Friday, March 29, 2019

Types of Analysis for Strategic Planning

Types of Analysis for Strategic Planning labor 1Internal perspicacitySometimes, it is something inside the presidential term that demands a major kind. It clear be technological change forcing new methods of carrying out its work, speak to efficiency/Performance, Assets condition/Productivity, Organizational culture and image, Organizational structure, Key staff, operating(a) efficiency, Operational capacity, Brand aw arness, Market shargon and fiscal resources.External AssessmentSometimes the outside world forces such decisions on the giving medication. Such forces whitethorn include major shifts in the commercialize, big changes in g all overnment policy, grocery competition, distri unless(prenominal)ion methods, and the geography in which you leave behind compete to hit subjectAssumptionsWe crumb assume certain ersatz that can be original in forming scheme and from which conclusion can be drawn, as the out chance on out is based on assumptionsPriority issuesWe m ust address our priority issues. It can be cost of yieldion, service aim and delivery, organization and material military strength, guest service and friend gentle windss, new fruit/service innovation and quality go REQUIREDThe second gradation to nominate where do we want to be? We must set our mission and objective to reach our goals.Mission/ slewIt can be defined as what the companionship is to become over set period of time. To be effective the vision must be simple. It must be something that the people within the channel can identify easily and it must study tangible imp proceeding on the subscriber line.ObjectivesObjectives ar concrete goals that the organization seeks to reach, for voice, an earnings growth target. The objectives should be challenging but achievable. They besides should be measurable so that the company can oversee its progress and make corrections as takeed.HOWThe tertiary feel to arrive out how bequeath we get there? We should make s ome schema and proper programs to reach our goals. Strategic development answer is dynamic and continuous. A change in one component can necessitate a change in the entire schema. As such, the process must be repeated frequently in order to adapt the strategy to milieual changes. Throughout the process the firm may need to cycle tail to a old stage and make adjustments.IMPLEMENTATIONThe fourth step to define who must do what. Once a strategy is develop it is about primary(prenominal) how to implement it and for effective implementation, it needs to be translated into untold detailed policies that can be belowstood at the exampleable level of the organization. As strategy forms at corporate level, it should be translated into specific policies for functional line of businesss such as merchandising, R D, production, Human resources, Information Systems.REVIEWSThe final step is to re project once implemented, the dissolving agents of the strategy need to be measured and evaluated, with changes do as required to keep the plan on track. Control systems should be developed and implemented to facilitate this monitoring. Standards of instruction execution are set, the actual movement measured, and appropriate action start outn to ensure success.ExampleIn my previous organization in Dubai, having two divisions, dealing in waterproofing and breakup materials and both were doing well. The management effected scope of further expansion into inner business. The Ch circularizeman has three sons. Two of them looking after two divisions and the third just returned from abroad after completing his studies. The company had enough resources, financial, inaugurate etc. to start the new business. The chairman utilized all of the functional resources efficiently and started a new interior business. Now I realized that they had followed above strategical cookery process to be success and assuage they are doing well.Task 2How does one involve stakehold ers in the strategic planning process and give examples of what tools you might use to look back strategic options.As an organization grows, it becomes more than important that all those involved are clear approximately what the organization is looking to procure and how it is planning to do it. Each organization should identify those with a legitimate interest in its work (stakeholders) and ensure that there is regular and effective communication with them about the organization.It is thusly worthwhile reviewing who the stakeholders are in the organization because they help to get capriole done more effectively. Stakeholders may vary according to the constitution of the organization but near common can be explained in adjacent diagram.SuppliersGovernmentclientsOrganizationBank / FinancialInstitutionEmployeesCompetitorsHow to go stakeholders while developing strategyPersonal Interviews It can provide quite detailed and rich data on mortal behavior and attitudes. entrop y gathered with this process can help to develop strategy more effectively.Focus Groups Under this method people are selected and invited to satisfy together to hash out some aspect of a particular product or run which is helpful in making strategic decision.Advertising It is a form of communication that helps to persuade potential guest to purchase or to consume more of a particular brand of product or service. If the strategy is to develop for a new product then view of prospective customer can be obtained by this means. red-hotspaper inserts It enables adman to target their advertisement to specific geographic market place. Mostly it covers local area and strategy contriver can get the feedback from relevant stakeholders.Web/Online Surveys superstar of the most sophisticated and modern method to involve stakeholders in strategy planning process. Its quick and more accurate and solves the distribution and result collection problems.Conferences caller-up can arrange conf erences where views can be veer which will help the planner to form the strategy accordingly. Stakeholders are invited to discuss on a particular topic.Workshop / problem solving meetings It is give care a meeting emphasizing interactions and exchange of information among a unremarkably small number of participants.Newsletters A newsletter is a regularly distributed publication, broadly speaking about one main topic that is of interest to its subscribers. For example Company send newsletter to their employees to update their market position and any succeeding(a) development.Annual report It is a complete report of an organizations