Stakeholders Participation In Developing Management Strategy Commerce Essay

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Stake holders are individual or a group who has interest in an organisation. The number of stake holders depends on the type of organisation. Basically, size, and what kind of business are they doing in the current markets. Stakeholders are very important to an organisation; they may affect the organisation's development process. Different kinds of stakeholders have different kind of interest in an organisation. There are two types of stakeholders such as, internal and external stakeholders. To develop management strategy in an organisation it is necessary to consider some factors, it varies from stakeholders to stakeholders.

Customers: they are the most important stakeholder, where to sell a product. Most customers want quality full product or service with competitive price. For developing new strategy price strategy and quality of product should be considered.

Government: Rules and regulation is very important for organisational development. There are some rules and regulation, which may affect the current business. To run the new business rules and tax should be considered. Example for, new Government of the UK has changed the rules for student visa, which may affect the some colleges, who enrol the international students.

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Shareholders: they are the owners of the business and get dividend from the business. They expect the profitability of business and customer satisfaction. It may possible to increase the market share by developing new strategy. Too implement new strategy, effective communication is necessary to shareholders.

Bank: money the most important for developing. Bank provides loans to organisation and earns interest from organisation. Interest rate of bank should be considered to take loan for developing process.

Trade union: this group deals with the employee's interest such as pay and right of employee. Development in an organisation may cut the number of employee. It is necessary to discuss with trade union for organisational development.

Community: they also have interest in an organisation, such as job facility and environmental issue. Before developing in an organisation, it is necessary to communicate with community. Also need to consider that, does this development pollute the environment.

Pressure group: to open new section of a business and install new technology. Environmentally friendly development should be considered otherwise pressure group may make pressure against such kind of development.

Employees: they play vital role to produce new product and involve directly with organisational development and operation. Employees get salaries and others benefit from organisation. Salaries of employee should be taken into account for new development.

Criteria for judging managing strategic options

It is very important to measure the effectiveness of the organisational strategy. Strategic planning may help the organisation t achieve the most benefit. There are some best fitted strategy options. We should select the appropriate strategy option.

Suitability

This is the first step of strategic option, which includes overall rationale of the strategy

Does this strategy related to economy?

Would the organisation gain economic scale?

Would this strategy be suitable for environment?

Feasibility study

The main goal of this study is to measure the economic viability of the proposed business. This study includes a basic question. Does the idea make economic sense? It is also preliminary investigation of potential benefit for a proposed project. There is importance of feasibility study for proposed business or development.

It helps to list of all factors, which is necessary for making business work.

By this study, it is possible to find out business related problem and it's suitable solution.

For developing business plan, it acts as a solid foundation.

Develop marketing strategy to convince a bank or investor

The main components of the feasibility study depend on the kind of business. If business is that, product or service to be offered and how it will be delivered to customers then components are:

Market feasibility

Before introducing product or service into the market, it is necessary to analyse the market. This study focus on

Whole idea about business

Analysis of current market

Competition in the present market

Potential buyers and source of revenue

Sales projection

Technical feasibility

This studies focus and measure the detail of how product or services will be delivered, where business will be located and what technology will be installed. Technical feasibility helps for problem solving and long term planning. It also deals with the materials and labour.

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Financial feasibility

This study discuss about the finance such as how much start up cost will be needed, source of capital, return on investment and any others financial matters. Financial feasibility study is an assessment system of the financial aspect of something. This study is mainly for new project or business which will be started. It focus on

Start up capital requirements

Start up capital sources

Potential return for investors

Organisational feasibility

It discuss about the legal and corporate structure of the business. It may include professional background of business factor and what type of skills will be needed for business. The main focus of this study

Full description of business and organisational structure

Professional skills, external and internal principles

Risk assessment

Risk management is very important and central part of any organisation's strategic management. It is the process to identify any future risk involving for achieving the organisational goals. The main focus of the risk management is the identification and treatment of risks. Its objective is to achieve maximum sustainable value to all sections of the organisation. It should be ongoing process too run whole organisational strategy and implementation of that strategy. It is over all process of risk analysis and risk evaluation.

