Developing Long-Term Organisational Plans (CMI-704)Assignment Sample

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Introduction Of Developing Organisational Strategy (CMI-704)Assignment

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An organizational strategy is referred to as a long-term plan that is made by the firm to meet its requirement and goals. Every strategy drafted by the organization is in alignment with the vision, mission, and goals of the firm. Every organization no matter how big it is having limited resources. The firm needs to sustain and make profits for itself with the help of these limited resources as a whole. An organizational strategy is a process through which a firm can effectively organize its resources so that it supports business activities. Organizational strategy not only helps in placing and planning resources but also helps in the overall decision-making process of the firm, and guides the operations of the firm so that the management and the employees can move towards an overall organic goal (Rosati and Faria 2019). The use of a well-drafted strategic plan helps the firm maintain consistency in its actions and allows the team to prioritize its goals as a team. In other words, an able organizational strategy removes the clause of individuality from the firm, whatever is done is to reach a common goal that will move towards a collective benefit for the firm. Having established that, it is clear that when the entire firm has a unilateral understanding, it becomes much easier for the firm to perform cross-functional integration that automatically comes in with increased transparency. This account will primarily focus on three aspects, which are the factors that drive the development of organizational strategy, the approaches taken by firms to develop such strategies, and finally the challenges that come in the path of making an organizational strategy.

Task 1

AC 1.1 The factors which drive the development of organisational strategy

External

  • Exploration of competitive opportunities: to identify and explore the competitive opportunities of a firm, the firm first needs to identify its capabilities (Darden Ideas to Action. 2022). For this, the firm is recommended to perform thorough market research here the firm is to determine the main and most threatening competitors of itself in the market, analysis of the market structure, identification of any potential gap in the market that can provide the firm with an opportunity for innovation that will, in turn, lead to competitive advantage. Finally, identification of the market trends is essentially important so that the firm can determine the direction of the evolution of the market and be prepared for changes. This can be done through proper risk analysis and management. Undertaking an effective SWOT, Porter's Five Forces, and PESTLE analysis can also go a long way in identifying the level of competitiveness of the market and where the firm stands in that competition as a whole.
  • Integration of insights: the points mentioned above are somewhat or entirely related to the firm’s competitive position in the business, however, the creation of a business strategy is ultimately an integrative process. It is integrative because it looks at all the aspects of the firm such as management, operations, recruitment, finance, and so on. All of these aspects when viewed together give the firm an overall idea of the internal position of the firm. the underlying disciplines of the firm are brought to the surface due to this analytical integrative process. Furthermore, there are other reasons why this process is integrative because it includes the aspect of value creation for the internal as well as the external stakeholders of the firm. Maximizing the return to the stakeholders to induce more investments is one of the primaries aims of the firm, it is not a particularly strategic direction, however, addressing the value returned to the stakeholders does provide the firm with a unique sense of value creation (Hasioglu and Aksoy 2021).

Strategy

For a strategist, the most critical point of drafting an organization is that the performance of a firm is highly influenced by internal and external factors. The internal factors can however be managed and altered and given specific directions. However, any strategist or management has very little to no control over the external factors that can influence the operations and the functioning of the firm. These external factors include economic and political instability, legal requirements, market changes, stakeholder influences, and so on. Hence the strategies of a firm need to be altered from time to time to maintain relevance with the external environment. However, some factors remain unaltered under any circumstances. This portion of the report will emphasize the fundamental factors that drive the development of organizational strategy in firms:

