Business Strategy Assignment Help

Business Strategy Assignment Help

Business Strategy Assignment HelpPlease email Us your Assignment support@locusrags.com
Call Us: +44-7497786317, +61-280147200

Outcome 1:Understand process of strategic planning

Intersection we would be assessing how business missions, vision, objectives, goals

competencies  inform strategic planning we would be discussing eachof

these factors involved in business strategy. Analyzing the factors that are considered in formulating strategy is alsovital; therefore I would prepare a detailed analysis of them. In addition I would ensure thateachofthesefactors is evaluated to express

theeffectiveness  ofthesetechniques usedinthestrategic plan.

Astrategic planisdifferent tobusiness plan. Abusiness planisaboutsetting shortor mid-term goals andidentifying thestepsnecessary toachievethem.Astrategic plan isfullyfocused onmidtolong-term goalsforabusiness andexplains thebasic strategies forachieving them.

Mission isthestatement ofafirm.Itisthepurpose andthereasonforexisting.  It describes thecompany’s facilities andabilities. Mission statementtellsthe company’s idealandvalueinshortperiodoftime.Mission isallaboutwhyitexists,

itsreasonforbeing.Ataminimum, abusiness mission statement should definewho theprimary customers areandidentifytheproducts andservices business produces. Themission isashortsentence describing thepurpose ofthebusiness andthis should bementioned toeverymemberworking intheorganisation.  Itisimportantfor theemployee ofthebusiness toknowthismission, astheywillbeable todefinethe purpose oftheorganisation.  Missionstatement should  clearly reflectbusiness goals andeconomic climates evolve. Itreflectsevery sideofthebusiness, suchasthe rangeandnatureoftheproducts offered,  pricing, quality, service, marketplace position, growth potential, useoftechnology, andthebusiness relationship with the customers,  employees, suppliers, competitors andthecommunity.

Visionisthestatement ofwhatthecompany intendstobeinfuture. Itshowsthe company itsfuture direction andwhatshould bedone. Vision statementisan inspiration for a business, whentherearenotmanyclearanswers when  problems appear. Itshowsawayofdeveloping whatandhowshould bedone. Itisa statement of business goalsforthemidterm orlong-term  future. Visionidentifies whatthebusiness wouldliketoachieve oraccomplish.  Oftenaneffective vision statement provides theinspiration forthedailyoperations ofabusiness andshapes itsstrategic decisions. Vision statementslayoutisthemostimportant primary goals

for a business; however visiondoesnotconsider aplantoachievethose goals.  But

byoutlining thekeyobjectives for a business, theyenable thecompany employees

todevelop business strategies toachievethestatedgoals. Agoodcompany withan inspiring vision statement mustconsider where thecompany wantstobeinthenear

future anditalsomusthavealevelofexcitement andmotivation toit

objectivesarestatements ofspecific outcomes thataretobeachieved.
Hierarchy
Corporateobjectivesarethosethatrelatetothe business asawhole.  Theyareoftensetbythetop management of the business andtheyprovidethe focusforsettingmoredetailed objectivesforthemain functionalactivitiesofthebusiness.

CorporateobjectivesMarket share
FunctionalObjectivesSalespercustomers
UnitObjectivesShop sales

 

Theseobjectivesneedstocovermanyareassuchas

Area with examples:

1.Marketstanding, 2.Innovation, 3.Productivity

4.Physical&financial resources,

5.Profitability, 6.Management, 7.Employees

8.Publicresponsibility

Examples

1.Market share,customersatisfaction, productrange

2.Newproducts,betterprocesses,using technology

3.Optimumuseofresources,focusoncore activities

4.Factories,business locations,finance, supplies

5.Levelofprofit, ratesofreturnon investment

6.Management structure;promotion&

development

7.Organisational structure;employee relations

8.Compliancewithlaws; socialandethical behaviour

Anothertypeof objectivethat business considersisSMARTobjective.Thisstands

forSpecific,measurable,achievable,andrelevantandtimebound.ByusingSMART

objectivemethodtoprepareobjectivesforthe business ithelptobeaccurate.The objectivewillbecleartounderstandandemployeewouldexactlyknowwhatthe objectiverequire.Theythenwillworkhardtomeettheobjectiveof thebusiness.

Business isoftendivided intodifferent functions suchasfinance &administration, marketing&sales, production&operationsandhumanresource management. Ofteneachfunctionalareasetsitsownobjectives,whichshouldbeconsistentwith thehigher-levelcorporate objectives.Objectivesaresetforeachfunctionalarea whichisdesignedto ensurethatthecorporate objectivesareachieved.Functional marketingobjectivesmightinclude:Weaimtoachieve50% ofcustomerawareness ofourbrandinourtargetmarkets.

Realistic:clearlymeansthatthegoalneedstobeachievable.Settinggoalsthatare notreallypossibleisnotaneffectivestrategy.Firstlyitseemsimpossibleforthe employeesof the business to achievethosegoalsandsecondlyratherthan motivating,itcoulddemotivateworkers.Workerswillnottakeitseriouslyand thereforewillnotworkhard.Agoalthatismuchrealisticmakestheemployeework hard toachieveastheyfeelpositiveaboutit.Thereforeoncethefirstgoalismet,the businesscanreachforlargerones.

Shortandlongterm: Short-termgoalsareattainableinaperiodofweekstoayear. Long-termgoalscan beforfive, 10or20years;theyshouldbesignificantlygreater thanshort-termgoalsbutshouldstillberealistic.

Foreithersettinglongorshorttermgoalsthe business mustlookoutforthe following:

Howmuchincomethebusinesswouldwanttoachieve.Theseshouldberealistic. The business shouldconsidertheincomeforthefirstyear ofthebusinessandthen identifyhowmuchincomeitwillreceiveforthecoming5years.

Lifestyleisalsoinvolvedwhensettinggoalandhavingeffectivestrategyto achieve theplans. Thisincludesareassuchastravel, hoursofwork, investmentofpersonal assetsandgeographiclocation. Functionsareasneedtobeconsidered,forexample financialdepartment,production,HRandmore. Fordifferentfunctionalareagoals needto bespecificto themhowevertheyallshouldlinktogethertoachievethe overall business strategy.

