772009 Strategic Planning and Foresight Methods Sample

Introduction: 772009 Strategic Planning and Foresight Methods

Strategic planning is defined as the concept which majorly focuses on setting up priorities to focus on the different resources and then try to attain the objectives well. Strategic planning is important for the reason that it assists the company in anticipating future changes and trying to mitigate the same for effective working. The present study is based on PKSH which is a business operating in East Yorkshire. The current study will outline the situation mapping of the company and the issues they are facing while operating. Further, the study will also outline the analysis of the external environment within which the business is operating. Moreover, the study will also outline the internal analysis of the company. Along with this the evaluation of the competitive performance review will be analysed for evaluating the performance of the company. In the end, the recommendations will be provided to the company for improving the working efficiency of the business. 

MAIN BODY

Inception Mastering 772009 Strategic Planning and Foresight Methods for Long-Term Success

The present study is based on PKSH which is PK Sports Horses which is a successful business established in East Yorkshire. The major areas of operations includes rider coaching, horse livery which means accommodation of horse, competition livery which implies completing owners' horses and last involves production of sports horses. All these are the major types of operational activity which PK Sports performs. Further, the area of interest for Pippa is the delivery of the rider coaching to the interested people. For this, she provides lessons to 8 clinics per month where every clinic has 8 riders. Along with this, the major issue faced by Pippa is that she has not done much research within the market and already the competition is too high. 

Thus, as a result of this, the business faces much of issues and as a result of this, the overall working of PKSH might be impacted to a great extent. In addition to this another issue is that the business is not very technologically sound as stated by Chris and also states that the approach of Pippa’s work is more traditional (George, Walker and Monster, 2019). The people involved are 2 full-time yard staff one the working rider apprentice and one head girl. The output of the present study is to decide that out of four which service is the best and whether there are other ideas for revenue stream or not. 

Situation mapping

The equine industry in the UK is having a high impact on the economy of the country. It has been identified that the output provided by the industry is £3.4 billion. 250000 people have been employed in this industry which leads to a reduction in the unemployment rate. The company is showing high growth potential due to an increase in the importance of leisure life.

Rich picture for issues

There are various issues which the organization has to face which is resulting in a reduction in the profitability of the firm. Due to the increase in the number of the industry, there is a reduction in space to keep horses (Chersulich Tomino, Peri? and Wise, 2020). The cost of the land has been increased which has increased the cost for the owners. The death rate of horses has increased in the UK which indicates that there are no proper facilities available for the care of horses. These also show the irresponsible nature of the breeders and the owners towards horses.

Stakeholder matrix

By the shareholder matrix, it has been identified that the Government and the local authority decide various strategy and policies which the organization in the industry need to follow. The company operation should be compiled with rules which make them satisfied. Investors and managers in the organization had both power and interest in the working of the firm. The law of animal welfare needs to be followed by the company to carry out effective work. Employees and equestrians are interested in knowing the rules and regulations of the company according to which they need to work.

Formal review of the environment

For the effective working of the business it is very necessary that external environment scanning is very necessary. In case the environment analysis is not being undertaken then it will be impacting the overall efficiency of the business. Thus, it is very necessary for the company that they evaluate the external environmental changes so that the overall working can be improved. Hence, for this different Tools and techniques for environmental scanning are as follows-

PESTEL

Political factors:

The strategies formed by the government of the UK have created an immense impact on the working of the industry. The business of the hunter livery has been impacted by the introduction of the Hunting ban in the UK. Before the ban, a sum of 9259 jobs had been created by the equestrian industry which was hampered by this ban (Johnsen, 2023). The introduction of the national minimum wage also has an impact on the cost of the organization.

Economic factors:

There is a change in the interest and the exchange rate of the UK which is impacting the working of the industry. The Introduction of the national minimum wage for employees leads to an increase in the cost of the company which eventually increases the price for the clients. An increase in the interest rate will affect the amount of disposable income with clients which hampers the spending pattern. 

Social factors:

The current trends tastes and pReferences of the society impact the working of the organization. Horse riding is included in the luxury activity and people aim at owning the horse which helps in increasing the standard of life. The rate of unemployment in the country also impacts the growth of the industry as high unemployment leads to easy availability of employees. However, this will impact the number of clients due to a reduction in disposable income. 

Technological factors:

The introduction of technology has provided a variety of sources for the industry to improve marketing strategies. With the development in technology, there is advancement in veterinary medicine which is beneficial for the horse. This helps in the reduction in death percentage which benefits the owner of the horses.

Legal factors:

There are various laws and regulations which the company needs to follow to sustain itself in the industry for a long time. The company's operation should be compiled with the Animal Welfare Act which emphasises maintaining proper care by the owner of the horse (Smith, 2020). The company should follow the Equine Welfare and the laws which aim at protecting the horse from the action of the human. 

