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Unit 1 Business Strategy Enterprise Assignment
Diploma in Business
Unit Number and Title
Unit 1 Business Strategy Enterprise
In business strategy enterprise Assignment there is required to take effective decisions which can lead to effective and efficient results in organisation. For this purpose there must be strategic management by taking strategic decision after analysing available alternatives and selecting the most effective option which can help in achieving organisational goals and objectives. This report will define various aspects related to making understanding about the entrepreneurial opportunities and requirement of innovation and creativity that can help in achieving effective growth. This report will define and evaluate various strategic options available in the organisations. Different approaches for achieving the organisational vision and mission that can make impact on the various opportunities available to grow. This report will also discuss different aspects of developing creativity in activities in organisation that can be achieved by developing analytical skills to take strategic decisions and achieving effective results.
Question 1: Analysis of strategic capabilities and external environment
Strategic capabilities- In any organisation there is required to do effective planning of different resources and aspects which can make impact on the overall effectiveness of the organisation. Strategic capability is defined as the availability of the resources and competencies which contributes to effective and long term survival of the company by developing competitive advantage among its competitors in market (Mihajlovna, 2014). Tesco is a UK based food and retail company which is leading in this market and providing its services in different countries around the globe. In this company strategic management plays important role and help in achieving its goals and objectives in effective manner this helps in identifying the strategic capabilities of the company which includes different resources like physical resources, human resources, financial resources that can make impact in developing competitive advantage. Strategic capability includes ability to integrate and build internal and external competencies in the organisation that can make impact on the overall effectiveness of the organisation like Tesco.
a) Identify and critically analyse the company’s internal resources and competences that are sources of competitive advantage?
In every organisation there is required to have effective strategic management which includes strategic decision making that can make impact on overall effectiveness of running of any organisation. There are considered long term advantages and goals which help in effective planning and application of resources in organisation (Mihajlovna, 2014). Tesco is providing effective services to its customers due to its strategic capabilities and this is helping in developing competitive advantage among its competitors. Competitive advantage can be defined as making effective image of the organisation in its customer’s mind which make it better than its customers and make effective decisions in the organisation that can make impact on the overall effectiveness of Tesco. Following are the internal resources and competencies of Tesco which are the sources of competitive advantage in the company.
- Resources- Resources are the assets own by the company to effectively execute overall activities of the company and can help in achieving goals and objectives of the company (Kuznetsova, et. al 2014). Effective and efficient resources help in achieving the competitive advantage in the organisation.
- Physical resources- There are effective role of physical resources in the organisation that make it possible to achieve organisational goals and objectives of the company. There are included machines, raw material, products and patents of innovations in the company, data base and computer systems in organisation can make impact on the overall effectiveness of execution of activities in better manner and provide effective results that can lead to develop organisation. Effective use of these resource by Tesco which is making it superior to another companies involved in this industry.
- Financial resource- Finance is required to effectively execute all the activities in any organisation (Kuznetsova, et. al 2014). In case of lack of financial resources any organisation cannot effective execute its activities and it becomes difficult to achieve organisational goals and objectives that can make impact on overall effectiveness.Financial resources include balance sheet, cash flow statements, investments and suppliers of funds which are leading all the activities in effective direction. Tesco is a leading company and effectively managing its financial resources which is making impact in developing competitive advantage.
- Human resources- Human resources are key requirement of any organisation as in they are liable to execute every activity in the organisation in effective manner that can help in achieving organisational goals and objectives (V, 2013). There are included managers, employee relations, partners, suppliers and customers in organisation. Tesco is handling its human resources and focussed on their trainings and development programmes which can lead to effective results and competitive advantages among competitors.
- Competencies- Competencies are the essential and effective skills which are owned by organisation and differentiate the organisation from its present and future competitors in market. These are the sources which lead to develop competitive advantage or the organisations.
- Physical Competencies- These are the competencies related to effective utilisation of the physical resources of the company and make effective sources for differentiation. These can be effective utilisation of resources and their efficiency level in organisation and productivity, flexibility and marketing strategies of the company. Tesco is having effective and efficient utilisation of resource with effective planning and this is making it superior in different markets of world (Liping, et. al 2011).
- Financial competencies- These can be ability to raise funds from market and effective management if cash flows and creditors and debtors of the company by maintaining the required working capital required in the company and its activities. Tesco is covering huge market share and huge profits which is showing the effectiveness of the company to manage the financial resources and funds of the company.
