Strategic Planning

TASK 1 1
1.1 Explain the importance of external factors affecting your organization. 1
1.2 Analyze the needs and expectations of stakeholders of an organization. 2
1.3 Analyze the major changes taking place in the external environment that will affect strategy. 2
TASK 2 3
2.1 Use appropriate tools to analyze the effects of current business plans. 3
2.2 Review the position of your organisation in its current market. 4
2.3 Evaluate the competitive strengths and weaknesses of an organization’s current business strategies. 5
3.1 Use modeling tools to develop strategic options for your organization. 6
3.2 Develop a comparative understanding of activity from organizations in the market. 6
3.3 Create options to form the basis of future organizational strategy. 7
TASK 3 7
4.1 Propose a suitable structure for a strategy plan that ensures appropriate participation from all stakeholders of your organization. 7
4.2 Develop criteria for reviewing potential options for a strategy plan. 8
4.3 Construct an agreed strategy plan that includes resource implications. 8
5.1 Compare core organisational values (ethical, cultural, environmental, social and business) with the current business objectives of your organization. 8
5.2 Develop appropriate vision and mission statements for your organization. 9
TASK 4 9
5.3 Produce agreed future management objectives for your organization. 9
5.4 Develop measures for evaluating a strategy plan. 10
6.1 Develop a schedule for implementing a strategy plan in an organization. 10
6.2 Create appropriate dissemination processes to gain commitment from stakeholders 11
6.3 Design monitoring and evaluation systems for the implementation of a strategy plan in an organization 12
Conclusion 12
Reference: 13

Introduction

Strategic planning is a management instrument for organizing the present on the basis of the projections of the desired future. That is, a strategic plan is a road map to lead an organization from where it is now to where it would like to be in next. Therefore, it is the most important initiative for an organization.

To make out this clearly, a company has been chosen named Dettol, UK. This multinational company started their journey in India about 80 years ago as a cleaning and disinfection of skin during surgical procedures. The company has operations in 60 countries, sales in 200 countries and has had net revenues in excess of $5.5 billion (Dettol annual report, 2013). To continue this company significantly, it follows few planning strategically.

I have been selected as the Strategic Consultant of the organization. So I have to research information from this organization and develop a full strategic review of this organization. In this assignment will focus various tools, external environment, existing plans, consideration of strategic options and the development of a strategic plan. Finally, some recommendations are also made in the conclusion.

TASK 1

1.1 Explain the importance of external factors affecting your organization.

External factors are all those things that are out of control. Stakeholders, government regulations, competition and PESTEL which stands for political, environmental, Social, technological, economic and legal environment are some of the external factors that directly affect every business. Strategic planners expect and manage some of the circumstances that affect their business. Discovering disjunctive financing sources until loaning restrictions relieve, processing plans for obligingness with regulations and enhancing conception and service to rescript ahead of the competition are forward-thinking ways to enter external factors from threatening the aliveness of business (Lindblad. M., 2014).

Dettol is the Public Limited Company where stakeholders are more affective body. It impact on the organization in the field of benefit. This is also considered to be one of the pillars of their business philosophy. As Dettol is an international company originated in India and controlling their business in UK, has to follow government policy and law of there (Dettol, 2014). This feature effects on profit and expending of the business. Competitive environment can be understood in the framework. Dettol has number of product categories like toilet soaps, liquid hand wash, liquid body wash, shaving cream and plaster strips. Media and Occupied man also play an important external factor. For example in Feb 2005, it started with a new ‘70% doctors prefer Savlon advertisement with heavy media support (Dettol, 2014). The above clearly massages us, external factor is affected the company.

1.2 Analyze the needs and expectations of stakeholders of an organization.

With the environmental and sustainable living has become issues around the world, stakeholders are expecting the fair treatment from the businesses. MNCs have become so powerful nowadays that they can influence the social and political dynamics. But still, people and stakeholders are the core driving forces for the success of a company.

Dettol started its journey in 1933 as antiseptic liquid as a fully owned subsidiary of Reckitt Benckiser but enlist to PLC in 1993. Stakeholder could be a catch-all term that structures a broad vary of disparate objects starting from specific individuals to large-scale public and personal organizations. In general, the business's most outstanding stakeholders embody house owners and investors, customers, dealers, employer, societies and also the government (Dettol, 2014).

