Business Strategy Essay
According to this definition, the strategy has a long term direction in order to reach the goals of the companies. For example, SF Express sets three alms with practical measure. Those alms should be defined as customer relationship management, operational excellence and innovation. A long term directions of SF Express defines as these practical measures. Providing employees and stakeholders with clarity about the overriding purpose of the companies are the alms of the mission statement. Monsoons et al, 201 1 For example, the mission station of SF Express can be stated as follows: (http://www. -Express. Com/has/en,’others/ about/brand_concept/) Deliver value to the consumers by offering the most reliable and efficient solution via delivery networks Transfer the customers’ goods, documents and postage around the world In order to exceed their expectation Create value for the stakeholders and share responsibility, which expand the business rapidly Concentrate the work process in order to promote the standardization Concerning with the desired future state of the organization vision statement of the company is the vision statement.
In general, the vision statement means what do the company want to achieve. The desired outcomes of the organization are the objective. As examining the SF Express, its top level objective
Need essay sample on "Business Strategy"? We will write a custom essay sample specifically for you for only $ 13.90/page
Particularly, the core competencies of the organization should be identified as skills, resources, and activities that could not be imitated by other competitors. SF Express has many core competencies such as delivery process, rapid delivery time and nonusers take the postage from the office or even at the shop of SF Express, which all has led to reach the competitive advantage through available resources. 2. Review the issues involved the strategic planning The strategic planning Is the form of systematized, step by step, process to develop an companies’ strategy. Sadler 2003) Many issues involves in the strategic planning. Sadler(2003) suggests there are five major issues involves with the strategic planning namely, confusing strategy with the strategic plan, detachment from reality, paralysis by analysis, lack of ownership, and dampening of Innovation. A confusion will come up with the existing strategies at the stage of strategic planning. Managers will encounter the strategic planning is the planning of same strategies that they are strategic planning is an intellectual process and it damages to the reality of the operation. Sadler 2003) The lack of involvement for the strategic planning of employees causes it happen. Paralysis by analysis is next issue which show the strategic planning can be over-detailed as the extensive analysis. Apart from this, lack of the ownership is also another problem in the strategic planning. Most of strategies are planned by the corporate planning department or by the senior management. Therefore, the strategic planning does not have a wide spread of the ownership within the companies.
Dampening of innovation is the final issue in the strategic planning. It introduces many strict controls to the companies and it limits the flexibility of the organization. (Sadler 2003) Obviously, SF Express usually encounters the final issue in the strategic planning. In the website, it mentioned the innovation is one of their objectives. However, they are limited in the innovation as ell because they have to fulfill the customers’ needs and provide services in order to gain the profit. A innovation may not achieve the consumers’ needs and wants. 3.
Explain the different planning techniques Strategic planning is different according to the context which is explained by Whitman and Reuters (2008). Therefore, different strategic planning techniques are needed for different curriculum. As Whitman and Reuters(2008) concern the above circumstances. Therefore, they classified five strategic planning techniques, namely, command planning, directive planning, coordination planning, emergent strategy landing and devolved emergence planning. When the organizational environment is stable, command planning can be applied.
It is more applicable for small companies especially the owner of the companies who makes the strategic plan. Directive planning, the second technique, is applied for the large stable companies, however, it is too complex. The top management in the companies involves with these strategic planning. The organization environment is extensively analyses under this method. The strategic planning is more important in this kind of organization. The emergent treated planning is also applied to a large organization as it has more complex organizational environment.
The corporate strategic department or the team of experts are done these kinds of strategic planning. (Bryon, 2011). The strategic planning technique is more close to the emergent strategy planning techniques. Organization environment of SF Express is more complex. The strategic planning gains the competitive advantage and need more attention. The strategic direction of SF Express is clearly that SF Express is planning to expand the business all over the world and become the top of the courier. Therefore, SF Express is more applicable to the emergent strategy planning.
Task 2 Formulating a new strategy Formulating new strategies for an organization, it is necessary to a clear understanding of the micro and macro environment of the organization. Getting ideas about these two environments, SOOT analysis and a PESTLE can be examine in the micro and macro environment. In addition, another tool uses to analyses a 1 . Produce an organization audit for a given organization SOOT analysis mentioned above which can be used to analyses an organization’s micromanagement. Moreover, Thompson (2001) also mentioned it extends to discuss bout the macro environment as well.
Strengths The strengths of SF Express could be listed out as below: SF Express established in Shunned Port in 1993, and today SF Express has 9,100 service centers in mainland China and overseas countries or regions. SF Express is treated as the fastest and most reliable supporter of the Express delivery service and also become the market leader. Uses sophisticated technology Has a committed and well-belonging, a highly trained staff with the number over 290,000. Clearly stated the policies, procedures, mission, vision, strategies, and objectives to the customers.