- Human competencies- human competencies include the skills and qualities developed in the human resource of the company which is making impact on the overall effectiveness of the company. Tesco is having effective level of motivation and leadership within organisation which is making positive impact on organisational effectiveness (Liping, et. al 2011).
b) Evaluate the impact of changes in the industry and external environment on the entrepreneurial activities of the company?
There is effective impact of the changes in the industry and external environment on the overall activities of the company as in it depends on the dynamic environment and make impact on the effectiveness of the organisation. In Tesco following are various aspects of external environment which make impact on the overall effectiveness of the organisation.
- Demands of customers which changes with environmental changes and make impact on the overall effectiveness of the organisation (Yefremov, 2012).
- Technology advancement leads to changes in the overall working in the company like Tesco which is having superior position in the market.
- Regulatory requirements lead to changes in the activities of the company. Tesco is working through different countries around the globe and required to consider all the legal and regulatory frameworks to manage its activities in effective and legal manner.
- Changes related to the health and social and fitness and wellbeing of customers leads to changes in different rules and policies of the company.
- Customer safety and protection regulations which are modified time to time make impact on the overall process of working of Tesco.
- Globalisation in markets and changes in conditions of marketing leads to effective business strategy and changes in them which can be in accordance with the requirement of the company (Yefremov, 2012).
- Market positions and conditions like inflation and recession make impact on the overall growth and effectiveness of the company. Tesco has faced various problems and have done various changes in its effective running for effectively managing these changes in market.
Question 2: Analysis of strategic choices for your selected company
2.1 Select and critically evaluate two strategic options that could be pursued by the company in order to increase its entrepreneurial opportunities in the industry.
Tesco is a leading retail and grocery chain of UK which is providing its services to various countries in the globe and making impact on the overall effectiveness of the organisation. The company is having effective working process which is leading the organisation in effective manner. But every organisation should plan to expand its business by taking strategic decisions to utilise various entrepreneurial opportunities in the organisation (Krikovtseva, 2011). There are the following two strategic options for Tesco which can be selected by analysing this option in accordance with the SAFe criteria that can help in effective and strategic decision making in organisation.
Expansion of business by opening new branch in Japan: Tesco is a multinational company which has expanded its business to different countries of world and making the company leading company around the globe. There are various competitors of the company who are having more branches in different countries and it is required to expand its UK based business in more countries by the company (Krikovtseva, 2011). To analyse this option it is required to do effective analysis of this strategic option. For this purpose we will analyse this option in accordance with the SAFe criteria which make it effective decisions by explaining all the aspects related to this option.
- Suitability- The strategic option must be effective and suitable for the overall performance of the company that can make impact on the overall performance of the company. Suitability includes purpose and objectives of the strategic option that can make impact on overall effectiveness of organisation by its application. There are analysed different opportunities and threats which can be there related to the strategic option and make impact on the overall effectiveness of strategic option. It is analysed that the option is effective for the strategic position of the company or not and can lead to effective decisions in organisation (Chen, et. al 2010). Opening new branch and expanding business of the company in Japan is suitable for the company’s profitability and business as in the company is expert in handling effective and efficient services which can result as positive for the company. This expansion plan will be resulted as effective and beneficial for the company as in there will be increase in the expansion of the customers in organisation.
- Acceptability- Acceptability is the analysis which defines that the strategic option will be acceptable for the stakeholders of the company who are the key persons in organisation. These stakeholders include shareholders, debtors, creditors and other parties in the organisation. This decision will make impact on the overall benefits of the stakeholders who are required to accept this. The decision of expansion will be effective and beneficial for the organisation and will make positive impact on the key stakeholders of the company (Shah, et. al 2014).
- Feasibility- Feasibility will include various aspects like resources which are required to have in the organisation and can make impact on the overall effectiveness of the organisation. Feasibility includes various aspects like the competencies which help in achieving effective organisational goals which defines various aspects related to the overall organisational goals and objectives. Feasibility is the ability of the project and manner in which the strategies work and provide effective results. This is defined as the capability for effective strategic management in the organisation that can make impact on the overall effectiveness of the organisation (Ibidunni, et. al 2014). Tesco is having effective resources which are making impact on the feasibility of the company to manage all the activities and execute in effective manner to achieve organisational goals and objectives.
- Entering in clothing merchandise-There is also available strategic option to enter into retail business of clothing which can be done by the company that can make impact on the effectiveness and profitability of the company. It will be beneficial for the company to expand in the retail fashion industry which is growing and profitable industry (Ibidunni, et. al 2014). The company is having effective customer loyalty and it will be effective to attract people in the company and increase productivity of the company. Tesco is planning to expand its business in new segment and this can be profitable. The following is the criteria which can provide effective analysis about the strategic option.