  • Values: the values of each firm are different from each other. The core values of the firm are the main driving element of the same. The values of the firm determine the ambiance of the firm, the operational techniques, leadership values, and most importantly what values is it creating for the internal and external stakeholders of the firm. Their determination of values lies in several aspects such as the determination of the mission of the firm, establishment of the scope of the firm, which is determined by the type of market, demographics, and geographical location of the firm, identification, and understanding of aspirations and expectations of the internal and external stakeholders as well as the market. It is important for a firm to declare its values and document them and have thorough discussions on them so that no alternate meanings can be derived from any aspect.
  • Identification of capabilities: The creation of competitive advantage and identification of capabilities are symbiotic conditions. One cannot take place without the other. To identify the capabilities of the firm, the management needs to see all the operations that go on in the firm and then make an estimation of the same. The assessment of the value chain of the firm is very important in this aspect, as this is the factor that determines the distinctiveness of the firm as a whole. Understanding the external value proposition of the firm and does it align with the capabilities that have been identified in the firm. Assessment of an overall competitive advantage of the firm in the market that will determine the value of the firm in the market as a whole. The aspect of sustainability also needs to be assessed and analysed properly. The company should be able to understand its scope in the future or what possible ways can the firm develop a gap in the evolution of the market in the future, questions such as can the gap be filled? is the firm able enough to innovate according to the changes in the firm? And what happens if the firm fails to do so needs to be addressed and answered with proper justification and evidence (Herba).
  • Organisational culture: the organisational culture at times determibes the aspects of opportunities that can be taken by the organisation. There are several factors that are associated with it, for example an organisation that has decided to be environmentally sound cannot go for a cheap packaging medium even if it is cost effective because it might be non-biodegradable and harmful for the nature. The aspect of corporate social responsibility also falls under this factor. The CSR policy that has been chosen by the firm needs to be in accoradance with the culture of the organisation without which the functioning of either one of it will be impossible (Nneji, 2021).
  • Organisational Maturity: Organisational maturity is the reffered to as the measure of the quality of the operations of the firm. This is an internal arena where the firm can determine how positive or negative what strategy of the same will be able to uplift the strategic potion of the firm. In other words, organisationsal maturity determines the type of strategy that can be taken by a firm according to its capability (Gomes, 2014).
  • Legal regulation: Legal regulations affect multiple aspects of a firm including their labour laws, production technique and so on. In most cases the PESTEL analysis of the external environment of a firm estimates the legal aspects that affect a firm externally. Furthermore the salary aspects of the firm including the requirement of pensions and so on are also determined by legal regulations that are customised for the industry or the particular country(Pacces, 2011).
  • CSR: Corporate social responsibility is an aspect around which many firms build their strategies. Although considered to be a soft skill the availaibilty of a strong CSR program or policy is supposed to be extremely benefical for the social image of the firm and market upliftment. This increases employee engagement, and positive reviews of the firm(Halbusi, 2017).

AC1.2 Critically appraise approaches for the development of strategy

Over the years, many firms have undertaken various types of approaches to construct able and efficient organizational strategies. These approaches have been dependent on various things such as the position of the firm in the market, the competitive advantage of the firm, its capabilities, and so on. This section will focus on the different approaches that are taken by firms to develop the strategies (Dyson, 2007)

