Unit 32 Business Strategy Assignment Help
There are several theories and concepts which are related with the business strategy assignment help. Within this report the vision, mission statements, goals, objectives and core competencies which are associated with the business of Tata Steel UK have been assessed. Different factors which are needed to be analysed in the strategic planning are analysed. The effectiveness of the techniques which are used in the strategic planning has been evaluated. After considering the strategic position of the organisation Tata steel organisation audit as well as external audit has been carried out. The significance of the stakeholders has been assessed and a new strategy has been produced on Tata Steel UK. Justification has been made on the selection of the strategy which has been developed and two alternative strategies are analysed.
1.1 In your report, briefly define the following terms; visions, missions, objectives, goals, core competencies. Assess how these notions inform strategic planning for a business
- Mission statement: the mission statement is the purpose or role through which the organisation tends to serve the objectives of the stakeholders. Through the mission statement the current approaches ofthe organisation as well as the capabilities of it are defined. The stakeholders and justification of its existence are also referred within the mission statement. The mission statement can be set for different levels of organisation it is the reason behind the existence of the organisation. Tata steel strives to reinforce the industrial base of nation through efficient utilisation of the skills and knowledge of staffs and available materials. High technological implementations and consistency with the modern practice of management Tata steel has been envisaged to achieve the mission statement. (tata.com, 2015)
- Vision statement: the intention of the organisation in the future is defined within thevision statement of the organisation. The way through which the organisation can be able to meet the objectives of the stakeholders and make efficient steps within future market is related to thevision statement. The shared understanding of the nature and its components and the purpose of the organisation has been incorporated within thevision statement. The vision statement leads the organisation towards greater purpose. Through the tool of vision statement the workforce can be inspired and a sense of direction can be provided. They ought to serve the stakeholder and the communities with long term value creation along with leadership and trust. (tata.com, 2015) Their vision is to provide a sustainable future for the next generation through all modern technologies. Through the strategies they tend to serve one quarter population of the world within 2025.
- Objectives and goals: objectives are required to be defined after the clarification of mission and vision of the organisation. Objectives should achievable, measurable, attainable, realistic, extending in nature and also includes specific time frame. Goals can be defined as the targets within a specific time. Goals consist of one or more objectives. Through unique integrity and trust and leadership Tata group has been trying to achieve the mission and vision statements. They are trying to incorporate the changes of the global marketing and enforcing innovation in the practices by retaining the core values. (tata.com, 2015)
- Core competencies: these are set of unique skills, processes values and system which are helpful in achieving the goals and maintain the position in the competitive market. Tata group has core values like integrity, spirit, agility, passion for excellence and unity. Along with these leadership and trust is most important one as they helping the organisation to achieving the reputation. Tata group has numerous skills and talents and they are making improvements of their skills in continuous process. (tata.com, 2015)
1.2 Analyse factors that Tata Steel UK and yourself, as the strategic manager would need to consider planning and formulating strategic plans. In this part of your report, consider some of the key issues and problems there are with respect to strategic planning. Include at least three factors associated with Strategic Planning.
Strategic planning is the management activity of tan organisation which has been used to set the priorities, allocate resources, focus energy, strengthen the operations, establish common goals to direct the human resources towards the achievement, establish agreement around the intended outcomes and assess the organisational direction in responding to the changing environment. It is documented for communicating the organisational goals and directing the needed actions to be developed along with the critical element analysis within the planning exercises. There are different factors which can be act as barriers for the strategic planning. These factors are external as well as internal. By assessing the factors the implementation of the strategic planning can be done with efficiency. (mbaskool.com., 2016).
SWOT analysis of TATA to assess the internal factors in strategic planning:
- Strengths: brand equity and reputation in the global market are the greatest strengths of Tata. Acquisition of the multiple companies under the same banner is the strength of Tata which is helping is to serve wide market along with UK. It is also providing value chain efficiency and giving the opportunities to enjoy the products of the sister companies and benefits from them. Apart from these the organisation has modern technical assets and advanced talents of the current generation which are increasing the competency level of the organisation to achieve its mission, objectives and goals. (mbaskool.com., 2016).