Risk analysis

Risk identification

To identify the risk, it is necessary to gain the closed knowledge of the organisation, the market in which it operates, legal, political and cultural environment in which it exist. Also objectives, treats and opportunity should be known. Risk assessment should be approached in a methodical way to confirm all important activities within the organisation. It can also be done by the outside consultant.

Risk description

In this process indentified risks are displayed in a structure format like as a table. The contents of this table are name, scope, nature, qualification of risk, stakeholders, risk tolerance, risk treatment, potential action for improvement and strategy and policy development. The contents of this table may vary organisation to organisation. It mainly depends on the nature of organisation.

Risk estimation:

In terms of the profitability of occurrence and the possible consequence; Risk estimation should be quantities and qualitative. Consequences should be both in term of the opportunity and threat. These may be high, low or medium.

Risk evaluation

After completing the risk analysis, it is most important to compare the estimated risk against risk criteria which organisation has established. The risk criteria include costs and benefit, legal requirements, socio-economic and environmental factors, concern of stakeholders etc.

Marketing case of McDonald's

The marketing concept of an organisation focus on the profitability and customers need to achieve the organisational goal. In the market, there are some competitors. To take an organisation forward against competitors, a well developed strategy is required.

Marketing strategy of McDonald's is broken down into short term measurable targets, which McDonald's uses as a milestone along the way. Marketing strategy is also the way of achieving organisational goal. McDonald's follows the 4ps marketing to gain competitive advantage.

Product: McDonald's provide huge amount of products with available choice to potential customers. McDonald's tries to introduce new product according to customers demand. However customers demand is changing day by day, today which is new tomorrow that is old. To meet with this changing demand McDonald's develop new product with different test to potential customers.

Price: Price strategy is very crucial in the present market. Low price of product may affect on customers mind regarding quality. So, it is important, when deciding on the price to be fully aware of brand and its reliability. McDonald's use the competitive prices the markets.

Promotion: It includes all kind of marketing communication. McDonald's advertise through electronic and print media effectively. Main objective of this promotion is to gain customers' attention.

Place: Place is the important factors for every business. It includes the type of customer's habit, culture and so on. In India most of the people are vegetarians, so they don't eat meat. McDonald's India produces veggie burger for their customers.

Though marketing Strategy of McDonald's is very effective, yet I would like to suggest a marketing strategy. Potter's competitive strategy is still well known and effective strategy for marketing. By using this strategy, McDonald's might reach to its marketing goals easily. This strategy includes cost leadership, cost differentiation and focus on particular market niche.

Task-2

Vision, mission, objective and measures

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Objectives of McDonald's

Aim and objectives of McDonald's on the base of product and marketing strategy, ethical, social, cultural, environmental policies are stated. It should be recognised which goals are achieved by company.

Ethical: We approach all aspects of our business with honestly and integrity. We hold ourselves to the highest possible standard.

Cultural: McDonald's respond to the culture that is why they create different type oof culture in the organisation. These are role culture, task culture, power culture and person culture.

Social: McDonald's is committed to social responsibility. We are doing right things. We want to make positive difference in the world.

Environmental:

Conserving and protecting natural resources

Encouraging environmental values and practices

Effectively managing solid waste

Ensuring accountability procedures

Business:

To increase sale

To increase profitability

To acquire prime land in the world for business

Mission statement

Mission is a formal written statement which contains purpose of an organisation. Mission statement should comprise the action of the organisation, overall goal of the organisation. It also includes aim of the organisation, organisation's responsibility toward stakeholders, products and services. It is the first step of an organisation for strategic planning and goal setting process.

Example

Wal-Mart: To give ordinary folk the chance to buy the same thing as rich people.

McDonald's:

Be the best employer for our people in each community around the world.

Deliver operational excellence to our customers in each of our restaurant

Achieve profitable growth by expanding the brand and leveraging the strength of McDonald's system through innovation and technology.

