This project is to improve the business plan of a company that make chocolate base gourmet. The main product of this company is the bird’s nest chocolate. This business has a potential in the market and can be commercialise worldwide. The objective of this project is to implement the strategic management into the company in order to increase the sales of company. This study will also be helping the company to have a better management in the future. The scope of the study is to implement the strategic management to the company business plan, to study the function of strategic management in the business plan, to validate the advantage of using strategic management. Our methodology is using the strategic management procedure that has a corporate level, business level and functional level. From the data collected we summarize that the strategic management that we can use to improve this company is using the concentrated corporate level strategic and using the horizontal integration method. We can analyse that this method will have significant impact on the business. We also try to overcome the weakness and threat that we obtain from the business plan that we analyse. By using horizontal integration we try to join venture with Cadbury chocolate company to build a well-known product because Cadbury has producing the chocolate gourmet for a long time and has been known for its delicious chocolate.
1.1 Introduction to the strategic management.
Strategic management is a continuous process of strategic analysis, strategy creation, implementation and monitoring, used by organizations with the purpose to achieve and maintain a competitive advantage. The general purpose of doing it is to combine the energy of organization’s functional areas into one focused effort to achieve superior performance. It is usually done through the many steps of the process. In essence, it answers the following 3 questions:
Where the organization is at the moment?
Where does it want to go?
How it will get there?
Strategic management is not about predicting the future, but about preparing for it and knowing what exact steps the company will have to take to implement its strategic plan and achieve a competitive advantage.
Importance of strategic planning
Requirement for sustained competitive advantage.
Competitive advantage is what keeps great organizations ahead of their competitors. Rothaermel pointed out that the company, which has a competitive advantage, performs financially much better than other companies in the industry or better than the industry average. Some companies may achieve it without thorough strategic plan but for the most players out there it is vital to plan strategically, i.e. analyze, create, implement and monitor, and do this continuously. It is not guaranteed that companies will ever achieve competitive advantage conducting strategic planning but it is an essential process if the company wants sustain it.
Views things from broader perspective.
The other reason why the organizations don’t simply rely on their finances, marketing or operations functional areas to create competitive advantage is that managers of each area often view things only from their own specific angle, which is too narrow view for the whole organization to rely upon. Only the managers (e.g. CEOs or strategic planners) who see the whole picture of the company and its surrounding environments can make the decisions that bring the competitive advantage.
Nowadays, most companies involve middle managers of functional areas into the process of formulating strategic plan. Middle managers are the people who implement the strategies set out in a plan and if they aren’t involved in making the plan, then they aren’t so committed to support it.
Thus, strategic planning is used to achieve the competitive advantage and to integrate all the functional areas of...
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