Corecompetenciesalsoinformstrategicplanningasitallowsthebusinesstobe unique. Heretheskills, asappliedtotheemployeeandtheorganization.  It helpsto settheemployeeandthe business apartfromitspeers.Thesegroupingsofskills factorintostrategicplanninganddecisionmakingandareasourceforidentifying competitiveadvantageandthebuildingblocksforfutureopportunities.

Thisistoimprovetheorganisationstrategyand business performance.The businessshouldallowthedifferentmethodofframeworktaketheorganisation throughtheprocess of bringsintolinecore competencieswiththebusinessstrategic plan.

Factors thathavetobeconsideredwhenformulatingstrategicplans,andthe

evaluationoftheeffectivenessofusingthesetechniques.
Someofthefactorsthatneedtobeconsideredwhenexpressingthestrategy planningareSWOTanalyses.Thisstandsforstrength,weakness,opportunityand threats.Theeffectivenessofusingthistechniquewhiledevelopingthestrategicplan isthatitshowswherethecurrent positionof the business is, identifyingthere weaknessandplanaccordinglysothatweaknessturnsintostrength.What opportunitiesitcouldreceivetoimproveandhowthebusinesscansavethemselves fromthethreats.Theplanwouldconsiderintroducingtechnology,providingtraining anddevelopmentandmanyotherprogramsthatcanbeintroducedwhenbusiness analysesthemselvesthroughtheuseofSWOT.

Strengthshelpwithinternalfeaturesthatprovidethe business withgreatest advantagetoachievethegoals. Education, skills, experience,technology, capital andintelligenceareallwhatabusinessconsiders.Businessthen usesthemtotheir greatestpossibledegree.Weaknessisalsoaninternalfeaturethatthreatens

achievingthosegoalsofthe business.Theyarethefactorsthatthe business lacksin fulfilling.Weaknesscan pushthebusinessfardowninthemarket placeandaffect

thefinancialstate.Theyneedtobeidentifiedandimproved.Strategicfactorsof organisationstrengthandweaknessarerecognisedin allthefunctionalareasofthe business,suchasmarketshare, profitability,skill, productivityetc.Thecombination ofstrategicfactors, resultinidentificationof objectives. Policies, plansandprograms arerequiredtobeworkedoutforachievementofobjectivesthroughproper allocationof organizationalresources. Opportunitiesaretheexternalfactorofthe businessthatcanbeexploitedtoachievethegoalofthebusinessandcontributeto thestrategicplanning.PESTLEanalysescanbeconsidered suchasthepoliticalfactor,economic,social, technological,legalandenvironmental factorsthataffectthebusiness.Competitor’sanalysesarenecessaryaswell ifa

business wanttoleadthemarket.Threatsaretheexternalfactorthatcouldharmthe business.TheeffectivenessofusingthePESTLEanalysistechniquewhen developingstrategicplanisthatbusinessareabletoplantoovercomethenegative influenceonthe business.Itisbetterifthebusinessstrategyinvolvesplansto

protectthemselvesfromtheupcomingthreats.Theywouldbereadyandwouldbe abletoworkeffectivelyduringtheperiodofnegativeenvironment.

Another factorusedwhenformulating strategic planning iscommunication.  Itis necessary thatallmembers ofstaffatdifferent levelcommunicate witheachother. This relationshipwillallowthestafftoworktogether andbringsuccess tothe strategic plan. Itiseffective togetthestaffinvolved,  suchasinmeeting,  discussion

ofthestrategic plan, takingtheirideasandmore. Thisbottomupcommunication will

buildagoodrelationship between alllevelsofstaff.Theywillfeelvalued  andthatwill improve theirloyaltyandcommitment  toward theorganisation.  Employee provides feedback survey, focusgroups andetc. regardingtheirideafortheorganisation directions.  Therefore itis aneffective technique touseduring strategic  plan.

Innovation isnotjust forproduct orservice butalsotodevelopastrategy ofinnovation which includes reshaping theorganisation  culturetobeinnovative. Therefore itiseffective touse  innovation technique inthestrategic planning.

Culture isallabouttheattitudes,  values,  beliefs, andbehaviours oftheemployee in anorganisation.  Ifanemployee oforganisation believes thatchange issomething to befeared andavoided thenchange implementation  isoftenreactive.  Organisation strategic mustinclude planthatwould wanttheemployee tobehappywiththe changes andfeelgoodabout it.

Outcome 2: Beabletoformulate anewstrategy

Inthissection Iwillbeanalysing thestrategic position ofSolitaire andCoLtd. The way Iwould dothisisbycarrying outanorganisational  audit. Inthistaskan environmental  auditforSolitaire andCoLtdwillbecarried outwhich  involves PESTLE analysis. I wouldalsobeassessing theimportance ofshareholder analysis whenformulating anewstrategy. Totheendofthisoutcome Iwould focuson/ preparing anewstrategy forSolitaire andCoLtd.

I  amworking asapersonal assistant atSolitaire andCoLtd. The business provides highquality confectionary.  Ithas300employee andtwofactories,  mainfactoryin Stratford andtheotherinPeterborough. Whenassessing thestrategic positionofthe business aSWOT analysis wascarried outthisisshownbelow:

StrengthWeakness
Thestrengthof thisbusinessisthatitprovides highqualityconfectionary,whichmeansthat organicingredientsareused. Consumersoften liketopay highpriceandgetthegoodquality. Thereforeprovidingorganismicrangeattracts customershighly.

Therehighqualityingredientsarefromabroad

 

Solitairelacksinthecurrent strategicposition, wheresalesmainlybeentothedomestic

market.Thismeansthatin domestictrading,the businessfacesonlyonesetof competitive, economic,andmarketissuesandessentially mustdealwithonlyonesetof customers.On onesideitisanadvantagebecauseitcan fully

whichmeansthatthequality aretrusted. When customers findoutwhere thebusiness receives goodfromthentheyfeelthatthebusiness provides goodstandard therefore theytrustthe business andpurchase theconfectionary.

