Question 1;
Businesses have to develop strategic plans which highlight the events and activities that the company should take to increase the revenue and profit of the company (Begenau, 2020). When the business is developing and implementing the strategic plan they must pay attention to the various risk that can cause the failure of implementation of the strategic plan. As the business performance is connected to the performance of the strategic plan, then a proper plan should be made to combat the risk (Gourio, 2012). There are several common risks which occur during implementation of strategic plan, the following are the common risk;
Economic uncertainty– due to chance of the economic slump can cause the business to chance the schedule of implementation. Some event in the economy like recession can cause the demand of the company product to decline thus the implementation can be affected (Gourio, 2012). Thus the company should observe the economic activities and economic situation before they implement the strategy (Begenau, 2020). If the economic situation is weakening then the company should halt the implementation of the strategy.
Competitive factors– the competitive factors change constantly, yet they affect the implementation of the strategy (Khazanchi, 2015). When new competitors enter the market or the competition increase the company often should change the strategy to be implemented of the current strategy to be implemented will not match the competition. To deal with competitors the company may have to change the marketing strategy like pricing, quality or even segmentation of the product.
Delay in completion of the project– sometime in the business avenue, there may be hindrance activities within the organization which can hinder the implementation of the strategy (Mu, 2016). The company should take note of this risk and ensure that the organization department which are to be involved in implementation of the strategy are coordinated. By so doing the company will ensure that the implementation procedure is effectively implemented.
Question 2;
Risk management and mitigation is the process of identification, assessment, prioritization and mitigation of the risk. The efforts of risk management is geared towards reducing effects of risky events (Mu, 2016). The risk management would ensure that the company has implemented the strategy fully to create success to the company. There are strategies which are effective in risk management during development and implementation of the strategic plan (Carter, 2019). They include the following;
Avoidance of the risk- after conducting the survey and identification of the risk, the most important strategies is to avoid the risk. Avoiding the risk would enable the company avoid the repercussion of the risk all together. This can only occur during the planning stage of the strategic management (Martincorena, 2012). Example is a case where the business realizes that there will be a new entrant of the new firms in the market which will increase the competition (Mu, 2016). The business mat change the strategy and adopt one which involves extreme reduction of the price for some time in order to incapacitate new entrant from surviving in the industry with the low price of goods this low revenue and profits.
Reduction of the effect of the risk- during implementation strategy of the strategy, it may be impossible to prevent the risk from occurring. Example when the economic activity or environment change or when the political environment change thus causing effect to the strategy. The company may reduce the effect of the risk. The company may in this case where the political environment has changed may change the strategy of advertisement to one which is politically neutral thus separating the company from the effect of the political environment.
Question 3;
Intellectual properties are becoming vital to protect as the world is paying more attention to ideas. As they intellectual property create more financial worth there is need to place patent on it to avoid the risk of losing the right to the product as being the greatest risk in the intellectual property (Valdivia, 2016). Due to the latest incidents of patent infringement issues, the artist and intellectual property developers have found themselves in a position of protecting what theoretically belong to them. The risk that is presented by the intellectual property can be managed by patent, trademark and copyright which will attach the valuable intellectual property to their right owner (Martincorena, 2012). Example a creative artist who paints a beautiful a million dollar worth of a paint should take patent on the paint so that it will be legally theirs. Additionally when the business develops or entrepreneur develops a new product through a give formula like the coca cola they should take a trade market on the product and the name of the product (Martincorena, 2012). By so doing the individual will prevent another developer from using the name of their product of even produce the product that looks like the product as it belongs to the trademark holder for a given period of time.
Question 4;
SWOT analysis is an integrated part of the company evaluation process which provided an all-round understanding of the company situation (Phadermrod, 2019). This analysis consist of four aspect which include the strength, weakness, opportunity and threat. Each of these component make the analysis unique as follows;
Strength– here the analysis seeks to understand the competitive advantage of the company in the industry which focuses on the operation and strategic plan (Phadermrod, 2019). The understanding of the company strength is important because it enables the company to understand in which manner it can create a competitive advantage.
