TASK 1 Name the organization and explain the external environment affecting the organization of your choice.

TESCO Introduction
Tesco was founded in 1924 by John Edward Cohen. Jack 'the Slasher' Cohen, as he was better known, started out as a market stall trader in the East End of London.15 The name Tesco, was first used on tea, and was derived from the initials of Cohen's tea supplier, T E Stockwell, combined with the first two letters of Cohen. Tesco Stores Limited was incorporated in 1932.16 Cohen was responsible for several small revolutions in retailing which led to the rise of 'the supermarket' we know today. In 1935, Jack Cohen visited the USA and was impressed by the supermarkets selfservice system which enabled more people to be served faster, with lower labour costs. In 1947, the Tesco branch in St Albans, a small shop by 21st century standards (200 square metres) was the first Tesco to be converted to self service, although it didn't immediately catch the public's imagination. In the early 1960's, Cohen lobbied Parliament to have the Retail Price Maintenance (RPM) act abolished, efforts supported by Edward Heath. The RPM allowed manufacturers and suppliers to set the price of goods thus preventing large retailers, who could buy in bulk and had greater bu,ying power, from benefiting from economies of scale and undercutting the prices of smaller shops. To get 'around' this, Tesco offered another incentive to get customers through the doors - Green Shield Stamps. These were collected by customers when they spent money in the store, and were then traded for goods in a catalogue. In the 1960s, Tesco was buying up literally hundreds of grocery stores and small grocery chains around the country.17 It introduced 'Home 'n' Wear' departments into larger stores to carry higher-margin non-food merchandise, including clothing and household items, and opened its first 40,000ft 'superstore' in Crawley, Sussex. Until the 1970's, Tesco operated on the 'pile it high, sell it cheap' formula Cohen had imported from the USA. However, the market was changing, leaving the company with slim margins and a serious image problem. Under the leadership of Ian MacLaurin, who

succeeded ,,Jack Cohen in 1973, Tesco decided to try something dramatic and different: to become an aspirational mass retailer. It discontinued the use of Green Shield trading stamps and launched 'Operation Checkout' which cut prices across the board and started a price war with major rivals Sainsburys. Next, Tesco decided to modernise itself, closing 500 unprofitable stores, and extensively upgrading and enlarging others. At this time, Tesco prioritised the development of large out-of-town stores where parking was convenient, the selection of goods broad, and where a higher volume of business could be generated at increased margins while reducing overheads. In 1974, in a deal with Esso, Tesco began to open petrol stations on the grounds of its superstores. The idea was successful and by 1991 Tesco was the countrys largest independent petrol retailer: it now accounts for 12.5% of all petrol sold in the UK.18 Other innovations throughout the 1980s included introducing own-label product lines; computerising and centralising distribution systems and developing shopping centres outside of the major cities. In 1983, Tesco Stores PLC renamed itself simply Tesco PLC. In 1985, Tesco opened its 100th superstore on a 43-acre site in Brent Park, Neasden. From the time it acquired the site in 1978, it had come into conflict with the local council whose greatest concern was the impact that this, the largest food store in London, would have on retailers in the surrounding areas. In 1993, when ,Tesco introduced 'Value' lines, a cut-price range of own-label goods, competitors scoffed and the share price sank. But Tesco had gauged the popular mood: after years of recession, shoppers were looking for bargains, and sales soared. A year later, Tesco started 'One in Front'opening a new till whenever a checkout line exceeded two trolleys. It cost millions in extra staff, but customers loved it.19 1. In 1995 Tesco became the first super..market to introduce a company loyalty card, an idea developed by the then Deputy Managing Director, Terry Leahy. At first the other supermarkets were sceptical, but the concept caught the public imagination leaving the others racing to catch up. See under Corporate Crimes for more on loyalty cards.

