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esyim
business_strategy_unit_description_bs.docxUnit code: A/601/0796 QCF level: 5
Credit value: 15 credits
Aim
The aim of this unit is to give learners the knowledge and understanding of how a business unit can strategically organise and plan for likely future outcomes in order to be successful.
Unit abstract
One of the aims of this unit is to build on learners’ existing knowledge of the basic tools of business analysis such as PESTLE and draw it together so that the learners think strategically.
Learners will be introduced to further analysis tools needed for the process of strategic planning.
They will be able to explain the significance of stakeholder analysis and carry out an
environmental and organisational audit of a given organisation.
Learners will learn how to apply strategic positioning techniques to the analysis of a given organisation and prepare a strategic plan based on previous analysis. They will also learn how to evaluate possible alternative strategies (such as substantive growth, limited growth or retrenchment) and then select an appropriate future strategy for a given organisation.
Finally, learners will compare the roles and responsibilities for strategy implementation and evaluate resource requirements for the implementation of a new strategy for a given organisation. Learners will then be able to propose targets and timescales for implementation and monitoring of the strategy in a given organisation.
Learning outcomes
On successful completion of this unit a learner will:
1 Understand the process of strategic planning
2 Be able to formulate a new strategy
3 Understand approaches to strategy evaluation and selection
4 Understand how to implement a chosen strategy.
Unit content
1 Understand the process of strategic planning
Strategic contexts and terminology: role of strategy; missions; visions; strategic intent; objectives; goals; core competencies; strategic architecture; strategic control
Strategic thinking: future direction of the competition; needs of customers; gaining and maintaining competitive advantage; Ansoff’s growth-vector matrix; portfolio analysis
Planning systems: informal planning; top-down planning; bottom-up planning; behavioural approaches
Strategic planning issues: impact on managers; targets; when to plan; who should be involved; role of planning
Strategic planning techniques: BCG growth-share matrix; directional policy matrices; SPACE,
PIMS
2 Be able to formulate a new strategy
Stakeholder analysis: stakeholder significance grid; stakeholder mapping
Environment auditing: political, economic, socio-cultural, technological, legal and environmental analysis (PESTLE); Porter’s 5 force analysis; the threat of new entrants; the power of buyers; the power of suppliers; the threat of substitutes; competitive rivalry and collaboration
Strategic positioning: the Ansoff matrix; growth; stability; profitability; efficiency; market leadership; survival; mergers and acquisitions; expansion into the global marketplace
The organisational audit: benchmarking; SWOT analysis; product positions; value-chain analysis; demographic influences; scenario planning; synergy culture and values
3 Understand approaches to strategy evaluation and selection
Market entry strategies: organic growth; growth by merger or acquisition; strategic alliances; licensing; franchising
Substantive growth strategies: horizontal and vertical integration; related and unrelated diversification
Limited growth strategies: do nothing; market penetration; market development; product development; innovation
Disinvestment strategies: retrenchment; turnaround strategies; divestment; liquidation
Strategy selection: considering the alternatives; appropriateness; feasibility; desirability
4 Understand how to implement a chosen strategy
The realisation of strategic plans to operational reality: communication (selling the concepts); project teams; identification of team and individual roles, responsibilities and targets;
programme of activities; benchmark targets at differing levels of the organisation
Resource allocation: finance; human resources; materials; time
Review and evaluation: an evaluation of the benchmarked outcomes in a given time period in relation to corporate, operational and individual targets
Learning outcomes and assessment criteria
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Learning Outcomes |
Assessment Requirements |
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To achieve each outcome a learner must demonstrate the ability to: |
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1.Analyse how the business environment is considered in strategy formulation
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Define the contexts of business strategy. |
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1. |
Conduct an environmental and organisational audit of a given organisation |
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2. |
Apply strategic positioning techniques to the analysis of a given organisation |
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2. Understand the process of strategic planning |
Demonstrate an ability to think strategically |
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3. |
Prepare a strategic plan for a given organisation, based on previous analysis. |
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3. Examine approaches to strategy evaluation and selection |
Evaluate possible alternative strategies substantive - growth, limited growth |
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Select an appropriate future strategy for a given organisation |
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4. Analyse how strategy implementation is realised |
Compare the roles and responsibilities for strategy implementation in two different org. organizations. |
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Identify and evaluate resource requirements to implement a new strategy for a given organisation |
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Propose targets and timescales for achievement in a given organisation to monitor a given strategy |
