BSBMGT616 Develop and Implement Strategic Plans

Assessment Task 1 Instructions as provided to students

Provide answers to all of the questions below:

1. Give three examples of risks that should be taken into account in developing and implementing strategic plans.
2. Give two examples of risk management strategies that can be used when developing and implementing strategic plans.
3. Give an example of a risk management strategy that can be used to manage intellectual property risks inherent in strategic planning.
4. Outline the benefit of conducting a SWOT analysis as part of a strategic planning process and how a SWOT analysis is conducted.
5. Outline four examples of questions that could be used when conducting a SWOT analysis.
6. Outline the benefit of conducting a PESTLE analysis as part of a strategic planning process and how a PESTLE analysis is conducted.
7. Outline four examples of questions that could be used when conducting a PESTLE analysis.
8. List two internal sources of information that a business could use to find out about its market, competitors, customer base, vision, values and capabilities.
9. List two external sources of information that a business could use to find out about its market, competitors, customer base, vision, values and capabilities.
10. Explain the purpose of developing organisational values and two techniques that could be used to identify values as part of the strategic planning process.

Assessment Task 2 Instructions as provided to students

Complete the following activities:

Carefully read the following scenario.

Native Bush Spices Australia is based in Coffs Harbour, NSW. The business was established in 2010 to cater for a demand for Australian native food products. The company has organic certification. The company manufactures and retails a range of organic, Australian native foods including: ·           Native herbs and spices ·           Native herbal teas ·           Native fruit jams and conserves Currently the business is selling its products through a number of small supermarkets and health stores throughout Australia. The company also has a web site through which products can be ordered. The company’s overall business objectives for the next three years are to increase sales and create brand awareness, develop a broader product range, as well as expand into overseas markets. The company is also considering options for alliance marketing. The company is also looking at moving into international markets, namely South-East Asia – specifically Hong Kong, Japan and Singapore. The company’s target customers are those that enjoy gourmet foods. The age range of Australian consumers buying their products is between 35 and 65. Most of their consumers are health conscious, care about protecting the environment and have an average income of $80,000. The company currently employs the following staff in its head office: CEO, Operations Manager, Marketing and Sales Manager, Administration Manager and Customer Service Officer. Around 10 staff are employed in the factory making and distributing the products. Although the company does not have a formal strategic plan, the following information is included on its web site about its mission, vision and values: Mission Native Bush Spices Australia is committed to providing the highest quality product to all its clients. Vision We are constantly working to establish ourselves as the most respected and sought-after supplier of native bush spices. Values ·           Respect: taking time to understand and value each of our customers and respecting their choices. ·           Responsibility: acting with integrity towards our staff, our customers, the community and the environment. ·           Caring: a duty of care for our staff, customers and the environment. ·           Excellence: to always look to provide the best quality product and customer service. ·           Integrity: to act with honesty, openness and do what we say we will do. ·           Innovation: to be industry leaders.

 

Assessment Task 3 Instructions as provided to students

Complete the following activities:

1. Research Native Bush Spice Australia’s customers and competitors.

Identify sources of information to use to research Native Bush Spice Australia’s market, competitors and target customers. Note down at least 3 sources of information. You will need to record these information sources in your SWOT and PESTLE analysis. Using the information that you have developed, research trends and development in the industry and competitors, potential new and emerging markets, competitors and any other relevant factors.

2. Research and review potential cooperative ventures as discussed at the meeting.

This should include their risks and benefits.

3. Develop a SWOT and a PESTLE analysis.

These should outline all of the internal and external factors that will impact on the Strategic Plan based on your research. Begin a new Word document for the analyses. Save it as SWOT and PESTLE Analysis.

4. Send an email to your assessor.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style. It should summarise the contents of the attachments and seek their feedback on them. Attach your SWOT and PESTLE analysis to the email. Your assessor will review your analysis and provide feedback as required.

5. Update your PESTLE and SWOT analysis.

Revise these to reflect with any feedback provided by your assessor. Save this document as Updated Analysis.

