Business Strategy

1. Course notes and lecture slides accessible on the Student Portal and or on LSST
Connect
2. Recommended course textbooks
Please use Harvard referencing system and end with the ISBN in the following format
ISBN:9781408032145
BPP (2010) Business Strategy-Business Essentials-Supporting HND/HNC and
Foundation Degrees, London: BPP Learning Media.
Campbell, D., Stonehouse, G., Houston, B. (2000) Business Strategy-An
Sources of information
Introduction, Oxford, Auckland, Boston, Johannesburg, Melbourne and New
Delhi: Butterworth Heinemann.
Wilson, D. (1992) a Strategy of Change-Concepts and Controversies in the
Management of Change, London: Routledge.
3. Sources of Information
Please see Harvard referencing system Please see example
BBC (2012), PPI Compensation: Ombudsman Gets 6,000 Bogus Claims". Available at
www.bbc.co.uk/news/business-18145963 (accessed 23rd May 2013)

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PASS CRITERIA ONLY

Pass
In order to achieve Pass, students must achieve all the pass criteria below.

CASE STUDY

You should use the FUJITSU organisation where appropriate for your answers. Please read case
study carefully which is to be found at http://www.fujitsu.com/uk/Images/multi-national.pdf

Also, please carry out further independent research on the corporation wherever needed, in order to
fully answer the questions.

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LO1UNDERSTAND THE PROCESS OF STRATEGIC PLANNING

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Q 1.1
Define the terms and explain the meaning of the terms mission, vision, objectives, goals and core
competences for a company like FUJITSU.

Guidelines: (Approx. 300 words)

In your answer, you should:
Define each of the terms mission, vision, objectives, goals and core competences
Provide evidence of Fijitsus mission, vision, objectives, goals and core competences

In answering this question, you will have covered the following assessment criterion:
1.1 Explain strategic contexts and terminology - missions, visions, objectives, goals, core
competencies
TERM DEFINITION CORPORATE STATEMENT
Mission Mission statement depicts the Companys long term mission is
purpose of the organization and to make fastest and most
reason for which it came into ergonomic products for people. It
existence. Mission guide the desires to contribute to the
organizations action, it assists the society by its electronic
company in decision making technology (Corporate Vision,
(Abraham, 2012). This statement is 2014).
clear, precise and powerful.
Vision Vision statement emphasize on Through continuous innovation
organizational goal and aspiration. FUJITSU aims at creating
This statement is carries description networked society. It wants to
of what company wants to achieve bring prosperity within the
in long term future. society that fulfills the dreams of
the whole world.
Objective Objectives are the specific outcome FUJITSU objective is to enhance
s which the company wants to customer satisfaction by
achieve within a given time frame providing quality of software
and available resources (Al-turki, products.
2011). They act as a basis for
evaluating organizational
performance and making policies.
Goals Goals are measurable end results The long term goal of FUJITSU is
which has one or more objectives the develop information
that are to be achieved within a technology that creates more
time
Buy frame. It isWriting
Dissertation the final outcome
from wealthy writer
professionals society.from
The UK
long term
towards which are the efforts are strategy of the business would be
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1.2
What are the three key strategic planning issues that FUJITSU has had to manage over its history?

Guidelines: (Approx 250 words)

In your answer, you should :
Define strategy planning
Describe at least three strategic planning problems
Provide examples of problems within internal analysis, external analysis or business level strategy

In answering this question, you will have covered the following assessment criterion:
1.2 Review the issues involved in strategic planning

Strategic planning is the method by which business defines its strategy and makes
decisions on assigning the resources in order to follow this strategy. It is the process
by which business translates its vision into goals and objectives and defines a
procedure in order to achieve them.
The following are the key strategic planning problems:
Inability to understand the environment: The major problem with strategic
planning is in understanding the changes in the environment (Johansson and
Winroth, 2010). The changes in external environment are acting as a problem
while FUJITSU implements its strategy.
Adherence to a fragmented and decentralized approach: As per the given case
study the company never provided centralized system to its users so the
satisfaction received by the customers was very low. The services received by
the end user were extremely inconsistent.
Having wrong people in strategy implementation: The staff of company was
unable to execute the strategy formulated by top management (Hensmans,
Johnson and Yip, 2013). It becomes very important for FUJITSU to revive its
strategic plans. The main problem was rigidity of plans which become difficult
on the part of employees to perform.
Internal problems are regarding the lack of motivation in the employees to implement
the corporate plans. The external problem can be change in the perception of the
customers due to which strategic plans of the FUJITSU fails. Business level strategy
problem occurs when the employees of company are not able to implement the
strategy so formed.