Strength ofSolitaire thatshowsthestrategic position  isthatit hasworkers working therefor very longtime. There employeearetheassetof thebusiness whoarewellexperienced andhave beenfullycommitted toprovide theorganic confectionary.  Theworker loyaltyshowsthatthe business values themtherefore theygivetheir loyaltytothem.  This isagoodstrategy tokeep thegoodemployee astheyproduce goodsat standard andarededicated todevelop and

improve.  Thisstrategy increasesthereputation of

thebusiness as  itemployee otherfamily

memberoftheemployee.  Itshowsthatbusiness createsafamilyenvironmentintheworkplace.

AnotherstrategicplanofSolitaireandCoLtdis penetration.Theaimofpenetration pricingis usually toincreasemarket shareofaproduct, providingtheopportunitytoincreasepriceonce thisobjectivehas beenachieved.Thewaythis strategyworkissettingarelativelylowentryprice toattractnewcustomers.Thistechniqueisto influenceconsumerstoswitch to thenew

productbecauseofthelowerprice. Oncethe

customersstartlikingtheproductsuchasthe organismconfectionarythenSolitairewill increasetheprice.Customerswillbereadyto

payhigherpricebecausetheylikedtheproducts.

identifytheneeds ofthecustomersandasitisa onesetofmarketmeaningsimilarbuyinghabits customerswillhave.Thereforeitcanprovide themwithwhattheylookingfor. Howeveronly

10%ofitssales isformoutside UK.Thisisa

weaknessforSolitairebecausethebusinesshas noteffectivelyplanedthestrategiesitcanuseto increasethepercentageof salesfromoutside UK.Itislackinginreachingoutto different countriesandfulfillingwiderrangeofcustomers demand.

OpportunitiesThreats
Theopportunitiesthatabusinesshas isto relocatethebusinesstomainlandEurope,this meansclosingdownfactoriesinUK.Often opportunitiescomewiththreatastomove forwardrisksaretakenthatthreatenthe business. Thereforeclosing downtheUK factoriescan meanlosingtheloyalstaffthat Solitairecurrentlyhas. Howevertheopportunity tolocateinmainlandEuropemeansexpanding thebusinessandreachingtomoreandwider rangeofcustomers.Thebusinesscanbecome

morewell-knownandthatcouldleadtoincreased

salesandprofitlevels.
SolitaireandCoLtdwantstoestablishlinkswith

MarketfeelsthattheSolitairehas beenslowto

takeadvantageof thesingle EUmarketandthat isfutureprosperitylieswithin mainland. The currentposition of thebusinesscanbein threat becauseitisnotpickingupitspace. Itis lacking inplansandtechniquestotakeadvantageof singleEUmarket.

Currentlythereisanotherthreatforthebusiness assomeofthedirections arenotconvincedthat

amoveintoEuropeisthebestwayforward.This isbecausetheconsumerin othercountieshas differenttasteandbuyinghabitsthenUK.Itis difficulttomatchtheir needs anddemands. Thereforemovinginto Europecanaffectthe

salesof thebusiness.  Solitaireneedstoconduct

distributionsandagents inseveral EUcountries.

Itwants tospread itsbusiness moreandmorein the.

Business strategyistoupdate itstechnology and becompetitive.  Solitaire wantstohavenew technology andequipment’s  thermonuclear efficient.

The businessstrategy istobecome public limited company asithelpstoraisefinance required to setupanewfactory inmainland Europe andalso continue withtheUKfactories.  Plustheaimisto increase theproduct rangeofnon-organic confectionary.  Thismeansthatnotonly

customerswithorganic confectionary demands

willbefulfilled butalsoothermarketgroupwillbe targeted bythebusiness.  Thisleadstoincrease sales, higherreputation,  expansion andmore.

athorough research onthecustomers inEurope andalotofcompetitive analyses toidentify the demand.

Environmental  audit

Political:

UKGovernmentpolicyandEUdirective’splanningoflegislationsand

environmentalissuesaffecttheconstructionindustry.Governmentpolicychanges timeto timeandbusinesses suchasSolitaireandCoLtdwillhavetounderstandthe policyandworkwithit.CompaniesoperatingintheEuropeanUnionhavetoadopt directivesandregulationscreatedbytheEU.Thegovernmentpolicyhasahuge influenceupontheregulationofthebusinesses.Thisiswherebusinessstudy

reflectsonthepoliticalenvironment,government’spolicyontheeconomy.The

politicalfactorwillaffecttheSolitairehugelybecauseastheywanttooperateinthe mainlandofEuropewhichmeansthatthepolicyandregulationwillbedifferentfrom theUK.ThereforebusinesswillbeboundbytheruleswhenoperatinginEU.

Economic- Propertiesandbusinessdemandgetsaffectedbytheinterestrateand bythecurrenteconomicactivity.Thereforethecountrythatwantstoimproveor overcometherescissionthenusesthemethodoftaxationandinterestratesto improvetheeconomyperformance.Lowinterestratesandincreaseindemandsis what business lookforwardto astheyinvestmoneyto expandtheir business. Thereforebusinessshouldbereadyforthesechanges.

Inaneconomyfactoritoftenconsiderstheglobaleconomy,whereitissaidthatas individualhouse holdincomeincreasestheirstandardoflivingincreaseswherethey expectmoreastheyhaveenoughmoneytobuywhattheywant.Thisthenleadsto increaseindemandwherepeoplewillingtopay higherpricegivingthe business chancetomakemoreprofitoutofit.SolitaireandCoiswillingtoincreasethe

amountof organicconfectionaryitsells. Iftheeconomiciswellthenpeoplewouldbe

willingtopaythehigherpricetopurchasethoseorganicsweetsandchocolates.