6. Develop the Strategic Plan.

Once you have received feedback from your assessor, proceed with developing the Strategic Plan. Using the template provided by your assessor. You will need to make sure you complete all sections of the Plan and use clear and concise English. Your strategic plan will need to include specific actions to include each of the strategic objectives. You must include responsibilities and timelines for each action, as well as key performance indicators. Each of the actions should be ordered commencing with the most urgent action first.

7. Send an email to your assessor.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style. In your email, provide a brief overview of the actions that need to be taken over the next 12 months to achieve objectives, as well as the staff that will be involved. The email text should summarise the contents of the attachment and seek their feedback. Attach your strategic plan to the email.

8. Update your Strategic Plan.

Revise your strategic plan, incorporating any feedback that you received from your assessor. Save this document as Updated Strategic Plan.

9. Send an email to your assessor.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style. In your email, provide a brief overview of the changes that you made to your PESTLE and SWOT analysis and to your strategic plan. Attach your Updated Analysis and your Updated Strategic Plan to the email.

 

Assessment Task 4 Instructions as provided to students

Complete the following activities:

Carefully read the following.

It is one (1) year since the strategic plan was implemented and, as the Operations Manager, you are reviewing the performance of the business against the performance indicators identified in the plan. Assume that the performance indicators identified in the strategic plan are as follows: ·           A 20% increase in total sales revenue. ·           International market identified, and exporting commenced. Sales to international markets to comprise 20% of total income. ·           Suitable alliance for marketing identified and 10% increase in sales attributed to alliance marketing. ·           Identify new products through review of competitors’ web sites. Data and comments from staff after 12 months from implementation of the strategic plan show: ·           Sales have increased from $550,000 to $800,000 ·           Product now selling in Hong Kong and Singapore. Total international sales identified as $70,000. ·           No progress on alliance marketing as yet. No suitable partner identified. ·           No ideas for new products.

1. Write a report for management.

The report should address: a.     Analyse and report on the data provided. b.     Comment on whether performance indicators have been achieved. c.     Develop recommendations for the year ahead based on your evaluation as above, as well as required changes to the strategic plan. d.     As you have also been asked to evaluate the strategic planning process, research best practice strategic planning processes and report on whether the organisation achieved this with the first strategic plan development and what could be improved.

2. Send an email to the Management Team (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style. It should introduce and summarise the contents of the attachment. Attach your report to the email.

 

SOLUTION

Assessment Task 1

Question 1

Developing and implementing the strategic plan is integral for an organization. Yet, some risks are always in the limelight, which directly influences the whole procedure. One of the protuberant risk examples is economic uncertainty, as sluggish economic conditions or major shifts can lead to a shift in the strategic plan. Another factor is competition, a shift in competitor’s strategies can put the current plan in jeopardy. The third example is the loss of key personnel, as, without talented people, implementation is not up to the mark (Kachru, 2009).

Question 2

In the strategic planning process, the risk may emerge with time. Two pertinent strategies are avoiding and accepting. In avoiding, the company can nurture the same plan despite facing some consequences. On the other hand, by accepting risk in strategic planning, the company has to make strategies or conduct a risk analysis to identify risks and eliminate them. Consequently, avoiding and accepting are two examples, as these can be used according to the nature of risks and level of impact in the strategic plan (Freeman, 2010).

Question 3

In the business environment, there is a need to manage intellectual property risk through developing and implementing an effective risk management strategy. The appropriate strategy to manage this risk is to get the provisional patent; naming the trademark can help to make it recognized in the competitive landscape. When dealing with stakeholders, particularly employees, it is important to sign a non-disclosure agreement. Apart from these examples, the management can use a risk register, as probability and impact of the risk can help to develop appropriate countermeasures.

Question 4

One of the biggest benefits of conducting the SWOT analysis is that the management can assess the organization’s situation in terms of both the internal and external environment. If an organization identifies its strengths and weakness in the competitive landscapes, it can utilize its opportunities and eliminate threats. The analysis can be conducted by illustrating strengths, weaknesses, opportunities, and threats separately, and further, it can lead to TWOS metrics to build strategies.