Environmental Factors:

Soil erosion could be increased if the proper trail and horse pasture management have not been undertaken. The runoff between horses will lead to an increase in the amount of pollution in the country as the soil gets removed from the land and deposited in the water bodies. The horse feed could be used as the manure which helps in protecting the environment.

Porter five forces

Porter’s five force analyses include the following points:

Rivalry from the existing competitors:

There is a large number of competitors available in the market. The company should implement a variety of marketing strategies to promote the organization and create a competitive edge (Johnsen, 2022). A cost-effective leadership strategy should be used in the industry which will help in lowering the cost after determining all the important factors. 

Threat of new entrants:

It is not easy for any institution to enter this industry as this requires a high amount of capital to start the organization. To enter the market the individual needs to invest a high amount of time in conducting research and gaining resources. The profit earned in the industry is not so attractive which decreases the motivation of the individual to enter the industry.

Bargaining power of supplier:

Due to the large number of competitors in the market, the bargaining power I suppliers is low. They could pressurize the client to some extent but this could lead to losing the customer.

Bargaining power of the customer:

There is a large number of suppliers available in the industry leading to high bargaining power of the customer. The customer is the people for whom the company actually works. In case the company is not able to keep the consumer satisfied then it will be impacting the overall efficiency of the company. Hence, bargaining power of the consumer is high and it needs to be considered by the PK Sports Horse in order to maintain the working.

The threat of substitute products:

There are very less substitutes for the equine industry available in the market. Horsing riding cannot be substituted by any other riding. There are some activities in the industry which has a high amount of threat of substitute product such as manufacture of the horse boxes.

Opportunities and threats

Opportunities:

There are various types of opportunities available for both the organization and the employees. The company should include the ranges of animal nutrition which I have scope in the UK. 

Threats:

There is a large number of challenges which the equine industry has to face. This includes the availability of the various competitors in the market (Almeida and et.al, 2019). The industry is facing challenges from the reduction in the number of equestrian trails and land.

Internal review of the business

For the effective working of the company it is very necessary that they evaluate the internal analysis as well. This is particularly because of the reason that when the internal environment will be affected then only the working of the company will be better. Hence to improve the working efficiency of the company does very necessary that effective internal analysis undertaken this internal analysis will help the company evaluating this Strategies and it will help in improving the efficiency of the business.

Business model analysis

The Business Canvas model is a type of tool with help the business in mapping out all the products and activities of the business. It also includes the resources and the value proposition which the company provides to the customers. In addition to this, the evaluation of the customer segments and the cost and revenue is also implemented within the present scenario (Job, Becken and Lane, 2020). With help of this analysis it is helpful to PK Sports Horse to evaluate the position and its internal working. This will help the business in meeting the necessary changes and this will be assistive to the company in taking the appropriate decisions and making the related changes.

Strength and weakness

Strength

The major strength includes the horses of the company are very strong and this will help in using them accurately. Another strength is that the yard is very large and there are approximately 20 stables and 8 acres of grass paddocks which implies that there is ample space for horses and their management.

Weakness

The major weakness is that Pippa has not researched the competition well and as a result of this the working efficiency is impacted to a great extent. Another weakness includes the PKSH being confused relating to the 4 options present and this impacts the working to a great extent. 

Competitive performance review

For the effective internal and external analysis it is very necessary for the company that the effectively evaluate competitive position as well (Carmona, 2019). This is particularly because of the reason that when the competitive position is not good then it will be impacting the overall working of the company. Hence, for the evaluation of the competitive performance the use of strategic and analysis will be made.

Strategy canvas analysis

The strategic canvas analysis is a type of concept which includes making the line graph which plot out of the major factors of the business. These factors include the requirement of meeting the customer need (Ahmad and Ahmad, 2019). This is particularly because of the reason that every strategies aim to meet the requirement of the customer. Thus, it is very necessary for the company that the effectively make the strategic canvas analysis. In the present case of PK Sports Horse effective use of strategic and analysis is made.

With the evaluation of these strategic canvas of PK sports it is evident at the company is majorly focusing on a Blue Ocean Strategy. This is particularly because of the reason that the Blue Ocean Strategy includes developing the new market. In case the new market will be focused then it will help the company in operating well. This is particularly because of the reason that the new market will not have effective and intense competition. In addition to this, major focus of the company is to offer good level of working to the customers (Green and et.al, 2020). The reason underlying the fact is that the company will offer high quality services to the customers than automatically it will increase the interest of the customers within the working and services of the company. Hence, above strategy canvas analysis is helpful to evaluate that company is focusing on the effective customer preferences and this will help the company in attracting large number of customers.

Assessing competitive performance 

It is very necessary for the company to effectively assess the competitive performance. This is particularly because of the reason that when the performance is not evaluated in accordance to the competitors then it will be impacting the overall working of the company. Thus, for this competitive assessment is very necessary and helpful. In order to evaluate the performance of PK sports the use of Key Performance Indicator is made (Key Performance Indicator (KPI): Definition, Examples & Types, 2023). This Key Performance Indicator is used by the company in order to evaluate performance of the business in comparison to the competitors. Hence, with the use of KPI the company has set some indicators and on the basis of those indicators the company compare the performance of them with the competitors. These KPI includes use of profit, sales and number of customers. On the basis of these three points the comparison is made with the competitors and the performance is evaluated. In case the performance is better than the competitors then it is good and in case it is not then collective measures need to be taken.

