BSBMGT616 Develop and Implement Strategic Plans

BSBMGT616

DEVELOP AND IMPLEMENT STRATEGIC PLANS

Assessment 1: Written Questions

1. Give three examples of risks that should be considered in developing and implementing strategic plans.

Delays in Project Completion

Implementation of a strategy may require the completion of a series of steps by different departments within your organization. If one department can’t complete its assigned projects on schedule, implementation of the strategy will be delayed. For example, you may plan to launch a new product in the upcoming year, but if delays in product design or prototype testing occur, your strategic implementation will also be delayed.

Higher Implementation Cost than Forecast

During the planning process, you and your staff will prepare a marketing budget that shows the cost of implementing your chosen strategies. Particularly with strategies the company hasn’t employed in the past, precisely calculating the costs can be difficult. As the strategy is rolled out, you may see that the costs are higher than forecast, requiring difficult decisions to be made on where costs could be reduced in order to keep the company on track toward reaching its profit goals.

Government Regulation

New government regulations can make it more difficult for a small business to implement its strategies. For example, a more restrictive zoning policy by a municipality may prevent you from opening the additional location you planned.

2. Give two examples of risk management strategies that can be used when developing and implementing strategic plans.

Make a Plan

There are a few essential items to include in a risk management plan, however. Here they are:

• a list of individual risks
• a rating of each risk based on likelihood and impact
• an assessment of current controls
• a plan of action

For example, “Key client XYZ Corp is late paying its invoice.” Maybe you are already controlling for that risk by having automated reminders sent out when the invoice is close to its due date, and having one of your staff members responsible for following up personally with phone calls and emails. You’d list those as existing controls on your risk management plan.

Decide How to Handle Each Risk

In the world of risk management, there are four main strategies:

• Avoid it.
• Reduce it.
• Transfer it.
• Accept it.

3. Give an example of a risk management strategy that can be used to manage intellectual property risks inherent in strategic planning.

 Develop and have in place rapid response procedures to mitigate risk when theft or abuse of intellectual property occurs.

These are procedures that call for a change in culture, a transformation as profound as the shift to a customer-oriented culture that many organizations went through in the previous decade. It is an orientation to alertness, protection and swift action. The commitment to make it happen, like all leading-edge organizational changes, has to come from the top. If you are a director, it is more than a commitment. It is an obligation to shareholders.

4. Outline the benefit of conducting a SWOT analysis as part of a strategic planning process and how a SWOT analysis is conducted.

The main advantages of conducting a SWOT analysis is that it has little or no cost - anyone who understands your business can perform a SWOT analysis. You can also use a SWOT analysis when you don't have much time to address a complex situation. This means that you can take steps towards improving your business without the expense of an external consultant or business adviser.

To work out if something is an internal or external factor, ask yourself if it would exist even if your business didn't. If it would, then it's an external factor (e.g. new technology).

Use the following 8 steps to conduct a SWOT analysis.

1. Decide on the objective of your SWOT analysis
2. Research your business, industry and market
3. List your business's strengths
4. List your business's weaknesses
5. List potential opportunities for your business
6. List potential threats to your business
7. Establish priorities from the SWOT
8. Develop a strategy to address issues in the SWOT

5. Outline four examples of questions that could be used when conducting a SWOT analysis.

What are your assets?

Do you have experience in this task (mission) before?

What areas do your competitors have an advantage on?

What are the negative aspects in the current market?

6. Outline the benefit of conducting a PESTLE analysis as part of a strategic planning process and how a PESTLE analysis is conducted.

Importance of PEST Analysis in Strategic Planning

• It informs about both internal and external factors that affect a firm’s failure and success
• It gives an overview of the business’ current position
• It forecasts future and sheds light on current situation
• Evaluates business environment and allows firms to make strategic decisions
• Provide companies with a reality check of their performance and loopholes
• Enables firms to understand the economy and market and expand
• Provides a mechanism to identify threats and opportunities
• Enables companies to learn markets and enter new markets, nationally or globally
• Prevents future failures and creates a system of continuous success
• It helps firms assess the report and take countermeasures for improvement and to analyse threats.