Before a business will think about the wants and expectations of its stakeholders within the course of its coming up with, it should determine those stakeholders and kind them in their order of importance to the business. One system to complete this can be to list the stakeholders and so verify the degree of their interest and effect within the business. If stakeholders have a high degree of interest, the business has to communicate with them on an everyday basis and keep them hip concerning its activities. The business conjointly has to keep them placated (Alan, 2011).

1.3 Analyze the major changes taking place in the external environment that will affect strategy.

Strategic designing will be littered with numerous changes within the external surroundings within which a business operates. New competitors enter the market. Existing competitors leave the market. Population shifts end in will increase or decreases in population. The economy could modification either absolutely or negatively. No surroundings is stable over time, thus organizations should be responsive to external impacts which will have an effect on their designing. This is the crucial thing that Dettol has built its strategy upon. The fact is that the aberration of the environment has come to be an issue around the world. Gaps have been created between the expectation of people to live better and what actually happens around the world. Dettol itself says that it cares for the better living of people around the world even who now lives under the poverty line.

The external setting is that the setting that poses an on the spot influence on the corporate. Although the parts of this setting don't seem to be a framed a part of the corporate; however their existence in itself is either a boon or a threat to the corporate. The parts of such setting square measure customers , suppliers, shareholders , competitors , political setting , social setting , selling setting , cultural setting during which the corporate operates . Of these parts may be divided into small and macro parts looking on the general have an effect on they need on the corporate. So, we are able to say that external setting may be classified into small and macro setting, precisely (UK Essays, 2013).

TASK 2

2.1 Use appropriate tools to analyze the effects of current business plans.

There are various tools and technique to analyze the effect of business plans. Among of those tools SWOT is more appropriate tools. SWOT analysis is one of the tools of analyzing the assessing the strengths and weaknesses along with threats and opportunities of a company. SWOT is followed by a company so that it can plan its strategies in accordance with the internal strengths and weaknesses and deeply analyzing the external environment of opportunities available in the market. The threats posed to the company by external forces in action. SWOT choses info from different sources, all which affect a company is a positive or a negative way. Once SWOT is created, a company can easily take supervision and information from the analysis and precede in company its own strategies.

The value chain of Dettol is well managed. The firm is considered to be one of the effective firms around the world having had net revenues in excess of $5.5 billion (Dettol PLC, 2014). In addition to that, Dettol employees the best people through their tough process, and it is one of the top selections for the people who want to build their career in business management. Therefore it gets a large number of qualified people when it needs. It also does innovation in terms of technology. It becomes evident when they invent the concept of sache, or changes the bottling of perfumes and deodornats (Kotler and Keller, 2012). Dettol considres the procurement of the best resources in the best way. It also considers that the procured resources are environment friendly, and ensures that no extravagance happens in the use of resources.

External Elements of SWOT

Gathering setting of the elements of a SWOT analysis has been executed. This will allow achievable goals or objectives to be set for the organization.

Strengths: Strengths characteristics of the company that give it an advantage over others.

Weaknesses: Weaknesses are symbolized that place the team at a disadvantage relative to others.

Opportunities: Opportunities elements that the project could extend to its benefit.

Threats: Threats elements in the environment that could cause trouble for the company (Cerasis, 2013).

Considering above the tools, discuss Dettol as following Strategy. Dettol has organizational resources and Operation in 60 countries. The Weaknesses are maintaining a huge number of regions, threat of substitute products and failed to make sure their sale. But there is opportunity to increase market size and growing awareness among people about the health issues. There is also threat such as upcoming political changes and local manufacturers and marketers of generic products (Dettol PLC, 2014).

