Contents
Steps involved in strategic planning.
Business Strategy
Vision and Mission
Steps involved in strategic planning.
Strategic planning is continuous
process.
Levels
of Management in a diversified company.
Top
Level of Management
Middle
Level of Management
Lower
Level of Management
Ansoff
Matrix
The
BCG Growth-Share Matrix
Directional
policy matrix
SWOT
analysis
PEST
analysis
Porter’s
five forces model analysis.
Significance of stakeholder’s
analysis
Task:
1
AC 1.1: Explain Business
strategy, Vision and Mission. Choose an UK Business organization and briefly
explain how its business strategies are related to their Vision, Mission, scope
and business environment.
Business
Strategy
A business strategy is the methods by which it embarks to
accomplish its wanted targets. It can just be portrayed as a long haul business
planning. A business strategy is concerned with real asset issues e.g. raising
the fund to fabricate another processing plant or plant. (Teece, 2010)
👇
👇
Vision
and Mission
A Mission Statement characterizes the organization's
business, its targets and its approach to achieve those goals. A Vision
Statement portrays the sought future position of the organization. Components
of Mission and Vision Statements are regularly consolidated to give an
announcement of the organization's reasons, objectives and qualities.
(Heritage, 2011)
How Nestle business strategies
are related to their Vision, Mission, scope and business environment?
Strategies of any organization are figured on the premise of
its vision, mission, degree and business environment. Same is the situation
with Nestle UK, Which is subsidiary of Nestle. On the off chance that you
experience the vision and statement of purpose, degree and business environment
of the Nestle and afterward study its systems which have been planned you come
about that these have been figured to attain its vision, mission and these are
inside the extent of the organization and are additionally as per its business
surroundings.
AC1.1 and 1.2
a) Identify the steps of Strategic planning. Briefly explain if
strategic planning is a one off issue or a continuous process and review the
matters involved in this process.
The following are steps involved in
strategic planning.
1. Identify
particular issues or decisions that the planning methodology ought to address
2. Articulating
Mission and Vision
3. Assessing
the Situation
4. Developing
Goals, Strategies, and Objectives
5. Completing
the Written Plan (Lorange, 2008).
Strategic planning is continuous
process. Significantly under the best of circumstances, planning may bring
about objectives that are inadequately chosen, and methods that fizzle. After
the execution of strategy, there are two more steps which are rehashed
consistently. (Powell, 2012)
Study
When an arrangement has been actualized, the following step
is to study the effect of that usage. For example, assume an organization plans
and actualizes another wellbeing project intended to lessen the quantity of on
location mishaps in an assembling plant. As the arrangement is actualized, the
organization thinks about the effect of the arrangement on wellbeing levels. In
the event that wellbeing levels enhance, the organization will expect that the
arrangement had a positive effect. In the event that wellbeing levels continue
as before or decrease, the organization will expect that the arrangement did
not have a positive effect. (Cherry, 2014)
Act
In view of the results after arrangement execution,
organizations then make a move. In the event that the results have been
positive, the organization will keep on executing the arrangement and maybe
spread the plan to different parts of the association. On the off chance that
the arrangement has not been a win, the organization will consider what it has
realized and start the planning cycle- -arrangement, do, study, act- -once
more, as a major aspect of its persistent change endeavors. (Mason &
Mitroff, 2011)
(b) Classify
the four levels of management in a diversified company and briefly show the
responsibilities of each level of managers to decide and implement Vision,
mission, objectives and strategies to achieve goals.
The top level
management decides the goals, strategies and arrangements of the association.
They assemble accessible assets. They plan long haul arrangements of the
association. The achievement or disappointment of the association generally
relies on upon their proficiency and choice making.
|
|
Middle level
management offers suggestions to the top level management. It executes the
strategies and arrangements which are made by the top level management. It
co-ordinate the exercises of every last one of divisions. They plan transient
arrangements of their areas of expertise. They are delegate in the middle of
top and lower management.
|
|
Lower level
management coordinates the workers. It keeps up a connection in the middle of
laborers and the middle level management. The lower level management educates
the specialists about the choices which are taken by the management. They
likewise educate the management about the execution, challenges, sentiments,
requests, and so on. Of the laborers. The lower level managers make every
day, week by week and month to month plans. They have restricted power yet
vital obligation of accomplishing the work from the specialists.
|
AC1.3: Explain Ansoff matrix, BCG
growth-share matrix; directional policy matrices as planning techniques to meet
the objectives of shareholders.
