Unit 21 Strategic Human Resource Management Assignment Solution

Unit 21 Strategic Human Resource Management Assignment Solution

Unit 21 Strategic Human Resource Management Assignment Solution


Diploma in Business

Unit Number and Title

Unit 21 Strategic Human Resource Management

QFC Level

Level 5


This unit 21 strategic human resource management assignment solution is the identification and delineation of strategies that managers of the organization can apply in the process of enhancing the competitive ability and better performance of the organization. Strategic management can also be described as the set of decisions of the manager which results in the organization’s performance. Manager must have specialized knowledge and analysis of organization competitive environment. They should conduct SWOT Analysis to know the environment and make best possible utilization of strengths, minimize the weaknesses, identify and utilize the opportunities and should consider the threats. Strategic management is nothing but planning for both predictive and unpredictive aspects and to deal with them effectively in future and minimize the risk. It is important for both small and large business organizations so as to attain the competitive advantage. It helps in understanding the need of corrective actions to be taken and show us in which direction business is moving. It is the continuous process of evaluation and controlling of business in which it is involved and also evaluates the position of its competitors and also helps in formulation of the strategies to meet all the existing competitors.

Unit 21 Strategic Human Resource Management Assignment Solution

Strategic management in organization gives employees a broader perspective to understand the job roles and their work which fit in the organizational plan. It is simply the management of employees in a manner to achieve better results and goals of the organization. It also helps the employees to co-relate with the other organizational tasks which bring out more benefit to the organization in attaining the objectives. The employees get prepared to understand the environmental changes occur in the organization and their effects on the organization. They are able to find solutions to those problems as strategic management helps to understand the management risks and decisions and analyze the whole management in a smarter way. The managers and employees must do their task in appropriate manner and should be effective as well as efficient in their work. The major role of strategic management is to incorporate all the functional areas of the organization and another role of strategic management is to focus and keep continuous track on the goals and objectives of the organization (Munksgaard, 2015).

Strategic management deals with planning performed by the top level management. It is done for the benefit of the company. By following this management, owners are satisfied. There lies an internal and external assessment for the betterment of the company. This type of management is not rigid. Companies work under a  business environment.  So there require continuous amend mends with each steps of planning. Strategies are always made as per the resources available to the management. Strategic management always categories as formation of planning followed by its implementation. Management is required to behave rationally for making the organization profitable. In regard with the strategy, management has to decide various factors before its formation and implementation. There are various external forces which influences the strategies. Company has to consider and make planning accordingly. Strategies are well defined roadmap to the organization. It explains all mission, vision, and the direction of the organization. It is the whole process of planned activities from present to future. It is the bridge to the gap of “where we are” and “where we want to be”. The strategic management is very important for businesses for conducting its activities more effectively and efficiently and accomplishing the objectives of the organization. In recent years many of the firms or businesses has started realizing the importance of strategic management. Of course the matter is only that how the strategic planning is done in the organizations.

Strategic Management


Strategic management is the set of desired action for the company and its employees and other resources to achieve a planned future. Strategy is the result of the detailed strategic planning process. It is defined as the set of planned activities working towards the utilization and allocation of resources of the organization in a manner to attract more benefit to the company and to achieve maximum goals. Strategy can also be understood as the knowledge of goals, risks and the methods to overcome those risks (Lima, 2013).

Need of strategy

  • Strategy is a crucial part for every management to forecast the future risks and to plan for the actions which could be taken at the time of difficulties. It is very important for every company to perfectly deals with the uncertain events in future. Strategy for these uncertain events helps the management to play safe in this world of changing environment.
  • Strategy deals in long term developments and not in routine operations. It deals in new innovations in products, methods, markets.
  • Strategies are created to deal with the unpredictive behavior of customers and the competitors.

Strategic management process

Strategic management  process is the steps by which managers plans the strategies for the organization and work towards achieving those planned strategies to attain maximum objectives and goals of the organization in effective and efficient manner. Strategic management is the continuous process that estimates the business, its competitors, and defines the goals that are to be achieved to get better results for the benefit of the organization.

Strategic management process

Strategic Management Process

Strategic management process has following four steps:

  • Environmental Scanning: Environmental Scanning is the process of acquiring, analyzing the internal and the external environmental factors of the business which can affect it. The management should properly scan the environment and evaluate it continuously for better performance.
  • Strategy Formulation: Strategy Formulation is the process of making the strategiesand deciding the best strategy for the organization’s accomplishment of goals. The organization formulates the corporate, business and functional strategies.
  • Strategy Implementation: Strategy Implementation is the process of planning the strategies and putting them in to action as intended. This step includes the organizational structure designing, distribution of resources, developing decision making process and managing the resources of the organization.
  • Strategy Evaluation: This is the last step in strategic management process. This step includes the activities of estimating internal and external factors, performance management and taking corrective actions, evaluation helps in meeting the strategy implementation and organizational objectives (Nooraei, 2012).