- Weakness: the increasing ratio of debt-to-equity is the biggest weakness of Tata in recentcontext. This is limiting the organisation’s abilities in creating budget in strategic planning. It is also impacting over the long run and the vision statement. The organisation can also face issues in the time of economic crisis. (mbaskool.com., 2016).
- Opportunities: as the organisation is operating in different region and have several acquisition it has the capabilities to utilise differentmaterials in times of crisis. Theorganisation also has the ability to adapt different modern technologies. The increasedimprovements of the technology world have been beneficial for Tata. (mbaskool.com., 2016).
- Threats: in the current context the organisation has been facing challenges in CO2 emission from the production in Europe.
- External analysis of Tata: the external analysis is used for examining thethreats and opportunities in the current market. Through Porter’s five forces the external analysis can be constructed:
- Barriers to entry: the organisation has been operating in the capital intensive business. The production requires the capacity of the plant along with capital requirements. Government policies in Europe have been major issues in the production of steel manufacturing as the organisation. As there are low barriers in the product differentiation the products do not have any substantial price differentiation.(Roy, 2011) The economic forces like lower cost, better bargaining power, R& D expenses are impacting on Tata steel.
- Bargaining power of suppliers: the powers of suppliers are low as the organisation is containing full integrated steel plants and own mines.
- Competition: higher completion is arising though the brand value has been a greater strength for the organisation. (Roy, 2011)
- Substitutes: though the usages of other materials in the domestic lives and use of aluminium in the automobiles are increasing, these do not pose any significant threats to the organisation. (Roy, 2011)
1.3 Define and evaluate the appropriateness of the effectiveness of any two strategic planning techniques used in strategic planning
There are different techniques which used within the strategic planning processes. These are:
- BCG matrix,
- Stakeholder mapping
The effectiveness of stakeholder mapping: the mapping of the stakeholders are important for the understanding the key stakeholders within the organisational operations and their impacts over the business. Through the analysis the stakeholders are engaged within the organisational strategy with efficientmanner. Stakeholders mapping has been used in the on going engagement process and analysing theefficiency of the previous engagement. Through this technique the stakeholders prioritise the stakeholders and adapt necessary approaches to engage them. (gsvc.org., 2011). Through the mapping the importance of the stakeholders are analysed by identifying their intensity level. Through this mapping the risks within the stakeholder relationships are also identified. There are certain issues which are associated with the stakeholder mapping technique in the strategic planning. As this mapping identify the importance of different stakeholders and helps to approach the significant one the focus can be diverted for other stakeholders which later can impact over all strategies. (Karkhanis, 2016).
BCG matrix: BCG matrix is the effective management tool which can be used by large organisations. Through this matrix the managers are able to manage several units and levels of business. The market share as well as the growth rates are analysed through the matrix which are necessary to develop new strategies. The development and growth rate against the average growth rate can be compared through the BCG matrix. The balance of current portfolio of the organisation can be done through this. Though there are several benefits of using this technique there are limitations also. The synergies between the business units are neglected in the matrix. As the model uses two dimensions – market growth and market share, this can limit the management to emphasise a specific product. (bcg-matrix.com., 2016).
Considering the effectiveness of these two techniques as well as their limitations the BCG matrix can be appropriate for the strategic planning for Tata. Through thismatrix the organisation can efficiently make proper approaches in the diverse market segments.
3.2 In your proposal, inform the board of your selection in 2.4 and provide justification for this selection
For having appropriate management in the organisation and building proper sustainable growth in the current market the above strategy has been appropriate. Different factors are needed for the justification of the strategy:
- Acceptability: through the current strategy the real time measures can be implemented. The stakeholder mapping is efficient regarding acceptability of the strategy. Through this technique the current stakeholders and their impacts over the strategic implementations can be analysed. BCG matrix would provide proper market scenario and their influences over the strategy. (Verbeke, 2013)
- Suitability: the strategy is suitable for the organisation is current market development. The current market segments can be achieved through this strategy. With this strategy the organisation can be able to place their focus in future market share in UK market considering current issues like Brexit.