Vision statement

This is a formal written statement, which includes the future ideal image of the organisation. It is focal point for strategic planning and time bound. Most of vision statement is projected for a period of 5 to 10 years. Value and purposes of an organisation are connected with vision statement. It also gives the direction to the employees regarding how are they inspired and expected for their best. And provides information to customers why they should work for an organisation.

Example:

McDonald's: To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that we make every restaurant smile.

Tesco: We talk about Every Little Helps a lot, but it's not just a catchphrase or marketing slogan, it represents everything we stand for. For our people and our customers, it's how we run our businesses from China to Chorley [10].

Evaluate and monitoring process of environmental objective

Environment is very important for human being. McDonald's goal is to gain continuous improvement of environment. This organisation allows the monitoring current legislation and act in anticipation of future environmental legislation. It has nice environmental program around the hierarchy of reduce, recycle, reuse. This company committed to continuous review, evaluation, and improvement of its environmental program.

McDonald's achieve their environmental objective by

Restaurant operation:

Improve energy efficiency

Minimise impact including odour, noise, effluent and emissions to the atmosphere

Reduce the amount of solid waste

Maintain litter free environment around the restaurant by conducting regular litter patrols.

All members of staffs, executive groups and supplier of McDonald's are committed with this environmental program.

Task-3

Implementation of the strategy

Time scales for strategy implementation

It is quite difficult to predict the required period for implementation of development plans. For market forecasting the accurate projections are limited 3-5 years. Economic change (changes interest rate, taxation rate, inflation and value of currency) influence the time scales and any others factors responsible for such kind of influences. There are three time scales for strategic planning and monitoring.

Long term time scale (10-15years): it focus on the long term goals for development.

Short term (4-6 years): It is the action program

Standard and principles are established

It ensure the implementation of necessary projects

Urgent action (1-2 years)

Introduce control to protect

Urgent planning required

There are some factors, which may effect on the timescales; these factors are economic change, technology, rules and regulation and so on. To adapt with this situation, it is necessary to monitor what kind of changes occur around the organisation.

Unplanned change is sudden change in the organisation. These changes are made because of new rules, new technology, economic change and when CEO leaves the organisation. This kind f changes effect on the time scale, such as new technology may change the time scale into shorter. And Global recession may change short time scale into long time scales.

Dissemination

Dissemination is a planned process of producing information on the quality. Information is most important for every organisation. The effective and informative information may help the organisation to develop new strategy. To make strategic plan, organisation need to use its channel of communication to disseminate information to relevant departments within the organisation. It also helps to invite an organisation for exchanging information.

Importance of monitoring and evaluation

Monitoring

It is the continuous process of collecting and analysing information. The main objective of monitoring is to improve the efficiency and effectiveness of an organisation.

Evaluation

It is the comparison of actual project impact against the agreed strategic plan. It can be formative (taking place during the life of an organisation to improve new strategy). It also can be summative.

Both monitoring and evaluation focus on some basic things these are efficiency, effectiveness and impact. Effectiveness is the measure of exact to which a development new strategy to achieve the specific objective.

Identify problems and their causes

Provide possible solution to identified problem

Raise question about strategy

Provide effective information

Make adjustment so that I am more likely to make a difference

Recommendation

Marketing strategy of McDonald's is different than the others fast food restaurant, as McDonalds has saviour menu for young generation, high street offer and happy meal for children and some seasonal promotion for their customers. It has different price strategy which depends on the place but does not provide buy one get one free offer. If McDonalds provide buy one get one free offer, they may sell more products to the customers. And it would be competitive advantage for McDonalds.

Conclusion

Strategic planning and its implementation are very important for every organisation. There are some factors which may resist implementing the new strategy. Stakeholders are most important group or individuals, who are connected to implement new strategy. National and Global market is ever changing and competition is increasing day by day. Organisation should implement new strategy for achieving organisational goals effectively. New strategy and its implementation may help the organisation to meet with organisational mission, vision and objective.