Strategic Planning and Control - How to Plan for the Future of a Business - Assignment Example

School: Topic: Reflective Learning Log Lecturer: Contents Learning ment 2 Introduction 2 What I have learned 3 How learning took place 5 Use of theory in practice 5 Reason for choosing approach used in solving problem 7 Impact of the team on my learning 7 What I will do differently next time 8 Future application of learning 9 Conclusion 10 Appendices 11 Appendix A 11 Appendix B 13 Appendix C 16 Appendix D 17 Appendix E 17 Appendix F 18 Appendix G 18 Appendix H 19 Action Plan for Future Development 20 References 24 Learning Statement Introduction The strategic planning and control (SPAC) module was started with the aim of deriving four major learning outcomes. The first had to do with the preparation long term plan based on the planning and control cycle. The second learning outcome was to apply and use the concepts and principles of corporate strategy. There was also the learning outcome of applying advanced techniques of accounting and finance within a realistic professional context. Finally, the module had a learning outcome aimed at developing the ability of conducting market based research based on externally sourced information. In this learning statement, the amount of learning and how learning took place, as well resolutions for the future are presented based on the technical components of the module as well as the soft skills components of the model. The learning statement also contains information on how my entire learning experience has been shaped by the module. What I have learned The module has been very useful in developing three major professional and technical learning experiences in me. The first of this has to do with learning on how to plan for the future of a business based on the preparation of both mission statement and vision statement. I have come to learn that the future of any business is directly related to the extent to which managers and other leaders are able to clearly identify where they want the business to be and what they want to see from it (Blewitt, 2008). I have gained the skill of writing mission and vision statements aimed to achieve such long term planning outcomes for any business. This learning was largely acquired as I acquainted myself with what other global companies have by way of mission and vision statements. The second technical area of learning that I have acquired has to do with how to use different business models in undertaking both internal and external analysis of a business. This learning experience was gained as I had to internally analyse the position of Mobile Inc. Through the search of literature, I came to gain the understanding that using a SWOT analysis helps in giving the best internal position of a company in relation to the goals that the company sets for its. Using Porter’s five forces and or PEST analysis also helps to have a vivid overview of the external position of the company. Soederbaum (2008) stressed that the use of business models in analysing a business helps to identify the best ways to strategically place the business to bring about growth. There has also been tremendous amount of learning in terms of how to forecast the financial position of a business. More specifically, I have come to learn that undertaking financial forecasting gets more accurate and better when it is done in such a way that appreciates the past performance of the company and relates the past performance to existing market performance (Dugarova, et al., 2014). I have also come to learn about how to use forecasting ratios to make major financial predictions for a company. Some of the major ratios that I have come to learn their use includes market capitalisation, share outstanding, price to earnings ratio, and cumulative total shareholder return. Based on these forecasted ratios, it is possible to strategically plan for the organisation in order to ensure that areas of financial outcomes that are forecasted to be low can be improved. How learning took place The learning gained above came about as a result of two major practical approaches to research. The first has to do with primary research, where I personally engaged people in the finance and accounting industry in different forms of data collection, including the use of interview and observation. Playing the simulation or business game also ensured that I was able to come up close with practical ways in which businesses can be planned for their future growth. I major advantage with learning that was acquired through primary research was that data and information were obtained at first hand and so could be personally authenticated for accuracy (Clifford & Clark, 2004). The second form of learning was acquired through secondary research where I consulted as many literature sources as possible. Some of the sources were books, journals, websites, and magazines. The secondary research helped in coming into contact with very important business information, records and statistics that would otherwise had been difficult to collect directly from companies (Blaxter, Hughes & Tight, 2001). Use of theory in practice There were a number of theories that were reviewed ahead of the practical application of strategic planning and control through the simulation. One of the most crucial theories that were applied was Porter’s generic strategies, which was