Economyactivitycan changeover time. Therefore business getaffectedas sometimethedemandincreasesandtheyreceiveagoodprofithoweverwhenthe demandislowtheywillhaveto considerlowerprice. CurrentlyUKisslowly coming

overrecession butitisstillclosetotherecession where manyandmanypeopleare unemployment  andnothavingenough tospend.  Duetotheloweconomic activity Solitaire salescangodown.  However itsstrategic  planistospread into Europe, where itsproduct isnotjustsold inUKbutothercountries to.Currently the business ishighlyaffected byUKeconomy activity levelasconsumers will notbewillingto purchase organic chocolates astheyarehighinprice.  Inflation isalsopartoffactor

affectingthe business aspricegoeshighdemand goesdownandsoon. Theidea of

penetrationthatSolitaire wantstousecanberisky. Thisisbecause,  iffromstartthe priceislowandlaterthe business increases price fortheproductthencustomers will switch elsewhere astheywould nothaveenough moneytospend.  However inother Europe courtiers theeconomic condition ismuchbetter, therefore peoplewouldbe readytopayhigher priceofthehighquality organic confectionary.

Socialfactors-Socialfactorisallaboutthechanginghabits ofthepeopleinthe societywherelifestylechanges,morefocusonstatusandhealth.Therecouldbe changessuchastastelivingstyleorontheproductandserviceandinterestand latitude.

All these changesaffectthebuyinghabits ofthecustomerswhichmeanthe business willhavetomakemoreandmorechangeinordertomeetthedemandandstayup

todateinthecompetitivemarket.Ageandgenderarealreadyatargetmarketfor business asdifferentagegrouphas differentneeds andwants. ForSolitaireandCo Ltdbusiness,tobesuccessfulitwill havetoconsidersocialandculturaldifferences thatvaryfromcountrytocountry,consumerreligion,language,andlifestyle.This will thenenablebusinesstobesuccessfulandbecomemorebiggerandbetterbusiness. Solitairewantstooperatein Europethereforeitisnecessaryforthebusinessto understand thesocialneeds of thepeopleinthedifferentcountries.Understanding theirbuyinghabitsuchashowmanypeoplewilling topurchasetheorganic confectionary,whatcaninfluencethen topurchase,dotheypreferthenon-organic andmore.ThiswaySolitaireandCowillbeabletomeettheneeds anddemandand satisfythem.

Technological:

Theincreasedtechnologyinthemarket influencesthebusiness

becausetheywillhaveto adaptto theoutcomingtechnology.This istomake improvementsandbeabletointroducenewinnovativeproductsthatcustomerslook forwardstosee. Business getsinbenefitbecausetheycan use thenewtechnology thatismoreeffectiveandefficienttoreducetheircostanddevelop newproducts. Technologyhasmadepeoplelifemucheasier suchascomputeronlineservicesand alotmorethereforebusinessthatlackinstayingupto datewithtechnologynow startstolosecustomersascompetitorsarerapidlymovingaheadandconvincing customersthroughtechnology.

TheSolitaireandCoplanisto bringinnewequipment’sandmachinery.Itwantsto replacealltheoldmachinery andgetthemoremodernandefficientresources.This willallowthebusinesstoworkat abetterpaceandproducehigherquality  confectionaryonshortperiodof time. In longtermitincreaseproductivity,sales and profitlevelof thebusiness.

TechnologyhelpsSolitairetogain competitiveadvantage,anditisamajordriverof globalization. Businessescanselectnewmodesofdistributionswiththehelpof technology.Ithasbecomeeasier forcompaniestocommunicatewiththeircustomer inany partof theworld.

Legal-Changes ingovernment lawsandregulations affectthebusiness. Thisis because, forasuccessful business theywillhavetomeetthelegalissues involved  in aparticular situation andshouldhavetheabilitytohandlewaysinwhich changesin lawswillaffectthewaytheymustbehave.

Timetotimenewlawgetintroduced whichbusiness havetoidentify andfollow, Itis vitaltofollow rulesspecially changes intheareasofconsumer protection legislation, environmental  legislation, health&safetyandemployment  law,  etc.asthebusiness canbeinriskifanyincident occurs. AsSolitairewantstolocatethebusiness in mainland Europe andselltheirconfectionary indifferent countries itwillhaveto adaptwiththeirrulesandregulations.

Environmental-Theenvironmental factorisallaboutthecarbonemission, the waste products, recycling, globalwarming, climate change andmore. Thebusiness isaffected bythisbecause theywillhavetoconsider lookingaftertheenvironment fromallareassothattheybecome environmental friendly. Alsocustomers lookfor thebusiness tocontribute towards theenvironment thatshowsthecommitment and therecaretowards theeconomy. Solitairewants tointroduce newmachinery. This

willhelpthebusiness tobeenvironmental friendly because thenewtechnology does notproduce highlevelofgasses thatcanharmtheenvironment. Thenewmachinery willbemoreefficient solesselectricity willbewasted. Thebusiness willbeableto contribute totheenvironment effectively.

Bostonmatrix
bsiness often wantstohavemorethanoneproduct tosell.Thisisbecause theydo notknowthelife of the product anditishighlyriskyiftheproduct is nolonger in demand orcompetitors haveprovided betteroptions tothecustomers.

Solitaire andCoLtdsellsmanytypesofconfectionary.  Ithas an allorganic rangewhich meanstheyarehighinquality andtastesgood. Solitaire wouldbein riskifitjust

sellsonetypeofchocolate because peoplewillgetboredofitorfindbetteroption andgoelsewhere,  theproduct willdecline. Thebusiness alsohastheplansto introduce thenon-organic rangeofconfectionary.  Thisissothatittargetsdifferent groups andincrease itssalesandbroadens therebusiness.

Solitaire willbenefitwiththeplanofproviding different rangetothecustomers. Spread therisk, adecline inoneproduct maybeoffset bysalesofotherproducts. Selling asingleproduct maynotgenerate enough returnsforthebusiness. Havinga rangeofproducts canbesoldtodifferent segments ofthemarket.

Business oftenprepares aproduct portfolioforthedifferent products ithas.Itallows thebusiness suchasSolitaire andCoLtdtodecide howtoallocate investment for example inproduct development, promotion, packaging andetc. Solitairewillbeable toidentifywhich productshould itfocused on.

Stars arehighgrowth products competing  inmarkets where they are strong compared  withthecompetition. Often Starsneed heavy investment to sustain growth.