1.1Explanation of the importance of external factors affecting an organization. External Factors Affecting Organizational Structure EXTERNAL FACTORS: Environment
The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological,

and natural environment conditions. Environments are often described as either stable or dynamic. Stable environment customers' desires are well understood remains consistent for a relatively long time Examples of orgizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. mechanistic structures to be advantageous This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments

Dynamic environment Customers' desires are continuously changingthe opposite of a

stable environment This condition is often thought of as turbulent the technology that a company uses while in this environment may need to be continuously improved and updated An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. organic structure provides the greatest benefits This structure allows the organization to respond to environment change more proactively. Organizations are now increasingly desned to be more organic now days. The HR Organizational Structure has to fit to new challenges born in the external environment. All the important and influencing people speak about the changes in the business world, as the current recession seems to be one of the worst recessions ever. The way the business was done will be discontinued and new business ethics and new business rules will be born.

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

Introduction Stakeholders can be defined as a group or individuals who can affect or is affected by the achievements of the organizations objectives (Freeman, 1984). In other words, the stakeholders range from owners to shareholders, employees to management, creditors to customers, unions and suppliers etc., who either directly or indirectly have a strong influence on the organizations dendent on the targets of the organizations. The stakeholders are of prime

importance in the business body as it is their investment in the enterprise which is at risk. So all the stakeholders expect these companies to create economic values in return of prospect they show in their firm. This makes the stakeholders a very integral, vital and critical element for all the marketing strategies adopted and implemented by a firm. The significance of building good relations with stakeholders is as important as maintaining and sustaining them. The rationale behind this approach is that stakeholders are not only the beneficiaries of the corporations financial success, but they are the referees who determine managements financial power. The success of an organization is evaluated in fractions, by reports of financial compliance, and in parts by other less tangible aspects such as meeting expectations of its stakeholders. Successful organizations recognize that stakeholder contribute to the success or failure of their activities (Bourne, L., Stakeholder Relatiohip Management: A Maturity Model for Organisational Implementation). A common postulation has come up in much of the practical and theoretical work that developing and sustaining relationships are wanted goals for both the stakeholder and the organization (Dwyer, Schurr & Oh, 1987; Wilson, 1995). However, missing from much of the

1.3 Analysis of the major changes taking place in the external environment that will effect strategy.
stakeholder management literature is a discussion of when relationships... The relationship between the external environment and organizations strategy.In recent years researches have devoted a great deal of attention to examining the linkage between the external environment and organizations strategy. Based on research evidence to date, it is becoming increasingly clear that the general and task environment determine one organizations strategy and by responding to these environmental changes, organizations make the changes to the environment for their competitors at the same time.

TASK 2 Review existing business plan and strategy of your organization

Internal and External Analysis

Internal | External | SWOT Matrix | Competitive Analysis | Market Analysis

SWOT Analysis SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company. A SWOT analysis should not only result in the identification of a corporations core competencies, but also in the identification of opportkjunities that the firm is not currently able to take advantage of due to a lack of appropriate resources. The SWOT analysis framework has gained widespread acceptance because it is both simple and powerful for strategy development. However, like any planning tool, SWOT is only as good as the information it contains. Thorough market research and accurate information systems are essential for the SWOT analysis to identify key issues in the environment. Assess your market:

What is happening externally and internally that will affect our company? Who are our customers? What are the strengths and weaknesses of each competitor? (Think Competitive Advantage) What are the driving forces behind sales trends? What are important and potentially important markets? What is happening in the world that might affect our company? What does it take to be successful in this market? (List the strengths all companies need to compete successfully in this market.)

Assess your company:

What do we do best?

What are our company resources assets, intellectual property, and people? What are our company capabilities (functions)?

Assess your competition:

How are we different from the competition? What are the general market conditions of our business? What needs are there for our products and services? What are the customer-market-technology opportunities? What are the customers problems and complains with the current products and services in the industry? What If only. Statements does a customer make?

Opportunity an area of need in which a company can perform profitably. Threat challenge posed by an unfavorable trend or development that would lead (in absence of a defensive marketing action) to deterioration in profits/sales. An evaluation needs to be completed drawing conclusions about how the opportunities and threats may affect the firm. EXTERNAL: MACRO- demographic/economic, technological, social/cultural, political/legal MICRO- customers, competitors, channels, suppliers, publics INTERNAL RESOURCES: the firm Competitor analysis is a critical aspect of this step.

