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EDEXCEL BTEC (LEVEL 7)

EXTENDED DIPLOMA IN STRATEGIC MANAGEMENT AND


LEADERSHIP

Core competencies : A core competency is a company normal capability that


offer it a competitive advantage in market , experiences to supply value to
customer and contribution in continue growth. Core competencies give it to
the permistion knowledge capability in specific subject , agree a business to
go to large range of market ,and other think is that cantt be copy by
competitors .
Nike is a largest company of shoe . nike provide sport shoes , accessories as
well as lifestyle cloths ,bags , socks sport balls ect. Nike footwear
manufactured worldwide.
So ,lets see nikes comperetive advantage

Comperetive advantage :
1.innovation
2.financial
3.customers
4.internal
5.multipal countries

INNOVATION : nike make footwear allways innovative look like light


weight shoe , special design , nike offered customers to design their
own shoes ,customer can choose own colours and create shoes difine
their personality . nike making more effective innovation in prouducts
like, running shoes , an ipod nano ,shoes plus ippod kits ,they consist
of a sensor that fits into a built in pocket.

KIRANDEEP KAUR
2672

INTRODUCTION:-A strategic plan is an important tool to guide the work of any


company.it will help maintain a focused, long term vision of the organizations mission and
purpose. Every organisation which aims at achieving competitive advantage, in this rapidly
changing turbulent business market, should have a clearly defined business objective and a
full-proof strategic business plan. A strategic vision and mission statement helps an
organisation to remain focus and accomplish its short and long-term objectives.
AC 1.1: Explain the importance of external factors affecting an organisation
Political factor:-political factors relate to interaction with local governments and agencies.
Company should have a good relationship with the mayor and city council members which
they operate. This increases their ability to influence laws and codes that affect our business.
Local funding and tax subsidies are a political issue as well.

Economic:-if company sell lower priced or value priced goods, buying activity may pick up
when economic conditions are weak and unemployment is high. People have more budget
concerns during poor economies. Goods and services businesses thrive more when the
economy is good and people have stable employment. Changes in loan interest rates and
banking regulation are also economic factor.
Social factors:-social environmental factors include societal movements changes in public
value and attitude people in the marketplace have toward working for business. If we operate
a small business like restaurant, we must recognize societal trends towards healthy life style
and food consumption habits. Maintaining a positive public image improves your ability to
attract local workers.
Technological factors:-technology factors greatly affect a business environment.
Technology changes every minute and companies need to stay connected along the way and
integrate as when needed. It is important they keep on mind how the consumers react to
technological trends and how they utilize them for their benefit.
Competitive factors:-competitor is a major factor affecting our strategy. We has to check for
new entrants into the market. Our competitors are reacting to our actions. We can then
proceed with those elements that result in an overall more favourable competitive
environment.
AC 1.2 Analyse the needs and expectations of the stakeholders of an organisation
Stakeholders can be any person or person or other company that are affected by business
activities of an organization. Customers, owners, employees, union or agencies etc. these are
strong stakeholder who are directly involved in the business. Their role is to operate business,
make decisions, and use their rights for the benefit of the company. The shareholder and
stakeholders have direct or indirect interest in the business and play role in setting goals.
Management:-management are the main stakeholders as they are strongly and directly
connected to the company. Their expectation is to earn income, have a secured position and
better status in the company.
Employees:-they are the also most important stakeholders and also directly linked to the
company. They want a good and healthy work environment and raise in their position as well
salary.
Customers:-customers are connecting with the company on the day to day basis. They expect
good service, quality products affordable products price and value for them and their money.
Government:-government are also essential stakeholders connected with the organization.
They expect companies to work within the rules and regulation set by them and pay tax
regularly.
1.3 Major changes taking place in the external environment that will affect strategy

In the external environment, major changes are arising in the political, social, economic and
technical factors. Technology is growing day by day and there is been huge development in
communication and information spread across the world. Ownership pattern in the corporate
world have become more complex and companies today are investment a great deal in joint
ventures, mergers and acquisition to expand their business both nationally and
internationally. Companies are adopting globalised strategies when it comes to operating
business, producing goods and services, distributing goods, and managing workforce.
Economy conditions in different countries are closely linked and finance has now become a
worldwide resource. The strategy formulation is word used to explore business objective in
long run as well as short term period. The strategy is related with military where each soldier
performs their action in war field or in training section based on their planned strategy. they
not only stay focus on their designed strategy but always stay ready for any backup or
immediate action plans to survive and succeed. According to Evans et al, (2003) the direction
of strategic goals in an organization get completed successfully when business use their
resources efficiently, where they challenge external environment like their competitors they
started gaining competitive advantages.
2.1 Tools to analyse the effects of current business plans
The effectiveness of a business plan pf Toyota can be analysed using strategic tools such
as
SWOT analysis
SWOT analysis is the basic common tools used to find out business strength and weakness,
this information help strategic management to compare their strength and weakness against
their competitors as well external and internal environment, whereas other two factors
figured out coming opportunities and threats.