1.2 Approaches of developmental strategies

  • Classical planning: in this approach, the executive team sets a direction for the firm, this is now followed by various kinds of analysis such as financial forecasting, future shares, category growth, and so on. This approach is the most time-consuming approach to drafting an organizational strategy because it is the most analytical and depends only on raw data and figures derived through experiments and hardcore research to conclude (Garina et al., 2019). Post all the research and the delivery of facts, the executive team, studies it and the final decision is made by them. Many marketers claim that this is a fairly outdated system of approach to draft an organizational strategy but this approach has been rendered to be the most effective in the case of SMEs. As they can understand the market as well as their position in the market as a whole (Bonet, 2013).
  • Adaptive Experimentation: the adaptive experimentation approach is comparatively more constrained than that of the classic process. This approach takes place in small cycles and sets smaller goals. It focuses on one individual aspect at one time and collects data according to it. This diverts the mind of the firm towards one uniform swift direction and hence helps the firm to identify the gaps and resolve them. this technique is much less time-consuming and less burning as well, furthermore individual scaling and measuring allow the firm to understand its position in the market and the justification behind it. It also allows the firm to benefit from the small experiments and helps them to develop according to the singular issue that has been identified (Hahn, 2008).
  • Visionary imagination: this approach is mostly used in entrepreneurial ventures, a very vibrant example of a personality using this approach is that of Steve Jobs. Visionary imagination does not believe in calculated figures, values, experiments, or the requirement of raw data. This approach entirely bases itself on a plan or a vision that is seen by one particular person or mostly a small group of people of the executive class. It is called imagination because it does not believe in hardcore facts and values. The richness and intellectual superiority of these visionaries are the primary weapons of the firms that undertake this approach (Repnikova et al., 2020).
  • Shaping Collaborations: Business markets are highly unpredictable, the success of a visionary imagination approach is mostly based on luck, and hence not many firms wish to take it. However, firms are aware of the volatile nature of the business that is prevalent, and hence some of them are not very confident regarding the tangibility in the market, hence they resort to ways in which they can collaborate with other firms. Collaboration has its complication but it also allows the firm several opportunities such as limited bearing of the losses that might be incurred by the firm. Furthermore, when firms with similar interests cooperate then they create a greater chance of gaining an overall competitive advantage in the market as a whole (Huxham, 2000).
  • Renewal Pragmatism: whenever the market situations become hostile the question and threat of the mere existence of the company arises, there is hardly any time left for a situational internal and external elaborate analysis, these are the times when firms require immediate solutions that will help the firm at least sustain the hard times, one the market situations get back to normal, then the management and the executive departments can think of other ways of running the firm. An infamous example of this is the process of layoffs that took place during the pandemic A complete lockdown situation completely stopped revenue generation in many firms, and the hospitality and travel & tourism department was the most gravely affected by this. During this time to save the firm, many organizations conducted massive layoffs of employees as they could not pay their salaries (Kaushik, 2019).

Apart from such conventional concepts of strategic development there are other references and arenas of strategic development of a firm that include the type of development that is being taken place:

  • Deliberate: the deliberate mode of developmental strategy is is a known, planned and intentional change or formation of a strategy that is aimed towards a particular motive. This might the inauguration of an addiotnal wing at the firm, launch of a new product or service and so on.
  • Emergent: Emergent strategies are made as a response to a market demand. Avibrant example of the same the emerging trend of digitisation of firms. Strategies of digitisation are emergent due to the wholesome market demand that is associated with it.
  • Incremental: Incremental strategies is especially drafted to enhance the business of the firm or provide increments to the existing revenue. This can be introduction to a new product or service line in the market that would bring in addiotonal revenue (Corrall, 2009).

Strategies of development also take place with the help of procedures like that of strategic planning, business modelling and using of tools like the 5Ps of marketing and so on. These strategic analytical tools help the firm to understand their existing positon in the market and then help them to build their future endevours on that.

AC 1.3 Discuss the challenges of developing and leading organisational strategy

Mission, vision, goals, and ambition are all ingredients of an able organizational strategy, however, if the strategy does not have a proper pattern and tone that is aligned with the requirements of the market then it is bound to fail miserably. According to statistics, about 68 percent of the strategies formulated by firms led to failure, this is solely accused too poor execution (Tsalis et al., 2020). Another report claims that according to a survey about 61 percent of the employees in the firm belief that the firm vastly struggles to bridge the gap between the decided strategy of the firm and the implementation of the same in the daily activities of the firm. this portion will focus on four primary challenges that firms face in drafting organizational strategies