1. Know the Categories

The first step in conducting a PESTLE analysis is understanding the PESTLE model itself — in particular, the six categories. The six broad categories of business variables that PESTLE analysis draws from are:

• Political
• Economic
• Sociocultural
• Technological
• Legal
• Environmental

2. Do the Research

Once you’re familiar with the six categories of PESTLE analysis, the next step is to start doing your research. If you’re new to business analysis, this can be a lot more difficult than it sounds.

3. Put It All Together

Once you’ve sourced your information, the only thing left is to put all the pieces together

7. Outline four examples of questions that could be used when conducting a PESTLE analysis.

What key influences are affecting people’s attitudes and behaviour in ways that might affect my organisation or sector?

Are there trends discernible in particular groups that have implications for my organisation or sector?

What changes are likely in the political priorities of government at regional, national and European levels?

Will any changing technologies have an impact on political or economic events with implications for my organisation or sector?

8. List two internal sources of information that a business could use to find out about its market, competitors, customer base, vision, values and capabilities.

Sales

Internal data is gathered from the sales department to determine revenue, profit, and the bottom line. Understanding these numbers gives a business the opportunity to maximize them. It also provides reasoning to place more focus on particular areas or cut them out altogether. The numbers can be broken down further by analysing each distribution channel, price point, geographic area, customer type, and salesperson.

Finance

The finance department should be supplying internal data in the form of cash flow reports, production reports, and a budget variance analysis. A cash flow report shows the amount of cash generated and used within a certain period. A production report shows the cost incurred by the company to produce a product or service. The cost includes raw material and labour. 

9. List two external sources of information that a business could use to find out about its market, competitors, customer base, vision, values and capabilities.

TELEVISION AND RADIO MEDIA 

This source of business information is perhaps the least helpful of the various external sources available to small business owners. Programs devoted to general investment strategies and the changing fortunes of large companies can be found, of course, but the broad-based nature of broadcasting makes it difficult, if not impossible, to launch programs aimed at narrow niche audiences (like dental instrument manufacturers or accounting firms, for example).

ONLINE INFORMATION 

The phenomenon of online information is burgeoning as much as computers are themselves. "The power of the computer to store, organize and disseminate vast amounts of information has truly revolutionized business publishing," noted Lavin. "Large online systems can help overcome the incredible fragmentation of published information.

10. Explain the purpose of developing organisational values and two techniques that could be used to identify values as part of the strategic planning process.

The main purpose of developing organisational values is for the employees. Each and every employee of the organisation must know these values to help them identify with and connect to targeted consumers, as well as to remind employees about its priorities and goals.

Techniques to identify values are as follows:

Project brief and plan. In consultation with senior team members, we outlined our objective, or why we were doing this: “Why? To clarify and update what Recruiting Social stands for and what we want to accomplish, so we can hold ourselves accountable internally (as a company, as teams, and as individual team members) and externally (to our clients, candidates, vendors, partner companies, stakeholders, followers, and the broader public.” Then, we listed out the steps we’d take to accomplish the objective, and scoped out how much time it would take and who would need to be involved.

Discovery. The first and largest step involved research. We performed 15-minute interviews with every member of our small team, plus two clients. Interviewees were asked to identify attributes of our team and workplace and share examples of how they experienced them. Once interviews were completed, we held a 45-minute team workshop to collaboratively explore the insights uncovered in the one-on-one conversations.

Assessment Task 2: Organisational vision and mission project

1. Prepare for meeting with team.

Introduction

In this assignment analyst has discussed case study of Native bush spices which manufactures and retails a range of organic, Australian native foods including:

• Native herbs and spices
• Native herbal teas
• Native fruit jams and conserves

In Australia. Company is planning to expand its business by entering into International markets of selling and distributing herbs and spices mainly in South-East Asia – specifically Hong Kong, Japan and Singapore.

The company mission and vision set for the period of time is to enhance the sales into particular segment. The profit of the organisation will allow to the stakeholders of the organisation to invest and all communities in which Native bush spices operate to prosper. According to the analysis of product offered current competitions and rivalry position of business is to be analysed in review of current market segment positioning of business. 