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Q.1.3
Describe and explain two different planning techniques that FUJITSU could use in future.

Guidelines: (Approx. 200 words)

In your answer, you should :
Explain and describe two different planning techniques e.g. the BCG, SPACE, PIMS or stakeholder
mapping
In answering this question, you will have covered the following assessment criterion:
1.3 Explain different planning techniques

The following are the planning techniques which FUJITSU can use in future:
BCG: It is also known as growth share matrix. It is a planning technique which can be
used by the corporation to analyze its product lines (Elbanna, 2010). It helps the
company to allocate its resources. It can be used an analytical tool in product
management, strategic management portfolio analysis. It will aid in ranking the
product on the basis of relative market and growth rates. The product can be ranked
as cash cow, dog, question mark, stars. These criteria help the organization in making
planning for future.
PIMS: Profit impact of market strategies is a planning technique which evaluates the
performance of business, analyze opportunities for business and test the new
strategies and screen the portfolio of business. The key function of PIMS is it describes
the relationship between business strategic decisions and its outcome. After
analyzing this FUJITSU can gain better understanding of market and what strategic
plans it can create in order to improve its position (El-Ansary, 2006). It will assist
FUJITSU in knowing which business strategy has provided it the success. Further the
firm can also analyze the strategy which has an influence over its profitability.

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LO 2 BE ABLE TO FORMULATE A NEW STRATEGY

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Q 2.1
Conduct a SWOT Analysis of the FUJITSU corporation.

Guidelines: (Approx. 250 words)

In your answer, you should :

Identify the strengths, weaknesses, opportunities and threats for your chosen corporation
Complete the table below
In answering this question, you will have covered the following assessment criterion:
2.1 Produce an organisational audit for a given organisation

FUJITSU Corporation.
STRENGTHS OPPORTUNTIES
FUJITSU is the one of the worlds Worldwide demand for business
largest information technology service solution through information
provider technology services.
It provides eco friendly environment. Partnership with Microsoft can give
Build strong relationship with FUJITSU a global benefit in becoming
customers (Linn, 2008). market leader.

The company holds 1lac and above It has potential to expand due its
patents worldwide. growth in market (Lpez, 2005).

It provides variety of products to its FUJITSU merger with Toshiba mobile

customers. phone can help it in long run.

It in the number one electronic brand

in Japan.
It is ranked fifth worldwide as a server
provider.
WEAKNESSES THREATS
Market share of the company is less Large number of competitors.
due to intense competition. Fluctuation in currency yen.
It is viewed as a lower brand as Economic down turn can affect the
compared to global brands in the sale growth of business (Trim and Lee,
of electronic products (Smith, 2013). 2006).
The company misuses its workers by Issues such as terrorism, political
paying them low wages and instability are not in control of FUJITSU
demanding them to provide high which may influence its operations.
quality of work. Wars in Middle East can be a big
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threat to the company.
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Q 2.2
Carry out a PESTEL Analysis for FUJITSU and evaluate the current challenges within the FUJITSU
business environment.

Guidelines: (Approx. 300 words)

In your answer, you should :
Describe the factors of PESTEL Political, Economic, Social, Technological, Environmental and Legal
Provide an example of each for your corporation
Present the answers in the table below

In answering this question, you will have covered the following assessment criterion:
2.2 Carry out an environmental audit for a given organisation

PESTEL ANALYSIS FOR FUJITSU

Factors Description Company example

POLITICAL These factors determine the The political factors such as

extent to which government government policies in UK have
influence a certain industry great impact on the operation of
(Wilson and Eilertsen, 2010). the FUJITSU.
Organization needs to
change its revenue
generating structure as per
the government tax policies.
ECONOMIC It includes the factors such Inflation rate and interest rate,
as inflation rates, interest foreign exchange rate in UK
rates, foreign exchanges influences performance of
rates which directly impacts FUJITSU.
company.
SOCIAL Determinants such as Change in taste and preference of
cultural trend, consumers impact the existing
demographics, population product of the company.
analytics has huge influence Innovation in electronic products
on buying pattern of the needs to be done by the
companys product. corporation in order to survive in
the market (West, Ford and
Ibrahim, 2011).
TECHNOLOGICAL Change in technology that is Change in the technology brought
bringing new innovation in in by the various competitors of
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the products may affect the FUJITSU has an impact over
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Q 2.3
Conduct a stakeholder analysis for FUJITSU and explain how strategic positioning is used to help
gain competitive advantage.

Guidelines: (Approx. 250 words)

In your answer, you should :

Describe the term stakeholder
Carry out a stakeholder analysis for FUJITSU
Describe why strategic positioning is important within this organisation.

