Unit 32 Business Strategy
Unit 32 Business Strategy HND Business
Aim of Unit 32 Business Strategy
The success of a business is measured by its operations and the strategies utilised for achieving the goals and objectives. This unit would help the students to acquire knowledge about the strategies utilised in various business operations. They would also develop knowledge of business strategies with the application of several models, theories and concepts regarding respective organisations. On completion of this unit, the students would be able to acquire an understanding of the strategies to foster an effective and efficient contribution towards the development of a business. They would also know about the role of a junior manager is responsible for the planning of strategies and decision-making process.
By the end of this unit a student will be able to:
1 Analyse the impact and influence which the macro environment has on an organisation and its business strategies.
2 Assess an organisation’s internal environment and capabilities.
3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector.
4 Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organisation.
LO1 Analyze the impact and influence which the macro environment has on an organization and its business strategies
Different organisations possess different mission, vision and aim in order to acquire a position in the market. Moreover, different organisations possess different strategies to manage their business operations. Several frameworks and models could be utilised in order to understand the impact of the macro-environment on business organisations. These models and frameworks include PESTLE analysis, Stakeholder analysis and Structure-conduct-performance model that would help to analyse the influence of the external environment on the organisation.
LO2 Assess an organization’s internal environment and capabilities
The operations of a business are also affected by the internal environment of an organisation. Therefore, it becomes important to acquire knowledge of the internal environment of the organisations. Several management tools could be utilised to analyse the strategies implemented by the organisation on the basis of their internal environment. Moreover, the impact of internal environment on the business operations could also be analysed with the help of benchmarking strategies, VRIN/VRIO framework and cost-benefit analysis.
LO3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector
In the competitive market, organisations are required to keep themselves updated with the latest trends so as to implement new strategies to retain the position within the market. Further, to analyse the position of an organisation within the competitive market Porter’s Five Force Model, Ansoff matrix to market/product strategy could be used. Balance Scorecard and stakeholder analysis could also be utilised for aligning the vision and strategies of the respective organisations.
LO4 Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organization
Organizations are required to keep themselves acknowledged about the ongoing and upcoming changes within the market. This could be done with the help of Porter’s Generic Strategies to identify the leadership, price and cost strategy of the organisation. Focus strategy and differentiation strategy could also be identified in compliance with Porter’s Generic Strategies. The application of Bowmen’s Strategy Clock-extended model, diversification, horizontal integration and hybrid strategy could be highlighted to understand the strategic directions of an organisation.
Learning outcomes and assessment criteria
|LO1 Analyse the impact and influence which the macro environment has on an organisation and its business strategies.||LO1, 2, 3 & 4 D1 Critique and interpret information and data applying environmental and competitive analysis to produce a set of valid strategic directions, objectives and tactical actions.|
|P1 Applying appropriate frameworks analyse the impact and influence of the macro environment on a given organisation and its strategies.||M1 Critically analyse the macro environment to determine and inform strategic management decisions.|
|LO2 Assess an organisation’s internal environment and capabilities|
|P2 Analyse the internal environment and capabilities of a given organisation using appropriate frameworks.||M2 Critically evaluate the internal environment to assess strengths and weaknesses of an organisation’s internal capabilities, structure and skill set.|
|LO3 Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector|
|P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for an organisation.||M3 Devise appropriate strategies to improve competitive edge and market position based on the outcomes.|
|LO4 Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organisation|
|P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a given organisation.||M4 Produce a strategic management plan that has tangible and tactical strategic priorities and objectives.|
This unit links to the following related units:
Unit 1: Business and the Business Environment
Unit 18: Global Business Environment
Unit 25: Principles of Operations Management
Unit 27: Identifying Entrepreneurial Opportunities
Unit 33: Business Information Technology Systems
Unit 42: Planning for Growth