activities throughout the preceding year. It is normally sent to Shareholders and some other interested stakeholders informing about the companys activities and financial performance.It has been observed that individual stakeholders ordinarily may have their induce interests which they will ensure are saved and valued. It means that stakeholders c an influence negatively or positively the performance of an organization. It is therefore important for an organization to determine which stakeholders can have a positive or negative impact on their organization so that the positive effects are promoted and the negative effects are managed so as to minimize damage. For example employees of an organization will be refer about their job security and salaries and other gets and while planning the strategy if they are not involved in planning process they may resist due to some risk, which they dont want to take but if they are better educated they will help to achieve strategic goal.There are three important tools that can be utilize to review strategic options. suitability feasibleness Acceptabilitysuitability This is one of the important tools while developing a strategic plan. The planner must ensure that the strategy he is planning, will it be set with the current environment and are we competent enough to face the challenges. Suitability is a decisive factor for assessing the extent to which a proposed strategy fits the function identified in the strategic synopsis, and how it would sustain or improve the private-enterprise(a) position of the organization. Some authors have referred to this as consistency. Suitability is therefore a useful tool for screening strategies.For example, if a strategy is likely to improve the organizations competitive standing then we should demote out, can we able to resolve the companys liquidity problems, or decrease dependence on a particular supplier?Feasibility Whether it can be implemented successfully. The organization must evaluate their resources and at the evaluation stage there are a number of heavy questions which need to be asked when assessing feasibility.For example give notice the strategy be funded? are we capable of performing to the required level (e.g., quality level, service level)?Can the necessary market position be achieved, and will the necessar y marketing skills be available?Will the required skills at both managerial and operative level are available?Will the technology (both product and process) be available to compete effectively?Can the necessary materials and services be obtained?It is also important to consider all of these questions with respect to the clock of the required changes.Acceptability Alongside suitability and feasibility, it is the third factor to review strategic options. This can be a unenviable area, since acceptability is bulletproofly related to peoples expectations, and therefore the issue of acceptable to whom?Following essential questions need to be asked when assessing Acceptability.Return What will be the effect on big(p) structure?Profitability analyses (return on capital employed, profitback period, discounted cash flow, market valuation, etc.)Risk Will the function of any part, group or individual change significantly?Financial ratio projections Sensitivity depth psychology finish m atricesStakeholder Expectations Will the organizations relationship with outside stakeholders (e.g., suppliers, government, unions, and customers) need to change?Needs, power, interest, and predictability of stakeholders.Task 3Prepare an example nerd analysis of an organization you know or have studied listing the 4 describe (SWOT) elements in a table. Explain how strategic planner will use the analysis in developing the strategy using some of the example elements you have listed.SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal factors, which relates with resources. Opportunities and threats are external factors which relates with environment.SWOT analysis is a tool for auditing an organization and its environment and is often used to highlight where a business or organization is and where it could be in the future. It is the first stage of planning and helps marketers to focus on key issues.The following SWOT analysis looks at PRIMARK which is an Irish clothing retailer. The SWOT analysis will give a clear picture of the business environment PRIMARK is operating in at the present time.Strengths The strengths of a business or organization are positive elements, something they do well and are under their control. The following fragment will outline main strengths of PRIMARK.A strong brand is an essential strength of PRIMARK as it is recognized and respected.Competitive price is a vital element of their general success, as this keeps them in line with their rivals, if not above them.The lucrative location. mostly on high highway adds up PRIMARK strengths due to its accessibilityKeeping be lower than their competitors and belongings the cost advantages helps PRIMARK pass on some of the benefits to consumers.There distribution scope is one of their strengths and links to success.Supplier relationships are strong at PRIMARK, which strengthens their overall performance.Weaknesses Weaknesses of an organi zation is things that need to be improved or perform better, which are under their control. Weaknesses are also things that place you behind competitors. This section will present main weaknesses of PRIMARK.They dont have good announce technique to tell customers about their business.There limited product line is a major weakness.PRIMARK does not functions wider international market, which has an effect on success, as they do not reach consumers in more abroad markets. delinquent to lower price more customer visit in their livestock but they dont have enough checkout counters to turn away long queue.Opportunities Opportunities are external changes, trends or needs that could enhance the business or organizations strategic position, or which could be of a benefit to them. This section will outline opportunities that PRIMARK is currently facing.Decrease in taxation is an luck for them to reduce prices or increase profits.New market opportunities are a way to push them forward.PRI MARK has the opportunity to enter a niche market, gain leading position and therefore boost financial performance.Expanding the product lines by PRIMARK could help them raise sales and increase their product portfolio.They can enjoy benefits from reduction in interest rates so that business costs would come down.Expanding into other markets could be a accident for them.Threats Threats are factors which may restrict, damage or put areas of the business or organization at risk. They are the factors which are outside of the companys control. Being cognizant of the threats and being able to prepare for them makes this section valuable when considering contingency plans and strategies. This section will outline main threats PRIMARK is currently facing.Consumer lifestyle changes could lead to less of a demand for its products.Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to their performance.Being undercut by low-cost imports is a majo r threat for them.Slow growth and fall off of the retail market is a threat to them.Increased competition from overseas is another threat to them as it could lead to lack of interest in their product.The actions of a competitor could be a major threat against PRIMARK, for instance, if they dally in new technology or increase their workforce to meet demand.Price wars in the midst of competitors, price cuts and so on could damage profits for them.A slow economy or financial slowdown could have a major impact on their business and profits.PRIMARK could be peril by the growing power customers have to set the price of their products. conclusionGiven this analysis we come to realize that each organization has its own external and internal problems to handle. The process in which we enable to identify and crush such problems is by using proper management method of analysis like SWOT.The SWOT analysis is useful in a difficult strategic situation. The strengths are analyzed to reach opp ortunities and to avoid threats. The search of weaknesses is of magnificence as it allows the manager to minimize them. It also explains what unique resources you have and what you can offer that makes you stand from the rest.Task 4Explain the differences between equilibrize notice, scenario planning, cost benefit analysis and sensitivity analysis giving at least one example of where each technique would be most appropriately appliedBalance ScorecardThe symmetry scorecard is a performance management tool to measuring whether the smaller-scale operational activities of a company are aligned with its larger- scale objectives in terms of vision and strategy.By focusing not only on financial outcomes but also on the operational, marketing and developments inputs to these, the balance scorecard helps provide a more comprehensive view of a business, which in turn helps organization act in their best long-term interests. It was proposed by Robert Kaplan and David Norton in 1996In the b alance scorecard we refer to the several varied kinds of balance. For example-The balance between short and the long term.-The balance between four perspectives.The Balance scorecard approach generally has four perspectivesFinanceReturn on Investment, property flow,Return on capital employedFinancial results (quarterly/Yearly)Internal business processesProcess alignment (is the right process in the right department?)Learning and growthIs there the correct level of expertise for the job?Employee turnover Source Businessball.comJob satisfactionTraining study opportunityCustomerDelivery performance to customerQuality performance for customerCustomer satisfaction rateCustomer percentage of marketCustomer retention rateScenario PlanningScenario planning is a method for learning about the future by understanding the nature and impact of the most uncertain and important driving forces affecting our world. It is a group process which encourages knowledge exchange and development of mutual deeper understanding of central issues important to the future of the business.It is a process of visualizingWhat future conditions or events are likely?What their consequences or effects would be like and how to respond to, or benefit from them.Four aspect should taken into consideration in scenario planning rising scientific capabilitiesTechnological developmentsThe role of business and governmentSocial attitudesThe displace for London is having scenario planning about future development like air conditioning in Tube.Cost benefits AnalysisThe process involves, weighting the amount expected costs against the total expected benefits in order to take on the best or most profitable option.It is typically used by governments to evaluate the desirability of a given encumbrance. It is an analysis of the cost effectiveness of different alternatives in order to see whether the benefits are greater than costs.The costs and benefits of the impacts of an intervention are evaluated in ter ms of the publics willingness to pay for them (benefits) or willingness to pay to avoid them (cost) inputs are typically measured in terms of opportunity costs the value in their best alternative use. The guiding principle is to list all parties affected by an intervention and place a monetary value of the effect it has on their public assistance as it would be valued by them.Sensitivity AnalysisIt is a technique for determining the outcome of a decision if a key prediction turns out to be wrong.The Study of how the uncertainty in the outfit of a model (numerical or otherwise) can be apportioned to different sources of uncertainty in the model inputSuppose that the manager of an organization just completed a linear programming solution which will have a major impact on the company, such as determining how much to increase the overall production capacity and are about the present the results to the board of directors. How confident are you in the results? How much will the results change if your basic data (e.g. profit per item produced, or availability of a component) is slightly wrong? Will that have a minor impact on your results? Will it give a all told different outcome, or change the outcome only slightly?BibliographyPrimark.co.ukThompson throne L . Strategic Management . 4th EdTeam-based strategic planning By C. Davis Fogg 1994http//www.netmba.com/strategy/process/JOHNSON, G., and SCHOLES, K. (1997). Exploring Corporate Strategy, Fourth Edition, Prentice Hall, New York. Chapter 8Business dictionary.comCases in public policy analysis by George M. Guess, capital of Minnesota G. FarnhamWikipedia.orgPractical Optimization a gentle Introduction John W. Chinneck, 2000A Practical guide to using the Balanced scorecard By Nils-Gran Olve, Anna Sjstrand, Carl-Johan PetriBusinessball.comhttp//www.well.com/mb/scenario_planning/dft.gov.ukSensitivity analysis in practice by Andrea Saltelli, Stefano Tarantola, Francesca Campolongo

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