very useful in selecting a strategic option for Mobile Inc. This theory was very useful in helping me gain detailed understanding of how to respond to different types of markets. This is because the simulation helped in identifying the fact that there are different types of markets, each of which have their own business dynamics. For example, issues of currency, population growth and taxes are business dynamics that are different with each of the markets presented during the simulation (Dugarova, et al., 2014). The Porter’s generic strategies therefore helped in understanding how different markets can be responded to with the use of the three strategic options. During the simulation the theory was the basis on which the cost leadership strategic option was selected for the Asian market and differentiation strategic option was selected for the US and European markets. It was noted from the theory that in such a market as the Asian market where there is very large population with most of the people within the population belonging to the middle and lower class, using cost leadership ensures that as many customers as possible can be targeted to afford the products of the company. In the US and Europe, there is no denying the fact that there is a very large population (Teece & Augier, 2014). The cost leadership would however fail to work because of a consumer purchasing behaviour which sees cheaper mobile phones as less inferior phones. Using differentiation thus ensures that there can be value added to the phone produced to ensure that they become appealing to the demands of consumers (Pearce, 2012). Reason for choosing approach used in solving problem It has already been noted that most of forms of learning that took place came through the combination of primary research and secondary research. The same approaches were adopted in solving the problem of planning and strategically controlling the future of Mobile Inc. There were a number of reasons that this combined approach was taken. Particularly, the combined approach of primary research and secondary research was found to be a means by which different forms and scope of data could be collected. For example it was through secondary research that most theories that were used in solving the problem were identified. Using primary research also ensured that a practical understanding would be gained about consumer purchasing behaviour (Gerrish & Lacey, 2013). Once the understanding was gained, it was possible to apply theories in meeting the different customer needs that were sampled. Impact of the team on my learning There were several soft skills that were gained as a result of being in a team and actively involving myself in the team’s work. For example I could clearly see that being part of the team accounted for the development of some personal skills which otherwise were lacking for me as a person. Two of these personal skills that I can cite are communication skills and interpersonal relations. Indeed as part of being in the team, I was expected to interact with other members and openly express my thoughts, understanding and opinion of the problem we were all aiming to solve. This way, not only did I develop my oral skills through speaking but also developed very good listening skill, which is a receptive communication skill (Sørensen, 2012). Before then, I hardly valued the power of listening, thinking that it was always important for me to get my points across. Today, I have come to appreciate that the best way to be useful to other people is by dedicating time to listen to what they have to say. Also as part of soft skills development, being part of the team ensured that I gained very important professional working skills which were otherwise lacking. Two such professional working skills are time management and conflict resolution. As a group, we were expected to always schedule meeting times that would be favourable for us all. We all came to appreciate the fact that we could not get a single time that would be suitable for all of us at the same time and so we needed to make little sacrifices. This forced me to mostly plan and manage my time in such a way that I would not miss meetings. Again, I happened to play an oversight role as with conflict resolution among the group. Based on the concept of transfer of learning, I am very confident that the experience gained as being a member of the team will be easily transferred to the real world work scenario to make me a better team player (Adams & Jeanrenaud, 2008). What I will do differently next time The marks allocated to the coursework that was done and the feedback produced with the marking process helps me to identify areas of strength and weakness. Based on these areas of strength and weaknesses also, I am able to identify things that I must do differently the next time round. The first thing that has to do done differently is the need to use more evidence whenever describing the application of a model to a practical situation. For example I had use the SWOT analysis to find the current internal position of Mobile Inc. However, this was not backed with much evidence from the simulation, which served as the major source of primary research. The same situation of lack of evidence was seen when giving the advantages and disadvantages of alternative strategies based on the Porter’s generic strategies. As the simulation served as the