Question 5

Four types of questions can be considered when conducting a SWOT analysis. The list of these questions is as follows:

• Does the firm have the capability to navigate its internal and external environment?
• How to identify the organization’s strength in critical business situations?
• How can an organization convert its weakness into opportunities in the competitive landscape?
• How to eliminate the threats in the business environment to enable business sustainability?

Question 6

Pestle analysis is one of the best strategic management tools for an organization. Assessing the macro business environment by navigating political, economic, social, technological, legal, and environmental factors is the main advantage. Of course, the firm can have insights regarding external business setting, which can set the foundation for effective market entry strategies. All these aspects are to be illustrated separately to make this analysis compelling.

Question 7

There are different questions, which can be considered when it comes to pestle analysis. The list of questions is as follows:

• Is the pestle analysis up to date in terms of all its elements?
• To what extent does the management have to incorporate the information?
• Does the analysis include information influencing strategic business planning?
• Is pestle being a source to develop a new strategic intent in the competitive market?

Question 8

There are two important internal sources, which can be used by the company to obtain insights regarding the market, competitors, customer base, vision, values, and capabilities. The first source is finance, as financial trends or evolvement can who the whole picture about its external condition. Another source is employees who have direct interaction with customers. Of course, these can reveal customer trends, behavior, and comparison with other companies.

Question 9

Two external sources to get information about the company’s vision, capabilities, and many other aspects are customers and competitors. The management can conduct customer surveys to examine its effectiveness or capabilities. Of course, satisfied customers can justify the effectiveness of vision, capabilities, and competitive advantage. The shift in competitor’s strategies is a source of information regarding new trends and possible shifts in the internal business climate.

Question 10

The purpose of developing the core values in an organization is to drive the pertinent strategic intent. These core values can lead the business differently in the internal and external environment, and employee’s behavior can be shaped accordingly. To determine core values, there is a need to assess the corporate culture. It seems the best consideration to stem some values, which support the whole culture. The second strategy or step to identify the core values is to examine the strategic business plan. This evaluation can highlight core elements, which support strategies, people, and the whole business (Alkhafaji & Nelson, 2013).

Assessment Task 2

Preparing for Team Meeting

Researching vision, mission, and values is imperative. When it comes to the new strategic plan, there is a need to develop a new vision, mission, values, and objectives. Two main competitors of Native Bush Spices Australia are Pasta Emilia and Nutra Organics.  The mission of Pasta Emilia is to enable the provenance of local organic ingredients. The mission is to eliminate low energy, poor immunity, dull skin, and lack of balance diet to contribute to a healthy and sustainable society.  On the other hand, the vision of Pasta is to contribute to a healthy society by streamlining its organic ingredients. The vision of Nutra is to improve sustainable living in society. When it comes to the comparison, Native bush shows some clarity. For instance, in its mission, it explains that it has to improve its product quality for all its clients, regarding vision committed to being a respected and sustainable supplier of native bush spices. Before the team meeting, I comprehended that the current mission and vision should be shifted to make it compatible with the new strategic plan. Nevertheless, values and objectives are to be sustained, as these can be incorporated into the new strategic plan (Greenfinder.com.au, 2020).

Meeting with Management Team

In the management team meeting, discussion with the stakeholder was valuable; some shift in the vision, mission, and objective can be driven. For instance, for the new strategic plan, the mission should include the differentiation strategy, as customers have to experience products which have never been experienced before. In the vision, the management must have to include that it can make customers a part of the sustainable supply chain journey. Some shifts in the values have also been guided. For instance, apart from existing values, critical thinking and reliability should be included, as these are compatible with the new strategic plan. To get better insights, I asked compelling and relevant questions to have required options; by speaking clearly and concisely along with active listening, we managed to reach conclusions (Abraham, 2012).