Also, SF Express also generate a creative ideas or innovation for consumers. There are some strength mentioned about SF Express and states as above. Being a well-establish company in the delivery industry, SF Express has much strength, which are not offered by other competitors in the industry. Weaknesses Being a well established company should maintains a healthy organizational environment, well planned strategies, missions, visions and objectives. SF Express could be considered as a company with a minimum about of weaknesses. Security and transportation, punctuality, etc can be treated as weaknesses.
The inherent weakness of the industry such as engaging in a industry generally. All the above factors can be changed and affected quickly by environmental, security, factors, etc. Opportunities SF Express is a company that operates globally and the mainland of China. Therefore, it has many chances to expand its operations. Developing of the transportation and communication technology allows better and speedier services. Online order delivery also expands different countries or audience. Threats Every organization also encounters threats, therefore, SF Express also faces the threats.
The strengths of companies have been responsible for SF Express to be immune to lots of threats from outside. There is a fierce competition in the market. Competition, transportation related threats, security of goods, etc can be considered as threats. This is also the inherent threats of the delivery industry. 2. Carry out an environment audit for a given organization SF Express is an organization, which operates all around the world. An environmental audit gives an views about the environment that one company operates. Therefore, the environment of an organization is a global environment.
PESTLE factors obtain political, economical, social, technological, environmental and legal factors (Thompson, 2001). In this report, PESTLE factors are going to examine the SF Express SF Express operates with various political boundaries when discussing about political factors. Therefore, sometimes some of the political boundaries will boost up companies like SF Express, however, some will not. SF Express also encounters the economical factors, however, it is crucial for a company like SF Express. Recession important when operating globally. The global economical situations also impact the
SF Express. When a company runs globally is the most crucial factors in the PESTLE factors is social factors. Society changes from country to country, region to region and town to town. Therefore, SF Express should take into the different societal factors when it comes to its promotional, communication, and even delivery services. The workforce should also be trained in ways to reach these different social factors. Social factors are important for any organization in the above mention. Technological factors are also vital for a company as SF Express. It depends on communication and transportation.
The latest inventions and innovations in communication and transportation sectors can be exploded by SF Express to deliver its service to the consumers in the most effective way. In Today’s business world, environmental factors also become vital because it focus on the sustainable development. Therefore, SF Express, a globally responsible organization, should name different environmental factors, which also have an impact on its organization survival. Generally, legal factors are different from region to region. SF Express encounters various legal system as it affects the company in different ways.
Therefore, it is obvious that a vivid understanding about the macro environment of the company is so significance once it shows to all the perspective of the organization. 3. Explain the significance of stakeholder analysis For any organization, stakeholders always play an important role. Lynch(1999) suggested that stakeholder can be classified as a party that impacts or can be affected by any decision of the business. Thompson (2001) added government, employees, customers, suppliers, creditors, community, trade unions, etc are also part of the stakeholders. Stakeholder includes a whole direction of parties, which are rash for a company.
A clear understanding of its stakeholders is necessary when new strategies are developing for a company. A stakeholder analysis can be done in order to gain knowledge on company’s stakeholders. “A technique that can be used to identify and assess the importance of key people, groups of people, or institutions that may significantly influence the success of an organization” (Thompson, 2001). The above is the Stakeholder analysis can be defined by Thompson. In addition, Lynch (1999) stated that there are certain reasons because the organization should induct a stakeholder analysis.
The point of Lynch (1999) mentioned listed as below: Identify people, groups, and institutions that will influence the actions of the organization in either positively or negatively Anticipate the kind of influence, positive or negative, these groups will have on the organization Develop strategies to get the most effective support possible for the organization and to reduce any obstacles for the successful operations of the organization Apart from Thompson and Lynch, other scholars also figured out the significance of examining the stakeholder analysis.
Wilson and Gilligan (2005) added the advantages of examining a stakeholder analysis can be shown as below: The comments of most powerful stakeholders to shape the company ands its initiative at an early stage. Therefore, it makes sure to support the quality of the organization. Gaining the support from powerful stakeholders can assist the organization to win more resources and different to the competitor. People’s reaction to the company’s actions also significance for the company to Task 3 Approach to strategy evaluation and selection A company should expand its business whenever possible.
Different ways and ethos can be applied to expand the organization. In this part of the essay, possible methods for expansion of SF Express are taken into the discussion. In addition, an appropriate future strategy for SF Express is proposed. 1 . Analyses possible alternative strategies relating to substantive growth, limited growth or retrenchment Thompson (2010) mentioned the substantive growth strategies are implemented through two main factors, which are merger and acquisition. Johnson et al(2011) added merger is the mix up of two previously separated companies, generally as more or less equal partners.