In answering this question, you will have covered the following assessment criterion:
2.3 Explain the significance of stakeholder analysis

Stakeholder can be a person, group or organizations which have interest in the

company concern. They can influence or can be influenced by the companys actions,
objectives and policies. The key stakeholders of the company are its creditors,
suppliers, employees, government, shareholders and its customers.
Stakeholder analysis for FUJITSU
Suppliers: The supplier of the company wants that the firm is required to have ability
to pay their debts for the goods supplied to them.
Employees: The employees of FUJITSU have interest that company provides them
better working condition so that they can increase the productivity (Core
Competencies, 2014).
Shareholders: Shareholders of the FUJITSU are those who invest their money in the
company. Their interest is to get return on the amount invested by them (Stakeholder
Analysis, 2014).
Government: There are certain rules and standard laid down by the regulator body.
The government wants that FUJITSU comply with these rules while it carries its
operations.
Customers: The customers have interest in the product of the firm. They require that
FUJITSU provides them, the product as per their taste and preference as well as per
their need (Narayanan and Fahey, 2013).
Strategic positioning can be defined as locating an organization in future with giving
due importance to changing environmental conditions. The company needs to
analyze its current strategy so that it may know whether or not it fits to future
(Stonehouse and Houston, 2013). If not then the business is required to examine the
changes needs to be done in the existing strategy. By doing this company can save
its lot of time and money in future.
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LO3 UNDERSTAND APPROACHES TO STRATEGY EVALUATION &
SELECTION

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Q 3.1
Analyse the various strategic options available to FUJITSU which will promote organisational growth.

Use examples to illustrate your answer.

Guidelines: (Approx. 350words)

In order to complete the above task, your answer should include :
Discuss market entry strategies, for example, organic growth, growth by merger or acquisition
or strategic alliances strategies
Discuss substantive growth strategies which can include related and unrelated diversification.
Discuss limited growth strategies including strategies such as market penetration and market
development
Discuss disinvestment strategies including turnaround strategies, divestment and liquidation.
In answering this question, you will have covered the following assessment criterion:
3.1 Analyse possible alternative strategies relating to substantive growth, limited growth or
retrenchment

There following are various strategic options available to FUJITSU which will promote
its growth:
Market entry strategies: Market entry strategy includes the plans which can be
used by the company to develop new market for the product. The can company
enters new market by planning for mergers and acquisitions. It is such strategy
which can help FUJITSU to increase its existing market share. Business adopts such
strategies so that it can grow by diversifying its operations in new market. Merger
is consolidation of two companies into one business entity (Sherman, 2014).
Acquisition is that when corporation takes over another firm and establishes itself
to be the new owner. By doing this the company can get an opportunity to grow
and expand in the new market.
Substantive growth strategies: FUJITSU can adopt substantive growth strategy by
diversifying its operation. The diversification includes related and unrelated
diversification. Related diversification can be adopted by company in order to grow
(Paswan and et. al., 2011). This can be done by expansion in existing product line.
Unrelated diversification can be done by adding new or unrelated product line in
the business operations.
Limited growth strategies: FUJITSU has the option to adopt limited growth
strategies such as market penetration in order to promote its growth. This means
the company can grow by increasing its market share. This can be further done by
it by reducing the prices for its product. The business can also use market
development strategy in order to expand. This strategy involves developing new
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market for existing product line.
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Q 3.2
From your analysis in Q3.1, recommend an appropriate growth strategy for FUJITSU for the
future.

Guidelines: (Approx. 350 words)

In order to complete the above task, your answer should:
Include an introduction, background, advantages and disadvantages of various options with evidence
from FUJITSU and the business environment
In answering this question, you will have covered the following assessment criterion:
3.2 Select an appropriate future strategy for a given organisation