Growthwillslowand, hopefullytheykeep theirmarketshare.Thesearemature, successfulproductswithrelativelylittle needforinvestment.

Questionmarksareproductswithlow marketshareoperatinginhighgrowth markets.Thissuggeststhattheyhave potential,butmayneedsubstantial investment togrowmarketshareatthe expenseoflargercompetitors.

Dogs,referstoproductsthathavealow marketshare. Dogsmaygenerate enoughcashtobreakeven,buttheyare rarely,ifever,worthinvestinginDogs areusuallysoldorclosed.

 Analyzing Solitaire and Co Ltd,the product that the business sell  sallocatedinstar.

Starsarehighgrowthproducts competinginmarket,where theyarestrong comparedwiththecompetitors.OftenStarsneedheavyinvestmenttosustain growth. WithitsproductsSolitaireisplanningto expanditsbusiness. Peopleare likeningtheir organicproducts. Solitaireisreceivinggoodprofitlevelformitsproduct thereforewantstooperateinothercountries.Itsplanistoincreasetheproduct rangebyofferingnon- organicrangeof confectionarytothecustomers.Thiswill

allowittotargetothergroups.Asthe business holdemployeewhoarewell

experiencedandworking foralongperiodoftime.They arededicated andoften prepare chocolates thatattract customers.  Theworkers areexperttherefore quality oftheconfectionary  ishigh.Itincreased thesaleslevelandmovedtheproduct high

inthemarket.

Price-SkimmingStrategy

NewStrategies

Aprice-skimmingstrategyinvolvescharging highpricesforaproduct,particularly

duringtheintroductoryphase.Asmall companywilluseaprice-skimming strategyto quicklyrecoveritsproductionandadvertising costs. However,theremustbe somethingspecial abouttheproductforconsumerstopaytheexorbitantprice. Ifthe companyistheonlyonesellingtheproduct,customersthemreallywantthatproduct andmaypaythehigherprice. Penetrationstrategycan alsobeusedwhichisto

lowerthepriceatfirstforthenewproductin ordertoattractcustomersandthen increasetheprice.Thesewaycustomerswillliketheproductandwouldbereadyto

payhighpricefortheproduct.Solitaireshouldusethepriceskimmingstrategy becauseifproductsareorganicanditissellingthemindifferentcountriesthathas

higheconomicactivityunlikeUKrecoveringfromrecessionthen customerswilling to purchasetheorganicconfectionaries’.:countrieswhere theeconomicactivity ishigh peoplehaveenoughfinancetospendandtheyreadyto pay highprices.

AcquisitionStrategy

Asmallcompanywithextracapitalmayuseanacquisitionstrategytogain a

competitiveadvantage.Anacquisitionstrategyentailspurchasinganothercompany, oroneormoreproductlinesof thatcompany. Forexample,asmallgroceryretailer

ontheeastcoastmaypurchaseacomparablegrocerychainintheMidwestto expanditsoperations.Solitairecanusethis strategytoexpandits business.Itsfive yearplanistoexpand.  Itcan continuethefactoriesinUKandalsooperatein Europe.Itcanbecomeapubliclimited companyandusethemoneycomingfrom shareholdertoinvestinexpansionof the business.Thiswaythebusinesswillbe

abletoproducemoreproducts andsellmore. Morepeoplewillpurchaseandthe

widerthe business willspread.

Ansoff Matrix

This isamarketingplanningtooldesignedto helpanorganisationthatmakeout towardsitsstrategicproductmarketgrowth.Thisisusuallydetermined byfocusing onwhethertheproducts areneworexistingandwhetherthemarketisnewor existing. TheAnsoffMatrixhasfouralternativesofmarketingstrategies;Market Penetration, productdevelopment, marketdevelopment anddiversification
http://dachpian2b.saschina.wikispaces.net/file/view/Ansoff_Matrix_w500.gif/272402348/Ansoff_Matrix_w500.gif

Market penetration

Marketpenetrationiswhena business wouldenterthemarketwiththeirexisting products orservices.Thisisdonebytakingpartinthecompetitor’smarketshare. Findingnewcustomers fortheexistingproductorbygettingcurrentcustomersto use moreoftheproducts isalsopartofmarketpenetration.Thebusinesscan lookforwardtoeitherchangetheproductortheoutlookfortheproduct.Withthis strategyinvolvestheuse of promotionalmethodswheredifferentpricingcanbe/ settoattractthecustomers.

Marketpenetrationisconsideredalowrisk methodto growthe business.This is becausetheproductsarealreadyinthemarket andcustomersknow aboutit.This strategyhas anothertechniqueof increasingmarket penetrationwhichisby increasingtheusage oftheproducts.Thisinvolvesinnovationthatwouldmake

thecustomersuse moreandthereforemakemorepurchases.

Product development

Thisisanewproductinthepresentmarket.Thisiswhena business alreadyhasa market ofitsproductsandwantstodevelopmoreproductsforthemarket.Business can eitherdevelopanewproductormodifytheexistingproducts.Thismeans changingtheoutlookandpresentationtoimprovequalityortoincreasetheproduct

performance.

MarketDevelopment

Thisiswhenabusinesssellsitsexistingproductsinthenewmarket.Thisisdone throughmarket segmentation.The business oftenbelievesthatthis market hasbeen fullycoveredanditneedsmarketextensionforitsproducts now.This strategywill involve newgeographicalmarket,newdistributionchannel, changingthepackaging, havingdifferentpricingpoliciesandmore.

Product/marketdiversification

Diversification  strategy iswhena business wants tointroduce newproduct inthe newmarket. Theplanning processincludes market research,  product

adaptationanalysis andlegalreview.  Relateddiversification  describes  how

companiesstayinamarketwithwhichtheyhavesomefamiliarity.  Brandnew products mayalsobecreated inanattempttoincrease thebusiness brand  name.