Summary of Meeting Outcomes

In the management meeting, some new insights or implications, which are to be incorporated in the strategic plan, were discussed. For instance, it has been exposed that the current vision and mission are conventional, as these are simple. In the dynamic work environment, there is always a need to come up with the vision, mission, and values, which support the business strategic intent or strategic plan. The shift in both vision and mission is possible, and all meeting stakeholders acknowledged it. Comparing vision and mission with the other competitors was the right idea, which helped to drive the new vision and mission. The addition of new corporate values, such as critical thinking and reliability, is also a new outcome. Critical thinking referred to the employee’s ability to question the supply chain and production process and streamline new possible ideas or alternatives. The most important thing is to improve the innovative capability of the business, which can help to make a difference. Also, both customers and employees must comprehend that the process and sustainability are reliable. The native buys ingredient or species are to be generally accepted by all key stakeholders. Hence, instead of hitting the narrowed market, there is a need to see a larger picture in the organic food market, and it is a key outcome of the management team meeting.

Sending Emails to Management Team

Now, after deriving the management team meeting outcomes, I have to email these insights to top management to get approval for a new strategic plan. The most important thing for me is to provide a rationale for the change in vision, mission, objectives, and values. For instance, if the management decides to get rid of narrowed focus, I have to tell how to grab the bigger portion of the market with these modified visions, mission, and values. It is all about sending reasoning or possible shifts in the current plan to set the ground for a new plan. Getting approval for the new strategic plan is important to work on new strategies and approaches in the competitive market. A glimpse of the email is as follows.

Dear sir,

We conducted a healthy and debatable session in the management team meeting and acquired some new opportunities for Native Bush Organic spices. Current loopholes and flaws in vision, mission, and values have been identified. Now, we are waiting for your approval to work on strategies which can help us to move forward.

Assessment Task 2 & 3

Executive Summary

Native Bush Spices Australia is based in Coffs Harbour, NSW. The business was established in 2010 to cater to the demand for Australian native food products. The company has organic certification.  The company manufactures and retails a range of organic, Australian native foods, including Native herbs and spices, Native herbal teas, and Native fruit jams and conserves. Currently, the business is selling its products through several small supermarkets and health stores throughout Australia. The company also has a web site through which products can be ordered.

Vision 

The vision of the company is to initiate a sustainable journey where customers can become part of the sustainable supply chain of organic food

Mission

The mission of the organization is to improve the product quality with some differentiating techniques to change the customer’s food and health experience

Values

Retained values in the role-playing meeting are respect, integrity, responsibility, caring, and innovation. However, the newly added core values are critical thinking and reliability.

Strategic Objectives

The significant objective of the firm is to increase sales by 30%, and it can also be used as a key performance indicator when implementing the strategic plan.

• The objective of the company is to get rid of a narrow market segment, as it has to offer something for almost everyone, leading to the new customer segments
• The company wants to improve the global market share, and the strategic plan is interrelated with this objective
• The company has to expand the business outside Australia to increase the global customer range
• Finally, the company wants to be profitable and gain a competitive advantage in the competitive industry.

The Market

Market Characteristics & Conditions

The Native Busch Price Australia’s customers are people from 35 to 60 years old. Any retail business in Australia selling organic food to its customers is a competitor. Two main competitors, such as Pasta Emilia and Nutra Organics, are in the limelight. However, Whole Foods has become one of the major competitors of this company, as sales of organic items to health-conscious people have been increased.

The organic food market in Australia is growing, as people have become health conscious. Almost 65% of Australians have at least one organic product at home. Notwithstanding, the industry is linked with regulation, as almost 55% of people said that they make buying decisions after viewing the certification logo. The total organic food value has reached $2.6 billion. On the other hand, the global organic market value reached $97 billion. There are several factors or aspects. Main competitors are Pasta Emilia, Simply Fresh Fruit, My Organics, Nutra Organics, and natural products. Chemical-free, environmentally friendly, and additive-free aspects can positively influence buying behavior and decision (Goodness.com.au, 2019)

Potential Cooperative Ventures

There are potential ventures, which have been discussed in the management team meeting. The possible venture is the acquisition of a small food company, which is committed to emerging in the sustainable food market. Yet, this strategic venture is associated with some benefits and risks. The biggest benefits are increased market share, access to resources, and reduction in business risk. Regarding risks, the company can lose its identity and brand image. It will be hard to take control over the quality of products or items, which can put the whole reputation in jeopardy.