basis for primary data collection, it would have been necessary in inculcate more ideas from the simulation to justify the positions I took. The second thing I would do differently is my practical involvement in the group. Even though I learned a lot from the group, I believe the outcome of the group coursework would have been better if I expressed myself more openly. This is therefore a change I will be looking forward to in the future. Future application of learning There have been two major types of learning that has taken place. These are professional learning through the development of technical skills, and personal learning through the development of soft skills. Each of these forms of learning will be applied in detail when I take any executive or managerial position in the future. As a business executive, I shall ensure that nothing happens to my outfit by accident. Rather, there will constantly be the planning and controlling of the strategies that should determine how the company should move. When this is done, it will always be easier to determine whether or not the company is on track with the achievement of its aims. What is more, as a business executive, I shall need to relate well with people and be an active communicator. But for this to happen, it will be important to transfer the personal learning that took place so that I will become more effective and useful for the people who will serve under me. Conclusion In conclusion, it would be stated that the module has been very useful in helping me develop both professional and personal skills that will be useful in making me a better executive to manage and plan for any business I am given charge of after school. This is because most forms of fear that I had with strategic planning and control have been overcome. By appreciating that the group in which I belonged was influential in helping me develop the professional and personal skills I have currently acquired, I shall continue to work as a team player even after settling as a fulltime executive. This will be useful in ensuring that I can continue learning from others as others learn from me. Appendices The appendix contains evidence of the learning that took place in the course of the module and how the learning came about. There are 8 appendixes for three areas of evidence which are technology skill, advantages and disadvantages of alternative strategies, and what would be done differently. Part I: The technology skill Appendix A Group brainstorming on how to develop technology skill for the module After the group was formed, we engaged in a brainstorming exercise to find the best means by which we could develop our technology skills. Below are some of the suggestions that came out. i. We should have a weekly technology meeting where we learn how to use different software to undertake market feasibility ii. We should develop an online survey for collecting data from virtual respondents iii. We should develop our own stimulation market to find the effect of different market outcomes on Mobile Inc. iv. We should employ a resource person to take us through technology and internet competences skills v. We should form sub-groups where those with enough knowledge on technology will take responsibility for technology skills Later, we voted on the suggestions that were outlined and decided to select the option of developing an online survey where we would engage virtual respondents in a data collection exercise to learn about their buyer behaviour. Appendix B Learning Log Following the resolution to undertake an online survey, a learning log was developed to be used in improving my learning in this area. The learning log has been produced below. Date of learning What am I to achieve? How learning is expected to be acquire What I learned at the end of the day Application of the learning 15-09-2014 Competency on developing a questionnaire In order to develop a questionnaire, it was important to know all the issues that needed to be achieved with the market feasibility and frame these into questions. Development of close ended questionnaire Knowledge was applied as part of market research for Mobile Inc. 15-10-2014 Competency on how to identify the right virtual sample to use A sample size is appropriate if it has the expertise, knowledge and idea about an area that the research is being conducted. Using random sampling technique to form a sample size Knowledge was applied as part of market research for Mobile Inc. 30-10-2014 Competency in the effective delivery of online survey Clarity in the explanation of the rationale for the test and provision of feedback to respondents is effective for effective delivery of the online survey How to approach respondents and deliver survey in a manner that they understand well Knowledge was applied as part of market research for Mobile Inc. 15-11-2014 Competency on how to collect and analyse data from online survey Collection and analysis of data will be most effective when data collected is related to existing literature in the subject area Undertaking data analysis Knowledge was applied as part of market research for Mobile Inc. 3-12-2014 Competency on how to use data collected for decision making Decision making will be very effective if it is done in a group rather than individually Leading team to make decisions from analysed data Knowledge was applied as part of market research for Mobile