Unit Title: Strategic Business Management and Planning Guided Learning Hours: 180 Level: Level 7 Number of Credits: 20 Learning Outcome 1 The learner will: Understand the nature, scope and need for strategic business management and planning in international profit and not-for-profit organisations. Assessment Criteria Indicative Content The learner can: 1.1 Explain the scope, 1.1.1 Examine the nature and context of businesses working nature and characteristics in a global environment. of strategic business management and planning 1.1.2 Consider the nature and scope of strategic decisions, in in a global environment. terms of time frames and level of decision-making. 1.1.3 Explain the characteristics of strategic decisions, including the aim of achieving competitive advantage, the effect of strategic decisions on the other organisational levels and the impact of environmental factors. 1.1.4 Examine Mintzberg’s ‘5 Ps’ to explain the concept of strategy. 1.2 Critically analyse the 1.2.1 Identify and explain the forces driving the need for need for strategic business strategic business management in a global environment, management and planning including: in a global environment. • Reduction in barriers to trade and investment; • Market liberalisation; • Economic development and modernisation; • Integration of worldwide financial markets; • Emergence of economic trade blocs; • Advances in technology, and • Convergence of consumer lifestyles and preferences. 1.2.2 Appraise the global business environment and the nature of global business activities. This will include appraisal of: • The forms of international trade, such as importing, exporting, international investment, outsourcing and direct investment. • The risks involved in global strategies, including cultural risk, country risk, currency risk and commercial risk. 1.3 Appraise the 1.3.1 Consider the international dimensions of strategy and international dimensions of the organisation, and discuss the increasing complexity of strategic business international business strategy. management and planning. 1.3.2 Discuss the factors of increasing complexity of international business strategy and planning, including the impact on functional areas of the business: • Human resource management • Logistics • Marketing • Operations and structure • Marketing 1.3.3 Explain the concept of multi-national corporations and appraise the difficulties in strategic planning when operating in multiple international locations. 1.4 Analyse the different 1.4.1 Explain the three levels of organisational strategy: levels of organisational • Corporate level strategy strategy and their • Business level strategy relationship with tactical • Functional level strategy and operational decision- making. 1.4.2 Discuss the need for corporate and business level strategies to match appropriate functional level strategies. 1.5 Explain the distinction 1.5.1 Examine the nature of not for profit organisations such between profit and not for as the public sector, government agencies, charities and profit organisations in nationalised industries. terms of strategic business management and 1.5.2 Explain the concept of strategic planning in not for profit planning. organisations and the different influences involved. 1.5.3 Consider the political influences in not for profit organisations and the nature of the competitive environment and how these will affect strategic planning. 1.5.4 Appraise the nature and influence of stakeholders in the strategic planning process of not for profit organisations. 1.5.5 Compare and contrast strategic planning in profit and not for profit organisations. Learning Outcome 2 The learner will: Understand a range of classical and contemporary models, concepts and tools in business strategy and planning. Assessment Criteria Indicative Content The learner can: 2.1 Identify classical and 2.1.1 Explain the following concepts and models: contemporary models, • Logical incrementalism concepts and tools in • The learning organisation business strategy and • Transformational change critically appraise the use of these concepts and • Muddling through models in contemporary • Strategic drift organisations. • Intended strategy/realised strategy/imposed strategy • Emergent strategy and deliberate strategy 2.1.2 Evaluate the difference between static, dynamic and complex business environments. 2.1.3 Critically examine the applicability of the above concepts and models in these different business environments. 2.2 Distinguish prescriptive 2.2.1 Consider the nature of the prescriptive theory as a and emergent theories of systematic and deterministic process of strategic planning. corporate strategy and their relevance to 2.2.2 Explain the advantages and disadvantages of a organisations. prescriptive approach to strategic planning. 2.2.3 Consider the nature of the emergent theory as an incremental and unplanned method of strategic planning. 2.2.4 Explain the advantages and disadvantages of an emergent approach to strategic planning. 2.2.5 Identify business environments where each approach is suitable. Learning Outcome 3 The learner will: Understand the processes by which organisations identify and develop their goals and values. Assessment Criteria Indicative Content The learner can: 3.1 Examine the 3.1.1 Explain the difference between a mission statement, processes by which organisational goals, values and objectives. organisations identify and develop their goals and 3.1.2 Identify who the organisation is there to serve and the values and mission. direction and purpose of the organisation. 3.1.3 Examine the nature and purpose of mission statements. 