Identify the actual competitors as well as substitutes. Assess competitors objectives, strategies, strengths & weaknesses, and reaction patterns. Select which competitors to attack or avoid.

The Internal Analysis of strengths and weakesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. Any analysis of company strengths should be market oriented/customer focused because strengths are only meaningful when they assist the firm in meeting customer needs. Weaknesses refer to any limitations a company faces in developing or implementing a strategy (?). Weaknesses should also be examined from a customer perspective because customers often perceive weaknesses that a company cannot see. Being market focused when analyzing

strengths and weaknesses does not mean that non-market oriented strengths and weaknesses should be forgotten. Rather, it suggests that all firms should tie their strengths and weaknesses to customer requirements. Only those strengths that relate to satisfying a customer need should be considered true core competencies. The following area analyses are used to look at all internal factors effecting a company:

Resources: Profitability, sales, product quality brand associations, existing overall brand, relative cost of this new product, employee capability, product portfolio analysis Capabilities: Goal: To identify internal strategic strengths, weaknesses, problems, constraints and uncertainties

The External Analysis eamines opportunities and threats that exist in the environment. Both opportunities and threats exist independently of the firm. The way to differentiate between a strength or weakness from an opportunity or threat is to ask: Would this issue exist if the company did not exist? If the answer is yes, it should be considered external to the firm. Opportunities refer to favorable conditions in the environment that could produce rewards for the organization if acted upon properly. That is, opportunities are situations that exist but must be acted on if the firm is to benefit from them. Threats refer to conditions or barriers that may prevent the firms from reaching its objectives. The following area analyses are used to look at all external factors effecting a company:

Customer analysis: Segments, motivations, unmet needs Competitive analysis: Identify completely, put in strategic groups, evaluate performance, image, their objectives, strategies, culture, cost structure, strengths, weakness Market analysis: Overall size, projected growth, profitability, entry barriers, cost structure, distribution system, trends, key success factors Environmental analysis: Technological, governmental, economic, cultural, demographic, scenarios, information-need areas Goal: To identify external opportunities, threats, trends, and strategic uncertainties

The SWOT Matrix helps visualize the analysis. Also, when executing this analysis it is important to understand how these element work together. When an organization matched internal strengths to exjernal opportunities, it creates core competencies in meeting the needs of its customers. In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities.

SWOT Focus on your strengths. Shore up your weaknesses. Capitalize on your opportunities. Recognize your threats. Identify

Against hom do we compete? Who are our most intense competitors? Less intense? Makers of substitute products? Can these competitors be grouped into strategic groups on the basis of assets, competencies, or strategies? Who are potential competitive entrants? What are their barriers to entry?

Evaluate

What are their objectives and strategies? What is their cost structure? Do they have a cost advantage or disadvantage? What is their image and positioning strategy? Which are the most successful/unsuccessful competitors over time? Why? What are the strengths and weaknesses of each competitor? Evaluate competitors with respect to their assets and competencies.

Size and Growth What are important and potentially important markets? What are their size and growth characteristics? What markets are declining? What are the driving forces behind sales trends? Profitability For each major market consider the following: Is this a business are in which the average firm will make money? How intense is the competition among existing firms? Evaluate the threats from potential enttrants and substitute products. What is the bargaining power of suppliers and customers? How attractive/profitable are the market now and in the future?

