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Every organisation has some sort of strategy those are directed the companies goal, objectives, vision. Strategy is simply concentrating how the organisation reaches the selective objectives, the sources necessary they are going to obtained. What are the main milestones and steps are along the way, which is accountable for causing each stride to occur. What are the company's business risks and exterior factors that need to be kept in reconsider for indications that a change in strategy or plan may be required.
In undersized, strategic planning is a tidy attempt to produce elementary decisions and activities that outline and channel what an organization is, what it does, and why it does it, with a spotlight on the prospect.
Business process is about planning of business, because it involves deliberately setting goals for upcoming future and developing an advance to achieving those goals. The manner is disciplined in that it calls for a certain command and example to remain it focused and prolific. The practice raises a progression of questions that helps planners look at experience, trial assumptions, collect and include information about the present, and predict the environment in which the organization will be working in the future.
At length, the system is about deep-seated decisions and actions because choices must be made in order to come back with the sequence of questions mentioned above. The plan is finally no more, and no less, than a set of decisions about what to do, why to do it, and how to do it. Because it is not possible to do everything that needs to be done in this world, strategic planning implies that various organizational decisions and actions are more significant than others - and that much of the strategy lies in making the sturdy decisions about what is most important to achieving organizational success.
Objectives set out what the industry is trying to attain.
Objectives can be set at two levels:
(1) Corporate level
These are objectives that concern the business or organisation as a whole
Examples of "corporate objectives might include:
- We aim for a return on investment of at least 15%
- We aim to achieve an operating profit of over £10 million on sales of at least £100 million
- We aim to increase earnings per share by at least 10% every year for the foreseeable future
(2) Functional level
E.g. specific objectives for marketing activities
Examples of functional marketing objectives" might include:
- We aim to build customer database of at least 250,000 households within the next 12 months
- We aim to achieve a market share of 10%
- We aim to achieve 75% customer awareness of our brand in our target markets
Both corporate and functional objectives need to conform to the commonly used SMART criteria.
The SMART criteria (an important concept which you should try to remember and apply in exams) are summarised below:
Specific - the objective should state exactly what is to be achieved.
Measurable - an objective should be capable of measurement - so that it is possible to determine whether (or how far) it has been achieved
Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business.
Relevant - objectives should be relevant to the people responsible for achieving them
Time Bound - objectives should be set with a time-frame in mind. These deadlines also need to be realistic."
In my point of view to set an objectives of organisation over long term which is productive to applying corporate level and functional level. So this statement which I added up that is relevant to my assignment.
The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.
Ansoff's product/market growth matrix suggests that a business' attempts to grow depend on whether it markets new or existing products in new or existing markets.
The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. These are described below:
Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.
Market penetration seeks to achieve four main objectives:
- Maintain or increase the market share of current products - this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling
- Secure dominance of growth markets
- Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors
- Increase usage by existing customers - for example by introducing loyalty schemes A market penetration marketing strategy is very much about "business as usual". The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.
There are many possible ways of approaching this strategy, including:
- New geographical markets; for example exporting the product to a new country
- New product dimensions or packaging: for example
- New distribution channels
- Different pricing policies to attract different customers or create new market segments
Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.
Diversification is the name given to the growth strategy where a business markets new products in new markets.
This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience.
For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. "
Applying marketing in matrix is applicable for any kind of business . so i think this is relevant for my assignment
"Strategy - introduction to PEST analysis
PEST analysis is concerned with the environmental influences on a business.
The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business.
Identifying PEST influences is a useful way of summarising the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences.
Pest analysis is most important for the reviewing business environment that is why I have mentioned, and agree with this data.
Where does marketing planning fit in with the overall strategic planning of a business?
Strategic planning is concerned about the overall direction of the business. It is concerned with marketing, of course. But it also involves decision-making about production and operations, finance, human resource management and other business issues.
The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives.
Marketing has a key role to play in strategic planning, because it is the job of marketing management to understand and manage the links between the business and the "environment".
Sometimes this is quite a straightforward task. For example, in many small businesses there is only one geographical market and a limited number of products (perhaps only one product!).
However, consider the challenge faced by marketing management in a multinational business, with hundreds of business units located around the globe, producing a wide range of products. How can such management keep control of marketing decision-making in such a complex situation? This calls for well-organised marketing planning.
"Strategy - resources of a business
In our introduction to the topic of business strategy, we used Johnson & Scholes' definition stating that "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".
So, what are these "resources" that a business needs to put in place to pursue its chosen strategy?