- Feasibility: through this strategy and its implementation the organisation have feasibility in achieving the desired goals. The strategy will lead responsible behaviour within the approaches. (Verbeke, 2013)
- Acquisition: in considering the acquisition the strategic approaches can create efficient balance in functions business. Through this strategy the organisation can be bale to have better understanding over the market competition place proper methods. (Verbeke, 2013)
3.1 Suggest two alternatives strategies and analyse the appropriateness of these strategies. In this section of your proposal, analyses two of the following; market entry, organic growth, growth by merger, acquisition, strategic alliances, substantive growth, limited growth and retrenchment strategies.
Limited growth strategies
- Market penetration: this strategy has been developed on the market share or the measure of the percentage of sales volume of a product in relation to the competition. For increasing the market penetration Tata Steel UK can adapt different approaches like:
- Increased promotion: through greater promotional activities the organisation can have better penetration in the market. An advertisement campaign can be developed for increasing the brand awareness.
- More distribution channel: Tata steel should increase their methods of products. Along with the exiting telemarketing operations Tata Steel can also approach direct mail approaches for the distribution channel. (Kumar, 2010)
- Product improvements: through making improvements in the product the organisation can increase the interest of the customers. By enhancing the perception of the quality the organisation can retain the potential customer base.
- Price adjustment: it is one of the common market penetration strategies. Through lower the price of products Tata steel can generate more volume of sales. (Kumar, 2010)
- Market development strategy: through finding and developing new markets the organisation can have sustainable growth. Through modifying the existing products and making innovation within them new segments can be approached. Apart from the automotive and construction sector Tata steel can approach the service sectors in B2C market.
Substantive growth strategies
- Related diversification: it is considered as the horizontal diversification. By adding related product and services in the product line the diversification can be made. Tata steel can add more innovative products in the retail business for having substantive growth. (Loya, 2014).
- Unrelated diversification: it is referred as the conglomerate diversification strategy. By adding new business units or producing new products which are separated from the existing ones this strategy can be approached. (Loya, 2014).
With the case study analysis on Tata Steel the report has been generated on various aspects of business strategy. Business strategies and their related concepts should be analysed by every organisation in approaching a mass market. As Tata Group is a large company operating in diverse business sector the organisation is having a wide range of strategies in the business. Strategic planning is essential regarding the approaches which the organisations made within the markets. Analysing the internal as well as external factors organisations get the ability to analyse risks factors of strengths which they can utilise in the strategic planning implementation.
Atkinson, C. (2013). Tata Steel Stakeholder Management..[online available at:]. https://prezi.com/rj5yi5f9t_wq/tata-steel-stakeholder-management/ . (assessed on 12/7/16)
bcg-matrix.com. (2016). Benefits and limitations of BCG matrix..[online available at:].http://www.bcg-matrix.com/benefits-limitations-bcg-matrix/ . (assessed on 12/7/16)
gsvc.org. (2011).Stakeholder mapping..[online available at:]. http://gsvc.org/wp-content/uploads/2014/11/Stakeholders-Identification-and-Mapping.pdf . (assessed on 12/7/16)
Karkhanis,S.(2016). Advantages and disadvantages of stakeholder analysis..[online available at:].http://www.karkhanisgroup.com/consulting/management/project-management/stakeholder-management/163-advantages-and-disadvantages-of-stakeholder-analysis.html . (assessed on 12/7/16)
Kumar, D. (2010). Enterprise Growth Strategy. Gower Publishing Ltd.
Loya, I. (2014). Diversification of Tata Group..[online available at:]. https://prezi.com/ul9owbt_uu7w/diversification-of-tata-group/ . (assessed on 12/7/16)