STRATEGIC MANAGEMENT. Equivalent QCF level: Level 7 Credit Value: 30 Learning time (hours): 300 UNIT PURPOSE

Transcription

1 STRATEGIC MANAGEMENT Equivalent QCF level: Level 7 Credit Value: 30 Learning time (hours): 300 UNIT PURPOSE To provide learners with an in-depth understanding of strategic management and business planning, and tools for reviewing current organisational strategies. This includes strategic planning for profit as well as not-for-profit organisations, and takes a global focus. The unit advances learner knowledge of concepts and frameworks to develop effective strategic plans. UNIT INTRODUCTION This unit focuses on how organisations undertake strategy formulation and planning and their importance in a fast changing globalised world. It analyses classical and contemporary models, concepts and tools in business strategy and planning. Further, the unit explores the ways in which these developments facilitate better strategic and business management. Goals and values should be identified accurately to direct the business resources, and this unit enhances learners ability to determine values and goals effectively within an organisation. Learners will also acquire how to use a range of tools and techniques to analyse the impact of the internal and external environments on organisations, and how to develop plans to deal with the resultant threats and opportunities to an organisation s competitive advantage in its markets. 1

2 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT To pass this unit, the learner must generate evidence that demonstrates all learning outcomes have been met through the achievement of all the unit s assessment criteria. Learning outcomes On completion of this unit, the learner will: 01 Understand the nature, scope and context of strategic management Assessment criteria On completion of this unit, the learner can: 1.1 Explain the importance of strategic planning for an organisation 1.2 Compare organisational value and mission statements with current business objectives of an organisation 1.3 Develop appropriate goals, values and strategic objectives for an organisation and consider the differences between profit and not for profit organisations approaches to strategic planning Content Introduction to strategic planning: scope, nature and characteristics of strategic business management and planning in a global environment The need for strategic business management and planning in a global environment: vision, mission, strategy formulation processes for an international organisation, impact of contemporary global issues Different levels of strategy: analysis of corporate, business unit and functional/department strategies, tactical and operational decision making The distinctions between profit and not for profit organisations in terms of strategic business management and planning 2

3 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT 02 Understand the external factors affecting an organisation 2.1 Critically analyse major changes taking place in the external environment that will impact on an organisation s business strategy 2.2 Analyse the needs and expectations of stakeholders for an organisation and consider the impact on strategic business planning Identification and evaluation of the forces that impact a company externally: e.g. government, society, technological developments, etc. Theoretical frameworks: appraise the use of techniques such as PEST, PESTEL, STEEP and other derivatives The use of stakeholder analysis to identify interested parties both inside and outside the organisation Environmental scanning: Analyse the approaches to forecasting environmental change (scenario planning, game theory, decision analysis, social forecasting, etc.) Analyse global influences and the impact on internationalisation of strategic business management and planning 3

4 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT 03 Be able to review existing business plans and strategies of an organisation 3.1 Select and use appropriate tools for strategic analysis of an organisation s current business strategies then consider: options for developing strategic planning selection of an appropriate strategic option 3.2 Critically evaluate the effectiveness of tools available for strategic analysis 3.3 Review the risks and competitive position of an organisation in its current market Models in business strategy and planning: identify classical and contemporary models, concepts and tools in business strategy and planning such as transformational, incremental, muddling through, strategic drift Practical application: critically appraise the use of these concepts and models in modern day organisations; distinguish prescriptive and emergent theories of corporate strategy and their relevance to organisations, critical appreciation of debates within the academic literature SWOT analysis: Evaluate the purpose and attributes of SWOT analysis. Match SWOT to organisations competences in order to generate strategic options for both profit and not for profit organisations Analyse the competiveness: Appraise techniques to identify the sources of competition to organisations such as Five Forces analysis Environmental threats: evaluate the turbulence of environmental change and the impact on strategic dynamics 4

5 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT 04 Be able to design a suitable management strategy for an organisation 4.1 Develop an outline for the structure of a strategy for an organisation and include: all stakeholders identify resource requirements and constraints communication processes to gain stakeholder commitment to the plan monitoring and evaluation systems for the implementation of the strategy plan Different levels of strategy: Critical analysis of the different levels of strategy such as corporate, business unit and functional/ department levels. This also includes identification of their relationship with tactical and operational decision making. Setting goals: Attainable, time specific, specific, flexible, etc. Factors that impact the goal setting process: the conflicting needs, power and influence of stakeholders 5