Benefits of strategic management

Strategic management is an important process for any organization. It improves the company’s growth through its benefits. If organization uses strategic planning it can produce new products, identify new markets and new opportunities for them in to their business lines. Strategic management also helps in analyzing firm’s profitability view and can do Cost Benefit Analysis for efficient working. There are few benefits of strategic management which are briefly discussed below:

  • Financial benefits - The firms with strategic planning are more successful than the firm which does not adopt strategic management or planning. It has been recorded that over 1, 00,000 businesses fails in U.S. because of lack of strategic management and strategic planning as they are unable to estimate the future risks and long-term consequences.
  • Non-financial benefits - The firms or businesses adoptingstrategic management are more conscious of future risks and threats and can deal with the competitor’s next attack and eradicate its weakness. Strategic management also helps in meeting the resources with the rapid continuous changes in the environmentas better resource planning is done in strategic management.

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Theories of strategic management

In strategic management, there are various models and theories used by the management such as BCG matrix, Porter’s model,  SWOT Analysis.  These are the tools which help an organization to work ahead to gain success.

BCG Matrix

A four celled matrix (a 2*2 matrix) developed by BOSTON CONSULTING GROUP (BCG), USA. It is most popular corporate analysis tool. It presents the organization’s related market share and industry growth share graphically. It is two dimensional analysis of Strategic Business Units management. It compares the business analysis and environmental evaluation. This strategy is rate the business high or low according to is industrial growth share and relative market share.

Swot analysis                

SWOT is strength, weakness, opportunities and threats of the business firm. They are basically the external and internal factors affect the business. Evaluation and identifying new opportunities, prediction of threats, strengths should be used in the activities and weakness should be eradicate in organization (Xingang, 2013).

Porter 5 forces Model

This model identifies the competition exist within an industry. The five forces stated by him are

  • Threats of new entrant- The market or industry which can assure profit possess chances of new entry of firm. 
  • Threat of substitute- There are variety of products available to the consumer. Due to which business may not be able to create high margin.
  • Bargaining power of buyer- Buyer possess enormous power relating to the bargaining of product.
  • Bargaining power of suppliers- They contain the power of supplying raw material which have limited alternative.
  • Industry rivalry- The most important factor is the competition present in current scenario.

Industry rivalry

This model helps to determine forces which will affect the growth and profitability of the organization. An organization faces many internal as well as external factors that affect its profitability and success. It is important that determination be made for their long term perspective. Porter has determined five forces that will help an organization to make proper evaluation for their business growth. He has stated that there are two types of industries i.e. attractive and unattractive. An attractive industry is one which possesses the profitability and effectiveness. These types of industry overcome the five forces stated by Porter. Whereas an unattractive industry is affected by the forces stated above. This type of industry suffers crises. He has referred these forces to be link more suitably with micro environment rather than macro. According to him, these forces help company to give sufficient output to anchor them in the highly competitive market. He also mentions that performance of overall industry does not simplify the profitability of each and every firm working under the umbrella. His approach is different from the SWOT analysis one.

Five forces of Porter’s model

1. Threat of new entrant- when an industry is profitable, more new firm try to make their way in that particular industry. Due to new entry, existing business has to suffer setback. These entries can cause more setbacks to the less established organization. They rarely affect established business. There are certain factors which affect the new entry can create-

  • The government may create certain policies which affect the new entry in the market
  • Capital invested by certain new entry may be creating a nuisance to the existing business organization.
  • If a well established brand enters in other industry then it can prove to be hurdle to the existing ones.

2. Threat of substitute- Existence of alternatives creates a problem for the industry to succeed in their mission. Availability of substitute may hamper the growth of an industry as consumer will like to switch over the product which is more affordable.

3. Bargaining power of buyer- A buyer plays a crucial role in the success of the business. If the buyer has various options then margin is low for the business. Similarly, if there fewer alternatives available for buyer then business can create suitable margin. They are often stated as market of outputs.

4. Bargaining power of supplier- They are often stated as market of inputs. There are advantages available for suppliers when there are limited suppliers of raw material. Then it creates risk for the business as they charge additional or higher prices from business.

5. Industry rivalry- It plays a key role in the market. If there exist a tough competition among market then workpressue along with quality of product and services will also increase (Prasad, 2011).