2.2 Review the position of your organisation in its current market.

Despite continued tough trading conditions in many parts of the world, Dettol is confident about 2013 and has set a target of achieving 5-6% net revenue growth at constant exchange rate, excluding RB Pharmaceuticals. The market is dominated by Dettol Antiseptic Liquid, which has close to 85% share. Johnson & Johnson’s Savlon is the other significant player with a market share of 13%. A few years back, this market saw introduction of Suthol brand antiseptic liquid from G.D. Pharma (Dettol PLC, 2014). Dettol’s vision is a world where people are healthier and live better. Dettol’s purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes. 2012 net revenue increased at +4% at constant exchange rate (constant), to £9,567m, with like-for-like growth of +5% for the Group and +5% like-for-likes for the base business. Dettol achieved about 200 bps of net revenue growth above market growth on average each year. It will emerge market areas to be 50% of ‘core’ net revenue by 2016. It will assure Health and hygiene net revenue to be 72% of ‘core’ net revenue by 2016 (RB Annual Report, 2012).

Company life cycle is an important tool to analyze the position of the company. In this case, the company life cycle model has been used to do so. Company life cycle model can has stages that are startup, rapid growth, maturity, decline and rebirth. Unilever is now at maturity stage as it has reached up to the highest level of sales and market share given the current status quo (King, 2013). But it now focuses on doubling its sales which can be said to be launching a growth mission through a strategic change.

2.3 Evaluate the competitive strengths and weaknesses of an organization’s current business strategies.

The competitive advantage of Dettol comes from its straight selling business model, which lowers costs and enables the company to respond to customers’ demands, and also from its focus on proficient supply chain management. Efficiency and Customer Openness are two of the four main building blocks of competitive advantage. Internal Analysis is concerned with identifying the strengths and weaknesses of the company. Internal Analysis is a three step process.

1. Managers have to create value for customers and make profit themselves, and they need to make out the role of resources, capabilities & distinctive.

2. Managers need to understand how important superior efficiency, innovation, quality & responsiveness to customers.

3. Managers must be able to analyze the sources of their company's competitive advantage to identify what is driving the profitability.

The Internal Factors: The environment in which an industry operates consists of 5 M’s. Those are Men, Machine, Money, Materials and Markets.

The internal environment is easier to control than the external environment. Changes in the internal environment are very easy (UK Essays, 2013). SWOT Analysis that impact the marketing strategy, Distinctive competency and Competitive Advantage.

Weakness is also to be considered. The fact is that Dettol has to make a great amount of investment to accomplish such a mission which also imposes a great risk for Dettol. The target market is aware, but the level of their awareness and association of environmental issues to their life is a question that has to be solved first. Dettol has started to do it campaign to aware people about their health and hygiene programmer around the world (Dettol PLC, 2014).

3.1 Use modeling tools to develop strategic options for your organization.

In the strategic tools, Dettol has the regional directors and the global managers who actually form the strategy. Strategic planning models help business managers to develop better strategies that maximize profit in the market. The best strategies come off from the perception of applying the strategy models and the discussions that occur within the management team and not as a direct result of using the planning model. Strategy models provide a common reference point. It can see a set of circumstances or even a particular symptom (Differentiate your business, 2011).

The strategic planning models are formatted for specific task, it help to reach main objective, developing a strategy that creates a competitive advantage for achieve goals. Strategy models come in a diversity of different sizes and situations. Those are the models to help to understand strategic environment, to help to establish competitive advantage, to help to assess strategic direction, to help to implement strategy and to assess your overall strategy.

3.2 Develop a comparative understanding of activity from organizations in the market.

Basically Dettol provides health and hygiene relate product in worldwide. Savlon and Santoor as it is the main competitor for Dettol. But in the field of health product Dettol is better than those and achieved net revenue £9,567m in 2012. So Dettol will have to fight a strong competitor not only in UK, but also around the world. Here comes a proper benchmarking which sets a benchmark, and PG becomes to be the benchmark for Dettol (Dettol PLC, 2014).

Dettol usually is an attractive investment for many of the companies. It has 5 brands that bring up sales around the world that accounts for 64% of the sales of the company (Annual Report, 2012).

Finally, Dettol uses various segmentation strategies for various products. But for now, they are targeting the mass that lives on or below the poverty line around the world. This gives it the hope to double the business through the partnership.