1.3 Challenges

  • Goal Setting: in a firm, factors like setting a cumulative goal can be quite a task especially when the management and the executive are not on the same page regarding the same. Furthermore, the external market like the location and demography of the firm also plays an important part in understanding and setting the goals of the firm. Hence, firms are often suggested to perform SWOT analysis along with other goal-understanding frameworks such as SMART goals, backward goals, OKRs, goal pyramids, one-word goals, and so on. The choice of framework that the firm chooses depends on the type and the internal and external analysis of the market (SWOT).
  • Small Milestones: As mentioned before, according to a survey about 61 percent of employees believe that the firm fails to bridge the gap between the organizational strategy of the firm and the daily implementation of actions. The strategy is like a recipe that needs to be visited and revisited daily. The management needs to set some specific small and big milestones to make sure that the firm is on the right track toward establishing the organizational strategy. The firm must look that the aspect of milestones from both a micro and a macro aspect, as the micro aspect provides the employees with their daily dose of motivation, and the macro version satisfies the stakeholders and management (Hanelt et al., 2021).
  • Shortage of resources: the report began by saying that no matter how big the firm is, it will always have a limited number of limited numbers of resources and an able organizational strategy is something that guides the firm as to how to succeed in creating value with the limited resources provided to them. the issue is not only with human resources with digital resources as well as funding that is required for both of them. about 86 percent of stakeholders believe that a firm fails the process of execution of the strategy because of either inefficient funding or improper investment of funding and poor allocation of budget. Researchers and managers have hence suggested examining this aspect on small focus groups that represent a large group, this allows the firm to be sure regarding their resources and investments.
  • Ineffective training: Firms in the present times are all about recruiting fresh talent and promoting inclusiveness by recruiting employees from different backgrounds and ethnicities. However, what often firms tend to forget is that all of these employees are working towards one organic goal and when people from such diverse backgrounds, experiences, no experiences and ethnicities come together to work for a common goal, they need to be trained appropriately so that they can understand the goal and work as a team towards an overall achievement (Kaushik 2022).
  • Changing customer requirements: Customer requirements are extremely volatile in the present market, keeping up with it is a task in itself. Furthermore different government policies make it tougher to deal with such issues especially if the socio-economic condsiton as well as the technological development of the decided firm and area are not up to the mark.

Having said that, it is important for firms to develop diagnostic methods that will help them identify the challenges that are associated with that of the firm. these diagnostic strategies include:

  • Organisations as complex adaptive systems: Understanding of the organisation structure and the system that it runs on, this can be easily estimated through understanding and studying the past records of the firm. the adaptive strategies of the firm can pose an an important maing or breaking point for the firm. Hence if the firm has high adaptive skills, then the formulation of challenges might be a little low in intensity for the same.
  • Use of systems approaches such as soft systems methods: Soft systems as well as big data and AI induced analytical techniques and diagnostic processes help the firm to identify and analyse the challenges that are present or might occure in the course of operations in the firm.

Task 2

AC 2.1 Develop an organisational strategy to achieve a business objective

The firm that has been chosen for the analysis is Unilever. This firm has been ranked the 14 th biggest company in the world and has a product line of over 400. Unilever is a British multinational conglomerate that mainly deals with food condiments, beauty products, personal care, and so on. Some of the most known brands under Unilever are Dove, Lifebuoys, Knorr, Sunsilk, Rexona, Axe, and so on. The firm was founded in the year 1929 as a result of a merger between the Dutch margarine producer Margarine Unie and the British soap maker Lever Brothers. The firm serves its products worldwide and works towards constantly expanding its product range. The latest launch of the firm was its range of decarbonized detergent powder called 'Dirt is Good. The Firm claims that it is yet another step of theirs that aims to move toward the direction of a sustainable environment. Unilever claims that the new washing powder is an innovative way to get rid of lint that is dumped in massive portions in the water bodies through washing clothes. This innovation uses a technology that reduces the extraction of lint from the garments and obstructs them to get washed in water bodies (Chongming et al., 2020).

Development of success strategies require a range of elements such as respurces, implementation strategies, survey strategies, stakeholder analysis and so on. These aspects allow the success strategies to reach a stage of perfection.

  • Resource Requirement: the respurce requirements of the development of a strategy includes the understading of the market and this requires research. Market research through primary and secondary mode of data is important to understand the requirements, gaps and opportunities that are present in the market.
  • Strategy implementation: the implementation of strategy depends on the objective of the firm. This means that different projects can have different implementation strategies and all of which should be compatible with the mission and the vison of the firm.
  • Governance of strategy: this is the mode through which the strategy that has been implemented will be supervised and viewed. This is a analytical cum reflective process that will estimate what went right and wrong in the operation so that it can be repeated or checked on for the next process.
  • Stakeholder Analysis: Any new stratehy or operation of a firm requires the involvement of able stakeholder. These people are those who directly or indirectly with the project and benefit from the same. However each stakeholder needs to be analysed so that their decree of importance and relevance in the project can be estimated and according benefits can be achieved or retrieved from them(Chongming et al., 2020).