2. Meet with the management team (your assessor)

Discussion Held During Meeting

To reach over the management team and also to be able to analyse how there can be the strategic goals, objectives and the performance indicators has to be attributed to the ideas of the cooperative ventures would be beneficial to easily enter into the market and also be able to control the market. Even taking as a back seat, would still be able to capture the market.

Native Bush Spices is an Australian native products business based in Coffs Harbour. To enhance the business Native Bush Spices, need to make the strategic planning and implement it.

Vision and Mission: The vision and mission of Native Bush Spices is to promote its business for a long time. It is working on older strategy and wants to see itself in a large business all over the world. For implementing its strategies, the Operational Manager of the Native Bush Spices present the annual report of previous year in board of meeting and the revert has come from Chair Board that is Native Bush Spices will be going in a right direction. Chair Board is assuming that Native Bush Spices will be the know company within 5years by providing good facilities to its customer and it will be integrated as the part of the manufacturing industry and perceived its services for taking both large and small manufacturing industry. It became the key components of establishment of large and small manufacturing services. It is the mission of Native Bush Spices to provide quality gourmet food so that the customers can be satisfied towards the services of Native Bush Spices and able to meet the sustainability, reliability and efficiency need of the clients of food which will revert as reward and profit to the business. All above mentioned above is the vision and mission of the Native Bush Spices. To allow the stakeholder’s investment in the Native Bush Spices vision is to bring up the organisation in higher level and to make complete the vision, mission of Native Bush Spices is to promote the products in food manufacturing industry so that they can earn huge revenue.

Similarly, Herbie’s Spices, Forty-Five years of working in the industry, including face-to-face lectures to groups from the general public, industrial brokering, manufacturing and marketing, has made Herbie a well-respected and popular figure amongst his peers, in Australia and overseas.

Also, Indigiearth, provide premium bush foods made from authentic Australian native products that are ethically sourced and sustainably harvested. After years of workshops and corporate catering, Indigiearth was launched to the food industry and in 2012 with twenty-five premium native foods.

The meeting is about cooperative ventures which would be done in sync with the leading supermarkets. It would help to grab the maximum market share, at less time and would be beneficial to formulate a profitable and the sales target territory. The listening would be base don't the verbal and the non- verbal reactions of the people and discussion would be open based.

Key business strategies and strategic objectives

According to Network (2012), the strategy of an organisation considered as an important part of the organisation. To implement the strategic planning organisation need to know the value of the customers as well as the employee of the organisation. There are so many approaches have with Native Bush Spices to make the profit in an effective manner. Native Bush Spices need to identify those sectors which impact on the value of the organisation. The aim of Native Bush Spices is to making the position of the organisation in marketing at high level and for this it is contributing their services to being a good corporate citizen in the way of recognising the responsibilities to be active participants in local communities. It will enhance the value of the organisation. As per God & People (2012) it has been seen through many organisations that to give the donation to profit and non-profit organisation increase the value of the organisation and it also helpful to those people who need help. So it would be add on the strategic planning of Native Bush Spices to donate some part of the profit of the organisation to the variety of communities and non-profit organisation.

3. Write a summary of the meeting outcomes.

As per the minutes prepared on the basis of board meetings of Native Bush Spices enterprises following objectives were discussed and formulated for the future purposes.

Patricia Meets CEO of the group company presented various objectives which would be standard guidelines for the operations of business enterprise as per the next five years plans. These are detailed as follows

1. Native Bush Spices primary objective is to expand the business in international market. As per Java Estates delicate this would be top need that would include its acknowledgment. This will be critical cooperation that ought to be overseen at the most elevated amount.
2. To expand overall revenues by 5% in the upcoming period time. The time frame given here for the expansion approach will be 5 years. This ought to get implemented in factuality with expanded deals taking into account while making better value transactions with providers of raw materials and other resources. Apart from that human resources in the business organisation is motivated to achieve the desired task.
3. To build the brand value of the group in the untapped geographical regions in a time span of 5 years
4. To reduce the overall wastes and reducing the abnormal wastes account to the extent of 10 %. Various guidelines and standards are to be formulated to achieve the desired goals and objective. 
5. Target a particular age group of 35- 65 years’ old who likes to eat gourmet food.