- Suitability- The strategic option to expand business in new segment can make impact on the overall profitability of the company. Tesco is a retail chain in food and grocery items and having effective management and strategic advancement to manage this business and this shows that it will be able to manage different things that can make impact on effective management of this new business. This can be favourable start and strategic option for the company.
- Acceptability- There are included aspects related to the risk and its different factors which can make impact on the overall performance and growth of the organisation. In this strategic option to enter into new segment by Tesco can make impact on the overall business effectiveness (Santander 2015). It is identified that risk in this option is limited and can be managed in effective manner. This option will be resulting in effective returns which can influence the reactions of stakeholders that can improve the organisational reputation.
- Feasibility- There is required to have effective feasibility which includes the availability and efficiency of different resources and aspects which can provide effective relationship and can make impact on overall effectiveness of the new strategic option for Tesco to enter into new segment. Culture, working policies and procedures, resources and core competencies for working in effective manner and achieving goals and objectives (Brunswicker, et. al 2015).
2.1 Using appropriate strategy and innovation frameworks, evaluate the key drivers of innovation and entrepreneurial opportunities contributing to the on-going success of Cirque du Soleil.
Entertainment industry is huge and having effective opportunity to grow which make impact on its productivity and profitability level and generate huge revenue which is making this industry effective in financial aspects (M, et. al 2013). For this purpose we will understand the process and effectiveness of strategic framing and using in effective manner.
Strategic planning and strategies are the ways in which the managers of the company plan to run the business in effective way by predicting things and achieve the organisational goals and objectives and also define various aspects which can make impact on the overall effectiveness of the organisation. For this purpose it is required to frame strategy by the managers of the company who follow the process and take strategic decisions by analysing pros and cons of different aspects related to the effectiveness of the organisation (M, et. al 2013). There are two parts of the strategy formation process which are as follows.
Planning phase- In this phase of strategic formation thee are taken various decisions related to the overall effectiveness of the organisation that can make impact on the overall effectiveness of the organisation and also helps in making a process to follow. In this process there are defined clear mission and objectives of the planning and organisation, and then analysis of the environment including different threats and opportunities for the organisation. Internaland external analysis is done of the company relating to the various aspects of organisation that can make impact on the overall effectiveness of the organisation. Different options of strategies are identified and analysed in effective way and the most effective and suitable decision of strategies are taken for the organisation (Silveira, et. al 2012).
Implementation phase- In this phase of strategy formation there is implemented the strategy planned by the organisation in effective manner and can help intaking decisions related to the overall effectiveness of the organisation that can make impact on the overall working of the company. There is implemented strategy by effective planning of the resources, structure, system and operational process within organisation. There are also setup effective control and monitoring process to control over activities that can make impact on the overall strategic performance of the organisation.
Entrepreneurship and innovation model- Innovation and entrepreneurship is defined as the transformation of ideas into new products and services by utilising energy, vision, passion and commitment and risk management. This innovation model includes the following aspects that can make impact on the overall effectiveness of the organisation (Xueting, et. al 2013).
Goals and context- There are included various entrepreneurial goals and objectives that can make impact on the overall effectiveness of the organisation which can make impact on the overall effectiveness. Innovation and entrepreneurship includes various aspects that includes the goals and objectives that can make impact on overall effectiveness of the organisation.
Recognise opportunities- To identify the opportunities which can make impact on the overall advancement of the entrepreneurial and innovation opportunities that can make impact on various aspects that can make impact on the overall effectiveness.There are made efforts to recognise to opportunities that can be taken advantages which can help in achieving organisational goals and objectives in the company (Xueting, et. al 2013).
Find resources- It is required to identify resources which can make impact on the overall effectiveness of the organisation which can effectively opportunities in different aspects that defines various aspects which are making impact on the overall performance of the company in effective manner. These resources can help in achieving organisational effectiveness and goals to develop and advancement in different aspects.
Develop venture-Venture is required to be developed in the process if entrepreneurship and innovation which includes huge risk and different aspects that can make impact on the overall effectiveness of the organisation. There are various aspectswhich are involved in venture to achieve goals and objectives which can make impact on the overalleffectiveness of the organisation that can make impact on making profits and manage that risk involved in the organisation and achieve organisation goals (Kach, et. al 2015).
