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1 1 Unit title Strategic Business Management and Planning Learning time ABP qualification framework level 180 hours 7 (Postgraduate) Unit description Students will examine the role and importance of strategic business planning in organisations. Businesses need to identify their core purposes so that all other activities can be synchronised and structured in order to support the achievement of these objectives. The business environment is, however, fluid and businesses need to respond to both internal and external factors when reviewing their strategies. Strategies need to be designed in such a way as to achieve competitive advantage. Both the strategies and the nature of competitive advantage are dependent on, and need to be aligned to, what the business is and what the business does. There are a number of operational and emerging issues that impact upon business strategy, and students will learn how sustainable and ethical considerations have an increasing impact on strategy. s 1 Understand the impact of internal and external factors on organisations 2 Understand the role of strategic business planning in organisations 3 Understand the strategies that organisations use to achieve competitive advantage 4 Understand the environmental factors that affect strategic business 1
2 s, content and assessment criteria The learning outcomes describe the abilities that learners will possess after they have completed the unit. The content identifies the breadth of knowledge, skills and understanding needed to design and deliver a programme of learning to achieve the learning outcomes. The assessment criteria provide a list of achievements sufficient to demonstrate that a learner has met the learning outcomes. The learner should be given the opportunity to cover all of the content but it is not a requirement that all of the content is assessed. 1 Understand the role of strategic business planning in organisations Strategic management: scope, nature, characteristics, significance, national context, international context, links to tactical and operational planning, types of organisation (profit, not for profit) Purposes: mission, vision, goals, objectives, strategic intent Models: classical models, contemporary models, concepts, tools, transformational change, incremental change, muddling through, strategic drift, emergent theories 1.1 Appraise processes by which organisations identify their goals and values 1.2 Explain the characteristics of strategic business 1.3 Evaluate the classic and contemporary models used in developing business strategies and plans 2
3 2 Understand the impact of internal and external factors on organisations External factors: political, environmental, social, technical, economic, legal, regulatory, sources of competition Internal factors: corporate governance, strengths, weaknesses, opportunities, threats Governance: management structure, management style, organisational culture, legal environment, regulatory environment, best practice (Turnbull, Cadbury, Myners, Higgs, Hampel, Tyson, Smith) Forecasting change: scenario planning, game theory, decision analysis, social forecasting, Delphi, national advantage, developing strategic options 2.1 Evaluate the impact and influence of the external environment (PESTLE) on organisational business strategies 2.2 Evaluate the influence of organisational governance requirements on organisational business strategies 2.3 Explain how organisations forecast change in order to shape strategic options 3
4 3 Understand the strategies that organisations use to achieve competitive advantage Strategy: purpose of strategy, position of strategy, strategy processes, organisational direction, direction of competition, customer requirements, obtaining competitive advantage, Ansoff's growth-vector matrix, portfolio analysis, strategic planning (e.g. Boston Consulting Group growth-share matrix, directional policy matrices), market entry strategies, organic growth, growth by merger or acquisition, strategic alliances, licensing, franchising, growth strategies, horizontal and vertical integration, related and unrelated diversification, do nothing, market penetration, market development, product development, innovation, strategy selection, considering the alternatives, appropriateness, feasibility, desirability Risk factors: political, economic, social, technical, legal, environmental, environmental scanning, human factors (supply of labour, workforce profile, workforce skills), environmental audit, stakeholder analysis, Porter s Five Forces analysis, new entrants, power of buyers, power of suppliers, substitutes, competition, collaboration, exchange rates, cost of capital 3.1 Analyse means by which an organisation positions itself to outperform its competitors 3.2 Evaluate appropriate strategies for emerging, maturing and declining competitive positions 3.3 Assess the impact of risk factors on strategic business management activities 4
5 4 Understand the environmental factors that affect strategic business management and planning Impact: cross cultural understanding, comparative management styles and practices, cross-cultural communication, linguistic ability, changes (e.g. to organisation, structure, strategy, activity, production, marketing, purchasing, distribution, pricing, product differentiation, efficiency, profitability), decision making locus, company domicile, headquarter and subsidiary relations, ethical issues, corporate responsibility, social responsibility Emerging issues: environmental issues, global warming, commodity scarcity, the emerging economies (e.g. Brazil, Russia, India, China (BRIC economies)) Stakeholders: range, interests, power, influence, conflicting purposes 4.1 Analyse the potential impact of emerging global issues on strategic business activities in organisations 4.2 Evaluate the impact of stakeholder interests in shaping strategic business activities in organisations 4.3 Explain how organisations respond to environmental factors when making strategic plans 5
6 Delivery and assessment Delivery should engage students in their learning by using a range of teaching and learning techniques that accommodate different learning styles, including: presentations, case studies, simulations, professional discussions, group activities, visits, guest speakers and independent research. Assessment should use vocationally relevant methods that require students to adopt a realistic work role and produce work in the formats that are expected in business. Examinations and assignments that use a range of assessment methods can be used. Case studies, problems and examples used in assessments need to be current and to have the requisite range of issues for students to consider at this level of study. Students should be able to apply their understanding of theory to their investigations and to their proposed solutions to problems. Indicative resources Johnson, G., Scholes, K., and Whittington, R. Exploring Corporate Strategy: Texts and Cases (2008), Prentice Hall, ISBN- 13: Lynch, R., Corporate Strategy (2005), Prentice Hall, ISBN-13: Mastering Strategy (2000), Financial Times Mastering Series, Prentice Hall, ISBN-13: Thompson, J.L., Strategic Management: Awareness, Analysis and Change (2005), Thomson Learning, ISBN-13: Porter, M.E., Competitive Advantage (2004), Free Press, ISBN-13: Mintzberg, H., The Rise and Fall of Business Planning (2000), Prentice Hall, ISBN-13:
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