After the reviewing of vision and mission of the Native Bush Spices the understanding has come out that the existing value of the Native Bush Spices will remain same until the existence of the organisation. It has been understood by the employee of the organisation that the stakeholder of the business will be treating as before and it has been about stewardship. The standard of moral will be conducted as before business does. For the employees of the Native Bush Spices the opinion of CEO of Native Bush Spices is that the health and safetyrequirements of them will be get preference first. Self-directed team conducted to encourage the employees so that the aim of the Native Bush Spices is easy to achieve. In the point of external response, Native Bush Spices is committed with wisely to environmental practices and maintain the strategic planning to make the customer happy and satisfied.

The discussion made that the changes is become the requirements for the organisation. As per the prior criteria or planning Native Bush Spices want to make the future in food industry to earn huge amount of profit but after changing time and analysing it could be found that there is a need to make changes in incorporate innovations because it has been tan outcome of directive of self-directed team. It is the priority of Native Bush Spices to improve the effectiveness and process of customer solution. It is important to evaluate the planning and its implementation so that it come to know that how the business is doing work and how much the implementation of the working going on. Evaluation of the working style should be done in the form of making the improvement in the business. It would be good for the business. It is important to adopt the new technology and make the innovation as per changing time. The new strategy of planning should be not dependant on laurels.  The organisation needs to embrace strategic alliances. It is the time to do partnership with well-known company and make the reputation of the business in front of market in well-known and it can be made only for health partnership which will helpful to implement the mission to attain the vision. 

Strategies are prepared while reviewing the present organisational strengths and weaknesses and further analysing the rivals position in the market. Strategic decision is taken in core aspect of investments portfolios, market risk, human resource management and trigger to implement an effective change. Strategies are prepared according to the internal business position and external environment conditions. Company can go for existing market penetration into the competitive market scenario or develop an untapped market according to the current product that is offered by customers. Here company is looking for an expansion approach by entering into new regions and focusing on increase in revenue by almost 5 % in the span of 5 years.

4. Send an email to the Management Team (your assessor).

Date: 03/05/2020

Email to: Management Team

Team members of the Native Bush.

Subject-: Meeting agenda discussion points

Hi All,

This summarizes what we have discussed about the meeting concerning the co-operative ventures which address the pros and the cons of it. As decided that there can be various attributes about the cooperative ventures and it would be examined how the best strategy would be exercised to penetrate the business.

Not only it would help the company to formulate and to be able to typecast most of its success stories. Cooperative ventures would be a blessing for the new company strategy and it would also help to penetrate the market easily, capturing maximum customer and to lead along with another company. the flip side would be it would be difficult to back out after forming a successful venture.

Also Kindly provide approval to proceed to developing the strategic plan based on the agreed vision, mission and values, as well as strategic objectives.

Feel free to drop in your suggestions and discussions on it.

Thanks.

Assessment 3: Research and develop strategic plan project

1. Research Native Bush Spice Australia’s customers and competitors.

Identify sources of information to use to research Native Bush Spice Australia’s market, competitors and target customers.

Magazines- There has been recent increase in popularity of Organic foods and Australian owned and produced products. This has led to a number of magazines being made readily available to consumers that focus on these trends.  Australian magazines, like Mind Food, Gourmet Traveller, Sprout, Recipes, Delicious, dining out and Eat Well magazine, just to name a few. These magazines play a significant role in the organization and development of new products for the organization. It allows us to see gage the competition and upcoming trends.

Internet searches- The advancement of technology with the internet has opened up an abundance of information from sources not just locally, but also globally. Numerous Blogs and websites alike that focus soley on Organic Foods, Gourmet cooking and even Native Australian grown ingredient blogs. The ability to research everything and anything globally. Websites, Blogs, Products, ingredients

Library | Industry reports and market research - QUT

https://libguides.library.qut.edu.au › c. php

Provides research and analysis about the global information It can help Native Bush Spice Australia’s by providing global information.