Inc. Part II Advantages and disadvantages of alternative options Appendix C Feedback from supervisor After the group had presented its coursework, the supervisor marked it with a vivid and detailed feedback on areas we did well and where we did not do well. Part of the feedback was on advantages and disadvantages of alternative options. Below is the detailed feedback from the supervisor. Appendix D Peer 1 evaluation on the feedback After the feedback was received, two subgroups were set within the team to suggest ways in which we can best improve on our learning about the advantages and disadvantages of alternative strategies. The evaluation from Peer 1 is quoted below. “We found that the major weakness with the advantage and disadvantages we presented was the fact that we did not make enough reference to scholarly theories. Even though our focus on Porter’s strategic options was good enough, we needed to integrate this with what other theorists have done so as to know how well each alternative we selected fits into the premise of the study. We recommend that we could have used other strategies such as Bowman’s strategic clock to argue our point alongside what Porter gave. This would have rendered us much credibility with the arguments we were making for the alternative selected. Another problem was that we did not incorporate enough real world examples to justify why and how the alternatives worked and why and how they did not. We could have used several examples with other companies to depict how they adopted the various alternatives we suggested and the outcomes that they received from the application of the alternatives. Doing this would have ensured that we had a form of backing for the arguments we were making.” Appendix E Peer 2 Evaluation on feedback The second group that was set also had their own observations about the advantages and disadvantages we wrote about and produced the evaluation statement below. “Our group’s work was generally filled with a lot of information but we could have scored higher marks on the advantages and disadvantages with the alternative strategies if we made a number of observations. First, we could have related the alternatives to the three markets in a better categorised manner. For example as there were three main alternatives suggested by the group, we could have assigned one of them to each of the three markets and comprehensively explained factors and reasons that may account for the success or failure of the alternative in line with the market selected. Secondly, our group was too much focused on the company assigned to us, which was Mobile Inc. Because of this, we failed to use enough examples from other companies to justify why and how the alternatives have been used before. If we had used enough examples from other companies, we could have clearly aligned the advantages and disadvantages those companies suffered to ours.” Part III What we will do differently After the whole team work was done, a group based evaluation was done to find areas where we needed change and how the change could be realised. Appendix F Identified areas for improvement Some of the areas that were identified to be improved are listed below i. Time consciousness among group workers ii. Assigning roles to each group member to ensure active participation by members iii. Using enough sources of literature to back our group work iv. Basing our arguments on theories and models v. Engaging in field data collection as much as online survey vi. Having sufficient consultation with experts in the area of study vii. Engaging in periodic evaluation of the team’s progress and performance Appendix G Overall group resolution An official resolution was prepared by the group and has been presented below “Into the future, we will ensure that the output of work becomes more promising than the one that was produced now. To achieve this, a lot needs to be done and changed. In the first place, it will be important to have a lot of engagement from group members because some members were found to be reserved on some issues brought up for discussion. Should all these people have brought their expertise, the outcome would have been better. It is also expected that personal learning will be done by the members. This is because it was observed that it was at group meetings that learning was done by most members. This made it difficult to make the group work insightful. It is therefore being resolved that there will be an overall change towards knowledge acquisition in the future.” Appendix H Selected learning guides These are references that were identified as being relevant for future improvement in the area of marketing and financial planning. 1. Sørensen, H. E. (2012). Business Development: A Market-Oriented Perspective. New York: John Wiley & Sons. 2. Teece D. & Augier M. (2014). “Business Development”, Palgrave Encyclopedia of Strategic Management. Vol. 34 No. 3, pp. 34-53 3. Pearce, J.M. (2012). "The Case for Open Source Appropriate Technology”, Environment, Development and Sustainability, 14, pp. 425-431 4. Adams, W. M. and Jeanrenaud, S. J. (2008). Transition to Sustainability: Towards a Humane and Diverse World. Gland. Switzerland: IUCN. 5. Blewitt, J. (2008). Understanding Sustainable Development. London: Earthscan. 6. Soederbaum, P. (2008). Understanding Sustainability Economics. London: Earthscan. 