 Presentanewstrategyforagivenorganisation

SolitaireandCoLtdaimstorelocatethebusinessinmainlandEuropewhichcould meanclosingdownthefactorsintheUK.Thisisoneofthestrategiesofthe business.ItwillbenefitasrelocatingthebusinessinmainlandEuropemeansthat Solitairewouldbeableto sellmoreofitsproductoutsidetheUK.Itwillbeableto attractmorecustomers andincreasethesales. Howeverwiththis strategySolitaire wouldloseits300skilledandwellexperiencedworker.Thoseworkersworkinthe UKfactoryareworking fromaverylongperiodof timeanditwouldbea disadvantagetolosetheirloyalty.WhenrelocatinginEuropethebusinesswould

havetohirestaffwhichwouldinvolvehighcostintherequirementprocess,providing traininganddevelopment etc.Allthestrategiesaretimespecific,asitistheirfive

yearplan.ItisrealistictooperateinmainlandEuropeastheywouldbeabletoshift alltheequipmentandmachinerywiththem.AlsoSolitaireandCoLtdcansell both theUKfactorsandinvestthatfinanceforthesiteinEurope.Thistargetisachievable andspecificastheyknowwhattheywanttodo. Theriskinvolvedinmovingthe business inEUisthat90% of theconfectionaryissoldinUK.Thiscouldbeeffected becauseifthefactoryin UKclosesdownpeoplemaybedisappointedandno\){e consideringthebusiness.Theywillgoelsewhere;thereforedangeroflosing customers.

Thenextstrategyistodiversifytheproductrangebyproducingnon-organismic confectionaryandalso reducethecocoacontentinthenewrangeofchocolates. HoweverinordertoproducethisnewrangeSolitairerequiresnewpremisesasthe Stratfordsite istoosmall. The business hashousesbuttheyarealloccupiedwith theemployees.Thebusinesswouldhaveto demolishallthehousesinordertobuild

thepremises.Itcouldalsosellthehousesandusethefinancetopurchasesanother site.ThisstrategywouldallowSolitairetoincreasetheproductrange, meaning targetingdifferentgroupof customers.Themoretheproductrangethemore Solitairewouldinfluencepeopletowardsitsbusiness,leadingtoincreasedsales, reputationandprofitlevels. Employeewouldhavetoleavethehousewhichcould disappointthemandmaygetdemotivateto workastheyhavetomovehouse.This strategyisalsospecificastheywantthe business tohavenewpremisesand introducethenon-organicrangeandalsowanttoreducethecocoacontentin them.

Itisachievablebecausethe business can raisefinancefromshareholderifitdecides

tobecome PLC.Solitaire couldtake out abankloanto meet thisstrategy. Acompletive research wastaken inorderto identify ifitisachievable.Notallconsumerpurchase theorganicconfectionaryastheyareexpensivethereforenon-organicrangewould attractalargergroupof priceconsumingcustomers.Thestrategyisalsotimescaled becauseitmentionsto achievewithinfiveyeartime.ThisstrategyinAnsoffMatrix takesthepositionofintroducingnewproductinthecurrent marketwhichis product development.

Solitaireobjectiveistoestablishlinkswithdistributorand/oragentsinseveralEU countries. Solitairewouldbeabletoexpanditsbusinessandbecomemoreknownin theEUcounties.Theselinkswillsupportthebusinessbecausewhenthebusiness requiresemployees,agentswillhelpwithit.Alsolinkswiththedistributioncould supporttopromotethebusinesssuchasadvertisementandetc. Thepromotingof thebusinessindifferentcountrieswillhelpgettingawarenessofthepublicand increasethesalesforthebusiness.IfSolitairemovesitsbusinesstotheEU,having contactwouldbehighlybeneficialfortheirbusiness.Thisobjectiveisalsotimescale

becausetheywanttogetasmuchlinksaspossiblewithinfiveyear time. Itis specific asknowwithwhoitwantstocreatelinkswith.

Solitairealsoaimstoupdatethemachineryandequipmentintheexistingfactories,

muchof whichare30yearold.Bydoingthis Solitairewouldbeabletokeepitself :

updatedwiththenewtechnology.Themodernthetechnologythemoreefficientit

willbe. Thebusinesswillbeabletousethetechnologiestoincreasetheproduction ofitsconfectionaryinshortperiodof time.Thiswouldsavetimemoneyand resourcesofthebusiness.Thequalitystandardimproveswheremoreoption of innovationdesignsappearfromthenewtechnology.Theapproachofintroducing newmachineandequipmentinthecurrentfactorieswouldmeanincreasing reputationandbecomingmorecompetitive.Updatingthemachineryandequipment willinvolve highcosts,thebusinesswouldhavetopurchaseoncredittobeableto payforthegoods.Thestrategyalsolinksto theSMARTtargetwhereitisbeing

specifictoreplacethe30year oldmachinery.Itisachievablebecausethebusiness hastimetoraisefinanceforthemachineryandthengettheefficientandmodern

ones.

Solitairewantstosetupnewfactoryproducingtheorganicrangesinmainland EuropeandcontinuetoprovideintheUK.Thisobjectiveisdifficulttoachieve howeveritishighlybeneficial.Asapersonalassistanttothemanagingdirector,this isthemostsuitablestrategythatSolitaireshoulduse.  Solitairewouldbeableto expanditsbusinessandcontinuetoseehighgrowth.Withtheachievementofthis objectivethebusinesscouldincreaseprofitlevel, itspositioninthemarketandmuch more. Solitairewouldhavethechancetoincreasethepercentage ofitsconvector beingsoldtoothercountriesotherthanUK.Thisstrategyfitinthemarket development sectionasSolitairewantstointroduceitsexistingproductsin thenew market.Thebusinessbelievesthatthismarkethas beenfully exploitedandaneeds toventureintonewmarket.Thestrategyinvolvesnewgeographicalmarkets.The businesscanexporttheirconfectionarytonewcountries.