Austrade

www.austrade.au.

The Australian Trade and Investment Commission, or Austrade, is the Australian Government's trade, investment and education promotion agency. Austrade can be source to determine the Native Bush Spice Australia’s economic prosperity.

Trends and developments in the industry

There has been a massive trend toward locally grown and produced foods in recent years.  It has been heavily marketed toward keeping local sellers and smaller Australian producers able to compete in the saturated imported product market. Australians have embraced this change in an effort to keep jobs locally and in turn help Australia’s economy.

Additionally, there has been a tenfold increase in health awareness and the importance of maintaining a healthy diet. This alone has led to a huge increase in people wishing to eat the “cleanest” produce. Organic foods have been sought after more increasingly.

There is still quite limited competition for specifically native bush spices, however two main competitors that specialise in only native spices include Herbies Spices. Herbies is owned and run by John and Rosemary Hemphill who have Forty-Five years’ experience working in the spice industry, including face-to-face lectures to groups from the general public, industrial brokering, manufacturing and marketing. Herbies is well respected and popular in both Australia and overseas markets. John Hemphill now enjoys sharing his extensive experience and knowledge with his customers at Herbie’s Spices.

Another major competitor in the market is Indigiearth. Indigiearth is an Award Winning, 100 percent Aboriginal owned and established business, with its headquarters in Mudgee - the heart of great wine country in Central West New South Wales.  They provide premium bush foods made from authentic Australian native products that are ethically sourced and sustainably harvested. 

After years of workshops and corporate catering, Indigiearth was launched to the food industry and in 2012 with twenty-five premium native foods.

Demand by chefs and home cooks for on-trend, premium quality native foods has steadily increased, allowing Sharon to further develop and introduce an ever-growing range of responsibly sourced products.

Today, Indigiearth offers over two hundred products including native spices, foods, candles, diffusers and the new all-natural Skin Care range.

Whilst Herbies and Indigiearth both sell native spices neither are fully organic and neither have acquired organic certification.

Organic food companies, such as The Wild Hibiscus Flower Co, have also positioned themselves producing natural preservatives, teas and drinks made from premium Australian native flowers.

Ballemy’s Organics are an organic baby food company another interesting area of substantial growth. They provide recipes to their customers and even conduct training sessions and seminars on how to use the various products they have available.

Organizations have gained global recognition through partnering with international, non-governmental organizations. Bellamy’s Organics did this when partnering with the World Health Organisation. This increased their international customer base and allowed a growth in international markets.

Competitors

Competitors would include Herbies and Indigiearth.

Bellamy’s organic and Wild Hibiscus Flower Co, are organic Australian companies that dominate our organic market also.

Potential new and emerging markets

Production of the commodities in various flavours like the native herbal tea can be produced in various flavours like apple, ginger and make the flavours as natural as possible

China has steadily become a leading country in need of organic foods.

This could increase the range of products available in trade chains. Currently the most widely practiced trade chains are with food. Primarily dairy products, eggs, bread and vegetables of organic origin.

Potential customers however, would also be interested in organic meat and fruit.

Supply of organic cosmetics, spa products, herbs and herbal products could be extended in connection with the growing interest to green and eco-friendly way of life.

Offering more organic products in other types of retail outlets (not sale), such as hotels and restaurants.

Other relevant factors.

Contraction of consumption due to poor availability of organic products. A significant part of potential consumers argue that they do not know where to buy these products or that they have never seen them sold in stores. Limited distribution channels are likely to cause the consumption to remain at a level which it is at present.

2. Research and review potential cooperative ventures as discussed at the meeting.

This should include their risks and benefits.

Reduced consumption due to poor popularization of bio products. Promotion of organic products has several dimensions. First is related to the degree of awareness of the consumers that manufacturers and traders determined as relatively low. This creates a danger and consumption remains reduced unless steps are taken to increase the level of awareness to consumers. Another problem is the lack of advertising of organic products. This is one of the factors which the producers themselves determine as an obstacle to better realization of such goods.

