Strategic Plan: Supporting a Strategy for a Non-Diversified Business

Existing Purpose Statements

Your strategic plan should be written in report style. Your audience is the management team/board of the organisation. Your aim is to “provide the data and argument in support of a strategy for… [an] organisation” (Johnson et al., 2014, p. 521). Please choose a non-diversified business (one industry only, e.g., Clarks Shoes) or business unit of a corporation

•Title and short paragraph introducing the organisation and the purpose of the work. Provide a “summary of the organisation’s current situation and the challenge it needs to overcome” (MacIntosh & McLean, 2015, p. 189).

•Include any existing purpose statements the organisation has (citing references). Discuss how the statements inform the challenge(s) of the selected organisation. Statements can be critically analysed.

•You do not have to address all statements – select those that are available for your organisation, or the most relevant. If no statements are available: Reflect on purpose based on other types of information (e.g., the ‘About us’ section of the organisation’s website; CEO/director’s interview, etc.).

•Macro trend analysis focused on explaining 2-3 PESTEL key drivers of change (based on level of impact), and what they represent in terms of opportunities and threats.

•Optional: Short explanation of 2 highly uncertain key drivers of change, followed by brief scenario analysis (focused on outlining opportunities and threats).

•Industry analysis (choose 1 of the following analyses: 5 Forces, strategic groups, strategy canvas/blue oceans). The analysis should conclude with the identification of opportunities and threats for the organisation.

•Identify strategic capabilities (choose 1 of the following frameworks: capabilities in the context of the value chain; or capabilities that link to critical success factors in the industry).

•Apply the VRIO criteria to any distinctive capabilities or to the value chain.

•Discuss the competitive implications of the above analysis, by providing a summary of strengths and weaknesses.

Based on the SWOT that resulted from your previous analyses, consider the different strategic options that your selected organisation could adopt. You may find it useful to map these options in a TOWS matrix (Figure 1). Please note that the TOWS matrix is not required for the assignment – it is simply a tool that can help you think of different options. These options will be either business-level strategies or corporate-level strategies (or a combination of both – it depends on your context).

-If you are suggesting changes in business strategy (look at Porter’s generic strategies or Faulkner & Bowman’s strategy clock), give examples of strategy elements and organisational requirements. You can also use the value chain framework to support your arguments.

-If you are suggesting new corporate strategy directions, you can use the following to build your argument: Porter’s ‘better-off’ test, economies of scope, transaction costs, and the costs of corporate complexity. You may also use the Ansoff matrix to show potential strategy directions, and comment on potential strategic methods (organic development, mergers and acquisitions, strategic alliances) if a diversification strategy is proposed.

•Link back the proposed strategy to the content of the introduction. Does your strategy address the challenge(s) you identified? How does the proposed strategy exploit the opportunities in the environment and/or avoid the threats? How does the proposed strategy capitalise on the organisation’s strengths and/or avoid or remedy the weaknesses? Do the resources and competences currently exist to implement the strategy effectively? If not, can these resources and competences be obtained, and how? Does the proposed strategy align with the purpose of the organisation?