Strategic Analysis Process and Implementation in Strategic - Assignment Example

Strategic Analysis Student’s name Code & Course Professor’s name University City Date Contents I.0 Introduction: Management Process 3 2.0 PEST Analysis 3 2.1 SWOT Analysis 4 2.2 Porter’s five forces 5 2.3 Risks analysis 6 2.3.1 Strategic Choice 6 2.3.2 Strategy Implementation 6 2.4 Strategic Management Process 7 2.4.1Business Development Plan 8 2.4.2 Business Profile 8 2.4.3 Market Profile 8 2.4.4 Competition Profile 8 2.4.5 Location, Facilities, Equipment and Economy 9 2.4.6 Management Profile 10 2.4.7 Personnel Profile 10 2.4.8 The choice of strategy 11 2.4.9 Implementation and Control 12 Reference List 13 Strategic Analysis Process and Implementation in Strategic I.0 Introduction: Management Process Strategic analysis describes an enterprises condition regarding its environment, resources and skills, and stakeholders expectations and their influence on the enterprise. Questions drawn at this stage help in decision making on the strategic choice. Internal analysis needs to be carried out to determine advantages accrued to a company. In the past decennium, design has seized the interest of most scholars in the wide scope of organization and management subjects (Stiglani and Ravasi 2012).This focus of enthusiasm in design is evidently paired with the increase of patterned thinking disclosure all through the 2000s which comes forth as a technique meant to support the innovativeness of the designer enclosed in the surrounding of an enterprise (Collins, 2013). 2.0 PEST Analysis PEST-assessment represents political, economic, social and technological elements influencing an enterprise. Political Political elements are connected with legal and state rules such as taxation structure, laws and equilibrium. Political leaders usually have a huge following, and their opinions on certain aspects may influence their follower's choices. Mazotos Camel Park needs to put this into consideration and probably be politically neutral or not publicize their political affiliations so as to avoid future conflict with customers. Economic elements influence on the customers’ need and enterprises expenses. For instance, with Chinas large size, new affluence, and rapid economic growth could make it productive ground for the aviation sector (Gluckman, 2014). Social elements manipulate on the consumer needs and market size. Technological elements lessen danger for entry into the market, lessen production expenses and evaluate research and growth activity. PEST assessment paints the big picture of the surrounding around an enterprise (CIPD, 2014). So as to promote PEST assessment,it is important to strengthen managers in practice learning ability on a basis of systems reckoning (Ho, 2014)These elements are a starting point for more research on the organizations environment and may be used in the SWOT-assessment. A structured PEST assessment output crucially adopts the control method in Structured Thinking as expounded in Open University (2014). 2.1 SWOT Analysis SWOT assessment helps to comprehend surrounding vital issues for better decision making of an enterprises way forward. SWOT establishes strengths, weaknesses, opportunities and threats. Strategic skills, capacities are analyzed, and main elements of surrounding and market are added up. Strengths and weaknesses of the enterprise help to comprehend how the surrounding environment impacts on the inner company’s arrangement. Opportunities and threats analysis helps the enterprise notice some particular segments of the environment and market in general. Mazotos Park should evaluate their strengths and work on them, for example, take advantage of the park being centrally located to convince residents to take ride camel in the city streets to break away from the monotony of car rides. The process analyzing is abet effortless. Each segment of SWOT should not comprise of more than 7-8 points in each. Each point should be short, but should not be ambiguous. When completed SWOT-analysis should have a conclusion with the purpose and direction which the enterprise should take. Hence, SWOT-analysis is useless if it is used to search through internal and external analysis together 2.2 Porter’s five forces Porter's five strengths of competitive status assessment were designed as a simple system for assessing the competitive advantage and status of a business enterprise. The theory helps to establish where power lies in an enterprises state of affairs. This is practical in comprehending the force of an enterprises recent competitive status, and the power of a post that an enterprise may consider getting into. Analytical experts usually utilize Porters five forces to comprehend if new services and products could potentially be profitable. Weaknesses can be improved, mistakes avoided and areas of strength identified by comprehending where power lies. The five factors are: Supplier competence. An assessment of how effortless it is for distributors to