Strategy Formulation

Evaluate the internal and external environments

Leshen enterprises is a company carrying out various activities such as manufacturing and selling of fast moving consumable goods and provision of various office services. During the environment scanning of the company, considered both the internal and the external factors influencing the company performance.Externall environment involves the analysis of the external factors affecting the business operations and the company has no control over them hence explained in terms of threats and opportunities such as: economic factors, government and political, technology, social factors, competitors, the market, culture and the customer. The economic factors include the changes in interest rates, inflation, prices of various products. In the case of Leshen enterprises, inflation would lead to hiking of the products prices hence the company needs to prepare to minimize the cost of operations in order to make profit. (Infobase. (2017), et al. The political instability may affect the business process through creating uncertainties and mistrust within the market and the investors. With the emerging technologies, the company needs to adopt new technology and leverage it to secure competitive advantage over he competitors. The market analysis involve the realization of the market gap and coming up with innovations to fill the gap and the needs of the customers. Also the demographic environment and the climate changes is a key factor which the company has no control over hence the changes should complement the climatic conditions. The cultural factors involves having the knowledge of the traditions and beliefs of the society around the business in order to provide the necessity needs of their culture. Internal factors influencing the business operations are based on the strength and weaknesses of the company. This involve the resources of the company in terms of human capacity, assets, finances, technology and the good will. The company ought to have a well-equipped human capacity in terms of skills and expertise who relates well among themselves and with the management.

Analyze the competitive advantage

The assets and finance should be enough to run the business operations and produce output. (Creative Educational Video, Inc. (2009), et al. The internal factor as also involve the structure of the company which should be flexible enough for the changes and improvement need.

Competitive advantage being the ability to perform better than the competitors due to the resources or factors giving the company an upper hand, Leshen enterprises has a leverage over the competitors in the market in that its products are of a high quality and targeting a specific customers within the society. (Thompson, A. A. (2018). The product has a unique design and comprises of a unique taste which is a secret only with the key stake holders. This makes it difficult for such a product to be manufactured anywhere in the market. The targeting of a specific customer make it easier to market and sell the products since the marketing department already knows the sales area and where to pitch the sales targets. This also reduces the cost involved in production and in selling of the product because most of the clients are readily available and the marketing started is well defined. The art of offering the client with high valued product and at their destination helps the company to gain the trust and the loyalty of the customers.

Evaluate the strategies

There are various strategies a company can use to leverage gain over the competitors in the market such as: Differential strategy where the products manufactured are unique and totally different from the competitors. These can be acquired through quality, design or packaging: Cost leadership is a strategy where a company has the ability to manufacture and sell a product of an equal quality at a relatively lower cost than the competitor. This is a pricing mechanism which will result to higher profits: Focus strategy is where the company targets a specific group of customers depending on the product. Leshen enterprises uses the product differential strategy since it has high quality product with a unique taste and design.

Also, it has included an element of focus strategy by targeting only a specific group hence cutting on the marketing expenses and letting the customer have them as a choice.

Examine the measurement guidelines

Defining the goals of the organization and setting clear objectives is very crucial for strategies effectiveness. This will involve setting of both long and short term objectives hence giving the direction while allocating tasks and responsibilities: Scanning of the environment which involves gathering and analyzing information useful such as external and internal factors affecting the business: Strategy formulation in which the organization makes decision on the direction to take for achieve of its goal after getting all the information needed. The strategy to use depends on the resources available and threats ad opportunities analyzed: Strategy implementation is the process of putting in to action the strategies formulated. This can be done by having an organization structure and distributing of work and resources: Strategy Evaluation is the last component of the process and it ensures that the strategy in action is being implemented according to the organization goals and objectives.

Evaluate the effectiveness

The Strategies management helps in daily control and evaluation of the activities in progress to ensure effective performance and high production. It also helps in risk assessment and mitigation through the SWOT analysis strategy which analysis the strengths, weaknesses, opportunities and threats factors influencing the operations of the business. Strategies management makes the decision making process easier hence efficiency and cost effective o the organization. Also it helps in prioritizing the activities and the tasks to be carried out systematically while collaborating all the function units to work towards the same goals.

References

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Infobase,, & Video Education America (VEA) (Firm). (2017). External Factors Affecting Business.

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Creative Educational Video, Inc., & Insight Media (Firm). (2009). SWOT analysis. Lubbock, Tex.: CEV Multimedia.

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Thompson, A. A. (2018). Crafting and executing strategy: The quest for competitive advantage : concepts.

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