3.3 Create options to form the basis of future organizational strategy.

The process of corporate expansion has already been started as Dettol is going to found more establishments apart from the current 7 ones (Dettol, 2014). It also effective corporate governance in UK corporations remains high on the agenda for both company boards and their Shareholders. It is also now building up partnership with more suppliers and media partners as it has to gradually double its production. It is not focusing or merger or acquisition for now, but it can introduce some vertical marketing system. By doing this the control on the distribution channel will be increased. But in some cases such as international sourcing, outsourcing is the best option for Unilever that is already adopted by them. Finally, the technological advancement and strength of Dettol can be said to be notable as they have innovated many concept in the FMCG sector.

TASK 3

4.1 Propose a suitable structure for a strategy plan that ensures appropriate participation from all stakeholders of your organization.

The essence of organizational design is the management of a series of constraints that control the division of labor and the accomplishment of coordination. By all the time keeping in mind the organizational supplies of the Dettol, UK I would like to suggest a ‘Matrix Organizational Structure’ based on the grouping. This future structure will assist the Dettol’s end markets and because the workflow interdependencies are the significant ones to some scope and the organization cannot easily holder them by standardization accepting this structure will tend to favors the market bases for grouping in order to boost mutual alterations and direct management (Christian Scholz, 2008).

By accepting the future organization becomes beneficial. These are that people can be common, the project cost is reduced. Clashes are marginal, and those requiring hierarchical transfers are more easily fixed. There is a better balance between time, cost and recital. Stress is spread among the team. It enhanced ability to access capitals across the old functional and geographic silos. It enhanced access to a diverse choice of skills and outlooks. It improved global or regional missions. Increased communication and management across the business and replicates the needs of regional customers.

4.2 Develop criteria for reviewing potential options for a strategy plan.

Balanced record is a combination of the economic stewardship, stakeholders’ interest, business process, mission and the strategic objectives (Kaplan, 2007). Balancing among all these in a satisfactory way will be the success criteria for the company. In addition to that, the success metrics will be joining the market share, market growth, revenue, profit, brand value etc. There will be benchmarks that are to be set to realize the company is performing well.

Finally, achieving the goal of doubling the business within 2020 will be the ultimate success for the company. Interim successes can be dignified by the aforementioned methods occasionally.

4.3 Construct an agreed strategy plan that includes resource implications.

Resources of the company are the advanced technology, effective and efficient human resource and the brand value along with well-established infrastructures and monetary ones. These resources will be devoted to double the business within 2016 (Dunkley, 2013). Strategy will be to make people appreciate the philosophy of Dettol to reduce the environmental footprints and then to do business in a fair way. This is the core strategy. In doing this, the company will be building partnership with many activist groups, social movements and then to sponsoring them to increase the brand value and to convey the messages. Finally, it will be convincing people that it is a true friend to them for doing business established on the philosophy of being partners.

5.1 Compare core organisational values (ethical, cultural, environmental, social and business) with the current business objectives of your organization.

The core values of an organization are those values which form the foundation on which we perform work and conduct ourselves. Core values are not descriptions of the work we do or the strategies we employ to accomplish our mission. The values motivate our work, how cooperate with each other, and which strategies we occupy to fulfill our mission. The core values are the basic features of how we go about our work. The current business objective of Dettol PLC is to double its sales within 2016. It swears fair business. It speaks for the cultural multiplicity and the social well-being for the people. It also influences them that it cares for their rights to live well (Armstrong, 2014).

5.2 Develop appropriate vision and mission statements for your organization.

A vision statement can help to link with goals to employees and management in a single sentence. While a well-thought-out statement may take a few days or weeks to craft, the result will be a tool that helps inspire strategic decision making and product development. Up to 70 percent of employees do not understand their company's strategy. Failure to understand your company's position can lead to poor decision making at all levels of an organization (Harvard Business Review, 2013).

A mission statement is a key tool that can be as important as business plan. The mission statement reveals every facet of organization: the range and nature of the products, pricing, superiority, facility, marketplace location, growth probable, use of knowledge, and relationships with customers, workers, suppliers, opponents and the community (Harvard Business Review, 2013).