Organisational strategy

Although the firm has claimed that they are extremely conscious of the issues of sustainability that the present market is facing, it has not been able to make a lasting impression on the market regarding its policies of sustainability. Although the firm had promised in the year 2010 that it will reduce its carbon emissions and carbon footprints in the world will lead to a sustainable future and the firm has been successful to quite an extent, however, there are areas where it has severely limited achievements such as the reduction of the emission of greenhouse gases into the atmosphere. Furthermore, the FMCG has discovered that since 2010 the form has been able to reduce its water intake by only 2 percent which is hugely below the mark (Chandra and Jatmika 2022). Unilever has about 300 factories that are spread across 69 countries which releases massive amounts of carbon in all the places where the factories are situated. Furthermore, the firm has claimed that they have reduced its carbon emissions through the use of battery-operated transportation, but the amount of reduction is not sufficient in comparison to the size of the firm. the firm now claims that it will eliminate its carbon emissions by 2030 and the reduction will reach zero by 2039.

AC 2.2 Recommend an approach to implement and monitor the strategy to ensure its success

2.2 Key processes and activities

The following section will attempt to devise a strategic plan for the issue that has been identified by Unilever which is the excessive emission of greenhouse and carbon emissions:

  • Use of renewable energy: Primarily the firm needs to identify the places where the emission of carbon and greenhouse are the most since renewable and clean energy is quite expensive, hence the start needs to be small, where the firm only focuses on the red zones, once the emissions from these areas receive a reduction report, the firm can move towards the other places. The use of renewable energy such as solar power or wind power is something that is being undertaken by a range of firms in the present times. In the UK many whiskey-making brands too are using this type of technology. Furthermore, biofuels are also considered to be a good source of clean energy that can be used for the same purpose. Suppliers such as Enercoop and ekWater are clusters that provide sources of clean and renewable energy that work to help firms in creating a sustainable future for the world. Avoiding the use of fossil fuels automatically leads to a substantial reduction in the formation of climate footprints (Zhongming et al., 2020).
  • Reduction of waste: this process needs to be incorporated into the total quality management of the firm (TQM). In the year 2021, the firm disposed of 4,486 tonnes of hazardous waste and hence the waste management aspect of Unilever has been under severe speculation. The waste generated is either disposed of in water bodies or are buried in landfills or incinerated. This needs to be altered as all of these methods add up to the process of pollution. Waste compaction as well as composting or recycling are good ways of assuring that the issue of wastage does not go out of hand.
  • Market the changes: At the end of the day, the business has to run in the market and the market hence needs to know what changes is the firm undertaking for the sake of the induction of a sustainable future. The changes in the firm such as the use of renewable energy as well as proper waste management will help the firm in its cause and this has to be promoted and marketed to a certain extent so that the changes are known to the market and the statistics that show the levels of pollution in the firm can change.
  • Promotion and imbibement of the strategy in the employees: the employees are the face of the firm and hence to promote and establish an able method of reduction of carbon and greenhouse emissions, various technological changes need to be made along with hardcore research. The use of renewable energy along with significant methods of controlling waste needs to be studied deeply. This can only be performed through rigorous training of the staff so that there are no gaps in the process. The firm's image has already been tarnished because of the given causes, and hence the firm cannot afford more of that (Siddiqui and Sultana 2018).

