Analyze the impact and influence which the macro environment has on an organisation and its business strategy.
Unit 32 Business Strategy - Pearson BTEC Level 4 Higher National Certificate and Level 5 Higher National Diploma in Business
Learning Outcome 1: Analyze the impact and influence which the macro environment has on an organisation and its business strategy.
Learning Outcome 2: Assess an organization`s internal environment and capabilities.
Learning Outcome 3: Evaluate and apply the outcomes of an analysis using Porter`s Five Forces model to a given market sector.
Learning Outcome 4: Apply models, theories, and concepts to assist with the understanding and interpretation of strategic directions available to an organisation.
Scenario and Activity
Small and Medium Size Enterprises (SMEs) are engine to stimulate economic growth and development of a country, but poor strategic management practices are one of the reasons of inadequate success. You have been recruited as a trainee to shadow the Corporate Strategic Manager of one of the SME listed in Thames Valley SME 100 You can use your own place of work, if it falls within SME. You have been asked to produce an environmental analysis and strategic growth management report/plan based on the use of recognized internal and external analytical tools.
Focusing on the scenario as specified above, you are required to produce a report to be communicated to decision makers within the firm that you have selected to be considered in their strategic planning for future growth of the institution. Within the report of 3,500 words (+/- 10%) you are required to include the following:
Section I: You are to complete an internal and external analysis that provides a basis for strategic planning:
1. An overview of the organisation and analysis which should include mission, vision, objectives, and core competencies of the organization.
2. Evaluate, assess, and critique various factors that have been considered while formulating strategy, applying PESTLE analysis (particularly to critically examine the external environment and macro factors of the organization). Evaluate the role of strategy in achieving the relevant strategic direction, as well as gauge on stakeholder analysis using stakeholder Power/Interest grid model.
3. Evaluate, assess, and critique various factors that have been considered while formulating strategy, also applying appropriate strategic analytical frameworks to assess the internal environment (for e.g., RBV strategy as a basis for competitive advantage, McKinsey`s 7S model, and Value Chain analysis). Consider including identification of
the organizational strategic capabilities and its` relevant components.
4. Use Porter`s Five Forces model to evaluate the competitive forces within the market sector of your selected organisation. Consider the use of Ansoff matrix to devise your strategy towards improving competitive edge and market position for your chosen organisation.
Based on application of strategy models in section 1, devise a strategic plan based on the environmental analysis and findings to include the following:
1. Evaluation of the different types of strategic directions available to the organisation. In this section present your analysis under the realms of Porter`s strategy model as well as Bowman`s strategy clock.
2. Justify and recommend the most appropriate growth platform and strategies such as Hybrid strategy, Diversification, and Vertical/horizontal integration for your chosen organisation.
3. Provide Conclusion, and recommendation
For higher grades you are required to consider developing your answers further based on the given learning outcomes and assessment criteria givenat the end of the assessment brief. Across the report you are required to provide various examples to enhance the credibility, currency, and depth of your case study analysis. You are also required to support your answer by academic and professional sources as well as statistics when relevant. Harvard referencing to be followed in this task (Citations and reference list) should be provided.
Use a cover page, Title Page
Use at least 1.5 spacing and Times New Roman/ Arial font size 12.
Use headings, paragraphs, and subsections as appropriate.
Support the work with research, in-text citations.
Provide Conclusion, evaluation, and recommendation
Use Appendices (if any)
Use the Harvard Referencing Style