Creating value and brand- In this process there is required to manage the risk involved in the overall effectiveness of the organisation that can make impact on overall effectiveness of the organisation. The innovation must create value in positive aspects that can help in making effective positioning in the organisation and achieve overall effectiveness of the company. There can be used various aspects like different management and promotional skills and strategies which can be achieved in the organisational performance can make impact on the overall effectiveness of organisation and achieve them in effective manner.
Above are the points included in the entrepreneurial and innovation model in an organisation. But there are also defined different types of innovation which can be there and depends on different aspects that can make impact on effectiveness of the organisation. Following are some types of innovations that can be there in any organisation (Kach, et. al 2015).
Product development- This innovation includes the development of new products and services which are result of a new idea and can lead to effective results in the organisation. There are used new technologies and material in an organisation to increase the innovation in the organisation that can make impact on the overall effectiveness of the organisation as in it generates new products and services in organisations.
Market development- Innovation can be done by development of the market in effective manner which can be effective and also make impact on the overall performance of the organisation and help in achieving g organisational goals and objectives. Development of a niche market can be done by doing innovation in the market. New sales planning and marketing techniques can be done on the basis of the various aspects that enhance the market positioning of the company. Development of the market can be done by using various marketing and positioning strategies (Walsh, 2012).
Business model development- There can be develop various aspects related to the business model which make impact on the overall working of the organisation. Innovation can lead to effective development of the organisational business model that can help in achieving effective goals and objectives that can make impact on the various aspects of the organisational performance. Based on the above study of innovation in the organisation there will be analysed various aspects and key drivers of innovation and entrepreneurial opportunities contributing to the on-going success of Cirque du Soleil. The company has taken various risks and strategic aspects that can make impact on the overall effectiveness of the organisation (Walsh, 2012).
Identifying opportunities and initiate- It is required in every industry to identify different opportunities in the organisation that can make impact on the overall effectiveness of the organisation that can make impact on various aspects related to the overall effectiveness of the organisation. Cirque du Soleilwas a street performer group which used to entertain the passers but the company identified the opportunities available to grow for the company that is identified by the company and effective results are achieved by the company. The initial show of the company was small with small number of employees and audiencesbut soon there is increased number of employees and audiences whichis making impact on overall popularity of the company in different aspects that can help in achieving growth in the company (Geng, et. al 2013).
Risk taking and management- According to the risk approach it is defined that high risk generates high profits and which is making profits that also make impact on the overall effectiveness of the organisation. Cirque du Soleil taken risk in its first show which is named as “We Reinvent the Circus” which is arranged in America and there are taken innovative approach of the company to arrange various aspects related to the performance as in there are included various aspects related to new acrobatic, theatre, dance and live music which helped the company to develop a differentiated image and that make impact on making brand image for the company. The company has developed innovative approach by developing its products and services which are making company to develop competitive advantages which can are making impact on the growth of the company.
Creative thinking- For developing effective innovation in the organisation that can make impact on innovation on the overall effectiveness of organisation there is required creative thinking. Creative thinking helps in making effective decisions which make the company different from others and increases organisational performance. Cirque du Soleil is adopted this creative thinking which has made impact on the overall business pattern of the company. There has been adopted the approach to perform in different countries to enhance its audiences and make brand image and there are executed various contracts which has made by the company with different parties to enhance its reach and overall performance. La Nouba is an agreement which is made between Cirque du Soleil and Walt Disney World which is in a permanent theatre in Orlando (Geng, et. al 2013). And there is also scheduled a new permanent theatre at Tokyo Disney Resort. This creative thinking is helping in making the effective results in the organisation there are various aspects that are helping in effective brand positioning and making profits in the company in effective manner.
Product development- In the process of innovation there is required to have effective development of products which can help in achieving product differentiation in organisation and lead to effective results of innovative thinking in organisation. Cirque du Soleil is focused on product development of the company and make impact on various aspects that can make impact on the overall effectiveness of the organisation and its positioning in the entertainment industry. There are various products are developed by the company having effective attributes and qualities that can make impact on the various aspects which make it more effective and efficient (Hu, 2011). The heart and soul of Cirque du Soleilis the product of the company which make are the live shows of the company. There are various products which can make impact on the overall effective which make impact on the overall performance of the company and also define various aspects that can make impact in overall andvarious aspects that can make impact on the overall performance of the company. There are effective planning of the products before the performance of the company that is created and practiced at headquarter of the company which is Cirque’s international headquarters in Montreal. The resources and the competency is managed and developed by the company in effective manner.
