I.
INTRODUCTION
II. Assess how business missions, visions, objectives, goals and core competencies
inform strategic planning
III. Analyse the factors that must to be considered when formulating strategic
plans
IV. Assess efficiency of techniques used when developing strategic business plans
V. CONCLUSION
REFERENCE
VI.
I.
INTRODUCTION
Nowadays, business strategy is core element of all firms in over the world. Before
building a business, participating in a new sector or new market, successful firms
always deliberately research market, trends of customer, their strength and their
weakness to create an appropriate strategy. Especially vision, mission, objectives and
core competence are important factors in business strategy. This study will show you
the analyses and evaluations about different aspects of business strategy and focus on
vision, mission, objectives and competences. It will demonstrate for us about the
function of SWOT, PESTEL and Porter 5 forces on the business.
Maintain the leading position of producer and integrator in I.T service and
propose short-term plan express more detail while goal was proposed for long-term
plan that is wide and have general expression.
For example:
Next stages, we mix each quadrant from the SWOT matrix, we will have 4 particular
strategies: S-O strategy (Max-Max strategy), S-O strategy (Max-Min strategy), W-O
strategy (Min-Max strategy), and W-T strategy (Min-Min strategy). This analysis
assists the organization to comprehend the business background and the overall
strategic positions of the present market, which has many challengers.
Finally, innovation budgeting and intervention tool will be applied for improve
production program.
Factors:
In the process of develop business we have to face with challenges such as the
adjustment of internal and external environmental elements. The internal
environmental element involved to human resource, organization structure,
organization culture, leadership style, management, etc. And these aspects are
manageable and variable through planning procedure. For instance: in 2001, Steve
Jobs came back to Apple, he has created a revolution in technology and revived apple
that was on the verge of bankruptcy. He totally changes organization structure,
culture, job performance and made Apple be the biggest corporation in the world.
Jobs actually significantly to the development of Apple Inc.
In the other hand, external element is not manageable. The CEO of company can
control the change from nature, climate, economic condition and law of government.
For instance, in 2011 Sony Corporation have suffered severe damage from tsunami
and earthquake in Japan, their big factories completely destroyed and Sony lost more
1 billion dollar. In order to recover corporation they had to sell headquarter in
Manhattan and decreased workforce in over the world.
weaknesses, opportunities and threats. From four those factors, the business will
create four different strategies, they are Strengths and Opportunities (S-O), Strengths
and threats (S-T), Weaknesses and Opportunities (W-O) and Weaknesses and Threats
(W-T).
Advantages of SWOT
Businesses will comprehend their strength and take advantage it to develop their
brand.
Businesses understand their weakness clearly, that will help them avoid risks in
Disadvantages of SWOT
If a business focus too much on their strength, this can lead to the business does
For example:
Sainsbury retailer in UK
Strengths: Sainsbury is one of the big four retailer in UK, they have excellent staff
and workforce, famous brand and marvellous service; they have more 800
Sainsbury.
Threats: the competition from big retailer in the world such as Wal-Mart, Tesco,
Carrefour and Asda. Besides, Sainsbury is also impacted by stagnation of world
economy.
PESTLE ANALYSIS
Pestle analysis includes factors such as political, economical, social, technological,
environmental and legal.
Porters model relates to 5 factors that determined the type of competition in their
industry areas: supplier power, buyer power, threat of new entrants, threat of
substitute products and intense rivalry among existing players.
Advantages
It helps business understand present status of business for particip ate in new
markets.
It helps business understand about supplier power, buyer power, new entrants,
Disadvantages
products.
The model assumes a given state of affairs while now market entrants change
everyday.
Suppliers, buyers and new competitors are undertake irrelevant and do not run
Business strategic is important to define the growth of business. There are many
important factors that impact to the business strategy such as organization structure,
leadership style, and human resource. Besides we also apply effective tool such as
SWOT analysis, PESTLE analysis, Porters five force model. These factor will
contribute for the success of business.
Reference
A.D. Chandler, Strategy and Structure: Chapters in the History of American
Enterprise, MIT Press, 1963, p. 13
A. Shuen, Web 2.0: A Strategy Guide, OReilly, Sebastopol, (2008) p. 2.
BPP Learning Media Business Essentials- Course book Business Strategy, Third
edition July 2013, published ISBN 9781445368245)
M.E. Porter, What is strategy?, Harvard Business Review, 1996, November
December,
p. 60
FPT annual report (2013) [online], available from
<http://www.fpt.com.vn/Resources/2014/03/25/1854089/fpt__2013_annual_report.pd
f>, [access on 18 July 2014]