To depict elective
corporate development methods, Igor Ansoff displayed a grid that concentrated
on the company's available and potential items and markets (clients).
Existing Products
|
New Products
|
|
Existing
Markets |
Market Penetration |
Product Development |
New
Markets |
Market Development |
Diversification |
Ansoff's grid
gives four diverse development methods:
· Market Penetration - the firm looks to accomplish development
with existing items in their current business fragments, expecting to build its
piece of the overall industry.
· Market Development - the firm looks for development by
focusing on its current items to new market sections.
· Product Development - the organizations creates new items focused
to its current business portions.
· Diversification - the firm becomes by differentiating into new businesses by
creating new items for new
(Watts, Cope &
Hulme, 2008).
This matrix:
classes the business units into four classifications on the premise of their
development and relative pieces of the overall industry.
BCG
Growth-Share Matrix
The four classes
are:
· Dogs - Dogs have low piece of the overall industry
and a low development rate and therefore not create or devour a lot of cash.
Then again, dogs are cash traps due to the cash tied up in a business that has
minimal potential.
· Question marks - Question
marks are developing quickly and consequently expend a lot of cash, but since
they have low pieces of the pie they don't create much cash.
· Stars - Stars create a lot of cash as a result of their solid relative
piece of the overall industry, additionally devour a lot of cash due to their
high development rate; consequently the cash in every bearing more or less nets
out.
· Cash cows - As pioneers in an adult business, cash cows
display a profit for resources that is more prominent than the business sector
development rate, and in this way create more cash than they devour.
(Smith, 2012)
This tool employs
two variables:
· The Business Position (i.e. measures the
aggressive position and business sector execution of the organization)
· The Business Sector Prospects (i.e. is the
part in a developing or declining area)
(Robinson,
Hichens, & Wade, 2008).
To achieve M1 you need to show
that an effective research has been applied to justify the significance of
strategic planning and its nature.
Strategic planning
is essential to an association in light of the fact that it gives an ability to
read a compass and diagrams measurable objectives. Strategic planning is a
device that is valuable for managing regular choices furthermore for assessing
advancement and changing methodologies when getting up and go. Keeping in mind
the end goal to take advantage of strategic planning, your organization ought
to give cautious thought to the strategic destinations it diagrams, and
afterward go down these objectives with reasonable, altogether looked into,
quantifiable benchmarks for assessing results.
AC 2.1 Carry out a current SWOT
analysis (organizational audit) of your chosen company using facts.
Strengths
One of the
greatest strengths of Nestle is the brand picture that it has. Its brands, for
example, Kitkat, Nescafe, and Nesquick are very nearly synonymous with the
brand name. The organization likewise has the overwhelming money related muscle
to put resources into its innovative work which can further improve its product
offering and additionally put resources into advertising.
Weaknesses
One shortcoming of
the organization is that it has needed to review a number of its items because
of terrible quality and that has enormously hampered its image picture. The
organization likewise is the focus of being boycotted as a result of media
weights and environmentalists for participating in non-green practices and use
of youngster work.
Opportunities
The way that
Nestle has gone from being just a nourishment brand to being sustenance and
prosperity brand is a decent open door for the organization as it opens a lot
of people new territories for product offering augmentation. Going into
developing markets and creating assembling plants likewise helps the
organization in decreasing its expenses.
Threats
The food business
is likely a standout amongst the most soaked commercial ventures on planet.
Remembering this Nestle confronts the extremely solid risk of rivalry. The
climbing costs of crude materials, fuel nations where settle has set up their
creation plants likewise debilitates to cause instability in the supply line.
(Dyson, 2009)
AC 2.2 Conduct a PEST
analysis (environmental analysis) of your chosen company.