TASK 4

5.3 Produce agreed future management objectives for your organization.

There has to be some objectives to be met to reach the ultimate goal. These objectives are important for the organization to reach the ultimate goal. Firstly, the organization has to ensure that common consumption of some products will take place as replication the number of the customers is a challenging task. Secondly, the company will have to ensure that the customers are well acquainted and gradually will love the products from Dettol. Thirdly, it has to associate the sense of environmental betterment and make people believe that they are the part of this journey. Finally, the company will be approaching to increasing the size of the market and to reach the benchmarks.

5.4 Develop measures for evaluating a strategy plan.

Develop measures for strategy plan have a clear road map roadway to reach goal. Creating good, solid measures is the first step to developing your performance scorecard. Measures are computable performance statements, and they must follow certain rules. Measures should be related to the goal and strategy, engaged in context of a target to be reached in an identified time border, capable of being trailed period after period and owned by the person who’s responsible for the goal (Differentiate your business, 2011). The following are different types of measures:

Efficiency measures: These measures are efficiency and cost effectiveness measured as ratio of outputs per inputs.

Outcomes measures: These measures are the end result of whether services meet proposed targets or standards and demonstrate impact and benefit of activities.

Quality measures: These measures gauge effectiveness of expectations and generally show improvement in accuracy, reliability, courtesy, competence, responsiveness, and compliance.

Project measures: These measures show progress against an initiative that has a terminus. The measure is usually stated as the percent complete.

6.1 Develop a schedule for implementing a strategy plan in an organization.

A strategic set up is of very little use to a company while not a method of golf shot it into place. In fact, implementation is a necessary a part of the strategic designing method, and organizations that develop strategic set ups should expect to incorporate a method for applying the plan. the particular implementation method will vary from organization to organization, dependent for the most part on the small print of the particular strategic set up, however some basic steps will assist within the method and make sure that implementation is triple-crown and also the strategic set up is effective (Chron, 2014).

A schedule for implementing strategic plan in Dettol PLC has been given below:

Task	Start	End
Grow our health and hygiene categories faster	2014	2015
Patent protection	2014	2020
Building Relationships with small stakeholders	2014	onward
USLP campaign	2014	2020
Additional HR management	2014	2018
Allocation of Resources	2014	2015
Expending Business	2014	2017
Align Departmental Plans to strategy	2014	2017

6.2 Create appropriate dissemination processes to gain commitment from stakeholders in your organization.

The underlying reason to achieve then publicize new research-based info, is to assure it's befittingly thought-about to be used in reaching selections, creating changes, or taking alternative specific actions designed to enhance outcomes. That is, the goal of dissemination is utilization. Facilitating the employment of research-based info may be a complicated method. Several barriers exist, each in managing the steps necessary for implementation and in making certain that recipients have the abilities, attitudes, and awareness levels required to learn from the analysis outcomes. Information users will more effectively implement change if they, themselves, understand the process and the flow of activities that will be involved (Blasiotti. E.L.,1992).

The company will have to spread the messages via mass media or personal channels. Then it will have to ensure exchange that means the interactivity. The people will be making their choice and the company will have o make it easier for them so that they can chose itself. Finally, the implementation of the promises made will be the ultimate success.

6.3 Design monitoring and evaluation systems for the implementation of a strategy plan in an organization

Monitoring will take place simultaneously with performance. Managers who are assigned with tasks will be responsible and accountable for their tasks to their supervisor. This will abide by the chain of command in the organization. Strategic changes and deviations are best adjusted when the monitoring process happens to be real time (Kotler and Armstrong, 2010).

There will also be some monthly and annual strategic meetings and feedback. The measures will be showing the progress which will has to be adjusted to the strategy. There will be also some issues such as communication failures, lack of ownership, inconsistency in the stakeholders’ interest etc. These are the phenomena that are to be adjusted.

Conclusion

Strategic coming up with could be a thought method furthermore as a concept. The best way for an organization to run their business in the market by creating demand among the target customers rather than meeting the current need and want. The current strategies and approaches that Dettol are following are quite good enough but if they can follow the above strategy, it will be better for them. The organization can take promotional strategies to make their brand more highlighted. They can run both offline and online investigation to know the opinion of the customers. The best way to market their organization and products by giving focus to the environmental issues. As a result, we will also get positive view from the non-targeted customers of the organization as well.

Reference:

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Strategic Planning

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