of resources


To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.

The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.

New locations and store types offer MIB opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.

Opportunities exist for MIB to continue with its current strategy of large, super centres.

Being number one means that you are the target of competition, locally and globally.

Being a global retailer means that you are exposed to political problems in the countries that you operate in.

The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.

Task 3

As per the analysis from, there are certain things to be considered in order MIB achieve its targets.

If we check the company's retail profit it is evident that there was a sudden fall of sales . From generation to generation tastes of customers would change. Companies should internally upgrade their team and technologies in order to compete equally with other organisations. I think that MIB was been a Owner Manager business which could only adapt few improvements. In order to resolve a company from retail store to independent well esteemed organisation we need certain things like Human Resources, Technology , Budget and Customers goodwill.

I would like to explain each of the following briefly:

Human resources:

Right from the Cheap frills to MIB, Cynthia was the only person who took care of the business. Cynthia's skills and knowledge helped her to establish the idea of MIB but they were not enough to be an profitable company. In order to establish the company as large scale few things would prove essential. Managers, Supervisors and Staff will prove to be the important part of any organisation. Giving opportunity to more skilled people at different levels will help the company grow. A decision making team would be necessary for the company in order to obtain a fast pace profitable sales.


When MIB was there were very few manufacturers of supersize clothing and the percent of buyers were also less in total. As the generations move on technology is upgrading a lot leaving people more technical and more accurate about their opinions. It is essential for any company like MIB to act accordingly . Introducing different ways of advertising like leaving door to door catalogs, mailing and holding information on website helps the company to grow big.


MIB was started as a very small company with very less budget. When Cynthia got an idea of extending a company she was not aware of the financial circumstances that she needs to face.

In order to employ new people in the company and to upgrade the technology it is essential that one should raise more capital investment.