Strategic Planning and Control - Assignment Example

Strategic Planning and Control of the of the Table of Contents Learning Log 4 Learning Statements 5 Accounting and Finance Techniques 5 Strategic Planning 5 Critical Success Factors 6 Key Performance Indicator 6 Product Life-Cycle 7 SWOT Analysis 8 Soft Skills 8 Group Working 8 Communications Skills 9 Conflict Resolution 10 Time Management 10 References 11 Appendices 12 Appendix 1 12 Appendix 2 13 Appendix 3 14 Appendix 4 14 Appendix 5 15 Strategic Planning and Control Learning Log The main purpose of this paper is to reflect my learning outcome in relation to the module. This will involve the development of financial techniques and reflect the soft skills developed within me. Our chosen company did not do very well and lost a few market shares in Europe and Asia. As a result, we set a higher price for the product in order to capture a larger market share and to earn more profit. However, the products of other companies also offer the same feature as ours and they kept the same price or increased it a bit. So, setting of a higher price became a disadvantage for us. In order to sell more in the beginning, the production capacity had also been increased, but the result demonstrated that the demand was only half of the production. So, I have learned that it is not necessary to utilize all the resources as inventory got larger and it is not good for the company. We need to observe the internal position of the organization which will enable us to determine how well the company can manage the competitive and external environment. I also came to know that a strategic planning and critical success factors need to be developed for the products and services. SWOT (strengths, opportunities, weaknesses, and threats) analysis must be carried out, which will allow the company to evaluate their strategic situation. The product life-cycle model needs to be taken into consideration in order to discuss how the cost of product can vary over a product’s life cycle. I also discovered that key performance indicators of the company need to be analyzed, through which we can know what factors are leading to its success and competitive advantage. I also learnt that working in a group is more beneficial than working as an individual as it comprises the ideas of four to five people and involve more communication and consequently leads to an enhanced decision making process. Soft skills need to be developed in order to resolve the conflict which arises in the discussion process within the group. At the same time, time management is also important for successful completion of a project. Learning Statements Accounting and Finance Techniques Strategic Planning Strategic planning is defined as the method of defining the plans of the companies for achieving their missions. The strategy of an organization is therefore a derived approach towards attaining that mission. Organizational level and divisional level planning should be directly related to the strategic plan of the organization (Gates, 2010). Through the module, I came to know the elements of strategic planning and why it is important for the company. These components are: what, future, present, and how. What: It is the explanations of what the companies does as well as what it desires to achieve including its objectives, measures of quantitative performance, and goals. Present: The current environment is defined as the mission of the company, guiding principles, its barriers and strengths. Future: The future of the company is defined by its targets and vision. How: The chosen route to attain the objectives, mission, and goals of the organization is corresponded as strategic goals (Gates, 2010) (See Appendix 1). Critical Success Factors It defines the main performance areas that are necessary for the organization in order to accomplish their mission. It relates to the definite strategy elements, attributes, services or products, competencies, capabilities, resources, and business outcomes which influence the profitability of the organization and its survival in the particular industry. The four main sources of critical success factor are: construction of the company; competitive strategy, geographic location, and industry position; environmental factors; and temporal factors (Gupta, Gollakota & Srinivasan, 2007). By identifying the critical success factor, our company can satisfy and attract new customers and secure financing for growth (See Appendix 2). It will also help our company to avoid wasting resources on the less significant areas. Key Performance Indicator It is defined as a collection of quantifiable measures which an organization uses to compare the performance in order to meet their operational and strategic goals. Key performance indicators are the measured targets for critical success factors (Grabis & Kirikova, 2011). It can be quantitative or qualitative. It should depend upon the company’s strategy and for that intention a suitable method must be used. The key performance indicators can be long as well as short terms. The goals which are of longer terms are broken into operational and tactical targets and they are required to be scrutinized. From the module, I came to learn that the quantitative key performance indicators could be the augmented sales, return on capital employed, profit margins and costs. The qualitative key performance indicators could be the increased market share, labour turnover, customer base, and returns as a percentage of overall sales (Grabis & Kirikova, 2011) (See Appendix 5). Product Life-Cycle The concept of product life cycle has been understood through the help of the module. As our product didn’t draw much profit therefore, it is essential to understand the theory of product life cycle. A product generally passes through four phases during its lifetime. Each phase is dissimilar and therefore requires unique marketing strategies for every stage (See Appendix 3). The four stages are discussed below: Introduction stage: This stage includes introducing a fresh and formerly unknown product to customers. Sales are generally small; the process of production is new, as well as cost reduction by economies of size have not yet been realized. Growth stage: In this phase, sales usually grow rapidly. Buyers are becoming familiar with product and therefore are eager to purchase it. So, the new customers enter the marketplace and previous customers come back at the same time as the repeat buyers. In this phase, the companies are constricted in terms of new technologies and require improvement in the quality and design of product. Cost reduction occurs and margins of profits are usually large. Entry of competitors takes place but little opposition exists as the market is mounting rapidly. Maturity stage: In this phase the technology of one company is well understood by the competitors and the markets turn into saturated one. There is partially differentiation in the products of one another. There is a fall in the rate of growth and as a result efficiency is required in operations in order to keep the cost low. Decline stage: In this phase buyers shift to other