Collapse of production for unfavourable external economic factors. Deepening of economic crisis is one of the factors that could negatively organic producers.

Research conducted on the Cooperative venture including risks and benefits

Through a strategic alliance, two companies will decide to share resources to accomplish a specific, mutually beneficial project. This type of agreement is less involved and less binding than a joint venture, where the two businesses pool resources in the creation of a separate business entity. Each of the two companies will maintain their autonomy in a strategic alliance while gaining a new opportunity.

Native bush spices Australia should be considered during the planning phase of cooperative venture may choose to work with another cooperative, commercial firm or individual on a specific project. For the duration of the project, the other entity does not need to join the cooperative. Instead, these joint ventures allow the entities to remain separate while working together on a common goal. This arrangement allows the cooperative to take advantage of the partner's resources, while it maintains its democratic structure.

Strategic alliances

could be as simple as two companies sharing their technological and/or marketing resources. On the contrary, they could be extremely complex; involving a number of organizations, positioned in different nations around the world.

These companies may in turn be associated with other businesses in separate alliances. The result is a maze of intertwined companies, which may be competing with each other in numerous product areas while working together in some.

• A strategic alliance allows a business to get competitive advantage through access to a partner’s resources, including markets, technologies, capital and people.
• Joining up with others provides complementary resources and capabilities, making it possible for businesses to grow and expand more speedily and efficiently.
• Alliances also benefit organizations by lowering manufacturing costs, and developing and diffusing new technologies quickly.

Strategic Alliances are also employed to speed up product introduction and overcome legal and trade barriers expeditiously. In this age of rapid technological changes and global markets forming alliances is usually the quickest, most effective technique for attaining growth objectives.

The risks involved in Strategic Alliances:

1. There can be differences between both the parties on the processes and operations of the business activities even after the arrangement is clear and crisp for both the organizations.
2. If there is a term in the agreement of the Strategic Alliance that the parties need to inform each other of their proprietary information that it requires a high level of trust between both the entities.
3. The parties may become mutually dependent on each other in case of the long-term Strategic Alliances.
4. Partners may misrepresent or lie about their competencies or other crucial factors.
5. One party may be able to stand to the commitment of resources and capabilities to the other party involved.
6. In the alliance, one of the parties may commit heavily whilst the other may not be that serious about the accomplishment of the common goals and objectives.
7. It can be the case that the partners may fail to utilize their complementary resources in an effective manner.

I choose 2 companies for do strategic alliance:

• Smart organic
• Ontario Natural food company

The reason I chose these 2 companies is why we could generate a synergy of work since these companies handle high quality standards in their products which would serve us to advance the Market and increase our sales by 20% in a period of t I'm not more than 1 in the middle, thus allowing the company a Window to show our products in different countries in Europe and the West. 

3. Develop a SWOT and a PESTLE analysis

SWOT Analysis

PESTLE ANALYSIS

Political

• Strong possibility- of introduction to impose carbon tax on all energy intensive products used for commercial use
• Market Regulations
• Anti-discriminatory laws and minimum wages

Economic

• Strengthen of Australian dollar against trading partners in coming years.
• Economic situations and trends
• Market Distribution
• Interest and exchange rates

Social

• Lifestyle trend to eat out is becoming more affluent and frequent
• Steady population growth rate
• Consumers are increasingly aware of the impact of business activity on the local

Technology

• Internet, information and social networking technologies continue to evolve and provide new challenges and opportunities for marketing.
• Native Bush Spices Australia will continue with its effective use of its website to promote and sell products and social networking to reach its target markets.

Legal

• Native Bush Spices Australia already have environmentally sound policies, but more of these policies can improve the company’s brand image. They also have the opportunity to capitalize on its organic certification to build the company’s reputation. The organic certification evaluates suppliers based on 100% organic practices and in turn gives customers the peace of mind that they are in fact getting a complete organic product.  They legally have to ensure every aspect of growth and production are in fact soley organic or they risk legal action for false or misleading claims.