ThereasonwhyI  believethatSolitaireshouldcontinuewiththeUKfacto6esand alsoopeninEuropeprovidingtheorganicsrangeisbecause:

  • Solitairehasexpertandskilledstaffsthatexactlyknowhowtoproducethe organicandwhatcustomerslookforinorganicconfectionaries.
  • Solitaire doesnothavetoclosedowntheUKfactories where90%ofits confectionary issold.
  • Itinvolves highriskifthebusiness closedowntheUKfactory because high percentage issoldtotheUK.
  • The businesshasskilledandwellexperienced workers working withthem fromalongperiodoftime. Therefore SolitaireandCoLtdwill beabletokeep their loyalty.
  • Thebusiness willexpand leadingtohighreputation asSolitaire  would become better knownasthegoodswould besoldtoomanycountries in Europe.
  • Solitaire andCoLtdwillgrowrapidly onceestablished intheEurope.
  • Thisobjective isSpecific because itclearly mentions towhere itwanttoopen thenewfactory which isinthemainland Europe. Theobjective  hasthetarget tomeetinfiveyeartime. Theobjective alsomention towhatgoodsitwantsto produce whicharetheorganic rangetherefore itismeasurable and    achievable.

Another objectiveistobecome public limitedcompany inordertoraisethe considerable  amount offinance required andtoexpand themostcurtailobjective tobebecome PLC.Thiswould allowthebusiness toraisefinance eitherto increase  product range,  todiversify therangebyintroducing  non-organic,  to open afactory andsoon.Therefore asanassistant director thesetwoobjectives ofopening inEurope andcontinuing inUKandbecoming PLCarebothvital.

Boththese targetandstrategy linkstoeachotherandaresuitable.    Inorderto complete theobjective finance is required;  thiscould  beraisedthrough becoming PLCandgetting  sharesfrompublic. Thisstrategy isalsospecific astheyknow whattheywanttodowhyandbywhattime.Itismeasurable andachievable because accounts arerequired andlegalformalities.  Itisnotdifficult  tobecomea

public limited  company.

Outcome3:Understandapproachestostrategyevaluation                     

Alternativestrategies

ThenewstrategiesthatSolitaireandCoLtdcanuseare:

Agrowthstrategyinvolvesintroducingnewproductsoraddingnewfeaturesto

existingproducts. Businessmayhavetomodifyorincreaseitsproductlinetokeep upwithcompetitorsotherwisethebusinessmayloseitscustomers.Thisstrategyis highlynecessaryforSolitaireandCoLtdasitisplanningtoopenafactoryinthe mainlandEuropeandtoincreasetheproductsandservicetosellsindifferent countries. Itsaimofgrowingthebusinessbyintroducingmoreorganicrangeand alsointroducenon-organicrange.Thislinksto anotherstrategyofmarket.Identifying

differentmarket groupandtargetingthemishowthe business willbeableto growits business.Itwillbeabletosellmoreofitsproductsandbecomewellknown.The

strategyofusingmarketresearchisvitalbecausethebusinesswouldthenbeable toidentifywhatisindemandandproducetheorganicornon- organicconfectionery tothecustomers.MarketresearchishighlyvitalforSolitaireasitwanttoincrease thepercentageofproductsit  sellstocountries. Soasthebuyinghabitsofcustomers aredifferentSolitaire shouldconductmarket researchtoidentify needsand demands.

Product DifferentiationStrategy

Companies willoftenuseaproduct differentiation  strategy whentheyhavea competitive  advantage,  suchassuperior qualityorservice. Solitaire andCoLtdhas

300staffwhoisworking fromaverylongperiodoftime. Theyareexpertandhave theability toinnovate theconfectionary todifferentiate fromthecompetitors.  They haveorganic ingredientsthatboostthefavours.  Inaction Solitaireemployees family members ofitsworkers whichmeanthattheyhaveexperience inthefield. They comeupwithinnovation thatmakestheconfectionary  unique.  Therefore using

differentiationwould allowSolitaire toholdagood marketshare.  Itsaimofopening  a factory inmainlandEuropewould become success withthestrategy ofusing differentiation.  Companies useaproduct differentiation  strategy tosetthemselves apartfromkeycompetitors.  However,  aproduct differentiation   strategy canalsohelp

acompany buildbrandloyalty.

Outcome4Understandhowtoimplementachosenstrategy

Roles andresponsibilities personnel

OpeningafactoryintheEuropeandcontinuingthefactoriesinUKitinvolvesmany membersof thebusiness,suchastheHR,thepersonal department,theproduction manager,thefinancemanager,departmentalmangersandtheemployees.

Personnel management ispractical,utilitarianandhelpful,andmostlyworkswith administrationandtheimplementationof policies.Thereforewhenthe business operatesintheEUthepersonal managershavetheresponsibilityto advertiseits businessinthecountries.Thiswouldspreadtheawareness.Theywouldbeableto assess themethodsthatwillbeusedtopromoteandwouldreferto thefinance departmentof thecostsinvolvedwithit.

AspectsofHRMarethatitestablishes majorinputsintoorganisationalexercises. Personnel management isnecessarilyreactive.Itrespondsto changesin employmentlaw, labourmarkets,tradeunionactions,GovernmentCodesof Practiceandotherenvironmentalinfluence.Theirroleswillbetoconduct allthese

informationforthestrategy.Thepersonnel management willkeepthe business upto date withthemarkettrendssothatthestrategytakestherightway. Personnel

management hasshort-termperspectives.

Resourcesrequirements

ThetypesofresourcesrequiredforSolitairetobeabletomeettheobjectiveof openingafactoryinmainlandEU.ProvidingorganicrangeandcontinuingtheUK factoriesandalsotheobjectivetobecomepubliclimitedcompanyare:

Financialresources

Financialresourcesconcerntheabilityof thebusinesstofinanceitschosenstrategy. Forexample, astrategythatrequiressignificantinvestmentinplace,asSolitaire wantspremises inthemainlandEuropethatwouldrequirehugeinvestment.This amountwouldcomefromsellingthehousesthatthebusiness owestoraisefinance, takingloanor, raisingthoroughshareholder.

FinancefordistributionchannelsisrequiredforthisstrategybecauseSolitairewould havetopromotethebusinessandraiseawarenessacrosstheEUaboutthenew factory.