Business resources can usefully be grouped under several categories:
Financial resources concern the ability of the business to "finance" its chosen strategy. For example, a strategy that requires significant investment in new products, distribution channels, production capacity and working capital will place great strain on the business finances. Such a strategy needs to be very carefully managed from a finance point-of-view. An audit of financial resources would include assessment of the following factors:
The heart of the issue with Human Resources is the skills-base of the business. What skills does the business already possess? Are they sufficient to meet the needs of the chosen strategy? Could the skills-base be flexed / stretched to meet the new requirements? An audit of human resources would include assessment of the following factors:
The category of physical resources covers wide range of operational resources concerned with the physical capability to deliver a strategy. These include:
It is easy to ignore the intangible resources of a business when assessing how to deliver a strategy - but they can be crucial. Intangibles include:
There are some sorts of resources mentioned above which data i got from this site , my point of view this kind of resource is too essential for any kind organisation . like - human resources ,physical resource, financial ,tangible and non tangible all kind of data is is too import for successful long term organisation. Without capital no business can launch and after launching tangible resource is highly convey the organisation reputation. So analyzing the data I could not omitted the secondary data's.
SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats
SWOT study is an important tool for auditing the generally strategic position of a business and its environment.
Once key strategic issues have been recognized, they nourish into business objectives, mostly marketing objectives. SWOT analysis can be used in combination with other outfit for audit and analysis, such as PEST analysis and Porter's Five-Forces analysis. Both are very popular tool with commerce and marketing students because it is immediate and simple to study.
The Key Distinction - Internal and External Issues
Strengths and weaknesses are internal factors. For example, strength could be your expert marketing skill. A weakness could be the require of a innovative creation.
Opportunities and threats are external factors. e.g. An opportunity may possibly be a initial division channel such as the Internet, or altering customer lifestyles that potentially add to require for a company's stuff. A threat may well be a new participant in an central existing market or a technological change that makes active products potentially outdated.
it is worth pointing out that SWOT analysis can be very biased - two people not often arise with the similar story of a SWOT analysis yet when given the same information about the same business and its environment. For that reason, SWOT analysis is most excellent used as a direct and not a instruction. calculation and weighting criteria to both issues increase the strength of the examination.
Ethics is essentially about the definition of what is right and wrong. However, a difficulty occurs in trying to agree just what is right and wrong. No two people have precisely the same opinions, so critics would argue that ethical considerations are of little interest to business. It can also be difficult to distinguish between ethics and legality, for example it may not be strictly illegal to exploit the gullibility of children in advertisements, but it may nevertheless be unethical.
Culture has a great effect in defining ethics and what is considered unethical in one society may be considered perfectly acceptable in another. In western societies, ethical considerations confront business organizations on many occasions, as the following examples show.
It is suggested that society is becoming increasingly concerned about the ethical values adopted by its business organizations. With expanding media availability and an increasingly intelligent audience, it is getting easier to exposit examples of unethical business practice. Moreover, many television audiences appear to enjoy watching programmes which reveal alleged unethical practices of household name companies. To give one example, the media has on a number of occasions focused attention on alleged exploitative employments practise of suppliers used but some of the biggest brand names in sportswear.
Many companies have indentified segments of their market that are prepared to pay a premium price on order to buy a product which has been produced in an ethical manner, or from a company that has adopted ethical practices. Many personal investors are concerned not just about the return that they will get, but the way in which that returns will be achieved.
this explains the increasing popularity of ethical investment funds that avoid investing in companies which are considered to be of a socially dubious nature. In the food sector, many consumers would consider the treatment of cattle grown for meat to be inhuman and unethical and would be happy t buy from a supplier that they knew acted ethically in the manner in which the cattle were raised and slaughtered. Many with particularly strong convictions may refuse to buy meat at all.
More effective control and reward system can help to reduce unethical practices with an organisation. For an example, sales personnel employed by a financial services company on a
Commission -only basis are more likely to try to sell a policy to a customer regardless of the customer's needs compared to a salaried employee who can take a longer -term view of the relationship between the company and its client
The stakeholders of organisation:
It is common to describe stakeholders as those organizations and individuals that may not necessarily have any direct dealings with a company, but that are nevertheless affected by its actions.
There is an argument that an organization has responsibility to these stakeholders which goes beyond the basic legal relationship that it has with customers, suppliers and employees etc, In turn, a company can be significantly affected by the actions of its stakeholders.
The following section identifies the principal stakeholders in business organizations. Some of these are primary, with direct impacts of the organization on the stakeholder, and vice versa.
Others can be considered secondary in that their impacts are more indirect. Very often , stakeholders have different agendas and may disagree over what constitutes good behaviour
By an organization. As stakeholders in local industry, local community groups may have quite different reactions to the prospect of a company planning to create a new distribution
centre in their area. Some may welcome the increase in job opportunities which the new facility presents, while others may be against the proposal because of the additional traffic congestion that it will be likely to generate. We should always bear in mind that some stakeholders are more important than others, and this importance is likely to vary from one situation to another, moreover, each group is not homogenous and may present a variety of views about how an organisation should behave.
Eventually I can tell that whatever I have described in my assignment that the direction and scope of an organisation over long term which might be achieved with business resources an challenging environment. It can be fulfilled meet the needs of market and stakeholder expectations.
- Andrian palmer&bob heartley (1920). The business environment. London: n/a. p332-333.
- Andrian palmer&bob heartley (1920). the business environment. London: n/a. P320-321.