Ecological/Environmental Factors

• Our recent environmental extremes such as bushfires and flooding threaten the productivity of farmers in the production and supply chain.

Areas of the Coffs Coast where Native Bush Spices co currently operate have been impacted and may take some time to fully recover.

4. Send an email to your assessor.

Dear Assessor,

I hope you are well.

Please find attached my SWOT and PESTLE analysis for Native Bush Spices Australia.

Organic certification has gained them a great advantage over their competitors as it gives customers peace of mind. The Australian and overseas trend toward clean organic products and a healthy lifestyle will remain a positive advantage for Native Bush Spices. There is a strong need and want for organic products in China in particular. This leads them into a great opportunity to diversify internationally.

One of the main threats to the current operation and production has been the environmental instability in the farming regions in the Coffs region. The bushfires and flooding has affected the farming land and could possibly affect the crops. We have seen an increase in the cost of locally produced produce on the shelves at present.

For a more detailed analysis please find attached the SWOT and PESTLE for your perusal.

Any feedback you could give me, would be greatly appreciated.

Thanks kindly,

Attachment

5. Update your PESTLE and SWOT analysis

Revise these to reflect with any feedback provided by your assessor

Updated SWOT Analysis

Updated PESTLE Analysis for Native Bush Spices Australia

Political factor

Is great political pressure on the food industry because government stability increases the economic activity in the country and government makes different regulations to control the business activities

Economic factors

The economic factors, situations and incidents can affect the growth of any industry and it also affects the retail food industry due to various reasons like disposable income, interest rates, inflation, consumer spending, unemployment, taxation, monetary issues, and recent economic recession in different countries. The labor cost is increased, then the supply cost and the selling prices of the products will also be increased.

Social factors

The social sector has the impact of eating habits of the people and their local trends of spices. Despite of some social and behavioral problems, the trend of suing the organic food is becoming popular among the young generation of different countries.

Technological factor

Is used to get the competitive advantage over the competitor brands. They have to face various technological issues from the production of the food products to the packing supply to the clients.

5. Develop the Strategic Plan.

6. Send an email to your assessor.

Dear Assessor,

I hope this email finds you well.

After assessing the SWOT and PESTLE analysis I have produced a Strategic Plan for Native Bush Spices Co.

You will note the main actions to be implemented in the next twelve months in order to meet their objectives.  These actions will need to be broad and will include hiring more staff along with providing training. To grow both locally and within Asia, they will need a larger staff to increase productivity and output.

Product development should be continued on a constant basis, should they wish to broaden their product range.

Production of raw produce will need to be escalated to meet the growth we are intending. This will mean refining both our production and post production processes.

For a more detailed appraisal of the strategic plan, please find it attached. Of course your feedback would be greatly appreciated.

Kind Regards,

Attachments

7. Update your strategic plan

The below mentioned table will describe the strategy that will be required to achieve the objectives prepared by business organisation to be achieved in the span of 5 years. Along with that key responsible person is also set which will take care for the achievement of desired objectives.

8. Send an email to your assessor.

I hope this email finds you well.

After Updating the SWOT and PESTLE analysis I have produced a updated Strategic Plan for Native Bush Spices Co.

You will note the main actions to be implemented in the next 5 years in order to meet their objectives.  These actions will need to be broad and will include hiring more staff along with providing training. To grow both locally and within Asia, they will need a larger staff to increase productivity and output.

Product development should be continued on a constant basis, should they wish to broaden their product range.

Production of raw produce will need to be escalated to meet the growth we are intending. This will mean refining both our production and post production processes.

For a more detailed appraisal of the updated strategic plan, please find it attached. Of course your feedback would be greatly appreciated.

Kind Regards,

Attachment

Assessment 4: Strategic Plan performance monitoring

1. Write a report for management.

Management report

Key performance indicators

• A 20% increase in total sales revenue.
• International market identified and exporting commenced. Sales to international markets to comprise 20% of total income.
• Suitable alliance for marketing identified and 10% increase in sales attributed to alliance marketing.
• Identify new products through review of competitors’ web sites.