Productioncapacitywillincreaseasnowawholenewfactorywould bebuiltto producetheorganicconfectionaries.Financewouldberaisedthroughinvestor. Bankloanorretainedprofit.Newemployeewouldberequiredthereforethecostof recruitmentprocess,traininganddevelopment of theemployee, their wagesad salaries willincrease.Workingcapitalisneededtobeabletofilltheexpensesof startingupthebusinesssuchasfittingandfixturebuildingthesiteaccordingtothe needsofthebusiness,labourwagesandmore.

Suchastrategyneedstobeverycarefullymanagedfromafinancepoint-of-view.An auditof financialresourceswouldincludewhatSolitaire currentlyhas available.Such

ascashbalances,  bankoverdraft,  bankandotherloan, shareholders’  capital,

workingcapital (e.g.  stocks,  debtors) already invested inthebusiness andCreditors (suppliers oncredit, government) Taking overdrafts forsmallexpenses whilestarting upbusiness.  Personal savings,  retained profitformtheUKfactory andborrowing fromfriends andfamily couldalsobesources offinance toimplement  thestrategy.

Someofthefinancial resourcesrequired tobecome apublic limitedcompany isfor thelegalpermission that involves costs.  Documentation  andpromoting thefactthat thebusiness isPLCrequire agoodamountofmoney. Advertisement  coststoattract investors.

HumanResources

Thetypesofhumanresourcesrequiredforthestrategyis: Employerthathasthe right employeesforthejob. Identifyingthebestcandidatesandhiringthemtofill openpositions. SolitairerequiresaHRdepartmentandemployees.

  • Developingandimplementingprogramsrelatedtoemployeecompensation, workplacesafety,benefitsandemployeerelations.
  • Theresourcesalsorequireagoodconditionplaceinthenewfactorywhere theemployeecanwork.
  • AHRdepartmentisneededfortherecruitmentandselection.Theymust

followinternalhiringpoliciesandcomplywithallstateandfederallaws

addressingdiscriminationinthehiringprocess.Thesehumanresources professionalsmaywritejobadvertisements,screenresumes,interview candidatesandmakehiring recommendationstomanagers.Examplesofjobs relatedto this functionincluderecruiter, staffingspecialistandrecruitment manager.

  • Compensationandbenefitsplanto ensurethatemployeesreceivethecorrect

amountof compensationfortheirjobs.Ifsolitairewantstohirehighlyskilled workersfortheEuropefactorythathavetheabilitytoinnovateandmeetthe needs ofthedifferentcountriescustomers,thenplanningoutwhatbenefits theyshouldreceivewouldbevitalforthisstrategy. Asemployeearetheonce thatwouldproducetheconfectionary.Provideemployeeswithbenefitssuch ashealthinsurance,dental andvisioncoverage, lifeinsuranceandshort   term disabilitycoverage.

  • Humanresourcesforthisstrategyincludesalary. Compensationbenefits, benefitsspecialists,compensationandbenefitsmanagers,rewardmanagers.
  • Traininganddevelopmentisalsonecessaryhumanresources.Itwillallowthe employeetobetrainedonwhatexactlytheyneedtodo.
  • Amanagingdirectorthathas afullplanonhowallaspectofthestrategywill

work.Whohastheabilitytocompletethestrategywithinthetime.

  • Permission tobeableto openafactoryinthemainland.
  • Recoursestoactuallybuildthepremisesaccordingneed.
  • Management tomanagelabourto buildthepremisesandtodothefittingand fixtureinsidethepremises.
  • Suppliersformaterialsofbuildingandaswellasproducts.
  • Maintenances&Technologyperson
  • An engineer
  • Agents&Distributors
  • Anaccountant thatcouldprepare afullaccount ofbusiness inorderto become apublic limitedcompany. Fornowthebusiness canplacethe accounts oftheUKfactories onlinesothatinvestors canaccess. Through these accountstheinvestor willmakedecision onwhether toinvestornotin thenewfactory ofSolitaire.
  • Numbers ofstaffbyfunction, location,  grade,experience,qualification,

remuneration

Physicalresources

Thephysicalresourcesneededto implementthenewstrategyare:

  • Machinery andequipment’s (buying orrenting)
  • Technology andcomputers
  • Packaging materials
  • Location, storagefacilities thatareeitherbuying orrenting.
  • Materials andstockswiththeuseofjustintimeefficient purchase.

SMARTtargets

Specific:Theobjectivespecificallystatesthatthefirmwould liketointroduceanew factoryinEUproducingtheorganicrange, unlikesomething generallikebemore wellknow orwanttoexpand.Theyhavemadeitspecificthisiswhattheywantto do produceorganicrangeandwheretheywantisinthemainlandEurope.

 

Measurable:TheobjectiveofSolitaireisnotsomeasurablebecauseitdoesnot specificallystatesthatwhichcountryintheEUdoesitwanttosellthegoods and servicetohowmuchinpercentagewoulditwantitsgoods tobesoldinEU.For examplestatingthingslikeitwantstoincreaseitsmarket shareto3%, thisprovides somethingthatcanbemeasuredtoshowwhethertheobjectivehasbeenachieved ornot.

Achievable:Beforesettingtheobjectivethebusinessshouldhaveassessed its capabilitiesanditsmarketingenvironmentto ensurethattheobjectiveisachievable. InthiscaseSolitaireconductsPESTLEanalysistoidentifythemarketconditionand theeffectonitsbusinessandalsoprepareSWOTinorderto viewthecurrent positionof thebusinessanddoesthestrategyseenachievableafteridentifyingthe currentpostpositionnot.Strategylikestobeabletomakelinkswithdistributorand agentsthisisachievable.

Realistic:Beforesettingfiveyear deadlinefortheobjectivethefirmshouldhave revieweditsresources,employees,competitorsandcurrentmarket stareto introducethenewfactorywithorganicrange.Thestrategyof openinginmainland Europetobecomeainternationalmarketisrealisticbecausetheycantargetmany EUcountries, aswellaskeepingthefactoriesinUKandnotlosingoutthe90%of saleswhichisbasicallythemainincomegeneratingfactory.Thisgivesidentityto theirbrand.

Timescale:Thiselementisachievablebytheobjectiveincluding afiveyear timescale.(Moreinformation onSMARTreferto outcome1)