7. Dugarova, E. et al. (2014). Social Drivers of Sustainable Development. Geneva: UNRISD, 8. Frost, Tony S. (2001), "The Geographic Sources of Foreign Subsidiaries Innovations," Strategic Management Journal, 22, 101-23. 9. Geiger, Scott W. and Luke H. Cashen (2002), "A Multidimensional Examination of Slack and its Impact on Innovation," Journal of Managerial Issues, 14 (Spring), 68-84. 10. Geroski, Paul, Steve Machin, and John van Reenen (1993), “The Profitability of Innovating Firms,” RAND Journal of Economics, 24(2), 198-211. 11. Gerwin, Donald and Nicholas J. Barrowman (2002), “An Evaluation of Research on Integrated Product Development,” Management Science, 48(7), 938-953. 12. Gilson, Lucy L. and Christina E. Shalley (2004), “A Little Creativity Goes a Long Way: An Examination of Teams’ Engagement in Creative Processes,” Journal of Management, 30(4), 453-470. Action Plan for Future Development Aim: The aim of the action plan is to successfully market the products of Mobile Inc in Asia, USA and Europe Rationale: The action plan is necessary in serving as a guide as to exactly what needs to be achieved by specific time frames if Mobile Inc can successfully penetrate and gain brand equity within the three major identified markets. The action plan also outlines the resources that will be needed in realising the aim set as well as any possible challenges that may be faced, and how these can be mitigated. Objectives: To build a working relationship that is accommodating enough to promote cross-functional team To undertake effective feasibility study to know the possibilities of succeeding in each of the identified markets To gain financial planning control for Mobile Inc for the period ahead in entering the three markets To ascertain the effectiveness and success of Mobile Inc’s entry into the three identified markets. Outcome: I am expected to strategically position Mobile Inc within the three named markets to ensure that the company becomes a competitive force. Specific Tasks What I am expected to achieve Roles What I need to do to achieve the task Timeline By When? (Day/Month/ Year) Resources/Approval A. Available/approval Resources B. Resources/approval Needed Possible Risk A. What could hinder the success of the task? B. How will the risk be mitigated? Task 1: Create a cross-functional team Identify a group of experts who have different skills and competences that need to be brought together to successfully market the products 15/5/2015 A. a work group made up of people with different marketing related expertise B. Learning materials on how to form and maintain a cross functional team A. Apathy on the part of team members B. Roles will be assigned to all team members to ensure effective participation from all Task 2: Undertake comprehensive market research Engage market stakeholders in a data collection exercise which makes it possible to understand the buyer behaviour and dynamics on the three markets 25/6/2015 A. Knowledge on how to prepare a survey questionnaire B. Consent from targeted respondents A. Lack of willingness on the part of targeted respondents to be part of the market research B. Several groups will be targeted so that contingency sample can be fallen on and used accordingly. Task 3: Create a strategic financial plan for Mobile Inc. Use past and present financial data of identified organisations to quantitatively forecast the financial health of such an organisation. This is later to be translated into a financial plan for Mobile Inc. 3/8/2015 A. Financial data of social and occupational groups B. Financial forecasting software; academic literature on financial forecasting A. Issues with data privacy may prevent targeted organisations from making the me access their financial data B. A promise will be made to use the financial data only on anonymous basis Task 4: Undertake a market presence assessment Use various performance indicators to critically assess the performance of a targeted organisation and later translate this to Mobile Inc. 13/9/2015 A. Existing social and occupational group B. Software on key performance indicators; academic literature on key performance indicators A. There may be lack of cooperation among stakeholders of organisation to be assessed B. A non-participatory assessment method such as qualitative assessment may be used Deliverable: A 5 year strategic marketing plan for Mobile Inc. References Adams, W. M. & Jeanrenaud, S. J. (2008). Transition to Sustainability: Towards a Humane and Diverse World. Gland. Switzerland: IUCN. Blaxter L., Hughes C., & Tight M. (2001). How to research. 2nd edition. Buckingham: Open University Press. Blewitt, J. (2008). Understanding Sustainable Development. London: Earthscan. Clifford C. & Clark J. (2004). Getting research into practice. Churchill Livingstone, London. Dugarova, E. et al. (2014). Social Drivers of Sustainable Development. Geneva: UNRISD. Gerrish, K and Lacey, A. (2013). The Research Process in Academic Research. Wiley. Kindle Edition. Pearce, J.M. (2012). "The Case for Open Source Appropriate Technology”, Environment, Development and Sustainability, 14, pp. 425-431 Soederbaum, P. (2008). Understanding Sustainability Economics. London: Earthscan. Sørensen, H. E. (2012). Business Development: A Market-Oriented Perspective. New York: John Wiley & Sons. Teece D. & Augier M. (2014). “Business Development”, Palgrave Encyclopedia of Strategic Management. Vol. 34 No. 3, pp. 34-53 Read More