SF Express has more attention to implement merger as a substantive growth strategy as its market strengths. However, the acquisition means one firm taking over the ownership of another. This substantive strategy also be implemented by SF Express as it has more market power in the industry. The Joint venture as limited growth is suggested by Thompson(2010). At the Joint venture, two or more organization are shared the ownership. In the Joint venture, the competitive advantage is usually narrow. SF Express has more market share in the industry, it is not suggested for limited growth strategy.
It is always a remedial action in the retrenchment. These remedial actions are taken at the stage of the inefficiency, economic recession, or strong competition. In case of inefficiency, the organization has to take three retrenchment strategies namely assets reduction strategy, cost reduction strategy and revenue generation strategy. 2. Select an appropriate future strategy for a given organization SF Express faces the human resources which is one of the critical resources, paving the way for reaching the competitive advantage.
SF Express has stated that there is a desire for future planning of needs of its employees to compete in the turbulent market place. These skills developments of employees will lead for quality service and finally it will hold to gain the competitive advantage via available resources. (Wilson and Gilligan, 2005). The objectives of SF Express is to cause superior profits and performance. SF Express classified those scopes as strategy gaps of the company. Concerning the above strategic issue, interactive strategies for SF Express is recommended. These interactive strategies will be the future strategic aspects of SF Express.
The rationale behind the interactive strategies is gaining the competitive advantage by looking at the competitors’ strategies. SF Express will have to draw their attention to the interactive price and quality strategies, cooperative strategy, interactive strategies in hyper-competition, and game theory. SF Express will offer the best price and quality for the customers according to the interactive price and quality. The interactive strategies in hyperactive competition will say how SF Express encounter to the hyper completion in and gain competitive advantages.
Collaboration between some organization in the same field or industry will lead to reach the competitive advantage. Cooperative strategies will assists this collaboration for SF Express. The last but not least, the game theory also maintain with competitor movement. Generally, game theory is the feedbacks for the competitor movements of its future strategies. Task 4. Implementing a chose strategy The most critical stage of the planning strategy should be implementation. The methods and ways should be explicit in order to match the plan and also the successful implementation of the plan.
The focus is the same in this part of the report. Therefore, the roles and responsibilities for strategy implementation are discussed. Resources requirements, targets and timescales for achieving them are also analyses. . Roles and responsibilities for strategy implementation Envisioning future strategy, aligning the organization to deliver that strategy and embodying change are three main roles of strategy implementation which suggested by sadder(2003). Envisioning future strategy is the first role,that involves with a clear communicating the strategy to internal and external party.
The internal party includes the companies and the external party includes all the stakeholders. Aligning the company to deliver the strategy is the next role. It is expected that all people in the company be committed to the strategy under this role. These people should have the motivation to follow the strategy and should be empowered t o deliver the change. The last but not least, embodying change is the final role. The strategic implementation is highly maintain with the company change. Therefore, the major role of the strategic leader should monitor and follow the strategic change process.
Sadler (2003) stated the two main parties should be taken in the responsibility of strategy implementation. These two parties can be clarified as middle managers and outsiders. The implementers of top management’s strategic plan can be identified as Middle managers. There are three mains areas to the duties of the top-management. Sense making of strategy, reinterpretation and adjustment of strategic responses, and advisers to more senior management are listed as above as the duties of the top- management. Outsiders have more duties in the strategic implementation especially consultants and other stakeholders.
The duties of the consultant always assist to formulate the strategic for the process of change. The responsibilities of stakeholders are treated as the strategy implementation agents in the organization. 2. Evaluate resources requirements to implement a new strategy for a given organization The resources allocation is significance at the implementation of the strategy. These resources requirement can be distinct from one company to another and one strategy to another. Coulter (2001) pointed out that it is obvious that the organizational environment and the nature of resources determine the resources requirements.
SF Express should implement interactive strategy to face to the future competition of the industry as discussed above. Therefore, SF Express requires three main resources for implementing these strategies such as physical resources, people resources, and initial start-up cost. Production resources, finance resources and marketing resources are included in the physical resources which requires for implementing interactive strategies at SF suggested to allocate more physical resources foot the quality improvement.
SF Express should plan their human resources by implementing more training and developing activities. The last but not least, the strategy implementation processes maintained with the beginning start up cost. SF Express should plan appropriate finance for these implementation activities. 3. Discuss targets and timescales for achievement in a given organization to monitor given strategy There are three main criteria and techniques suggested by Johnson et al(2011) which is used to monitor a strategy namely suitability, acceptability and feasibility.
Suitability is that assess whether proposed strategies address the key issues. Acceptability measures to meet the expectation of the stakeholders in the proposed strategies. In addition, feasibility is examine the strategy could work with in the reality. The future strategies of SF express has been discussed above which is interactive strategies. These interactive strategies can be examined by the suitability criteria. Under the requirements, it can be monitored which the SF Express interactive strategies address the key chances and constraints in the organization face.