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TABLE OF CONTENT

I.

INTRODUCTION
II. Assess how business missions, visions, objectives, goals and core competencies
inform strategic planning
III. Analyse the factors that must to be considered when formulating strategic
plans
IV. Assess efficiency of techniques used when developing strategic business plans
V. CONCLUSION
REFERENCE

VI.

I.

INTRODUCTION

Nowadays, business strategy is core element of all firms in over the world. Before
building a business, participating in a new sector or new market, successful firms
always deliberately research market, trends of customer, their strength and their
weakness to create an appropriate strategy. Especially vision, mission, objectives and
core competence are important factors in business strategy. This study will show you
the analyses and evaluations about different aspects of business strategy and focus on
vision, mission, objectives and competences. It will demonstrate for us about the
function of SWOT, PESTEL and Porter 5 forces on the business.

II. Assess how business missions, visions, objectives, goals and


core competencies inform strategic planning
1. Mission
Mission statement is a function or commitment that an organization desires to meet
expectations of stakeholders. It describes how organizations run their business;
identify their customer, identify range of their products/services and how businesses
serve their customer.
For example: The mission statement of FPT

Maintain the leading position of producer and integrator in I.T service and

producing software in Vietnam.


Expand market share of FPT to overseas.
Bringing sufficient material and happy life for each employee of FPT.
FPT desire to bring success and benefit to all their clients, stakeholders and

contribute for the development of society.


2. Vision
Vision statement describes vigorous and fascinating outlook of the firm in the future.
It indicates the growth, potential benefits of firm to the investor and stakeholders.
For example: FPT desire to become a strong and wealthy organization in
technological innovation, producing best products and services for customer,
providing sufficient and happy life for each employee of company.
3. Goals and objectives
Goals and objectives are the specific results that business strives to achieve in a
specific period of time. Objectives are stages to gain the goal; the objectives often

propose short-term plan express more detail while goal was proposed for long-term
plan that is wide and have general expression.
For example:

Objectives: Each employee of FPT is require to work creatively, flexibly and

efficiently to enhance the quality of product and service.


Goal: FPT aim to become the Vietnamese global corporation.
4. Core competencies
Core competencies are special things that make a business be outstanding among
competitors such as specific products, skills, quality or reputation. Moreover, it helps
a business build trust in mind of customer and make the brand of business be famous.
For example:
Each employees of FPT always remember they serve customer by wholehearted
devotion and deeply understanding needs of customer, they are master of modern
technology- value creativity, products and service of FPT always make customer
satisfied.

III. Analyse the factors that must to be considered when


formulating strategic plans
During the process of develop a suitable strategy for a business, there are many
factors and issues that impact to the strategic planning. These are 5 essential stages to
develop strategic planning.
Firstly, the most efficiently analytical tool for strategy planning is SWOT. This
analysis is applied to check for the internal and external of business environment.
Through SWOT analysis, present situation of firm can be assessed effectively and
accurately; it demonstrates the impact of internal and external factors to your
business. Especially SWOT helps business that evaluates advantages and
disadvantages of internal factors. In addition it also states chances and risks from
external factors.
Secondly, internal and external factor were analysed to defined strength, weakness,
opportunity and threat of the business. Besides, PESTLE is also applied to defined
macro environmental factors that impact to the strategic planning.
Thirdly, constructing SWOT matrix, SWOT matrix can construct from SWOT
acronyms and each quadrant of SWOT stand for each other.
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Next stages, we mix each quadrant from the SWOT matrix, we will have 4 particular
strategies: S-O strategy (Max-Max strategy), S-O strategy (Max-Min strategy), W-O
strategy (Min-Max strategy), and W-T strategy (Min-Min strategy). This analysis
assists the organization to comprehend the business background and the overall
strategic positions of the present market, which has many challengers.
Finally, innovation budgeting and intervention tool will be applied for improve
production program.
Factors:
In the process of develop business we have to face with challenges such as the
adjustment of internal and external environmental elements. The internal
environmental element involved to human resource, organization structure,
organization culture, leadership style, management, etc. And these aspects are
manageable and variable through planning procedure. For instance: in 2001, Steve
Jobs came back to Apple, he has created a revolution in technology and revived apple
that was on the verge of bankruptcy. He totally changes organization structure,
culture, job performance and made Apple be the biggest corporation in the world.
Jobs actually significantly to the development of Apple Inc.
In the other hand, external element is not manageable. The CEO of company can
control the change from nature, climate, economic condition and law of government.
For instance, in 2011 Sony Corporation have suffered severe damage from tsunami
and earthquake in Japan, their big factories completely destroyed and Sony lost more
1 billion dollar. In order to recover corporation they had to sell headquarter in
Manhattan and decreased workforce in over the world.

IV. Assess efficiency of techniques used when developing strategic


business plans
These are models that we can apply for developing strategic plans and they have
distinctive efficiency, advantages and disadvantages.
SWOT ANALYSIS
SWOT analysis is an incredible method for analyse and research status of a business;
enterprises applied SWOT analysis for business strategy to define their strengths,

weaknesses, opportunities and threats. From four those factors, the business will
create four different strategies, they are Strengths and Opportunities (S-O), Strengths
and threats (S-T), Weaknesses and Opportunities (W-O) and Weaknesses and Threats
(W-T).
Advantages of SWOT

Businesses will comprehend their strength and take advantage it to develop their

brand.
Businesses understand their weakness clearly, that will help them avoid risks in

market and they can improve their weak point in future.


