Tests Ply is the leading retailer in I-J holding over 27 % market share. The company has aggressively increased its presence on high street through different store formats type and brings products for everyone. The company has increased its profitability through online selling and making tests. Com a first stop shop for online retailers. The company is holding largest consumer database through its “club card” card scheme which offers discounts on a point based system to consumer. .1 Companies Strategic context Mission The corporate mission is a collective statement of purpose that the company wants to achieve.
It provides a direction to the staff to target their efforts for a common goal. The mission statement of Tests is. “We make what matters better, together’. Vision The vision of the company is what it like to become in future. “A vision is the long-term aspiration of the founder that can be described to colleagues” (Richard Koch 1997). The Tests vision statement is” to be the most highly valued business by the customers we serve, the communities in which we operate our loyal an committed colleagues and course, our shareholders”.
Goals The goals of the organization make its people to work harder to achieve the defined goals. Financial goals are most commonly observed in most organizations. The goals make the organization set a part form the other companies who look to achieve better results. The main goals of Tests include the customer satisfaction which enables every employee in the company to provide excellent customer experience in Store. Another important goal that organization follows is increasing its product portfolio. This goal make the company to increase its brands including own brands for customer including food and non-food products.
Corporate objectives The corporate goals of the company are the strategic goals which are set at he top by the higher arrangement. The corporate objectives of the company include higher level goals which are important for the business. Tests Ply has following corporate objectives Profit Minimization Growth Image building and goodwill Market Reputation Core Competency The core competency of a company is its distinct expertise and capability to do a particular task better than others. This ability of the company stand it out from other in the competition and make way for better business for the company.
The competency on the company can be in any particular function which makes the company to work better. Tests enjoys economies of scale in many business domains which makes it’s the first choice for customers. The company has competency through its bulk buying capacity and to ensure better management of resources. .2 Strategic Planning problems The strategic planning is a process which identifies and evaluate the efficiency Of long term goals. In include assessment of internal capability and external environmental scan. The process looks in detailed the factors relating to long term sustainability in a uncontrolled organization environment.
The strategic leaning process ensure its development, implementation, and evaluation through out the organization. Planning Problems Lack of Commitment The level of commitment by the managerial staff and those who are involved in implementation can create problems for the company. The coordination of activates through firm commitment is essential ingredient of strategic planning. Unclear Goals and standards If the management is not clear about the desired goals that the organization is likely to achieve will create problems. The planning process is based on the specific organizational goals set to be achieved.
Uncertainty If the environment in which organization exists is venerable to the factors affecting it can create problems for strategic plan. A business level strategy can have a great impact on companies performance. It shows the direction to its members on how to attain better influence due to change in factors in environment. Tests ply has adopted a business level strategy of offering lower prices to customers. Using it in their marketing campaign has helped them to improve their product portfolio in store and offering something to everyone has help it achieve better results.
The problems in business level tragedy can be seen in the case of “The New Coke” where the company tried to make modification to the product through better strategy had caused the company to change their decision. .3 Planning Techniques There are a number of planning tools which can be used to create strategy. Their significance ensure that the strategy is targeted to specific goals and provide detailed monitoring of activates. BCC Matrix The Boston Matrix was created for a better classification of each unit that organization possesses.
It ensure better resource allocation to manage the effect of each unit independently. These units can be classified in to stars, cash cows, dogs and question mark. These show the extent of market share and growth potential that each unit possess to ensure its stability and better management. Question marks are the units which low market share and higher growth rate. Stars hold the most market share and have high degree Of future growth. Similarly the cash cows have low growth potential but have a higher market share for the organization.
Stakeholders Mapping It is the arrangement of important stakeholders to judge their impact on Key strategic issues. The expectations of different stakeholder groups gets identified and relative judgments are made to manage their influence. It also evaluates the power which is attached to different stakeholders. The stakeholders are “any group of individuals who can affect or is affected by the achievement of the organizations objectives” (Freeman 1984). The segment which has a high priority and higher need should be given special attention.
Their concerns are important to address as they are important part of strategy planning process. Tests treats its shareholders as of high priority and bigger influence as they take active part decision making. 1 Environmental Audit STRENGTHS These are the unique capabilities that organization possess in any of different factors. The companies look to create advantage over their rivals on some strong points they possess. Tests has shown its strength in a number of aspects such as the bulk buying advantage give them better position to negotiate better rates with suppliers.
It biggest market share also works as its strength which make the company to serve more customer than anyone else. The company possess biggest supply chain network enabling it to maintain the right level of stocks. OPPORTUNITIES Opportunities are the chances that exist in the environment of the organization through which it can increase its business and lead to better revenue. Tests has concentrated on the opportunity to build its own products and it calls it ‘the value range” making the production cost minimal and offering lower process to customer.