Political:
Since the UK is a
piece of two major political unions, United Nations and EU; it permits the
option to exchange proficiently both locally and universally. Regardless of
having both a government and a parliamentary manifestation of government, the
administrative framework is decently adjusted and the basic law is honed.
Economic:
UK is the third
biggest economy in Europe after Germany and France. Because of the economy
without further ado being in a low development stage it is exceptionally vital
for Nestle to comprehend the business and concoct items and techniques where it
could keep on offering the same elevated requirement of items that it offers
but attempt and moderate expenses.
Social:
Around 66.2% of
the Population of UK lies between the age sections of 15-64 years. This implies
that there is an expansive work power accessible however a dominant part of
populace is likewise maturing.
Technological:
The UK is a
technologically progressive nation with overwhelming concentrate on innovative
work and figured supported recreations and outlines. This is a positive point
for Nestle as Research and Development is a key preference for the
organization.
Environmental:
The administration
of the United Kingdom pays weight on organizations doing their operations on
environmental amicable standards. Since Nestle is an organization that is inside
the nourishment and sustenance industry accordingly the environmental
consistence is amazingly fundamental for it. (Paul, 2009)
AC 2.3 Develop a stakeholders
mapping of your company and explain the significance of stakeholders’ analysis
Keeping in mind the
market in which Nestle operates in, there is requirement of Porter’s five
forces model analysis.
Threat of New Entrants:
Settle regardless
of being in a foods and nourishment industry confronts the genuine risk of new
contestants in the business. There are low obstructions to section and a lot of
people little household players can enter the business and test the business
sector of settle through their evaluating or item offering which is custom-made
to the neighborhood society and tastes.
Bargaining Power of Suppliers
Nestlé’s suppliers
bargaining power is low. That is on account of Nestle being such a titan in the
business sector can bring bunches of new business to the suppliers and along
these lines the suppliers need to create the crude materials as indicated by
the blueprints set by the organization or they can be supplanted.
Bargaining Power of consumers:
Nestle’s
consumers’ bargaining power is high. That is on account of it is a brand which
extraordinarily depends on buyer thankfulness for the item. On the off chance
that an item is propelled in any piece of the world where the consumers dislike
the taste, they will decline to purchase it.
Threat of Substitutes:
Risk of
substitutes for Nestle is likewise high. In every aspect of its operations
there are numerous different firms that are offering either comparable items or
substitute items. For this reason Nestle needs to guarantee that it offers an
item encounter that can't be imitated and is requested by its consumers.
Industry Rivalry:
Industry
competition for Nestle is high. In United Kingdom it confronts risk of rivalry
from brands like Kellogs et cetera.
Significance of stakeholder’s analysis
Stake holders
analysis; poplar one is porter’s five forces model. The model is huge on the
grounds that it focuses an organization's aggressive surroundings, which
influences profitability. The bartering force of purchasers and suppliers
influence a little organization's capacity to expand costs and oversee costs,
individually. Be that as it may, if there is one supplier for a specific
segment, then that supplier has bartering control over its clients.
Low-entrance hindrances pull in new rivalry, while high-passage obstructions
debilitate it.
To achieve M1 you need to show
that an effective judgment has been made to develop and explain the stakeholder
analysis of your company.
Following are few
of the observations were made to develop and explain the stakeholder analysis
of Nestle.
Stakeholders asked
Nestlé to articulate and leverage the connections between issues.
They observed, for instance, that nutrition and rural development is closely
linked. Nutrition and the living wage are also linked (workers and farmers who
cannot afford to feed their families); as are water and human rights (all
people have a right to water and a right to sanitation).
Stakeholders would
like to see Nestlé use its influence and convening power to enable
collaboration and partnerships in order to build ‘the enabling environment’. (Bhattacharya,
Sen, & Korschun, 2011)
Above mentioned
stakeholders’ perception, and desire influence the company make strategies for
their concerns and the company act on most of opinion of its stakeholders.
To achieve M2 you need to
demonstrate that a range of sources of information has been used to explain the
impact of PEST and SWOT analysis on your chosen company.