increase costs Buyer competence. An assessment of how effortless it is for buyers to decrease costs. This is manipulated by: i. The number of purchasing agents in the industry ii. The significance of every single purchasing agent to the enterprise iii. The expense to the purchasing agent for changing from one supplier to another. If an enterprise has few mighty purchasing agents, they usually have the ability to steer the conditions Competitive competition. The principal catalyst is the entity and strength of rivals existing in the industry. Most rivals that offer various services products will lessen market allure. The threat of alternatives. Where alternative commodities are in existence in a market; hence chances of consumers changing to substitutes in response to increasing prices. This lessens the effectiveness of distributors and allure of the market. New entry risk. Profitable markets charm newcomers, which corrodes profitability. Incumbents should have withstanding and long-lasting obstacles to entering the industry. Otherwise profitability will decrease to a competitive rank. 2.3 Risks analysis Suitability of a strategy can be quantified in several ways: the possible profit from it and danger which can have an influence on the enterprise. There are probable risks that can happen in the long-run and they can alter the whole company’s schedule of its development. There are three ways which can assist in evaluating how high or low the threat is. Sensitivity analysis. When evaluating a strategy, it is useful to use this analysis.The principal idea of the sensitivity analysis is to examine how responsive the strategy is to various changes which can influence the performance or profit. 2.3.1 Strategic Choice The selection of the strategy is the most crucial part in strategic management. It is an extension of the strategic analysis and is connected with the company’s choice about its future. 2.3.2 Strategy Implementation Strategic implementation is the last stage following strategic analysis and choice in the strategic process. It adds up everything and breathes life into it. Strategy implementation is connected to the first two steps (analysis and choice), and more worthy as the selected technique comes to life on this stage. 2.4 Strategic Management Process While comprehendible, the use of famous strategic management notion is a hindrance because it closes design into positivistic types (Johanson-Skoldberg et al., 2013) Strategic management is not connected with decision-making about all the important questions which are met by the enterprise. It is connected with the assurance that the strategy is going to be put into action. It comprises three important elements: strategic analysis, strategic selection and strategy implementation in strategic management process Strategic analysis describes the enterprises strategic status in the market. Strategic selection determines all the activities that should be taken into consideration, evaluation and selection of these activities. And strategic implementation expounds on how to plan the strategic selection that it could have a positive impact and if it is needed to make any replacements. Nowadays, the strategy is without a doubt the most influential domains in management. Carter (2013) calls it the king of the notion of recent times. Research in design management rarely encompasses deep research on various trains of thought in strategy and seems just to scratch the over side of research topics in management (Erichsen and Christensen, 2013). Strategic choice and implementation are therefore related in that; there are many strategies available, but only the relevant ones should be selected and put into practice in order for the strategic management process to be considered complete. It is a continuous procedure. Strategic management sprouted along management consultancies adopting the growth of extraordinary techniques for expressing improved plans for corporate consumers (Mathiesien, 2013) 2.4.1Business Development Plan A business plan is vital in guiding a business enterprise to be accountable and achieve maximum profitability. 2.4.2 Business Profile This part of the business plan should summarize the business profile. Indicate the kind of enterprise, its organizational set-up, the principals, and the type of sector. Who you are, what you are and where you are going are questions that must be clearly outlined in the business plan. 2.4.3 Market Profile Before making a decision on a business undertaking, the need for a product or service should have been determined hence the need for a market research and development of a plan to grasp potential customers. Creation of a marketing strategy starts with expertise. The wants and needs of potential consumers should be known so as to motivate these customers to purchase from an enterprise. Sales potential relies on varying elements, premises, product line, traffic, rivalry, the economy, etc. It is crucial that all these elements are examined to develop sales. 