The company has also acted on the opportunity to grab a position in financial market through improved services. WEAKNESSES The weak points facing a company which can make it venerable to its environmental challenges must be adequately managed by the company. It is arid to find out the weaker areas for Tests but their inventory management some time make the product to run out from the stores. THREATS The threats are the factors which operate in environment and have the potential to damage the companies position. The biggest threat faced by Tests is the competition that its encountering from the other retailers. 2 The Audit of Environment Factors Description Company example i. E. How your organization is affected by this factor POLITICAL These include the overall political environment that defines the basis of economic environment. These factors play their role for the stability of many. Tests consider all the political aspect that affect a firms ability to make profit. In China the company has analyses the political environment to initiate investment. ECONOMIC The economic system adopted by a particular country has significant impact on its trade and commerce.
The macro economic factors also play important role for the companies strategy The impact on UK economic recession were also reflected through the profits of Tests. The fall in aggregate demand can create different problems for company SOCIAL Social aspects relate to the belief system held by the organization. The way people interact share culture and values. The social trends help the company to adopt the better strategy. When Tests adopted the low priced store the marketing message was speared through social values. TECHNOLOGICAL The technological factors also have significant impact on the companies capabilities.
The changes in technology must be continuously monitored and any changes must be carefully adopted Tests is ensuring that the technological changes and new processes are adopted to keep the strategic advantage over its rivals. The company may seek to gain different technological advancement in a number of ways. ENVIRONMENTAL The environmental challenges which include green gases emission, pollution and other factors affecting the company. Tests ensure that it take all the necessary measures to ensure it works to protect the environment.
The changes may affect the way company conduct its business. LEGAL Legal and regulatory mechanism exists in every country. The legal aspects affect the companies ability to carry out business activates. Tests ensure it abides by the legal regulation in the county of its operations such as legal wages, underage employment and H&S Laws . 3 Stakeholder Significance Definition Any identifiable group or individual who can affect the achievement of an organization’s objectives or who is affected by the achievement of an organization’s objectives”. (Freeman and Reed 1983).
Analysis The stakeholders are important groups of people who have significant relation with the company. They can influence its decision and some groups possess strategic involvement in decision making. The companies ensure that they use the output of such groups to gain benefit from their relation. Managing the important of stakeholders require a number of different activates some time to keep them informed and to take their input and some mimes it is to keep them satisfied and listen to their thoughts. Some stakeholders exists within the internal environment of organization while others come from external sources.
Suppliers The suppliers are the strategic partners, and their products have significance important for the operation of companies. For a retailer such as Tests it is important to manage its key suppliers differently form the other normal suppliers for an extensive list of all suppliers. Importance of Stakeholder Analysis The analysis of stakeholders provide their different needs and importance for the company. The company attempts to meet their requirements and their needs in order to keep them happy and satisfied.
It is important for organization to treat them differently due to their different wants and needs. Some groups mostly internal such as employees, managers, shareholder possess more importance for organization but the external require a clear strategy as well such as competitors. .1 Better Future Strategy Market Entry Strategy Market entry strategies are widely used by new organizations looking to start their operation. The companies can use their own capacity to enter a market. Something that they can do best to meet the cost of business it is said to be using organic growth of expansion.
The strategy can take longer to take the advantage of the market. Most organization uses the growth strategy to enter in forcing markets to serve new customers. Mergers, Acquisition This strategy is widely perused by the business to enter a new type of market. Companies undertake mergers when they buy a relatively equal size on company and there management rights. An acquisition takes place when a larger organization purchases a smaller firm and vice versa. When the merger ND acquisition is initiated by both the parties it is called a takeover or a hostile takeover.
There are a number of forces driving rivals to merge with each other. Some factors include changing technology, excess capacity, changing consumer trends etc. Not all mergers and effective and successful in the past. Companies who not manage the factors affecting mergers and acquisition can run into trouble and lose the strength of their core business. Before the actual merger/acquisition take place a number of issues must be investigated properly such as cultural issues, technological issues which can rate problems for company.
Seep was acquired by Microsoft recently and as the merger was in related technology industry therefore it became a success story. Related or Unrelated Diversification There is several general types of diversification strategies which include concentric, horizontal and conglomerate. The related diversification refers to increasing capacity in the similar industry such as Tests has started producing own brands increasing their own manufacturing capabilities. In an unrelated diversification the organization looks to invest and make profit in an unrelated industry.
Tests has started Tests bank and offering credit card and loan facility to customers. Limited Growth Strategies When organization perceive that the environment is not right to peruse a growth strategy they follow a limited growth strategy ideally for short term. Market Penetration The companies can achieve limited growth using market penetration strategy. The organization looks to gain market share by offering lower prices to customers. Tests has the leading market share in UK and it is using market penetration to hold their share.
