Main dimensions of strategy
Discuss about the Market Strategy and Plan for Planning and Application.
This particular report aims at describing or rather explaining what team 35 learned about strategy. In addition, this section will identify the main aspects or dimensions of strategy based on strategic business analysis. To start with, a strategy can be defined typically as a plan of actions that have been made and designed in order to attain a particular objective as well as developing towards the target along with laying down mechanisms to outperform the competitors and other related business operators.
Planning, application and execution are the main items to put into consideration when preparing a particular strategy. These primary aspects are very important as far as strategy performance is concerned. A good strategist make appropriate and proper planning of strategies so as to enhance the performance of underlying tasks (Jonasson, 2012). Application and execution will distinguish the mechanism used by each strategist. Good results will indicate the level of application and execution of a particular strategy were well managed.
There are four main aspects or dimensions of strategy. Typically, under this report, we consider four key aspects of strategy. They include External environment, internal environment, Social changes and professional changes. These aspects are very important as far as accurate strategy is concerned. To begin with, we consider the first key aspect of strategy. That is, external environment. As far as strategy is concerned, the external environment involves all aspect that relate to the business operation outside the direct reach of the business. In that case, the business need to learn how the external environment relate to business operations. Secondly, the other aspect is internal environment (Kotler, 2011). This strategic aspect refers to factors that relate to the daily business operations directly. These factors are very important in maintain the best performance of the business. Moreover, social changes as an aspect of strategy will relate to how people changes motive towards certain business operations. Lastly. The professional changes will involve recruiting the most skilled and knowledgeable expert to undertake the control of a particular section of business operations. If all these aspects are made to work together, then business objectives will be achieved within the most appropriate timing.
This particular section aims at analysing the week to week decisions and results, the main problems team 35 was trying to solve and reasons for existence of such problems (Piasecki, 2009). In addition, the report will critically analyse the weekly decision rationale along with lessons learned in simulation experience.
The Team's Business Simulation Experience
To start with, the week by week decisions and results are based on simulation experience that has been divided based on the activities carried out in each week. From week 1 to week 3, the groups were formed along with the analysis of the subject under consideration (Richard, 2014). Therefore, there decisions and result during the three weeks was not very significant since it was the preliminary exercise. Later on, from week 4 to week 6, there were certain decisions and results made. To state the problem from week 4 to week 6, the team was new to the market under consideration. There are a lot of competitors in the market and the team is so much informed about these competitors. However, the team had a problem of accessing the simulator. These difficulties in accessing the simulator made the competitors stronger in the marketplace. Therefore, there are certain decisions and results required from week 4 to week 6. Decision & result used in this case by team 35 is that the price of daily product was increased accordingly without considering the relevant knowledge in the market (Schwalbe, 2015). The results of this particular decisions were the huge losses experienced by the team on sales made in those weeks.
Later on between week 7 and week 8, the decisions and results that need to be indicated are as follows. Decision & result: Between week 7 and week 8, the team took a critical decision by constructing a social aware in marketplace by diminish advertising campaign that resulting to increase in our sales. The sales in between week 7 and week 8 increased.
The decision made and results obtained from week 8 to week 10 were as follows. Decision &Result: The team attempted to introduce a new product but the opportunity of doing such was very minimal. The decision that followed and results that came up is that the team decided to develop some internal aspects by detailed strategic plan analysis with existing daily commodities.
Lastly, in week 11 and week 12, the decisions and results that took place asserted that, changing prices by analysing the market performance. This resulted to realization of huge profits as well as increase in share price after a lot of sales were made in week 11 and week 12.
Then, there are problems that arose in every week that team 35 observed and attempted to solve using the strategies analysed in the context above. No problem reported from week 1 to week 3 since this involved preliminary process of group formation as well as analysis of topic and activities to be considered. From week 4 to week 6, the problem that team 35 tried to solve was based on their new entry into the market (Verboncu & Condurache, 2016). Within those weeks, team 35 was new to the market great awareness of competitors was the main item under consideration. Team 35 was having problems with access to the simulator which would not facilitate more sales within those weeks.
Between week 7 and week 8, the problem faced was based on profits. No profits in industry were made in both week 7 and 8. The team was un-able to reach the standards of maintaining the required flow of customers in the market. On the other hand, the problem in week 8 to week 10 was based on inventory. Team 35 lacked new products in inventory. This again reduced the sales made in those weeks. Lastly, the problem faced between week 11 and week 12 was based on share price and profits. The share price was low as well a slight reduction in profits made.
The problem from week 4 to week 6 existed because the team was new into the market and the knowledge on simulator was inadequate. For week 7 to week 8, the problem existed because the team did not meet the set standards of maintaining the sale of the products. For week 8 and week 10, new products in the inventory were not adequate (Wheelen & Hunger, 2007). Lastly, the problem existed in week 11 and week 12 because the purchasing power in the market was a bit weak thus reducing the share prices as well as profits obtained from the sales.
The rationale of each week’s decision is based on how the approach to respond to the problem brought about the underlying results. For the first three weeks, there was no decision hence no rational. Week 4 to week 6, the rationale involve business performance slightly after preliminary. Then for weeks 7 and week 8, the rational is based on business realization. Further, for week 8 to week 10, the rationale is based on business in ability to maintain the new product inventory and lastly for week 11 to 12, the rationale is based on money flows and purchasing power.