PESTLE Analysis

Political: Australia is a politically stable country, and the political support for the business is always in the limelight. Due to stable conditions, local and international investors confidently invest in new ventures.

Economical: Australia is the 13^th largest economies in the world. It is a developed country where the income level and buying power of people are high, and further, it influences the sales of the firm.

Social: Australia can be referred to as a multicultural region where people contain different perceptions regarding food and health. The critical social factor is that people have become health-conscious, and it is a great opportunity for this company to enhance the visibility of its attraction and positioning (Lucio, 2018).

Technological: People in this region have become tech-savvy. For instance, technological interventions facilitated retail chains to improve the buying experiences of customers. Thus, multiple channels are to be established for customers to enhance interaction (Nationalseniors.com.au, 2019).

Legal: When it comes to the food and health industry, the company can face stick regulation; as mentioned, the company is struggling to get rid of toxic components to avoid serious legal trouble. Integration with regulations, such as ingredient or spices, plant or ingredient certification is important.

Environmental: Native bush is one of the sustainable firms due to its plantation approaches. But in production, new sustainability trends such as meeting targets of carbon emission must be integrated to be consistent and competitive.

Situation Analysis

SWOT Analysis

Strengths	Weaknesses
From the perspective of producers, the company comprises a professional approach to the plantation. This professional plantation approach has helped to maximize the quality and quantity of its organic product portfolio. Now, the company is in a better position to meet the increasing demand in the market. Sustainable land management has also become a big strength. The company provided financial support to farmers at the bottom-line to procure high-quality organic matter. From the perspective of retail, the company has come up with multiple flavors for different customers. The company has managed to sustain excellent nutritional qualities. The company has set the foundation for the competitive advantage by developing and maintaining the healthy and nutritious image	As a producer, Native Bush still has limited information regarding agronomics. There may be some chemicals, which are not registered by authorities in terms of disease control. Obtaining genetically obtained material is still a major challenge, which hinders improvement. One of the biggest weaknesses of this corporation is that it contains inconsistent supply and product quality. In the market, there are some concerns regarding the toxic components of many spices. It can be said that the company is yet to make these species or ingredients. Due to inconsistent or high pricing, the management is facing some market segment limitations. Lack of progressive advertising process is also a big weakness. In terms of many products, the demand is not identified, and it directly influences sales and profitability (Austsuperfoods.com.au, 2020).
Opportunities	Threats
It is a great opportunity for the company to develop the native food cuisine, which is associated with Australian tourism, as it can drive the preferred experience of the tourists. There is a need to depict the focus on narrowed strategies, which encompass education, awareness, promotion, and development of organic food. Merger & acquisition is an incredible opportunity, which helps to share resources. Diversification and reputation or fine foods are further opportunities.	Limitation regarding high-quality planting material is a big threat, which directly influences quality. In many cases, planting material is at risk due to the impact of toxic components. Outsourcedplantation is limiting the potential export opportunities. The production cost is getting bigger day by day, and it may influence pricing. Coronavirus threats and declining economic conditions are also hitting, and the whole business is in jeopardy.

 Actions

The following table identifies the actions we plan to take to achieve our strategic objectives.

Actions	Timelines	Responsibility	Key performance indicator
The management is looking to improve its product category to target teens and adults, especially 18- to 34-year-old people	January 2021	Product and marketing manager	Increasing customer traffic
The company aims to increase sales by 30% in the organic market by identifying new customer segments	July 2021	Sales Manager	Increasing sales trend in a single quarter
The company wants to contain big ventures, as the acquisition of a small firm can help to share resources, such as people, process, and technology, and further, it can justify expansion (Finkelstein & Cooper, 2010)	December 2021	Executive Leadership   Operations Management	More resources, more outcomes
Business diversification can be the strategic action for the company, as a new product for new customers in the new market, particularly in Japan and Hong Kong must be streamlined	March 2022	Executive Leadership   Global Business head   Operations Management	Increase in global market share
In the internal business environment, the major component of the strategic plan is to introduce new cost measures to reduce the business or production cost.  Integrated cost leadership & differentiation to grab more people and gain a sustainable competitive advantage (Fortin, 2017).	August 2022	Operations Manager	Increase in customer range, improved sales, and sustainable competitive advantage

