Business Strategy

Business Strategy

EXECUTIVE SUMMARY

The formulation of a new strategy for the organization is initiated when the existing policy of the organization result in the zero or negative output or profit for the organization. The formulation of the strategy must be done using the several hypothetical and real evaluations of techniques. The scenario and sensitivity analysis play a vital role in formulating new dimensions for strategic planning. By analyzing or carrying out the audit report new strategic plans can be initiated where the formulation of new ideas and new theories can be attached that match the organizational target with its strength. The mission, vision and goals of the organization contribute in competency development in the context of strategic plan development.

Table of Contents

Executive summary 2

introduction 4

LO1 Understand the process of strategic planning 4

1.1 Assess how business mission, visions, objectives, goals and core competencies inform strategic planning. 4

1.2 analyze the factors that have to be considered when formulating the strategic planning 5

1.3 Evaluates the effectiveness of techniques when developing the strategic business plan. 6

LO2 be able to formulate new strategies 8

2.1 analyze the strategic positioning of a given organization by carrying out the organizational audit 8

2.2 Carry out the environmental audit for a given organization 10

2.3 analyze significance of stakeholders when formulating new strategies 11

2.4 present a new strategy for a given organization 12

LO3 BE ABLE TO UNDERSTAND APPROACHES TO STRATEGY EVALUATION AND SELECTION 13

3.1 Analyze Possible Alternative Strategies relating to market entry, Substantive Growth, Limited. Growth or Retrenchment: 13

3.2 Justify the selection of the strategy 17

LO4 Be able to understand how to implement a chosen strategy 18

4.1 Assess the roles and responsibilities of personnel who are charged for strategy implementation: 18

4.2 Analyzing resource requirements to implement a new strategy in Tesco: 19

4.3 Evaluate the contribution of SMART target to the achievement of implement strategy: 20

Conclusion 21

References 21

INTRODUCTION

This report will focus on understanding the process of strategic planning and how these strategies can be implemented by considering the contribution of personnel and the resources. The effective development of strategy will result in the generation of profit and organization positioning. The strategic techniques like SWOT, PEST and Profit Grid should be analyzed in formulating new strategies. Finally the alternative strategies must be evaluated to select a particular one that adds values to the organization (Thompson and Strickland, 2003).

LO1 UNDERSTAND THE PROCESS OF STRATEGIC PLANNING

1.1 Assess how business mission, visions, objectives, goals and core competencies inform strategic planning.

Tesco is one of the largest retailers chain situate din Cheshunt, United Kingdom. It was formed in 1919 by jack Cohen with a group of stalls. At present it has access in 12 countries and the mission is to acquire customer’s value all over the world.

The organizational resources are limited. For this reason most of the organizations like Tesco need to develop strategic planning to allocate their limited resources so that organizational goals and target can be achieved easily.

The vision refers to the long and midterm target of the organization future. Tesco’s major vision is to make a competitive retailers market in UK. On the contrary the cumulative activities to achieve the vision can be named as the mission of the organization. As mentioned above that the resources