Implementation of porter’s five forces model

A variety of managerial skills are needed for putting strategies in action, monitoring progress through organizational strategic controls, and achievement of organizational goals, are included in strategic implementation. Synchronicity of major features throughout an organization is compulsory for putting the selected strategy in action by the managers.Delivering products and services technology is used such as tools, techniques, equipment, machinery and knowledge etc. in an organization.Working individual members and employees of the organization are known as human resources of an organization.For the achievement of any challenge awards, bonuses and rewards and promos should be given for boosting up the work efficiency of the human resources  of the organization.Resolution of issues, problems and questions arising in an organization is included in decision processes.Special design of interactions along with coordination formulated by managers for linking the responsibilities of members and groups for the achievement of organizational goals is under the organizational structure.Strategic control is needed to monitor the progress of the management. It contains the critical environment features which can affect the strategic plans. Organizational assessment of strategic actions and insurance of strategic plans in implemented as they were planned. If the business is thinking about moving into new sectors or markets, or if the business is stuck in a commodity situation than porter’s model enables you to see these issues clearly.

Here are some examples of where the balance of power lies in different markets:

  • Threat of new entrants- An example of web design, as there are independents of every location. This is an easy market to enter with few requirements other than the skills, relevant hardware and software. This mean there are very few entrants.
  • Buyer power- An example of grocery sector since supermarket tends to retain power over suppliers due to volume and price. They depicts terms, set prices.
  • Threat of substitution- For example hairdressing. Focus is on expertise, customer service or added value.
  • Supplier power- Some sectors have monopolistic or oligopolistic suppliers such as utility companies. Sometimes customers have little choice. In the jewelry sector, diamonds suppliers often have the power and can set prices, withhold supply and restrict sales.
  • Competitive rivalry- These include Estate agents, web design, and office stationery. Many competitors often buy on price.

Positive aspects

  • This model is used by analyst for strategic management. It is one of the most popular ways to make strategies for an organization. An organization always requires to perform planning and then implementing the same for the growth of the business.
  • This model is simpler and more understandable irrespective of its rigidness. As it only focuses on the five forces mentioned by him. So all the threats and risk can be analyze and diminished.
  • This is helpful for understanding the organizations competitive strength and weakness. It is different from SWOT analyze model. Porter’s models are more understandable then SWOT.
  • It also helps new entrant to study the market before entering it. As it covers all the aspects and risk.  New entrants are benefitted by this model. They get proper ideas relating to the current scenario of the market.
  • This is more suitable for the industries which require overall review of the market. As it covers all the aspects which are imperative for the purpose of analyzing.
  • It also performs the role of checklist. All the necessary risk are review so all non-compliances can be complied without causing any penalties.
  • Organization works in a dynamic environment. As most of the risk is analyzed, so it helps the organization to be alert for any problem which may occur in future (Bruan, 2015).


  • It faces much criticism, as there are no interaction among buyer, seller and suppliers.
  • There are barriers in the entry of the new business in the market. In fact many values of sources are of structural merit.
  • Many times buyer gives more importance to the brand instead of their affordable substitute. So there remains no threat to the existing business. There are loyal customers present in the market who only focuses on the brands they usually consume rather than thinking about spending the amount on its substitute.
  • Many times buyers do not possess the power to control the bargaining aspect. Like sometimes buyers have very few alternatives then they do not have the power of bargaining. They have to deal with the prices avail by the business. In this regard business has more control on the prices.
  • There are also cases where it is not appropriate to analyze the industry on the basis of reserves made by them.
  • One more problem is that Porter has also combined other forces with the existing forces. Like forces such as government policies is an altogether different factor to be analyzed. But he merged it in one of his five forces. Due to which proper recommendation cannot be obtained.
  • This model basically works on large scale. Small and medium size industries are not benefitted with it. It causes problems to these industries to make strategies for their business. This model shows importance to large scale industries only ignoring the small and medium scale industries.
  • This model is rigid. If any new threat arises then it cannot be accumulated in the existing one.
  •  It does not showcase the future strategy in detail. It causes the problem for forming long term objectives of the business (Yuan, 2013).


Porter’s five forces model covers all the forces or factors that affect the organization. The forces i.e. threat of new entrant, threat of substitution, bargaining power of buyer, bargaining power of seller and industry rivalry covers all the important factors which constitute the market. He states that all these factors are required while making strategy. For the management of an organization these five forces play a crucial role. Like threat of new entrant helps the existing business to make appropriate arrangements for their existence. Threat of substitute gives the idea about the chances of substitution which can hamper the business profits. Bargaining power of buyer helps to make assessment of the position a firm is suppose to have. Similarly bargaining power of supplier helps to determine who possess the power to control. And at last industry rivalry force the organization to work effectively and efficiently. But this model also has some points to be considered. This model is more suitable for large industries. Small and medium scale enterprises are not able to use this model for planning.


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