3.2 Appraise the impact of 3.2.1 Explain the nature of stakeholder power and interest. the conflicting needs, power and influences of 3.2.2 Undertake a stakeholder mapping process (using the stakeholders on an Mendelow stakeholder mapping matrix). organisation’s goals. 3.2.3 Identify the challenges and opportunities presented by stakeholder groups. 3.2.4 Discuss strategies for managing stakeholder conflict (direction/education/communication/intervention/participation). 3.3 Examine the influence 3.3.1 Explain the corporate governance framework. of corporate governance and regulation. 3.3.2 Examine the importance of separating ownership from management control. 3.3.3 Identify whom the organisation should serve. Learning Outcome 4 The learner will: Understand the impact of political, economic, social, technological, environmental and legal factors on an organisation. Assessment Criteria Indicative Content The learner can: 4.1 Evaluate the impact 4.1.1 Distinguish the macro environment from the micro and influence of the environment. external environment on an organisation and relate 4.1.2 Explain the environmental analysis process that takes it to its strategy. place during strategy formulation and as part of a continuous process of environmental scanning. 4.1.3 Evaluate the macro-economic factors and their impact on organisations (economic growth rates, inflation rates, interest rates, exchange rates, employment legislation and taxation policies). 4.2 Critically appraise the 4.2.1 Explain the component factors of Political, Economic, use of techniques such as Socio-cultural, Technological, Ecological/Environmental and PEST, PESTEL, STEEP Legal (PESTEL) and other derivatives. 4.2.2 Critically evaluate the practical use of these techniques in the light of dynamic global business environments. 4.2.3 Identify and explain the advantages and disadvantages to organisations of undertaking environmental scanning as part of the strategy formulation process. 4.3 Identify the sensitivities 4.3.1 Examine the components of environmental change, of the organisation to including environmental complexity and environmental environmental change and uncertainty. appropriate prioritisation of search mechanisms. 4.3.2 Explain how high environmental uncertainty affects business strategy. 4.3.3 Examine the importance of environmental scanning and analysis within an organisation. 4.3.4 Consider the nature and sources of environmental information, including an analysis of primary and secondary sources. 4.4 Appraise determinants 4.4.1 Examine why certain countries have so many successful of national advantage international businesses and why these firms sustain superior using suitable techniques performance in a global environment. such as Porter’s Diamond. 4.4.2 Examine the four components of Porter’s Diamond in order to explain the competitive advantage of nations. 4.4.3 Appraise the role of government in achieving national competitive advantage. 4.4.4 Explain the concept of clustering. 4.4.5 Discuss the factors which lead to the loss of national competitive advantage, such as factor deterioration or collapse of supporting clusters. Learning Outcome 5 The learner will: Understand the key forces that represent both opportunities and threats to organisations whether for profit or not for profit. Assessment Criteria Indicative Content The learner can: 5.1 Evaluate the purpose 5.1.1 Explain the component factors of a SWOT analysis. and attributes of SWOT analysis. 5.1.2 Identify the internal and external influences of a SWOT analysis, in particular the influence of PEST analysis. 5.1.3 Explain the value to an organisation of undertaking a SWOT analysis, including an explanation of the need to convert threats (or weaknesses) into an advantage and the need to match strengths with opportunities. 5.1.4 Examine the organisation’s approach to removing weaknesses that leave the organisation open to threat or cannot be turned into an advantage. 5.1.5 Evaluate the position of the SWOT analysis within the strategic planning framework, examining the arguments for putting SWOT analysis at the start of the strategy process. 5.2 Appraise techniques to 5.2.1 Examine the concepts of competition and competitive identify the sources of advantage. competition to organisations, such as 5.2.2 Explain the concept of competitive advantage using Porter’s Five Forces Porter’s Generic Strategies. analysis. 5.2.3 Explain the sources of competition in an industry, in particular using Porter’s Five Forces model. 5.2.4 Discuss the barriers to entry within an industry. 5.2.5 Explain how the Industry Life Cycle may affect the nature of competition within an industry. 5.2.6 Identify and examine the macro-economic factors that may affect the competitive environment. 5.3 Critically evaluate the 5.3.1 Discuss the nature of changing competitive environments turbulence of and the impact upon competitive advantage. environmental change and the impact on strategic 5.3.2 Critically examine the impact of changes in the macro- dynamics. environment such as new technologies, globalisation and deregulation. 5.3.3 Explain the cycle of competition and hyper competition. 5.3.4 Identify and discuss how organisations are able to create new competitive advantage by understanding the factors in the macro-environment and identifying strategic gaps, such as identification of substitute products, new market segments or complementary product/service offerings. Learning Outcome 6 The learner will: Understand the strategy process for an organisation to achieve competitive advantage. Assessment Criteria Indicative Content The learner can: 6.1 Identify the capabilities 6.1.1 Consider the concept of strategic capability. that allow organisations to achieve competitive 6.1.2 Explain the concept of critical success factors. advantage. 