 Key performance indicators performance

Our goal of a 20% increase in total sales revenue was far reached and exceeded. Total sales revenue climbed from $550, 000 to $800, 000. That makes for a 45.4% increase in sales revenue. Almost double of our initial expectations.

In the past twelve months Native Bush Spices Co began export to sell internationally in both Hong Kong and Singapore.  Strategic plan KPI was benchmarked at 20% of total sales. Total international sales were not reached as 70’000.  This is 8.75% of our total sales revenue. Less than half of the KPI.

The strategic management plan sought to find a suitable alliance for marketing and identified the KPI to be 10% increase in sales attributed to that alliance marketing.

Unfortunately, we did not reach this KPI at all. Native bush spice Co failed to find a suitable alliance for marketing and therefore made 0% increase in sales revenue as a result of our projected marketing alliance. 

Similarly, the strategic plan set out to identify potential new products through thorough research and review of our competitor’s offerings. Our product development KPI was to have ideas and that could lead to potential new products. We failed to meet this KPI with current data showing no ideas for new products were attained.

Recommendations for the next twelve months

As Operations Manager, I have evaluated the data from our previous 12 months of operation and considered our original strategic objectives and key performance Indicators. 

Whilst we have increased our total sales revenue well beyond expected, we have also failed to meet some important parts of our strategic plan for long term success.

Figures show that we have increased out our sales greatly on a national scale, which has been fantastic. It is my recommendation that we continue this momentum but focus quite strongly on developing our marketing alliance and product range, Further visibility in the Australian market could see local sales increasing further.

Our international expansion into Hong Kong and Singapore were not without hurdles. Though we did don’t reach our KPI we must remember, we have only just entered the foreign market. During the next twelve months, our focus should be to grow our distribution network further among a number of leading retailers and larger retailers. We are currently working to further expand into the Japanese market in coming months.

No new products or product idea were developed in the last 12 months. This leads me to recommend the possibility of hiring staff to focus on product development. Whilst we have excellent products existing the need for innovation will we be needed if we are to meet our competitors and grow.

Changes that will need to be made in regards to our strategic plan will include:

• A 50% increase in sales revenue for the next twelve months (this revision is to be based on our previous year 45.4% increase in total sales revenue)
• Focus on our marketing strategies and more effort be made to find a suitable alliance for marketing.
• Hire specific product research and development personnel.

While our strategic plan outlined a need for product innovation, our KPI needs to be updated with the introduction of staff primarily looking to develop and implement new products. Our KPI might include 2 new product launches in the next twelve months.

Best practice strategic planning processes

There are many different frameworks and methodologies for strategic planning and management.

While there are no absolute rules regarding the right framework, most follow a similar pattern and have common attributes. Many frameworks cycle through some variation on some very basic phases:

• Analysis or assessment, where an understanding of the current internal and external environments is developed,
• Strategy formulation, where high level strategy is developed and a basic organization level strategic plan is documented
• Strategy execution, where the high level plan is translated into more operational planning and action items, and
• Evaluation or sustainment / management phase, where ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues occurs.

Native Bush spices Australia I believe achieved this primarily in the first strategic plan.  However, there is some room for improvement to be made.

Analysis and Assessment was quite thorough as a whole in the previous strategic plan however I believe there was not enough high level strategic planning in the way of planning specific actions to be made. I believe there should be a much more in depth set of actions, broken down into specific time lines.

The part of the strategic plan that failed I believe is in the ongoing evaluation at different intervals within the first 12 months.

Product development for example should have been evaluated every few months to ensure it didn’t escape under the radar.

2. Send an email to the Management Team (your assessor).

Dear Management Team

I hope you are all well.

As our first twelve months of following our updated strategic plan have come to a close, I have evaluated and done a thorough analysis and evaluation on our final data.

Enclosed is the Management Report provided for you all to read. 

It stipulates our results against our KPI’s set.

I have included my recommendations for our next twelve months.

Feel free to add your feedback and if you have any further questions, don’t hesitate to contact me.

Kind regards,

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