2.4.4 Competition Profile In the past decennium, commodity spherical discourses have been replaced by strategy sphered discourses mostly centered on creativity. This raise has prompted queries regarding the strategic worth of design. Inspire of this repair, in name, there is no dependable comprehension of patterned strategy in writing (Aijala and Karjalanein 2012) So as to confirm the possibility of any undertaking, the rivalry must be assessed in depth. By studying your rival, you should be able to establish the success of your product or service. Thorough awareness of strengths and weaknesses of rivals and merits and demerits shared in resemblance to them. If competitive and still making a profit, then the venture is considered successful. Competition can either put you out of business or on the other hand; your competition can make way for you to penetrate the marketplace if they are not meeting their consumer’s needs. And, in an unbelievable twist, your rival can turn into a source of business for you. Attempting to penetrate an already saturated market with your kind of business may render your economic survival insufficient. Mazotos Park is a breath of fresh air in a busy city where residents can come to unwind with their families without having to plan far away and expensive trips and be fatigued when they come back. The idea of the park is also not taken up by many entrepreneurs, so it is viable. Avoid repeating the mistakes of rivals but also, integrate their positive practices. You must be in the know of the rival’s status in the industry and their strategic moves that will impact your enterprise. Respond to the rivals moves with your strategies. If possible, try to get yourself into a position in which the rival has to respond to your strategic marketing moves. The easiest way to stay up to date with the rival’s strategies is to establish a personal connection with the salespeople who call on both you and the rival. They know when your rival is planning a promotional campaign, sale or advertisement. They can be a source of information for you. 2.4.5 Location, Facilities, Equipment and Economy A high priority in commencing or buying an enterprise is its premises. You must evaluate the complete business picture. Where is the premise? How is the premise to be equipped? Does the facility need any unique considerations, i.e.,.? Storage, lighting, ceiling heights? What is the general appearance of the neighborhood? Is the market nearby? What are the parking, transportation, zoning, and transportation state of affairs and labor market? Mazotos may require parking spots for customers who come in their vehicles and food parlors where customers can be grad quick bites. 2.4.6 Management Profile Expound in detail your business attributes and also those of your managers. Direct experience in the industry is vital for your comprehension of the enterprise. Make it clear who will be the manager, who is answerable to whom, what types of abilities that the managers possess. Mazotos needs to establish a chain of command to avoid duplication of duties and ensure that all staff are accountable for their designated duties. 2.4.7 Personnel Profile The personnel needs of any enterprise are usually special to that particular enterprise. Wage rates are often influenced by the skills needed to complete the duty designated. The area or the going rate for the sector may also impact wage rates. Therefore, each single job must be assessed and duties designated. Create job descriptions for every job order. Assess the educational level, an ability needed, and working circumstances. If possible create wage scales for every job relying on experience, seniority and significance of the position. Create an organizational chart distinctly outlining the chain of command. The more complicated your company’s set up the more crucial the management team becomes. 2.4.8 The choice of strategy At the end of the business development plan, enterprise will be faced up with the necessity to regenerate its technique owing to the high temp of sprouting market and new participants that appeared at that time. A unique group of managers from the enterprises various subdivisions needs to be made, and they require to put into place a new project and new formulations for the next 5 years. The ensemble will include the chief executive officer of the enterprise, sales, financial, development and marketing managers. They should write a new plan, and find fresh ways to the growth. They should discuss probable threats, competitors, opportunities and other ways to grow. In essence, in 3 months they need to have a draft for the new plan and in 2 more months, the plan should be complete. The debate brings about arguments on which strategy to select. Cooperation of all the principal subdivisions will give good results. The market penetration strategy is more viable. And the aspect of ‘The Camel Park with the comfortable location’ appears. Later an idea to enter the new market appears. The enterprise