Weaknesses- this aspect deals with the section where the company has to improve in order to improve its performance in the market. The understanding of the weakness can enable the company understand how they can improve and also select the strategy they can use to improve (Helms, 2015). This components also show the business the issues which can make the company vulnerable
Opportunities- this is the aspect which shows the company the chance the company has to grow and what the company can do in order to grow (Helms, 2015). Understanding the opportunity of the business can show the business the avenues which the business should venture in order to get success.
Threats- the understanding of the treats against the business help the business insulate or prevent the occurrence of the risk (Phadermrod, 2019). When conducting the analysis the study should seek to understand the threats which face the business and how they can be mitigated. This understanding could prevent loss of resources.
Question 5;
Strength question– which company asset is strongest, or the most unique thing about the company or what makes the company better than the competitor.
Weakness- what does the company need to improve, things to avoid or what part of the business is the business performing poorly.
Opportunity– what are the current ongoing trend will affect the business positively which opportunity within the business or the market has the business not taken advantage off.
Threat– what aspect in the business or the market could affect the normal performance of the company both external and internal forces of the business.
Question 6;
PESTLE analysis is one of the strategic planning method whose purpose is reducing the threat though understanding of the political, economic, social technological, legal and environmental factors which enables the firm gain an economic advantage (Nandonde, 2019). The following are some of the advantages a firm will gain during strategic process when they conduct the PESTLE.
Through pestle analysis the firm can gain understanding of the factor which affect the business and which could effect the implementation or success of the strategic plan (Achinas, 2019). Example through PESTLE analysis the business could understand the political factors and those which affect the implementation of a strategy. With this understanding the business would develop strategy which will fit the political environment or any other factor (Nandonde, 2019). Secondly PESTLE analysis enables the business to observe the opportunity which could be utilized to give the business a competitive advantage.
Question 7;
Political question- what are the trading policies which will impact the business?
Economic question– to what extent does the globalization affect the business, how stable is the economy of the market?
Social questions- who is the target market, how is the customer preference changing towards the product?
Technological questions– how does the technology affect day to day operation of the business? How can the business improve the technology use to keep ahead of the competitors?
Question 8;
The business often seek the information it needs about the market, competitors and the customers through internal sources. This is the information which is generated from the internal operation in the company (Figurska, 2014). The information is through;
Financial statement of the business– this include the balance sheet, the statement of financial position and balance sheet. This document show the performance of the business for the past years which can signify growth of failure.
Sales information and market figures- this is the information within a given amount of time in a location. It shows if the business is developing in these region or is losing to their competitors.
Generally the financial document can show the performance of business as well as the performance of the business around them, it can show the customer base, the demand of the product in the market and this the books of accounts are an important source of internal information (Kyriakopoulos, 2017).
Question 9;
The external sources of information are the sources away from the business. This occurs when the business wants to compare its performance with that of the competitors (West, 2016). The business can compare and contrast the trend in the sector or the competitors to using the business journals, conference and annual report of the business (West, 2016). The business can also seek professional comment on the report from agency or even attend seminars.
Through understanding the performance of the business the business can develop a counter measure which should be effective in giving the business a competitive advantage. The other sources the business can source external information about completing business while developing strategic plan include through workshop and strategic analysis report (Carter, 2019). Other sources include the stock market should show the business the average performance of the business by the values of their stock in the stock exchange.
Question 10;
When developing the company values it is effective for the business to understand that the values ought to give the employee a feeling of credibility and reliability which should motivate them (Gehman, 2016). The values should also foster cultural diversity and openness among the employee which will facilitate the business achieving their objective (Begenau, 2020). The business should thus develop values which stand for the business and those which will guide the employee on the activity, the cultural the integration and the inter action which will exist between company employee between employee and clients.