Market development- Market development and promotions are important for the effective development of the production and its approaches in the organisation. Cirque du Soleil has developed effective promotional strategies in which there are used various sources like print, television, radio, public relations, and outdoor media and different media partners by the company for different countries which can help in achieving organisational goals and objectives. In recent years the company is focused on the web based media which can make impact on the effectiveness of the promotional strategies of the company to attract customers and expand the reach=h of the company. IBM, BMW, Audi, American Express, Canon, Vodafone, Celebrity Cruises, Epson, Porsche, and Toyota are the sponsors of the company.
Business developments- There are required to develop various aspects related to the market of the company in which there are done effective changes and various developments in the market by innovating new ideas which can make impact on the product range and efficiency of the company which can make impact on overall effectiveness of the organisation. Cirque du Soleil has innovated and developed new product ranges like multi-media divisions, strip shows for adults.
Value creation- This Company is having effective brand value and perception which make impact and touches hearts and imagination of people in effective manner. The products of the company are in accordance of the various aspects that can make impact on the overall effectiveness of the organisation and achieve effective organisational performance (Hu, 2011). Brand value of the company is effective as in the products are effective and impressive and creative.
2.2 Critically analyse the view that Cirque du Soleil’s success can be attributed to the successful application of Blue Ocean strategy.
Live entertainment is one of the growing industry in which Cirque du Soleil is one of the leading entertainment company. The company Cirque du Soleil is having competitive advantage among its competitors who are involved in this business and in 21 years of the company it has become a brand which is providing its services in different countries and enhancing the brand value of the company. The number of customers served by the company is 50 million and there are achieved more than 20 awards by their shows and its effectiveness. There is rich history of the company which is showing the process of growth of the company to achieve this market place and brand value. The company has framed effective and efficient strategic planning which is making effective results for operations of the company. There are taken various strategic decisions by the company in its growing period which has made impact on the overall effectiveness and step to grow of company in effective manner. This is done by making and following effective strategies which is leading the company in the direction of growth. Blue ocean strategy is based and focused on the studies which are based on the decade long studies of more than 150 to 200 strategies and including their strategic moves which are expanded to huge number of industries which are 30-100 in numbers and make impact on the overall effectiveness of the organisation (Wang, et. al 2013). There is also red ocean strategy which is different in its attributes and features from the blue ocean strategy that can make impact on the overall effectiveness of the organisation.
The company Cirque du Soleil has created a blue ocean for the new market place which includes various aspects like there has been taken effective strategic move by the company. There has been given effective challenge to the conventional thinking of the circus industry by changing the perceptions and thinking about the scope and potential of the company. The company has set the perspective that there is included various aspects which can make impact on the overall effectiveness of the organisation (Wang, et. al 2013). There is adopted creative and innovative environment within company which help in product market and business development and make effective and innovative decisions within organisation which is making effective impact on the overall perspectives of people. Cirque du Soleil has been seen by more than 150 million people in around more than 300 cities which is defining of its effective and huge amount of revenue that is making it leading company in this industry. This cannot be done and achieved by the entertainment company following traditional strategies to business and make its efforts in theoretical manner without effective marketing planning and decisions. The company is working on the strategy of “We Reinvent the Circus” this approach is showing the company is not focusing on the limited customer which are traditional like children for this industry. In this place there are concentration of the customers from different ages, perspectives and views and product development is done based on these requirements which is result of the creative thinking which is base for innovation in the organisation. There are innovated and new developments have made y the company which includes multi-media division by the company and strip shows for adults in Las Vegas and Cirque launched DELIRIUMwhich is a kind of music show that make impact on the overall effectiveness of the organisation by attracting more and more customers (Lan, 2010). This is making impact on the increased scope of the company and also making impact on the overall perception and scope of the company. These factors are showing that the company is working for the thought of future which is making impact on the overall effectiveness of the organisation that can make impact on the overall performance of the company there are defined various aspects which are focused on making brand value for the company involved in the entertainment industry and to prove the increased scope of this industry which is focused on various aspects (Lan, 2010).3
This business strategy enterprise is based on various aspects related to the strategic management and strategic planning which includes strategic decision making in any organisation. There has been discussed various aspects related to the strategic management of the company Tesco which is UK based retail chain providing its services in different countries around the globe. There are also defined important and effectiveness of innovation and entrepreneurship in any company which is Cirque du Soleil entertainment company which has developed it inaccordancewith the blue ocean strategy in which there are adopted various aspects related to the adoption of creativity and innovation in its activities in organisation which has made impact on its products and help them in achieving organisational effectiveness and effective revenue by developing competitive advantage in organisation.
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