Market Development It is another limited growth strategy to be used by organization during the worth term. The company may consider a market expansion strategy to increase. The company look to expand its through related of unrelated diversification to increase its revenue. Retrenchment Strategies The retrenchment strategies available to businesses include following Turnaround Strategy Divestment equitation The turnaround strategy is backing out from the current state of affairs and making new decisions for business.
It could be in any aspect of business such as negative cash flow, decreasing sales etc. Most organizations look to employ more resources and reinvent new procedures following a turnaround in their equines. .2 Selecting appropriate future strategy Business Report Sub: Future strategy for Tests Tests Ply has been in retail business for many years. The company is currently holding leading market share in UK. It has expanded operations recently in a number of countries using its organic growth strategy.
The company has improved its distribution system using related diversification and the result has been that it is able to enjoy economies of scale as result. The company is facing tough competition at home where other retailers are growing their capacity. Tests will be beneficial if it uses mergers and acquisitions of in related industry. The company will need to consider the implication of completion Act to peruse any mergers/ acquisition. Tests will need to assess the relative culture and the financial standing of the company they to attain.
It will be able to actively follow the growth strategy in its related business which will improve the shareholders return on investment. The advantage to Tests to grow using mergers and acquisition will be as follows; They will be able to make efficient use of their sales force Improved profitability for the company Increased market share They will be able to gain economies of scale The company will be able to gain access to new and better supplier Tests has been in business for many years it understands the art of retailing like no one else in UK.
The company will have to assess the factors relating to mergers/ acquisitions as these factors can create problems. The disadvantages include; Cultural clashes Redundancies Conflict of goals Increased financial liability Recommendations Tests can use the organic growth strategy to grow its business as a major retailer. The company will need to pay attention to various laws’ relating to acquisition. The company needs to ascertain the financial capacity and the cultural aspects of the company they choose to acquire.
Using such an approach the company will likely to be benefited despite the number of problems identified in report. But the strategy will improve its market share and will increase their capacity to serve increased number of customers. .1 Comparing Role of Strategic Implementation Activities required for Implementation The organist on must carry out detailed research about the factors affecting the implementation process. The factors which can create problems must be ruefully evaluated. The recourse allocation must be carried out in a way to support a smooth implementation.
The objectives required to be reevaluated to create a new goals and Objective for both the organization. An organizational wide implementation approach is required for the proper implementation of strategy in which all units must participate. For effective implementation it is important for organization to set new procedures to carry out their operations. It might involve changes in structure and formal reporting procedures. Roles and Responsibilities for Implementation Various roles are critical of the implementation of the strategy which involves the shareholder as most important.
They need to decide the future direction and its effective implementation through changes in internal culture and structure or organizations. Managers also ensure they perceive the shareholders requirement and pass them on effectively to the employees for better results. The implementation ensured by management can show long term effectiveness to Deco’s proposed merger/acquisition in future. Employee also play critical role in strategic implementation process they must allocate the right resources and get involve to new conditions by avoiding any conflicts among them.
Comparison of Roles and Responsibility A commitment of implementation is necessary through all the organs of the company. The important stakeholders have a joint obligation to fulfill their obligation to implement the strategy. The most important role is played by the employees of organization which need to implement in practical. They can turn things around for the company due to their own job experience. .2 Managing Resource Requirement It is important for organization to manage following aspects in order to achieve a better implementation.
Human Resource requirement The human resource managers evaluate the HER requirements for the effective implementation of strategy. He is in charge of activities such as staffing, planning training and development activities within the organization. In order for Tests to implement the merger/acquisition the human resource requirement will be fulfilled though the firm acquired. The people will have the right skills to do the job. The process might involve changing the nature of existing resource through a series of restructuring. It can be harmful for the many as the employees might perceive change negatively.
Tests might require new managers to investigate the details of merger/acquisition of the new firm and to deal with the legal aspects. Financial Resources The impact of increase financial requirement must be carefully evaluated. The sources to be utilized should be examined thoroughly and a risk assessment should cover their aspects. The financial resources allocation can be critical to meet the short and long term aspects of the project. Tests might have to evaluate new resources to pay off the liabilities of the firm they are looking to take over.
Time Constrain Designing and publishing related training materials and safety manuals is also important. Organizations must understand the importance of completing impotent activities On time. The timing Of the total project should be selected carefully by having deeper understanding of duration of every activity. 3 Targets and Time line Achievements The targets and time line achievement for an organization is really important, as they need to provide timely deliveries of important projects. Gaunt charts are created for the purpose of ranging a project or task in the time frame for effective completion.