If the business can seize opportunities in special moments they will create

competitive advantages with other companies in the market.


When business anticipated their threats in new market, they can prepare a
appropriate strategy to deal with risks or decrease the impact of threats.

Disadvantages of SWOT

If a business focus too much on their strength, this can lead to the business does

not prioritise problems.


SWOT does not produce solutions or offer substitution.
SWOT can create many ideas but not help business have best selection.
SWOT can provide many information, but not of all is valuable.

For example:
Sainsbury retailer in UK

Strengths: Sainsbury is one of the big four retailer in UK, they have excellent staff
and workforce, famous brand and marvellous service; they have more 800

supermarkets and convenient shop in the UK.


Weaknesses: product price of Sainsbury is higher than some competition like

Tesco and ASDA.


Opportunities: Sainsbury has opened many outlet store in China, and China
economy is growing speedily, this help promote revenue and development of

Sainsbury.
Threats: the competition from big retailer in the world such as Wal-Mart, Tesco,
Carrefour and Asda. Besides, Sainsbury is also impacted by stagnation of world
economy.

PESTLE ANALYSIS
Pestle analysis includes factors such as political, economical, social, technological,
environmental and legal.

Political: factors of politic significantly impact to the economy or a certain


industry such as government stability, bureaucracy, tax policy, trade control, etc.
These factors have important influence to the growth of a business. For example:
UK government reduce enterprise tax from 30% to 28%. This help Sainsbury save

a big amount of money and invest it to another industry.


Economical: these factors of economic critically impact to the purchasing power
of consumer and alter demand/supply model for the economy. Economical factors
include growth rate, inflation rate, interest rate, exchange rate, labour cost, etc. For
example: The rising of fuel is the biggest economical factor that impact to the
growth of Sainsbury. This lead to Sainsbury has to increase price and purchasing

power of consumer will be reduced.


Social: Social factors play a important role in the global market and the success of
company, it includes cultural and social trend, demographic, population growth
rate, income statistics, etc. For example: the increasing about awareness of people

about healthy food creates a great opportunity for Sainsbury to develop.


Technological: technological factors related to innovation in technology that may
impact to the operation of industry and business. It include automation, incentives,
improved quality of parts and end product, significant cost savings, etc. For
example: The fast development of Internet help online-selling of Sainsbury be
cooler, their customer just order products on the website of company and they will

take them to your home.


Legal: law of government significantly affect to the business environment and
policies of businesses, they have to change policies to suit with the law of certain
country. It refers to consumer, taxation, employment law, health and safety law
and For example: the business Sainsbury is restricted in America because some
regulation such as alcohol selling age legislations, discrimination and fair

treatment legislation, etc.


Environmental: environmental factors crucially affect to manufacturers, suppliers
and purchasing power of consumer. These factors are global change, weather,
climate, geographical location, etc.

PORTERS FIVE FORCE MODEL


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Porters model relates to 5 factors that determined the type of competition in their
industry areas: supplier power, buyer power, threat of new entrants, threat of
substitute products and intense rivalry among existing players.
Advantages

It helps business understand present status of business for particip ate in new

markets.
It helps business understand about supplier power, buyer power, new entrants,

rivals and substitutes.


It provides for business critical insights so assist them to plan suitable strategies to

be successful in the market.


It help businessman all around the world identify important strategy elements of
their particular business operation. Therefore the business knows where they are
and what they are aiming to.

Disadvantages

It is difficult to apply in complicated industries with several segments and

products.
The model assumes a given state of affairs while now market entrants change

everyday.
Suppliers, buyers and new competitors are undertake irrelevant and do not run

systems outside of the industry under reflection.


The analysis is responsive and does not contain other viewpoint such as the
resource based on opinion in which can redesign an activity based current
essential competences and key will power.
V. CONCLUSION

Business strategic is important to define the growth of business. There are many
important factors that impact to the business strategy such as organization structure,
leadership style, and human resource. Besides we also apply effective tool such as
SWOT analysis, PESTLE analysis, Porters five force model. These factor will
contribute for the success of business.

Reference
A.D. Chandler, Strategy and Structure: Chapters in the History of American
Enterprise, MIT Press, 1963, p. 13
A. Shuen, Web 2.0: A Strategy Guide, OReilly, Sebastopol, (2008) p. 2.
BPP Learning Media Business Essentials- Course book Business Strategy, Third
edition July 2013, published ISBN 9781445368245)
M.E. Porter, What is strategy?, Harvard Business Review, 1996, November
December,
p. 60
FPT annual report (2013) [online], available from
<http://www.fpt.com.vn/Resources/2014/03/25/1854089/fpt__2013_annual_report.pd
f>, [access on 18 July 2014]

Sainsbury Official website, Available from: <www.sainsburys.co.uk> [Accessed on


19 July 2014]