6.1.3 Explain the following terms relating to strategic capability: • Threshold resources • Unique resources • Available resources • Threshold competences • Core competences 6.1.4 Consider the importance of knowledge as a key capability in the modern business environment. 6.2 Critically analyse 6.2.1 Explain the use of the value chain in assisting means by which an organisations in identifying those products and services which organisation positions itself add value to the business/customer. to outperform its competitors. 6.2.2 Discuss the use of a value system in creating best value products and services. 6.2.3 Discuss the concept of value for money and the importance of ensuring cost efficiency. 6.2.4 Discuss the concept of effectiveness in achieving competitive advantage. 6.2.5 Examine the importance of understanding the performance standards that need to be achieved to outperform competitors, using techniques such as benchmarking. 6.3 Identify and evaluate 6.3.1 Explain the Product Life Cycle. appropriate strategies for emerging, maturing and 6.3.2 Critically evaluate the application of Porter’s generic declining competitive strategies within the three competitive positions, including positions. discussion of: • Cost leadership based strategies; • Differentiation based strategies, and • Focus based strategies. 6.3.3 Discuss the use of Product–Market strategies, in particular the application of the Ansoff product–market scope matrix. 6.3.4 Discuss the risks associated with Diversification based strategies. 6.3.5 Consider alternative growth strategies, such as: • Internal development; • Joint development strategies, and • Mergers and acquisitions. 6.3.6 Examine the use of international growth strategies, such as exporting, overseas manufacture, multi- national operations, global operations. 6.3.7 Evaluate the issues involved in international growth strategies, such as social responsibility, cross cultural management, financial control and economic development issues. 6.3.8 Explain the use of the success criteria of Suitability, Acceptability and Feasibility (SAF Framework, Johnson and Scholes) Learning Outcome 7 The learner will: Understand the future challenges affecting strategic business management and planning. Assessment Criteria Indicative Content The learner can: 7.1 Analyse global influences 7.1.1 Consider the dimensions of a global economic and impact on environment, including factors such as: internationalisation of • Changing patterns of global trade, economic strategic business development and modernisation; management and planning. • Development of regional economic groupings; • International impact on currencies and interest rates; • Impact of the influences of economic bodies such as EU and G8, and • Convergence of buyer life styles and preferences. 7.1.2 Explanation of factors driving a new global economy, such as: • Adoption of free trade and transition to market based economies; • The creation of common regulations via supra national organisations, such as EU and NAFTA and the integration of world financial markets, and • Technological developments. 7.1.3 Analyse the consequences of market globalisation, including: • Societal consequences, such as the effect on national cultures, environmental impacts and the loss of jobs, and • Organisational consequences, such as new business opportunities, risks of foreign competition, supplier and customer sourcing and internationalisation of the value chain. 7.2 Identify environmental 7.2.1 Consider organisations’ impact on the global issues impacting upon environment and how this may affect overall business strategy in the 21st century, strategy. for example global warming, scarce commodities, 7.2.2 Examine the impact of businesses on the environment, emerging economies (BRIC). in particular the impact of emerging economies such as China and India. 7.2.3 Consider the corporate social responsibility of organisations in protecting the environment. 7.3 Critically evaluate the 7.3.1 Discuss the effect of globalisation on strategic effect of these future management and planning. challenges on strategic business management and 7.3.2 Discuss the effect on strategic business management of planning. the globalisation of business, including discussion of: • Impact of global competition and the need to reassess competitive strategies; • Organisation and structure of businesses; • Changing managerial roles in global organisations; • Impact on growth opportunities and development strategies; • Impact on core competences and critical success factors, and • Impact on the organisation’s value chain. 7.4 Appreciate the impact of 7.4.1 Explain the need for innovation in reaction to the the increasingly competitive changing global environment. global environment and the need for innovation, 7.4.2 Examine the difference between intrapreneurship and intrapreneurship and entrepreneurship. entrepreneurship in organisations. 7.4.3 Examine how these alternative approaches may help organisations to compete globally. Assessment: • Assessment method: written examination (unless otherwise stated). • Written examinations are of three hours’ duration. • All learning outcomes will be assessed. Recommended Reading: Please refer to the Tuition Resources section of the Members Area of the ABE website (www.abeuk.com) for the recommended reading for this subject.
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