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Producing project output

Recommendations 

With the valuation of the above analysis it is evident that there are many changes which needs to be implemented by the company for successful working. Thus, it is very helpful for the business to implement some of the recommendations which will assist in improving the working as well. Hence, some of the recommendation for PK Sports is as follows-

The first and foremost recommendation to PK Sports is that they must effectively and continuously research within the market. This is particularly necessary because there are many different changes taking place within the external environment and it is necessary to implement the changes effectively so that latest working can be implemented (Petera and Šoljaková, 2020). Thus, it is recommended to the company that they must effectively use the latest research and development Technology so that the overall working can be improved. Along with this another recommendation is to implemented 360 degree feedback. This 360 degree feedback will help the company in evaluating the strategies effectively by taking reviews from each and every employee and people involved within the company (Fuertes and et.al, 2020). Thus, it will help the company in improving the working in accordance to the recommendation provided by the employees.

CONCLUSION

In the end it is concluded that strategic planning is very necessary for the effective and successful working of the company. This is particularly because of the reason that effective strategic planning will help the company providing a better direction to the company for improvement. The above study highlighted that the major issue faced by the company is that the competition is intense and it impact the working of the computer great extent. For that external environment was evaluated with help of the pastor and Porter 5 forces. In addition to the internal environment was also evaluated and the major strength for outlined which included the ample of space present within the stable. In the end it was concluded that competitive evaluation is very necessary which helps in outlining the performance of the company. Also it was evaluated that use of keep performance indicator is helpful in comparing the performance of the company with the competitors.

REFERENCES

Books and Journals 

• Ahmad, I. and Ahmad, S.B., 2019. The mediation effect of strategic planning on the relationship between business skills and firm’s performance: Evidence from medium enterprises in Punjab, Pakistan. Opción: Revista de Ciencias Humanas y Sociales, (24), pp.746-778.
• Almeida, R.M., Shi, Q., Gomes-Selman, J.M., Wu, X., Xue, Y., Angarita, H., Barros, N., Forsberg, B.R., García-Villacorta, R., Hamilton, S.K. and Melack, J.M., 2019. Reducing greenhouse gas emissions of Amazon hydropower with strategic dam planning. Nature Communications, 10(1), p.4281.
• Carmona, M., 2019. Principles for public space design, planning to do better. Urban Design International, 24, pp.47-59.
• Chersulich Tomino, A., Peri?, M. and Wise, N., 2020. Assessing and considering the wider impacts of sport-tourism events: A research agenda review of sustainability and strategic planning elements. Sustainability, 12(11), p.4473.
• Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R. and Sabattin, J., 2020. Conceptual framework for the strategic management: a literature review—descriptive. Journal of Engineering, 2020, pp.1-21.
• George, B., Walker, R.M. and Monster, J., 2019. Does strategic planning improve organizational performance? A meta?analysis. Public Administration Review, 79(6), pp.810-819.
• Green, E.D., Gunter, C., Biesecker, L.G., Di Francesco, V., Easter, C.L., Feingold, E.A., Felsenfeld, A.L., Kaufman, D.J., Ostrander, E.A., Pavan, W.J. and Phillippy, A.M., 2020. Strategic vision for improving human health at The Forefront of Genomics. Nature, 586(7831), pp.683-692.
• Job, H., Becken, S. and Lane, B., 2020. Protected Areas in a neoliberal world and the role of tourism in supporting conservation and sustainable development: an assessment of strategic planning, zoning, impact monitoring, and tourism management at natural World Heritage Sites. In Protected Areas, Sustainable Tourism and Neo-Liberal Governance Policies (pp. 1-22). Routledge.
• Johnsen, Å., 2022. Impacts of strategic planning and management in municipal government: An analysis of subjective survey and objective production and efficiency measures in Norway. In Toward a More Strategic View of Strategic Planning Research (pp. 88-111). Routledge.
• Johnsen, Å., 2023. Strategic planning in turbulent times: Still useful?. Public Policy and Administration, 38(4), pp.445-465.
• Petera, P. and Šoljaková, L., 2020. Use of strategic management accounting techniques by companies in the Czech Republic. Economic research-ekonomska istraživanja, 33(1), pp.46-67.
• Smith, R.D., 2020. Strategic planning for public relations. Routledge.
• Online
• Key Performance Indicator (KPI): Definition, Examples & Types. 2023. Online. Available through: < https://www.klipfolio.com/resources/articles/what-is-a-key-performance-indicator#:~:text=A%20KPI%20stands%20for%20a,driven%20decisions%2C%20and%20optimize%20performance.>