Some of the important approaches to executing as well as monitoring of implementation discussed strategies are listed in detail below:

  • Deliberate: The use of the deliberate strategy in case of monitoring will help in planning for in prior time for which assets as well as the financial plan of the company might be set easily and also it offers the organization with a lucid path for the entire of the workers to go after as well as endeavours coordination inside Unilever.
  • Emergent: Considering emergent as a strategy to be implemented by company for better monitoring it will be require to arises from an unintended endeavour as well as moves so that people who are responsible for taking care of the monitoring part can do it properly.
  • Incremental: Steady techniques is particularly drafted to upgrade the matter of the firm or give augmentations to the current income. This can be a prologue to another item or administration line in the market that would acquire additional income (Corrall, 2009) .
  • Paradigm Shift: A change in outlook happens when one worldview loses its impact and one more dominates. The idea characterizes worldview and outlook change and makes sense of how it can connect with organization systems and industry cycles that helps in proper implemtation of monitoring strategy

Now considering the identification of the key processes and activities below mentioned are some of the points that needs to be taken care by Unilever:

Milestone: Considering identification of milestone for Unilever the employees need to maintain the below mentioned process and techniques:

  • Finishing key task expectations like the main adaptation of the application.
  • The beginning date or end date of a significant task stage like the 'arranging stage' or 'planning stage'
  • A significant occasion that green lights the task like venture support endorsement.

People and resource needs: There are four general strides in the HRP cycle: recognizing the ongoing stock of representatives, deciding the fate of the labor force, adjusting between work organic market, and creating plans that help the organization's objectives.

2.2 Monitoring

The organizational plan that has been drafted in the previous section mentions the use of certain technologies and the alteration of the total quality management and value chain of the firm. this change needs to be implemented with immediate effect as the firm already has a tarnished reputation for not keeping its promises. Hence the approach that needs to be used here is adaptive experimentation. As mentioned, the firm will use the new technology and alteration in systems where it is the most needed in the given time, once the word is out that Unilever is trying to rebuild what has gone wrong, the market will automatically provide the firm more time to further alter the given situation and make extra improvements. Furthermore, focusing on one area at a time will offer the firm the chance of identifying the areas that might have gaps and help the firm in rectifying the situation in the other places.

  • Research and technological innovation: Waste management is a huge part of environmental management and it requires sufficient research and development. The research is not only required to know about the process so that it can be taught in the training process but also because a lot of innovation and customized systems are based on the research as a whole. Furthermore, the research will also help the firm to understand the new technology that is to be implemented (Rigarlsford et al., 2020).
  • Able marketing: As mentioned in the above section, all of the development and innovation is useless if the market is not aware of it, the scales and the statistics will only be altered by the market. Hence an able but subtle marketing technique needs to be formatted, that does not show that the firm is endorsing itself but also informs everyone regarding the changes being implemented.
  • Training; the research and new technology that is being implemented needs to reach the office and this can be done only through appropriate training of all the existing staff along with the new staff that is to recruited following the alterations in systems and new techniques.
  • Some of the additional steps for monitoring will include the below mentioned elements:
  • Achievements of objectives: By doing proper monitoring of the work, it will help Unilever in will be able to achieve its business objectives easily. This is due to the reason that proper implementation of monitoring process will help in identification of the loopholes and other weakness which the management can look over with time to eliminate it for achieving the business goals.
  • Critical success factors: A basic achievement factor is something an association, business or project should achieve to satisfy its objective. Basic achievement factors assist a group or association with concluding what they ought to zero in on and contrast progress with the objectives that are set. These objectives are much of the time called expectations
  • Critical decisions: Proper monitoring also helps in taking Critical decisions in the long run. Choosing the best arrangement is the most basic piece of navigation. There is a threat component engaged with every option against the normal increase. Determination ought to be made at a legitimate time. Determination of choice is additionally impacted by the restricted assets accessible available to company.
  • Cost benefit analysis: Money saving advantage examination is a method for looking at the expenses and advantages of a mediation, where both are communicated in financial units that will help in monitoring of the financial condition of Unilever (Rigarlsford et al., 2020).

Conclusion

For carbon and greenhouse gas emissions, manometry can be an effective tool for diagnosis. This particular tool diagnoses the air around a particular structure or establishment (in this case the factory) and gives a reading of the air quality around it. The research conducted by the R&D team can be easily monitored by asking them to submit reports of their research from time to time along with a development report from the last time. The training aspect will reflect in the work of the employees, however still employees can be asked to submit reflective reports regarding their training to monitor their development (Reza 2020).

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