Cost Structure What are the major cost and value-added components for various types of competitors? Distribution Systems What are the alternative channels of distribution? How are they changing? Market Trends What are the trends in the market? Key Success Factors What are the key success factors, assets and competencies needed to compete successfully? How will these change in the future? Environmental Analysis An environmental analysis is the four dimension of the External Analysis. The interest is in environmental trends and events that have the potential to affect strategy. This analysis should identify such trends and events and the estimate their likelihood and impact. When conucting this type of analysis, it is easy to get bogged down in an extensive, broad survey of trends. It is necessary to restrict the analysis to those areas relevant enough to have significant impact on strategy. This analysis is divided into five areas: economic, technological, political-legal, sociocultural, and future. Economic What economic trends might have an impact on business activity? (Interest rates, inflation, unemployment levels, energy availability, disposable income, etc) Technological To what extent are existing technologies maturing? What technological developments or trends are affecting or could affect our industry? Government What changes in regulation are possible? What will their impact be on our industry? What tax or other incentives are being developed that might affect strategy development? Are there political or government stability risks? Sociocultural What are the current or emerging trends in lifestyle, fashions, and other components of culture? What are there implications? What demographic trends will affect the market size of the industry? (growth rate, income, population shifts) Do these trends represent an opportunity or a threat? Future What are significant trends and future events? What are the key areas of uncertainty as to trends or events that have the potential to impact strategy? Internal Analysis Understanding a business in depth is the goal of internal analysis. This analysis is based resources and capabilities of the firm. Resources A good starting point to identify company resources is to look at tangible, intangible and human resources. Tangible resources are the easiest to identify and evaluate: financial resources and physical assets are identifies and valued in the firms financial statements.

Intangible resources are larely invisible, but over time become more important to the firm than tangible assets because they can be a main source for a competitive advantage. Such intangible recourses include reputational assets (brands, image, etc.) and technological assets (proprietary technology and know-how). Human resorces or human capital are the productive services human beings offer the firm in terms of their skills, knowledge, reasoning, and decision-making abilities.

strategic planning analysis Capabilities Resoures are not productive on their own. The most productive tasks require that resources collaborate closely together within teams. The term organizational capabilities is used to refer to a firms capacity for undertaking a particular productive activity. Our interest is not in capabilities per se, but in capbilities relative to other firms. To identify the firms capaibilities we

will use the functional classification approach. A functional classification identifies organizational capabilities in relation to each of the principal functional areas.

TASK 3 3.1 Construct a strategy plans and strategies of your organization. A suitable structure for a strategy plan that ensure appropriate participation from all stakeholders of an organization.
There is a great deal of importance for strategic planning and management in all business environments. The small business that I want to start would be an Automobile detailing business, which would have a stationary location as well as a mobile unit. Strategic management and planning is the companys strategy and the management of the company according to this strategy. Strategic management and planning focuses on achieving and maintaining a strong competitive edge by outlining the goals, strategies, objectives, and action plans for the company. Strategic management and planning involves analyzing the companys internal and external environments when making strategic decisions. The company will need to create an all-inclusive action-plan for reaching long-term goals. This is the start of the strategic plan is important to the success of the automobile detailing business because it will create effective business goals. The strategic planning outline will help the business to stay afloat in the market despite of any opposition. When creating a strategic plan, it is important to involve top-management in the decisions to be made, it will require large amounts of the companys resources; will affect the companys long-term prosperity, also future oriented, the possibility of multi-business consequences, and external forces have to be considered because it could affect the business (Pearce, II & Robinson, 2009). Strategic planning will involve three business levels, which are corporate, business, and functional levels. The corporate level involves a board of directors, chief executives and administrative officers and they set objectives and formulate strategies to be used at all levels. The business level is involves business and corporate managers who translates the direction of the corporate level into understandable objectives and strategies. The last of these business levels is the functional level, which is involves... Stakeholder analysis in conflict resolution, project management, and business administration, is the process of identifying the individuals or groups that are likely to affect or be affected by a proposed action, and sorting them according to their impact on the action and the impact the action will have on them. This information is used to assess how the interests of those stakeholders should be addressed in a project plan, policy, program, or other action. Stakeholder analysis is a key part of stakeholder management.

3.2Criteria for reviewing potential options for a strategy plan.