should go international in a few more years. It takes a lot of time to prepare and analyses the market in the new regions, acquiring new places for the parks, new agreements with suppliers, organizing of the new parks, etc. All possible risks have been taken into account at this stage. The first one is in connection with the states interference in the price regulations of suppliers. The next one is connected with the high rivalry with other principal players on the market. Nonetheless, the account is not taken for some of the things that happen. Fortunately, it does not impact substantially on the enterprises results. But the inside problems are delayed a little bit. It takes almost a year from arranging the group until the moment of implementing the new plan. How it is implemented and which results in it achieves is described below 2.4.9 Implementation and Control As referenced above, implementation of the new plan starts during summer. Every manager from each subdivision is responsible for their role in the implementation. This assigning of authority is done owing to their duties and their region of scope. The president controlled all other managers. At first, everyone should work as a team, but after one month they should be playing their own role as all the motions for opening a new park are the same. Only top-managers are responsible for the implementations and influence. Other office staff are in charge of the operational procedures. The first differences are connected with the altering of the mission of the company and the business tradition (dress code in the park and special jungle color for tour guides). Then the development manager is looking for new locations for city parks and signing agreements for these new premises. The financial manager is responsible for investments. The commercial manager is responsible for material and renewal of the premises, and also in unison with logistics subdivision, they are in charge of arranging a logistic structure for new regions. The marketing manager is responsible for assessing the market, advertising the company and other media stuff. And the sales manager is in charge of the prediction of sales in every park, management and control of the sales, and agreements with new suppliers. Every three months a meeting should be held to discuss results of previous months and plans for increasing profits for the coming months. These meetings help them to be up-to-date about the situation in every subdivision and the enterprise, keep in touch with other group members of the strategic team and the chance to debate on all the points which are supposed to be paramount. The connection between strategy and design could be depicted as using design as an innovative technique to aid a company’s strategy making procedure. Although this outlook personifies a substitute to strategic cultural reckoning and exhibits new ways of linking strategy and design, the threat of abstracting design as a set of innovative problem-solving techniques is the real experience in designing is abstracted away potentially overtaking other worthy outlooks of the design practice(Jhanke,2012). Reference List Äijälä, E. & Karjalainen, T 2012, ‘Design strategy and the strategic nature of design’, in Karjalainen, T. (Ed.), IDBM Papers Vol. 2, IDBM Programme, Aalto University, Helsinki, Finland, pp. 22-37 Carter, C 2013, ‘The Age of Strategy: Strategy, Organizations, and Society’, Business History, Vol. 55, 1047–1057. Collins, H 2013, ‘Can design thinking still add value?’ Design Management Review, Vol. 24, No. 2, pp. 35-39 CIPD 2014, ‘PESTLE analysis’,Factsheet. Chartered Institute of Personnel and Development. Accessed at http://www.cipd.co.uk/hrresources/factsheets/pestleanalysis.aspx. [28-April 2016] Erichsen, PG., & Christensen, PR 2013, ‘The evolution of the design management field: a journal perspective’, Creativity and Innovation Management, vol. 22, no. 2, 107-120 Gluckman, R. 2014, ‘Buzzing around China’, Forbes Asia. April: 18-21. Ho, JK 2013, ‘A Research Note: An exploration of the intellectual learning process of systems thinking by managers in the digital social media ecosystem’, European Academic Research, Vol. 1, no.5, . August: 636-649. Ho, JK 2014, A Research Note on the Managerial Intellectual Learning Capability-Building Jahnke, M 2012, ‘Revisiting Design as a Hermeneutic Practice: An Investigation of Paul Ricoeur’s Critical Hermeneutics’, Design Issues, Vol. 28, No. 2, 30-40 Johansson-Sköldberg, U., Woodilla, J., & Cetinkaya, M 2013, ‘Design thinking: Past, Present and Possible Futures’, Creativity and Innovation Management. Vol. 22, No. 2,121-146 Stigliani, I., & Ravasi, D 2012, ‘Product Design: a review and research agenda for management studies’, International Journal of Management Reviews. Vol 14, No. 4, 464-488 Open University. 2014, Systems Thinking and Practice: Diagramming’’, Accessed at: http://systems.open.ac.uk/materials/T552/) [visited on July 7, 2014]. 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