Business Strategy - Strategic Planning Process - Essay Example

BUSINESS STRATEGY - STRATEGIC PLANNING PROCESS A Report on Approaches to Strategy Formulation and Implementation For North East Surrey Collegeof Technology [NESCOT] By: Report analysing the approaches to strategy formulation and implementation for the management of North East Surrey College of Technology [NESCOT] [1]Terms of Reference: [a]To conduct an environmental and internal audit of a given organization [b]To develop an organizational strategy based on the audit [c]Compare the roles and responsibilities for strategy implementation in two different organisations [d]Identify and evaluate resource requirements to implement a new strategy for a given organisation [e]Propose targets and time-scales for achievement in a given organisation to monitor a given strategy [2]External and internal Audit of NESCOT [2.1]Research conducted on NESCOT externally, reveals the following: As a college of technology whose prime duty is to churn out highly qualified and skilled individuals into the labour market to meet the demands of various industries, working in various capacities, Nescot needs to brace up to the challenges present to it in the Information Technology and Communication based industries. Investigation reveals that no other industry is as in need of Nescot's services than the Information Technology and Communications [ITC] sector. The reason for this scenario is not far-fetched - most industries are information technology driven, hence the high demand for graduates in this field. There is a scramble for IT oriented graduates in the IT labour market, to the extent that demand outstrips supply. This scenario has led to the following problems that need to be addressed urgently: [1]Inflated salaries: Only financially powerful ITC companies are able to employ and retain the relatively few skilled workers in the IT labour market [2]Increasing staff turnover: this is as a result of poaching of skilled IT oriented workers from the smaller ITC companies by bigger ones [3]Higher operation cost by the ITC companies [4]Lower profit margin due to high wage rates [5]Importation of expatriate labour as a temporary measure to cushion the effect of shortage of skilled workers, but at a high cost The ITC companies look to colleges of technology such as Nescot to produce graduates with skills to handle additional areas such as internet based services, e-business with proficiency in design, content, multimedia and technical skills. It is feared that if the trend is left as it is now, in a matter of two to three years, there will be a loss in GDP of about $200 billion and a further $100 billion in unpaid wages. As revealed by external investigation, it is an undebatable fact that human resource is a critical factor in ITC development policies. Lack of highly qualified staff constitutes a great set back to telecom development and quality service. For Nescot to play her role in filling the vacuum of the shortage of skills in the ITC industry, the following important factors have to be looked into, i.e. finding out the strengths and weaknesses of NESCOT on the one hand and the opportunities and threats before her: STRENGTHS The strengths of NESCOT include its ability to introduce a new management to bring life into the school administration. This is a step in the right direction. It will most certainly rekindle the interest of its customers. Another strength is the ability of NESCOT to diversify to areas where they can better utilize their expertise to re-establish themselves in the market. [In this case, the Information Technology expertise, etc]. It is good for them to seize the opportunity offered in the Information/Communications Industry. They should take advantage of the availability of good materials at their disposal in the form of good workforce to put them back on track. This will enable them to regain the lost ground and forge ahead in the ICT market. Further is their seeming ability and the availability of facilities to produce ICT professionals from the school and supply the ready customers who are waiting in the ICT labour market. WEAKNESSES A major weakness is the poor attention given to their customers by their employees and management. Workers need to brace up to the challenge of winning back the loyalty of their customers and regain market. The poor communication link is another weakness. The gap should be bridged by creating various fora by which customers' voices and views can be heard and assessed for necessary and appropriate actions. Another weakness in NESCOT is their poor listening ability. The management obviously has not been listening enough to the customers and no doubt, their grievances have equally been ignored. It is a minus that should be addressed promptly if market must be regained. The attitude of staff should be addressed with a view to improving the cold relationship between them and their customers/the public. The already lost market share is a weakness that should be addressed through various campaigns, adverts, promotions and trade shows. A sort of image laundering campaign. Loss of profit is already a major minus. This can be turned around if quality effort can be made via diversification strategy. This will take a look at the product which has the potential to perform well in the market and win good patronage and promote it more, which in this case if the Information Technology market. OPPORTUNITIES There is still a good market open to be exploited. Most organizations are IT dependence and would rely on organisations such as NESCOT to supply them good products in the form of quality graduates and professionals to fill their manpower needs sooner or later. Presently, there is a shortage of manpower in this industry. NESCOT can exploit this opportunity and roll out a programme on a short/long term bases. Apart from the need for fresh graduates, organisations need in-house trainers to update the knowledge of their staff and managers on information technology. THREATS Competition is a major threat NESCOT is going to face. Some other organizations in the same field as NESCOT are sufficiently funded to take advantage of the opportunities in the ICT industry. Obsolete technology and old facilities could be some sort of weakness if not refurbished or replaced with new ones. All this depends on the availability of finance which more often than not is not easy to come by. SWOT ANALYSIS STRENGTH New management on hand Readiness to effect changes Possibility of securing finance for expansion programme Ability to diversify Good workforce Ability to supply the market with needed goods/services within a given period of time WEAKNESS Poor attention to customers Lack of communication/information with customers Poor attitude on the part of staff and management toward customers Competition take advantage of customers' dissatisfaction and seize market Poor sales Loss in profit OPPORTUNITIES A big market still open to be exploited in the ICT industry More people ready to learn ICT from NESCOT Many ICT companies in need of ICT trainers THREATS Competitors having an edge over NESCOT with better services Business likely to fail if nothing is done in time to regain market Obsolete technology Matching and overtaking competitors will be difficult STRATEGY NESCOT should draw up the following plan of action to be followed within the given period of time, say 4 years. This includes: [1] The construction of a second campus to allow the intake of additional 100 IT oriented students. [2] Provision and installation of machinery, equipment and a state-of-the-art IT training workshop for both practical and theoretical training in information technology. [3] Make a feasible and measurable projection of what quantity of your products/services that your installed capacity should be able to churn out in a given period of time from the date your additional campus is commissioned. [4] Let your programme accommodate the immediate needs of existing companies requiring in-house IT-training for their staff and managers, pending the time fresh IT professionals would start to graduate from NESCOT. [5] Set out to do awareness campaign, using various available media; viz. TV, radio, the internet and print and present your package to the target audience. Follow programme religiously to its logical conclusion by NESCOT by ensuring that the set target of 4 years is achieved by supplying the qualified IT professionals to meet the needs of the industry needing them. Reference: [1] Financial Standard [2] The Manager's Intelligence [3] Mind Tools Read More