In addition, the lessons learnt is simulation experience is based on the results of each week. By connecting all aspects, it is good to familiarize yourself with all the strategies in the market so as to promote more sales and profit acquisition. This is also based on SWOT and PESTEL analysis. For SWOT analysis, it is good to know the strengths, weaknesses, opportunities as well as threat in business operation. Strengths would relate to the team believing in themselves, for weaknesses, the team realized that their background is engineering as well as low investment, for opportunities, the team learnt that it is important to create unique image in dairy industries and finally learned on how to deal with competitors in the market (Hubbard, 2016). PESTEL analysis assist the team to examine political, social, economic, legal, environmental and technological factors affecting the business.
Lessons learnt in simulation experience.
- PESTLE analysis is crucial and need to be done from time to time.
- Prices need to be closer or equal to competitors.
- It is very significant to advertise products in the market.
- Production should be based on consumer requirement.
- It is important to keep environment clean.
The strategic concept applied from week 1 to week 3 was internal environment aspect of strategy. This involves the members of the team to join hands in the formation of the team as well as discussion of the topic and activities to be undertaken. No third party was involved in these three weeks thus falling under internal environment (Henry, 2008). On the other hand, the strategic concept used from week 4 to week 6 can fall under external environment. This is because, competitors were involved in those weeks. Competitors are not part of internal factors of a business structure (Gioia, Corley & Hamilton, 2013). They affect the operations and decisions of the business at an external angle. However, the team needed to realize that these competitors determine on a large extent on how the business will operate both in short term and long run.
Then the strategy applied in week 7 and week 8 falls under social changes strategic aspect. This can be justified from the decision and the results made in week 7 and week 8. For these weeks, team 35 took a critical decision by creating a social awareness in marketplace by indicating small advertisement campaign which brought about significant rise in their sales. In addition, for week 8 to week 10, the team applied professional changes strategic aspect. This is because, the team applied marketers with skills to introduce new products into the market (Gaston, 2014). This strategy is justifiable because more sales were made in those weeks. Lastly, for week 11 and week 12, the strategic aspect applied involved external environment. This is because, for profits to reduce as well as fall in share price clearly indicate that forces outside the team contributed to profit fall and share prices (Franco, 2015). These factors would include competition, trade barriers and inadequate inventory to fully satisfy the demand at some points. This can also be done by analysing strengths, weakness, opportunities and threats. This collectively promote the enhancement of internal factors.
There are various disadvantages associated to strategic management.
- Strategic management involves complex process. This include assessment of factors such as internal and external factors.
- Strategic management is time consuming (Eric, 2012). A lot of time is consumed in researching, communication and preparing daily activities.
- It involves difficult implementation of underlying strategies.
- Strategic management require skilful planning so as to achieve long term objectives.
Business success is based on effective strategy implementation but there are other aspects (Dow & Taylor, 2015). These aspects affect the success of the business and could involve external factors such as earthquakes.
The vision and mission would set s way forward to achieve the set objectives and to motivate individual performance.
This graph indicate the value of share price for the business from 2013 to 2020. The cash account indicate good performance. The operation was good since gross profit is higher than the cost of production. The curve predict continuous increase in share price in future.
The SWOT analysis and PESTLE analysis are very important. In fact, they lay the most important strategy for the daily business and they motivate the team to realize all that is required to generate more profits (Donald & James, 2005). SWOT analysis has been used in the weeks to identify weaknesses in weak 4 to 6, identify strengths in week 7 and 8, to identify opportunities in week 8 to 10 and finally to identify threats in week 11 and 12. SWOT analysis assisted the team to realize that their strength was based on their motive to believe in themselves, their weakness is based on the fact that they originated from them being from different professional skills, the opportunity is based on creating a unique dairy business while the threats involve the competitors in the market. On the other hand, PESTLE analysis involves examination of political, environmental, economic and technological aspects affecting team 35 dairy business.
Team 35 Dairy Business: To transform as well as catalyze development and growth of dairy products. Via passion, innovation as well as integrity, we seek to improve the quality of dairy products so as to fit the customers list of preference.
Team 35 Dairy Business: Our vision is to be the world best customer-centric dairy business; to offer dairy products where customers can visit to satisfy their needs based on quality and sweet dairy products; and to be the center of quality dairy products in the world.
So as to achieve the aspects mentioned in the mission and vision, the time frame to be set is a span of two years. By then the team will be in a position to dominate the market as well as outdo the competitors.
In conclusion, there are lessons learned in strategic analysis and those learned in competition. For strategic analysis, it is important to apply this analysis in achieving the set objectives. Also, it is important to consider all aspects used in strategic analysis (Dann & Dann, 2007). The team realized the importance of facing internal and external factors affecting the operations. It is also important to keep the decisions made safe from competitors as well as enacting proper future plans.
Finally, for the case of competitors, team 35 realized that, in dairy industry it is good to maintain proper environment with competitors. Again, to outdo the competitors, proper strategies need to be involved in planning. In addition, the daily industry need to lay out future plan as well fixing future targets. The risks of uncertainty need to be reduced altogether.
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