Photo AI
Outline ANY FOUR steps in the development of a strategy - NSC Business Studies - Question 2 - 2017 - Paper 1
Question 2
Outline ANY FOUR steps in the development of a strategy. 1. Application of SWOT analysis/PESTLE/Porter's Five Forces/environmental scanning of the business environm... show full transcript
Worked Solution & Example Answer:Outline ANY FOUR steps in the development of a strategy - NSC Business Studies - Question 2 - 2017 - Paper 1
Step 1
Application of SWOT analysis/PESTLE/Porter's Five Forces/environmental scanning
Answer
The initial step in developing a strategy involves performing a comprehensive analysis of the internal and external environments through tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and PESTLE analysis (Political, Economic, Social, Technological, Legal, Environmental). This helps identify the current positioning and critical factors affecting the business.
Step 2
Formulate strategies to meet objectives/Develop measurable strategic goals/objectives
Answer
In this step, the organization sets specific and measurable objectives based on the insights gained from the analysis. Strategies are formulated that align with these objectives, ensuring that the goals are clear and achievable. This could involve defining market positioning or identifying target customer segments.
Step 3
Implement strategies using action plans
Answer
Once strategies are established, they need to be put into action. This involves developing detailed action plans that outline the steps required, allocate resources, assign responsibilities, and set timelines for execution. Proper implementation is crucial for the effective execution of the strategies.
Step 4
Evaluation of strategies/Compare the expected performance with the actual performance
Answer
Finally, it is essential to evaluate the effectiveness of the implemented strategies. This is done by comparing the actual performance against the expected outcomes. Measuring business performance helps identify any discrepancies and determine areas for improvement, which can lead to necessary adjustments in the strategy.