Is an organization's process of defining, often in hyperbolic terms, its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats ), PEST analysis (Political, Economic, Social, and Technological), STEER analysis(Socio-cultural, Technological, Economic, Ecological, and Regulatory factors), and EPISTEL (Environment, Political, Informatic, Social, Technological, Economic and Legal). Strategic planning is the formal consideration of an organization's future course. All strategic planning deals with at least one of three key questions: 1. "What do we do?" 2. "For whom do we do it?" 3. "How do we excel?" In business strategic planning, some authors phrase the third question as "How can we beat or avoid competition?" (Bradford and Duncan, page 1). But this approach is more about defeating competitors than about excelling. In many organizations, this is viewed as a process for determining where an organization is going over the next year ormore typically3 to 5 years (long term), although some extend their vision to 20 years. In order to determine where it is going, the organization needs to know exactly where it stands, then determine where it wants to go and how it will get there. The resulting document is called the "strategic plan." While strategic planning may be used to effectively plot a company's longer-term direction, one cannot use it to reliably forecast how the market will evolve and what issues will surface in the immediate future. Therefore, strategic innovation and tinkering with the "strategic plan" have to be a cornerstone strategy for an organization to survive the turbulent business climate.

3.3 An agreed strategy plan that includes resource implication.

Strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program .There are a variety of perspectives, models and approaches used in strategic planning. The way that a strategic plan is developed depends on the nature of the organization's leadership, culture of the organization, complexity of the organization's environment, size of the organization, expertise of planners, etc. For example, there are a variety of strategic planning models, including goals-based, issues-based, organic, scenario (some would assert that scenario planning is more of a technique than model), etc. Goals-based planning is probably the most common and starts with focus on the organization's mission (and vision and/or values), goals to work toward the mission, strategies to achieve the goals, and action planning (who will do what and by when). Issues-based strategic planning often starts by examining issues facing the organization, strategies to address those issues and action plans. Organic strategic planning might start by articulating the organization's vision and values, and then action plans to achieve the vision while adhering to those values. Some planners prefer a particular approach to planning, e.g., appreciative inquiry. Some plans are scoped to one year, many to three years, and some to five to ten years into the future. Some plans include only top-level information and no action plans. Some plans are five to eight pages long, while others can be considerably longer. Quite often, an organization's strategic planners already know much of what will go into a strategic plan (this is true for business planning, too). However, development of the strategic plan greatly helps to clarify the organization's plans...

TASK 4 Examine factors affecting an organization strategic plan. 4.1 COMPARISON OF CORE ORGANISATIONAL VALUES WITH THE CURRENT BUSINESS.
No doubt the core organizational values have a strong link with the current business .To run a successful business we should keep in mind the ethical, cultural, environmental, social and business values. There are many kinds of cultural variables. For example if we are selling garments or any other type of products they should be according to the culture and time otherwise people will not buy the products and the business will be effected. Language is perhaps the most obvious aspect of culture .When two people get together and speak two different languages and neither is bilingual. Cross cultural ex changes often utilize interpreters. A person from China if wants to start a business in UK , so it is important from him to know the British language otherwise it would be difficult for him and he will face different problems in the business. Whatever the beliefs of the marketer, religious values shape the behavior of others with whom business is conducted. In many Islamic countries business must be closed during prayer times and on certain holidays events. Even in the West Christian holidays restrict business activities.

4.2 VISION AND MISSION STATEMENT FOR AN ORGANIZATION

Vision Statements andCOMMUNITY PARTICIPATION PROGRAM chosen by successful Mission Statements are the inspiring words leaders to clearly and concisely convey the direction of the organization. By crafting a clear CITY OF COMMERCE, GA, COMPREHENSIVE PLAN mission statement and vision statement, you can powerfully communicate your intentions and December 2009 motivate your team or organization to realize an attractive and inspiring common vision of the Defined future. Community Participation Program means the portion of the comprehensive plan sure that Tescos mission statement is to Retain Loyal People To make Tescodescribes thetheir governments program for insuring meaningful public and their achieve local mission statement, they need to know who loyal customers are. That the preparation of thehas got a Agenda portion of the club card service, stakeholder involvement in is why Tesco Community through which they can award people by giving them special vouchers and extra points.

