Strategic Planning Assignment
The back ground is retail industry Debenhams plc
The globalization has huge impact on the attitude and behaviour of the customers, clients and consumers as they want more quality high brand, goods and services at compatible prices. Firms compete for customers, and management formulate strategic plans to enhance the quality, brand strength and brand image of goods and services to achieve organizational goals and objectives and to achieve sustainable competitive advantage. Organizations want to have innovative creative, challenging, and strategic work force which formulate strategic plans establish goals and objectives obtain, allocate, distribute and utilize scarce resources in the best possible manner to achieve goals and objectives effectively and create brand image, brand loyalty through enhancement in the quality of goods and services and achieve sustainable competitive advantage and create value for all the stakeholders. The managers have to anticipate the changing needs of the customers through effective market, customers, competitors, and internal external environment analysis, and formulate strategies to achieve strategic targets through quality enhancement of goods and services meeting the changing needs and wants of the customers. Strategic planning is the process of matching organizational resources and competences against desired organizational targets through external and internal environment analysis, competitors’ analysis, market analysis, market trends, and form strategies to achieve goals and objectives and create value for the shareholders, company and for all the stakeholders. The strategic planning is a continuous process and managers consistently review strategy and form contingency plans to achieve the strategic goals and objectives of the organization. Debenhams is highly focused and committed to produce quality goods and services to its customers, and create value for all the stakeholders through effective strategic planning. Debenhams has developed an innovative system of training, knowledge sharing, and motivation, to conduct internal and external environmental analysis, competitors analysis, market analysis, trends analysis, and form contingency plans to achieve goals and objectives. Debenhams has improved the quality of its goods and services and improved its market position during the years 2008- 2012. 1.1
Importance of External Factors Affecting the Organization The external environment affects the strategic planning, market position, sales and management abilities and skills to compete effectively in the changing business environment (Campbell, and Edgar, 2011). The external environments has different political, economic, social, technological, ecological, and legal factors (PESTEL) competitors’ analysis, and analysis of your own company, market analysis, and the managers form strategies to achieve goals and objectives and achieve competitive advantage. The managers are responsible to form effective strategic plans, and managers have to see the changes in political system, microeconomic and macroeconomic environment, market trends, increases in the raw material prices, inflation, unemployment, increase or decrease in the interest rate , social environment, new technological changes in work and processes, changes ecological and demographical changes, changes in the laws and regulations, news laws, duties tariffs, competitors analysis their strategies actions their strengths and weaknesses, threats, and new opportunities available for the company. The management can achieve goals and objectives through effective internal and external environmental analysis, competitors’ analysis, and market analysis, to form strategic plans to enhance quality of goods and services and create value stakeholders. However it has been seen and observed that some managers under estimated, or overestimate the competitors’ strengths, weaknesses, their strategies,...
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