6 GUIDANCE FOR TUTORS DELIVERY & ASSESSMENT Tuition and guidance should adopt flexible approaches to delivering the unit. Formal tuition sessions will have input from a tutor to identify some of the theoretical subject matter and learners can work individually and in a group researching and gathering information about the subject. Research, case studies, simulations, exercises and discussion are engaging ways of learning about the subject. Learners can use self-directed study and reflect on their experience and expertise. Up-to-date information and materials are available from many sources such as businesses, the world wide web, television and radio broadcasts, broadsheet newspapers and advisory services. In order to pass this unit, the evidence that the learners present for assessment must demonstrate that they have met the required standard specified in the assessment criteria. Centres will devise and mark the assessments for the unit and learners must meet all assessment criteria to pass the unit. A range of assignments types can be used such as reports, proposals, plans, presentations, articles, case studies, exercises, simulations, a learning journal and practical work. All assessment methods are acceptable provided the assessment enables the learners to produce evidence that can be judged against the assessment criteria. Learning outcome 1 requires learners to consider the nature, scope and context of strategic management examining how these vary between different types of organisation, different sizes of organisation and different markets in which they operate. Variations in these factors will result in different strategies such as increasing market share, technological leadership or in some cases strategic withdrawal from a market. Learning outcome 2 requires learners to identify the factors affecting an organisation by using situational and environmental analytical tools such as horizon scanning and PESTEL analysis which allow organisations to formulate strategies accordingly. Learning outcomes 3 and 4 require learners to critically review existing business plans and strategies before developing strategic options and then selecting and designing a suitable strategy for a selected organisation. This will involve using tools such as business audits, SWOT and Porter s five forces analyses in order to identify possible strategies from which make a selection. For some learners, assessment criteria can be met through recognition of prior learning (RPL) which will enable them to present evidence to show that they can attain the assessment requirements of the unit through knowledge, understanding or competence they already possess. If a learning journal is used then the narratives in it can be mapped to assessment criteria and used as evidence for the demonstration of relevant assessment criteria. It is possible to assess work using professional discussions, with learners explaining and describing things to the assessor either on a one-to-one basis or in group work or in a presentation. Similarly questioning can be used to provide evidence of knowledge. If these types of assessment are used then the work must be directly attributable to the learner. Assessment can be for individual learning outcomes, for groups of learning outcomes within a unit and can be combined with the assessment of outcomes and criteria from other units. This latter would require an assessment map to identify where outcomes and criteria are assessed. 6

7 GUIDANCE FOR TUTORS OUTLINE LEARNING PLAN The following outlined learning plan can be used as a guidance document in conjunction with the unit assessment. It is simply a way in which this unit can be delivered. TOPIC AND SUGGESTED ASSIGNMENTS/ACTIVITIES/ASSESSMENT Introduction to unit and programme of learning Presentation on the nature, scope and context of strategic management Practical work, research and discussion on the nature, scope and context of strategic management Assignment 1. A staged report Presentation on environmental analysis and the external factors affecting organisations Practical work, research and discussion on environmental analysis and the external factors affecting organisations Tutorial support and feedback for assignment 1 stages 1 and 2 Presentation on business strategy options, strategy selection and strategic planning Practical work, research and discussion on business strategy options, strategy selection and strategic planning Presentation on strategy design Practical work, research, exercises and discussion on strategy design Tutorial support and feedback for assignment 1 stages 3, 4 and 5 Review of unit and programme of assignments 7

8 GUIDANCE FOR TUTORS PROGRAMME OF SUGGESTED ASSESSMENT/ASSIGNMENTS The following table illustrates the respective assessments for the unit and identifies the corresponding assessment criteria. Assessment Criteria covered Assignment title Scenario Assessment method 1.1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3, 3.1, 3.2, 3.3, 3.4, 4.1 Assignment 1 You have been asked to advise a long established business that is struggling to reverse a declining position in the market for its products even though it has an excellent reputation for the quality of its products. A staged Report You work for a company specialising in turning businesses around and you have been asked to help re-formulate the business strategy. You are required to: Stage 1 Explain the nature, scope and context of strategic management required by businesses explaining their importance to ensuring the continuity of the selected business. Stage 2 Examine the factors affecting the selected business analysing both the major changes taking place in the external environment and the interests of stakeholders showing how these will affect strategy. Stage 3 Review the existing business plans and strategies of the selected business identifying its competitive position and the risks it faces. 8

9 GUIDANCE FOR TUTORS PROGRAMME OF SUGGESTED ASSESSMENT/ASSIGNMENTS Assessment Criteria covered Assignment title Scenario Assessment method 1.1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3, 3.1, 3.2, 3.3, 3.4, 4.1 Assignment 1 Cont. Stage 4 Develop strategic options for the selected business identifying, with justification, a preferred option A staged Report Stage 5 Design a suitable strategy and strategic plan for the selected business that takes account of stakeholder interests and identifies the resources required Tutors should provide a detailed case study or select the business ensuring that learners have sufficient stimulus materials. For example, a manufacturer of audio equipment might revitalise its products by incorporating newer technologies and aiming its products at different market segments or a low-cost airline might seek to move upmarket and into long haul services by appealing to business travellers to benefit from higher price margins these options bring 9

10 RESOURCES TEXTBOOKS Johnson, G., Scholes, K., and Whittington, R. Exploring Corporate Strategy: Texts and Cases (latest edition) Grant, R M, Contemporary Strategy Analysis (latest edition) Barney, J, Gaining and Sustaining Competitive Advantage (latest edition) JOURNALS International Journal of Business and Globalisation Journal of management Strategic management journal Journal of strategy and management WEBSITES Insight Forbes Mind tools Free Management Library