plan. According to local planning requirements of the Georgia Department of Community Affairs, the community participation program is prepared in conjunction with Statements" and assessment part of two distinctly different jobs. Mission the community "Vision Statements" do the comprehensive plan, then submitted along with the community assessment, after public hearing, for regional and state review (see review process below). There are three required components of the community participation program: (a) Identification of Stakeholders (b) Identification of Participation Techniques (c) Schedule for Completion of the Community Agenda

Objective The program seeks to obtain meaningful involvement of stakeholders and the general public in the preparation of the comprehensive plan. This community participation program describes the City of Commerces strategies for ensuring meaningful public and stakeholder involvement in the preparation of the Community Agenda portion of the A Mission Statement defines important to emphasize here that this means little Itsany comprehensive plan. It is the organization's purpose and primary objectives. if prime function is internal to in preparing and conducting the community assessment part and active involvement define the key measure or measures of the organization's success of its prime audience is the leadership team and stockholders. the plan, other than what is obtained through the required public hearing for the community define the organizations purpose, but this time they do so in terms of the Vision Statements also participation program and the community assessment.1 organization's valuesadvised by its planning measures (values are guidingappointment of a 1 Commerce was rather than bottom line consultant to proceed with beliefs about how things should be done.) The visioncommitteecommunicates both the purposeprocess, and the comprehensive plan steering statement at the outset of the planning and values of it organization. For employees, it gives direction about how they are expected to behave and did so. The steering committee was formed and met twice in order to provide some inspires them to give their best. Shared with customers, it shapes customers' understanding of preliminary feedback on issues and opportunities as well as preliminary character why they should work with the organization. areas and areas requiring special attention. Review Process 4.3 AimsAndObjectives The community participation program is submitted along with the Community Every business has aims Georgia Regional Commission for review, after and Assessment to the Northeastthat they wish to achieve, they might be overall goals holding a purposes that the business was set up to fulfil. of receipt, the commission will determine public hearing. Within seven (7) days Aims can therefore be seen as not only long term, but in some cases, almost impossible to reach, Heinz aims for its tomato sauce to be the whether the Community Participation Program meets or does not meet the standard of world's favourite ketchup, on every table' (every table; total Customer satisfaction). But this completeness as determined by the Department of Community Affairs (DCA). Upon doesn't the organisation from trying to reach the aim, and from always working towards it. determination of completeness, the commission transmits the participation program to DCA. aims of a business might include: TypicalDCA will review the program for its adequacy in identifying specific mechanisms Making a profit meaningful involvement of the community in the development of the to ensure Providing goods orAgenda. DCA will transmit a complete report of its findings and Community services to the local or wider community Maximising sales or improving the quality of a product service recommendations for addressing such findings to the commission for inclusion in its Being environmentally friendly . Report of Findings and Recommendations. Community Participation Program, City of Commerce Comprehensive Plan, December 2009 2 Publication And Evaluation 4.4Measurement of the Approved Program and Community Assessment Once reviewed, the Community Participation Program and Community Assessment must be publicized by the local government for public information. This requirement Assessment can be seen to affect the three different domains as put forward by Bloom, which may be met by providing notice in a local newspaper of general circulation identifying are the cognitive, affective and psychomotor domain. Cognitive domain in assessment is where complete copies of knowledge and understanding. and Community domain associated with the process of the Community Assessment While the affectiveParticipation Program may be reviewed. applies to the characteristics such as attitude, motives, interests and other personality traits. As City of Commerce Comprehensive Plan Steering assessing the learners ability for the psychomotor domain in relation to assessment involvesCommittee2 Lula Pittman to use his or her own hands for exampleJimbo Stephenson in handwriting, construction and projects. For my chosen business which is a local newsagent in Patsy Morrison which is located in west London, its Heston Hounslow, aims is to provide enough income toSammy the owner and his family. Therefore he is a soul support Thomason trader. Barry Lord Joe Leffew

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