Factors of strategic development

Assignment one 4

Part A Write a report on the features that an organisation should consider during strategic development.

In today's competitive marketplace, company must have to develop a strategy that can insure a consistent approach in offering the company's products in a way that can outsell the competition is critical. The company must develop a methodology for the day to day process for implementing it. While creating a strategy the company should consider many factors. It is because each strategy must address some different considerations. Here are the factors that should be considered in the development of the organization strategy.

  • Company must try to be a low-cost production keeping in view the cost control infrastructure, economies of scale, cost of material management, bring innovation in the manufacturing process.
  • The company must try to strengthen its position in the market for this purpose the company should use offering for generating near term profits.
  • The company ability to construct entry barriers to competition such as gaining substantial benefits from economies of scale, creation of high switching costs exclusive access to the distribution channel and the ability to clearly differentiate the company offering from the other shoe companies.
  • The company should have the freedom to make critical decision without undue influence.
  • The company's ability to sustain the market share is determine by the potential for the competitor imitation, influence resistance and ability to maintain the high prices.
  • The company should be in a position to deal with the legal problem, if arise any.
  • Try to enhance the management ability.
  • The company should enhance its infrastructure in terms of recruiting capabilities, employee benefits, organization, customer support facilities and logistical capabilities.
  • The prominence of the company.
  • Assess the effectiveness of important system that are currently working in the company like accounting system, information, planning, etc
  • The company should implement organizational values like coordination with each other, discipline, freedom, team work and communication.
  • The company should develop a system that can improve the method of production.
  • The company should review the wages and salary in order to ensure the compensation for every employee is not fair, but it is perceived as fair.
  • The compensation given to each employee must be directly relate to its performance.
  • The company should recruit the people that fulfill the requirement of the job.
  • Company should develop the technical as well as the physical skill of the employee through formal training programs so that they would be able to enhance the output.
  • The company should analyse the job of executives supervisors and managers in order to identify each tasks that can be delegated to lower level.

B) Using the information that you have covered in part create a presentation for management of shoeshine. Address the issues they need consider and tools and techniques they need to employ during strategic planning.

PEST analysis

PEST analysis is used to identify the forces that are prevailing outside the organization.


It's the first element and it study the political factors that can impact on the organization in many ways. Political factors can create advantages for the organization as well as impose certain obligations. The political factor may impose a certain amount of wages to be paid to the workers or may impose certain market regulations.


Economical factor is the second factor of PEST analysis and include economic factors. Any business that is working may be affected by economical factors. The company has to respond to the changing economic conditions in order to survive. The company is aware of the economic conditions and it is trying to ensure that the employees that are working will be protected and promote.


Next aspect of the analysis is Social factors. It include all the social forces that can affect the attitude opinion and interest. The company has to keep in mind regarding the social factor while developing a product. Population changes can also have a direct impact on the working of the organization. As there is increase in the population will also lead toward the increase in the demand of the product.


It is the last element of PEST analysis. The company have to change its technological infrastructure in order to minimize the cost per unit. It is because of the technology that the society expects a quick reply. Because of the technological advancement that the level of information sharing between the stakeholder has increased.


It is a tool that can help the organization understanding their strength weakness, opportunity and threats to the business. The strength of the company are experience and skilled workers, latest technology, introducing the products at low rate as compare to other companies.

The weakness of the company include lack of market share as there are many bands are already operating., as well as there is a lack of investment in the company.

The opportunities for the company are that there is still a gap prevailing in the market, the company can uses its strengths to take the benefits of the available opportunities. There is also an increasing trend in buying of shoe products in the market.

Threats for the company are availability of stiff competition in the market. There are chances that the government may impose tax or there might be change in some law that cause increase in the productivity cost for the firm.

Task Two:

A) Your presentation was well received by management. They are now ready to progress to the next stage. Carry out an analysis of the types of growth strategies that Shoeshine could go through. Write a report describing these strategies. You may also include suitable illustrations and examples based on research carried out on 'real' organitions

There are the following strategies that can be used in order to enhance the sale of the organization.

The company may increase the sales in the existing market is one of the growth strategies for the business. The key to success in increasing the sales in the existing market is through having a buying history of your current customers. The main goal of the company is to get existing customers to buy more of the product that you are currently selling. For this purpose the company may use the strategy to give one pair of shoes free for the purchase of one product. for the implement of this strategy the company may offer a discount to purchasing some specific amount of dollar, like buying $600 and get 5% discount . The company also gave discount on bulk purchase or gives some reward to frequent buyers. The company can also adopt some sale strategies. For example the can gave more incentive to the sale staff increase their number, or the company may enhance the customers by enhancing knowledge of what is offered to them.

Another way to enhance the sale of products is by adding one new dimension into the product. The company should improve the organizational structure like job positions, procedure, rule regulation. It will improve the development of the product.

Another strategy that can be used is Market Development. This strategy is used to enhance the market share by searching new markets for the existing products. The new market may be untapped segment of the same market or it can be geographical. The company can also change the color or packaging or by enhancing the product distribution channels. For this purpose the company needs to have required knowledge of the existing market and they must have the ability to gaps in the marketplace.

Next strategy that the company may use is market Penetration. It's a strategy that works where the company wants to enhance the greater percentage of market share. In order to be successful the company has to gain competitive edge through reducing its prices, and improve the marketing techniques.

Part B)

To complete the project, you need to advise shoeshine on how to proceed. Develop a suitable strategy that they could employ in future. The strategy should enable the organisation to deal with the problems that were identified as well as grow and become more profitable.

This is a list of factors that the organization must consider it for future

  • Try to have access to low material and effective production.
  • The company should try to avoid such problems such as unavailability of material, poor quality control, and inability to explain the benefits of the product that the company is selling.
  • * The company should have adequate operating capital.
  • The company should have the ability to limit the bargaining power of the supplier.
  • The company should be in a position to make critical decisions without undue influence of distributors, investors or any other outside influence.
  • The company should use some amount on research and development.
  • The company should not lose its market strength.
  • The company should establish entry bearers to competition , that can be done by achieving the economies of scale, and the company should be in a position to differentiate its offering form the competition.
  • The company should be efficient in distribution, financial stability.
  • Establish accessibility to the customers by creating more outlets.
  • The company should have adequate supply of raw material and have access to sub-assembly production.
  • The company should have necessary funding so that it can be utilize in the development and equipment.

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