products which results in the declining sales therefore companies offers discount on their products and thus it results in price war. The technology becomes obsolete and less emphasis is given on product differentiation. Profit turns down because of declining sales (Hofstrand, 2007). SWOT Analysis A SWOT analysis provides precious input towards mission statement. In this analysis, the important features of a product which may distinguish it from its rivals are identified. By conducting the SWOT analysis of our company, we can gather information about the current as well as probable future situation of the market trends, target markets, latest market position, requirements and needs of the channels of distribution, competitor’s situation, technology analysis, expected trends, and environmental conditions (Mello, 2010) (See Appendix 4). It will help us to know the weaknesses and strengths of our company as well as its challenges and opportunities. Soft Skills Group Working Group working is generally preferred over individual working. Working in groups helped me to develop various skills which are very essential in the proficient world. Positive experience within the group will enable me to contribute to my learning, retention, as well as successful completion of the project. The group projects which are properly structured could reinforce skills which are applicable to both individual and group work. It includes our ability to break complicated assignments into parts; plan as well as manage time; receive and give our feedback on the performance; refine understanding by explanation and discussion; and will also help to develop stronger interaction skills. The projects which are assigned in groups will also help us to develop skills definite to the collaborative efforts thereby allowing us to share different perspectives; tackle more complicated problems; delegate responsibilities and roles. The group members are held liable for any mistakes and can also hold other person responsible for their mistakes. Receiving encouragement and social support towards taking the risk associated with the project can also develop my own opinion in relation to colleagues. Communications Skills A good communication skill is very important in day-to-day life whether it is a university or company. The students, teachers, employees, as well as managers need good communication skill in order to deal with each other. It doesn’t matter whether we are faculty, or student, or supervisor, excellent interaction skills will help us to get our point across concisely and clearly to listener (Frankland, 2007). As a student, if we feel that we can easily interact with our faculties then the communication will motivate us to become more hard working and loyal towards our assignments. Another benefit which I have gained from good communication skill is that there will be an extreme reduction of misunderstandings and mistakes. Effective communication also increases the happiness. When we are working in group then a good communication among the team members enable us to submit the task in time with limited or no error. The successful completion of assignment with the group effort gives us happiness. A good communication skill makes me appealing, help me to connect with more peers and faculties and help to build friendship. Within group, it enables me to keep my point of view in front of my team members as well as also helps me to give a good presentation. It assists me in understanding the concepts which are discussed by the faculties. A good communication skill also provides self control and help to manage the impulsive behavior of the group members. Conflict Resolution Conflict resolution is very essential when working in groups. However, it is a usual and healthy component of relationships. It is not necessary that everybody will agree on same matter when we are working in group. Since conflicts are considered as unavoidable therefore learning to deal with them is very essential for better results. When conflicts are handled in a positive manner, it provides a prospect for growth, eventually strengthening the relationship among the groups. Conflict takes place from difference in opinions among two people when they disagree over the values, perceptions, thoughts, and ideas of other. By working in groups, I came to know that it can be managed by responding and recognizing the important matters of others; a willingness to forgive as well as forget; ability to compromise; and by having a belief that positive statement can maintain the interest as well as needs of everyone. The main rules for avoiding conflict are, remaining calm in the discussion, should express one’s viewpoint in proper words and not in actions, should deal with single issue at one time and avoid accusation. It is also equally important to be a good listener. When doing tasks in a group it is essential to encourage the colleagues to present their opinion. We need to clarify the issues instead of making assumptions and also require validating the other person’s concerns, even if the clarification is indefinable at this point of time. Time Management Time management is very important for the successful completion of task or projects. In order to manage the time, we need to place the most essential assignment at the top, even if the assigned tasks are dreading; we need to deal with them first. It also requires motivating ourselves with the reward if we get by completing the task in time. Sometimes, we can carry our work with ourselves while travelling to manage the time. It requires not to waste time by gossiping but to focus on important matters which are related to task. Time can also be managed by avoiding the conflicts which arises when working in groups. References Frankland, S. (2007). Enhancing Teaching and Learning Through Assessment. Heidelberg: Springer Science & Business Media. Gates, L.P. (2010). Strategic Planning with Critical Success Factors and Future Scenarios: An Integrated Strategic Planning Framework. United States: Carnegie Mellon University. Grabis, J., & Kirikova, M. (2011). Perspectives in Business Information Research. Heidelberg: Springer Science & Business Media. Gupta, V., Gollakota, K., & Srinivasan, R. (2007). Business Policy and Strategic Management. New Delhi: PHI Learning Pvt. Ltd. Hofstrand, D. (2007). Production Life Cycle. Retrieved from http://www.extension.iastate.edu/agdm/wholefarm/pdf/c5-211.pdf. Mello, S. (2010). Customer Centric Product Definition. United States: PDC Professional Publishing. Washington. (2011). Critical success Factors. Retrieved from http://www.washington.edu/research/rapid/resources/toolsTemplates/crit_success_factors.pdf. Appendices Appendix 1 Elements of Strategic Planning (Source: Gates, 2010) Appendix 2 Critical success Factor (Source: Washington, 2011) Appendix 3 Stages of Product Life Cycle (Source: Hofstrand, 2007) Appendix 4 SWOT Matrix (Source: Mello, 2010) Appendix 5 Key Performance Indicators Quantitative Qualitative Augmented Sales Increased Market Share Return on Capital Employed Labour Turnover Profit Margin Customer Base Cost Returns as a percentage of Sales Read More