As indicated by a
scope of assets, in the wake of doing PEST analysis Nestle UK comprehended
their business better, tended to weaknesses, deflected threats, profited by
opportunities, exploited their qualities, created business objectives and
procedures for accomplishing them.
As indicated by a
scope of assets, SWOT analysis of Nestle UK helped the organization to diminish
the effect and impacts of potential threats to the association. It additionally
supported and energized the advancement of strategic thinking inside the
association. Given a system that empowered the association to distinguish and
adventure new opportunities. It likewise empowered the organization to survey
ramifications of entering new markets.
To achieve D1 your conclusions
must be arrived at through synthesis of ideas and they have been well
justified.
It is sheltered to
say that Nestle has a great deal of positive properties sponsorship its
overwhelming item portfolio and accordingly the organization has figured out
how to maintain its position in the rundown of the fortune five hundred
organizations. The organization through the utilization of effective management
systems, development, capital mixture and innovative work keeps on extending
its portfolio furthermore serves as a sample of an excellent sustenance and
nourishment giving organization. There are numerous claims against the
organization and it is likewise for the most part thought to be one of the
world's most boycotted organizations and notwithstanding all off that the
incomes of the organization have scarcely drooped subsequent to its
commencement. That is a demonstration of their worth chain creation and
streamlined methodologies that guarantee that settle turns into a piece of the
employment of the people.
👇
👇
References
1. Teece, D. J. (2010). Business models,
business strategy and innovation. Long
range planning, 43(2),
172-194.
2. Heritage, C. (2011). Vision and Mission.
3. Mason, R. O., & Mitroff, I. I.
(20111). Challenging strategic
planning assumptions: Theory, cases, and techniques (pp. p-43). New
York: Wiley.
4. Lorange, P. (2008). Corporate planning: An
executive viewpoint.
5. Powell, T. (2012). Strategic planning as
competitive advantage. Strategic
Management Journal, 13(7),
551-558.
6. Watts, G., Cope, J., & Hulme, M.
(2008). Ansoff’s matrix, pain and gain: Growth strategies and adaptive learning
among small food producers. International
Journal of Entrepreneurial Behaviour & Research, 4(2), 101-111
7. Smith, M. (2012). Derrick's Ice–Cream
Company: applying the BCG matrix in customer profitability analysis. Accounting Education, 11(4), 365-375.
8. Robinson, S. J. Q., Hichens, R. E., &
Wade, D. P. (2008). The directional policy matrix—tool for strategic
planning. Long Range Planning, 11(3), 8-15.
9. Dyson, R. G. (2009). Strategic development
and SWOT analysis at the University of Warwick. European journal of operational research, 152(3), 631-640.
10. Paul, I. (2009). Critical evaluation of the
significance of PEST factors in organizational strategic planning. Publications Oboulo.com.
11. Cherry, K. (2014). Nestlé. Strategic marketing management.
GRIN Verlag.
12. Bhattacharya, C. B., Sen, S., & Korschun,
D. (2011). Leveraging corporate
responsibility: the stakeholder route to maximizing business and social value.
Cambridge University Press.
http://www.bain.com/publications/articles/management-tools-mission-and-vision-statements.aspx
http://businesscasestudies.co.uk/business-theory/strategy/business-strategy.html#axzz3LKQugwyS
http://www.namac.org/strategic-planning-steps
http://www.fao.org/docrep/w3210e/w3210e08.htm
http://kalyan-city.blogspot.com/2011/05/levels-of-management-top-middle-and.html
http://www.quickmba.com/strategy/matrix/ansoff/
http://www.netmba.com/strategy/matrix/bcg/
http://strategycapstone.ning.com/page/directional-matrix
http://yourbusiness.azcentral.com/strategic-planning-important-organization-4103.html
http://www.inforefuge.com/nestle-australia-and-uk
http://www.academia.edu/5598619/Nestle_international_business_strategy
http://smallbusiness.chron.com/perform-swot-analysis-5050.html
http://www.free-management-ebooks.com/faqst/pestle-09.htm
http://www.nestle.com/csv/what-is-csv/stakeholder-engagement
https://www.business.qld.gov.au/business/starting/market-customer-research/swot-analysis/benefits-limitations-swot-analysis