 

Assessment Task 4

Analysis

The current data has been derived after the implementation of the strategic business plan. It is a fact that the business grew and expanded well, which is defensible by the new sales indicators. The excessive sales in the local and international market showed that the business is heading in the right direction. Yet, unfortunately, this growth will be apparent for a while if the company depends on its existing product. The report shows that the company has never come up with new product ideas. The market is competitive, as alternatives or substitutes will be available soon in the market. Consequently, being an operation manager and strategic consultant, I would like to recommend new product development and product differentiation.

Commenting on Indicators

The performance indicators such as 10% and 20% local and international sales are good. But the critical question is that when the company will be able to achieve the set objectives, as mentioned in the objectives, the company wants to increase the sales by 30%. The trend is positive, and with the same pattern, the company will be in a position to achieve it. In Hong Kong and Singapore, the firm must go for $100,000 sales, and it should be the new target.

Developing Recommendations

The report shows that the company remained flat in the alliance marketing. Acquisition’s purpose is also to join hands with different marketing teams to streamline the products. The intention is to streamline low-cost products along with sustained quality. Alliance marketing can help to develop a progressive marketing strategy, which can enhance the attraction and positioning.

Evaluating and Improving

When evaluating the strategic management plan and implementation, it seems successful with some opportunities for improvement. The company improved its sales revenues and expansion. But there is a need to contain some improvisations in the changing or evolving market. The most important thing is to keep an eye on the global and local competitors to make some tiny adjustments in the product, pricing, and marketing tactics to be the first mover. Instead of just sticking to the plan, flexibility is essential to make the difference.

References

Abraham, S.C., 2012. Strategic Planning: A Practical Guide for Competitive Success. Emerald Group Publishing.

Alkhafaji, A. & Nelson, R.A., 2013. Strategic Management: Formulation, Implementation, and Control in a Dynamic Environment. Routledge.

Austsuperfoods.com.au, 2020. Ripe Opportunity For Australia’s Native Bush Foods Industry. [Online] Available at: https://austsuperfoods.com.au/ripe-opportunity-for-australias-native-bush-foods-industry/ [Accessed 29 January 2021].

Finkelstein, S. & Cooper, C.L., 2010. Advances in Mergers and Acquisitions. Emerald Group Publishing.

Fortin, F., 2017. Ansoff Matrix Essntials. CreateSpace Independent Publishing Platform.

Freeman, R.E., 2010. Strategic Management: A Stakeholder Approach. Cambridge University Press.

Goodness.com.au, 2019. 2019 AUSTRALIAN ORGANIC MARKET REPORT. [Online] Available at: https://www.goodness.com.au/blog/2019-australian-organic-market-report/.

Greenfinder.com.au, 2020. Australian Organic Food Companies Companies. [Online] Available at: https://www.greenfinder.com.au/Food-and-Drink/Australian-Organic-Food-Companies [Accessed 10 January 2021].

Kachru, U., 2009. Strategic Management: Concepts and Cases. Excel Books India.

Lucio, R., 2018. Aussies becoming more health conscious. [Online] Available at: https://insidefmcg.com.au/2018/01/18/aussies-becoming-more-healthconscious/#:~:text=Health%20consciousness%20has%

20risen%20over,as%20the%20health%20consciousness%20index. [Accessed 29 January 2021].

Nationalseniors.com.au, 2019. New research reveals seniors are more tech savvy. [Online] Available at: https://nationalseniors.com.au/news/media-release/new-research-reveals-seniors-are-more-tech-savvy [Accessed 29 January 2021].