|1. Understand the external environment affecting an organisation|
|1.1 explain the importance of external factors affecting an organisation|
|1.2 analyse the needs and expectations of stakeholders of an organisation|
|1.3 analyse the major changes taking place in the external environment that will affect strategy|
|2. Be able to review existing business plans and strategies of an organisation|
|2.1 use appropriate tools to analyse the effects of current business plans|
|2.2 review the position of an organisation in its current market|
|2.3 evaluate the competitive strengths and weaknesses of an organisation’s current business strategies|
|3. Be able to develop options for strategic planning for an organisation|
|3.1 use modelling tools to develop strategic options for an organisation|
|3.2 develop a comparative understanding of activity from organisations in the market|
|3.3 create options to form the basis of future organisational strategy|
|4. Be able to construct a strategy plan for an organisation|
|4.1 propose a suitable structure for a strategy plan that ensures appropriate participation from all stakeholders of an organisation|
|4.2 develop criteria for reviewing potential options for a strategy plan|
|4.3 construct an agreed strategy plan that includes resource implications|
|5. Be able to examine factors affecting an organisational strategy plan|
|5.1 compare core organisational values (ethical, cultural, environmental, social and business) with the current business objectives of an organisation|
|5.2 develop appropriate vision and mission statements for an organisation|
|5.3 produce agreed future management objectives for an organisation|
|5.4 develop measures for evaluating a strategy plan|
|6. Be able to plan for the implementation of a strategy plan|
|6.1 develop a schedule for implementing a strategy plan in an organisation|
|6.2 create appropriate dissemination processes to gain commitment from stakeholders in an organisation|
|6.3 design monitoring and evaluation systems for the implementation of a strategy plan in an organisation|
|Notes on exactly what must be done to succeed in the assessment are written below, then followed by a reminder of the content of the module, organised according to the assessment criteria above.
Assessment Criteria Notes
Learners need to research information from an organisation and develop a full strategic review of the organisation based on their research.
For 1.1 and 1.3, learners need to show that they understand and explain the importance of the various external factors that impact on the way their chosen organisation conducts its business. Learners need to use tools and techniques such as SWOT and STEEP to help analyse the external environment of their chosen organisation and to consider what happens when significant changes occur in the external environment that may cause their organisation’s strategic plans to change. Learners need to ensure that their analysis considers customers, competitors and the marketplace in which their organisation operates.
For 1.2 learners, will be expected to analyse the needs and expectations of all stakeholders of their chosen organisation and how they may have influenced strategic decision making within their organisations.
For 2.1, and 2.3, learners will be expected to use appropriate tools to analyse the effects current business plans are having within their chosen organisation and evaluate the competitive strengths and weaknesses of current business strategies in place.
For 2.2, learners need to review their organisation’s current position in its marketplace. This could include market share information and a discussion on competitor activity.
For 3.1, learners need to use the various modelling tools available to develop strategic options for their chosen organisation.
For 3.2, learners need to develop a comparative understanding of activity from organisations in the market. They could achieve this by reviewing what other organisations are doing in the marketplace and what this activity will mean for their chosen organisation.
For 3.3, learners need to create options to form the basis of a future strategy for their organisation. For example, this could be entering new markets or developing new products.
For 4.1, learners need to propose a suitable structure for a strategy plan. They need to show that the plan will be developed in such a way that all stakeholders in their chosen organisation will be able to participate in its formation.
For 4.2, learners need to develop criteria for reviewing potential options for their strategic plan. For example, if one strategic option is to raise prices, then the learner would describe how the effect of this would be measured.
For 4.3, learners need to construct an agreed strategy plan that includes the resources that will be needed to implement the plan. They will need to examine factors affecting their plan, including a comparison of their organisation’s values against their current business objectives (5.1). From this comparison, they need to develop appropriate vision and mission statements that will guide the plan (5.2) and produce agreed future management objectives (5.3).
For 5.4, learners need to develop measures for evaluating their strategy plan.
For 6.1, learners need to develop a schedule for implementing their strategy plan in their chosen organisation.
For 6.2, learners need to create appropriate processes to disseminate information to stakeholders in their chosen organisation that will gain their commitment to the strategy plan when it is implemented.
For 6.3, learners need to design systems that will monitor and evaluate the implementation of their strategy plan.
Unit Content – linked to Assessment Criteria
1. Understand the principles of strategic marketing management
External environmental factors: needs and expectations of customer groups, shareholders, suppliers and sub-contractors, the workforce and the community as a whole; review the success and direction of competitors and the market sector as a whole; effects of potential longer-term changes – in politics, and legislation, technology, product design, trends and expectations; use of external surveys and statistics; use of appropriate tools; SWOT (strengths, weaknesses, opportunities, threats) analysis, STEEP (social, technological, economic, environmental and political) analysis; market research; primary and secondary information; customer complaints and feedback; feasibility; competitor analysis; customer analysis; market analysis
2. Understand the tools used to develop a strategic marketing strategy
Business plans and strategies: use of appropriate tools eg value chain analysis, Porter’s Five Forces, Boston growth-share (BCG) matrix, SWOT analysis; internal surveys and statistics; product life; strategic drift; market share; measures for monitoring and evaluating; unrealised and emergent strategy; life cycle analysis; effects of globalisation; sustainable competitive advantage; pricing strategies; resources analysis; economies of scale and scope; core skills and competences; organisational culture analysis; market equilibrium; experience curves; comparative analysis
3. Be able to use strategic marketing techniques
Strategic planning: Ansoff matrix strategies; vertical, backwards and forwards integration; horizontal integration; differentiation; cost leadership; Mintzberg’s strategies (deliberate, emergent); leadership and differentiation; strategic alliance; merger, acquisition; competitive strategies; value-based strategy; contingency strategy; market niche; market segmentation; adding value; market share; workforce competence development; product portfolio; reconfiguration; gap analysis; profitability; niche markets; present portfolio analysis; benchmarking
4. Be able to respond to changes in the marketing environment
Management strategy: reviewing options; attractiveness to stakeholders; stakeholder participation; criteria for judging options; feasibility studies; risk assessment; reviewing additional recent material; cost-benefit analysis; consistency with organisational values; effects on market position and share; costs and investments; opportunity costs; scenario planning; simulation modelling; sensitivity analysis; balanced scorecard approach; potential globalisation and internet advantages; resources issues eg financial, workforce
5. Be able to respond to changes in the marketing environment
Vision versus mission: core organisational values eg ethical, cultural, environmental, social and business; growth; profit; customer orientation; workforce expectation; management style
Objectives and measures: SMARTER (specific, measurable, achievable, realistic, time-based, evaluate, reevaluate) objectives; business ethics; raising awareness; promoting good practice; role modelling; stakeholder involvement; managing diversity; spiritual and cultural issues; environmental considerations
6. Be able to respond to changes in the marketing environment
Planning: gaining general organisational agreement; communication with stakeholders; organisational development; timetable for implementation; Business Process Re-Engineering (BPR); management by objectives; action planning, performance appraisal; structure and strategic fit; developing policy; communication systems; guidelines; focus and realignment; contingency planning; monitoring and evaluation control systems; dissemination and cascading processes
This Assignment is based upon the Pearson Edexcel Strategic Management and Leadership from August 2010 Programme Specification found at http://www.lcbuk.org/pdf/Edexcel_level7_SML.pdf