FUJITSU can adopt the strategy of limited growth as future strategy. The other
strategies such as substantial growth and market entry have benefits that company
can enjoy economies of scale in implementing it. However these strategies have more
risk and cost involved. Limited growth will help the company to grow by increasing its
sales and profits. Under limited growth strategy the firm can plan to grow with the
available resources it has. Limited growth strategy includes market penetration and
market development strategy. This strategy will provide long term growth and
survival to the company (Doole and Lowe, 2005). Adopting such strategy will help
FUJITSU to position itself as an innovator in the mind of the prospect. The advantage
of such plan is that the corporation has to make minimal investment and also it has
less risk involved. In this plan the company can go for product development that is
creating new product for the existing market. Further the firm can also choose market
development that promoting existing product in the new market. If the business
adopts such strategy into its practice then it will have less investor pressure in order
to grow faster. When the company plans to grow itself at rapid speed then creates
burden on the manager to keep balance between existing operations and new
operations (Dandira, 2011). However if FUJITSU adopts strategy to grow limited then it
can easily manage its operations and also low cost will be incurred. Moreover if this
plan is implemented then the business will have less debt this is because limited
growth will require less finance thereby results in less liability on the business.
The major disadvantage when the company adopts such strategy is that FUJITSU will
restrict its ability to enjoy economies of scale. If the business plan for limited growth
then it will not make purchases in large volume of raw material that means it will not
be able to get discounts which it would have got in making bulk purchases (Acur and
Englyst, 2006). The business can use market penetration strategy which may not be
fruitful as this plan aims at reducing the price of the product in order to increase its
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market share. Implementing this plan may reduce the profits of the business.
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LO 4 UNDERSTAND HOW TO IMPLEMENT A CHOSEN STRATEGY

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Q 4.1
Using your answer in Q3.2, create an implementation plan for the recommended future
strategy for FUJITSU.

Guidelines: (Approx. 200 words)

In order to complete the above task, your answer should include :
a list of implementation activities
benchmark targets
a discussion about the teams you require
examples of individual roles required to achieve the SMART objectives within the plan
In answering this question, you will have covered the following assessment criterion:
4.1 Compare the roles and responsibilities for strategy implementation

List of activities in implementing the strategy include defining objectives,

setting standards, identifying the resources and allocating them. In order to
implement limited strategy FUJITSU needs to define its objectives (Kourdi,
2010). The company needs to SMART objectives in order to achieve its aim of
limited growth. The objectives set are required to be specific, measurable,
attainable at an accepted cost, relevant and time bound. After the
establishment of the objective the business requires to lay standards in order
to carry out operations in smooth manner. Moreover benchmarking helps the
organization to review its performance and find out the area where it is
lacking. The major part in strategy implementation is played by those who
execute the strategy ( What is retrenchment as a corporate strategy, 2014).
For the limited growth strategy the company requires teams consisting of top
management, middle level managers and workers who can carry the
operations as per the standards. Other than human resource the company will
require financial resources in order to perform limited growth plans. Use of
new technology can also be fruitful if the business plans for limited growth this
technology can help the business in developing new product for its existing
market ( Eigenhuis and Dijk, 2007). The role of individual in implementing is
that they are required to communicate the strategy to their subordinates and
they are accountable to their superiors for the task accomplished by them. For
example, the role of the top management is to formulate the objectives for
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strategy and communicating the objectives to the managers.
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Q 4.2
Describe and evaluate the resources required to implement the new strategy from answer
Q3.2

Guidelines: (Approx. 250 words)

In order to complete the above task, your answer should:
Describe how to carry out a human resources audit
Describe how to carry out a financial resources audit
Evaluate the resource requirements
In answering this question, you will have covered the following assessment criterion:
4.2 Evaluate resource requirements to implement a new strategy for a given organisation

In order to implement the new strategy that is limited growth the business needs to
evaluate its human resources and financial resources. Human resources include man
power ability execute the plan. The business needs to analyze the human resource
skills and knowledge which are necessary for implementation of the new strategy
( Galbreath, 2009). For examining this human resource audit is carried out. Top level,
middle level and lower level employees need to have necessary qualification and
expertise in order to perform the plan. If the human resources are not capable
enough then company can carry out various training programs so that employees can
upgrade their skills and knowledge. It is very important that FUJITSU contains pool of
specialized human resource so that it can attain success in long run. Not only human
resources but to implement a new strategy financial resources are also very essential.
The company can carry out financial resources audit so that it can know the internal
resources it can it order to perform new plans ( Kruger and Mama, 2012). If the
company has enough of internal sources then it has not to take finance from the
external sources. Through evaluation of financial resources FUJITSU can get to know
the availability of funds it has. When firm cannot get the resources from internal
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sources then it has to borrow the funds from external sources.
Q 4.3
From your responses in Q4.1 & Q4.2 create a Gantt Chart that shows the activities required and
timescale for the implementation of the recommended future strategy of Q3.2

Guidelines: (Approx. 200 words)

In your answer you should:
Propose targets and timescales which you would use to monitor the implementation plan
Formulate a Project plan and present it in a Gantt Chart (MS Project software available in LSST
computers)
In answering this question, you will have covered the following assessment criterion:
4.3 Discuss targets and timescales for achievement in a given organisation to monitor a given strategy

When the company want to implement the limited growth strategy then it would
requires at least six months incorporating it ( El-Ansary, 2006). The activities involves
formulation of strategy, setting standards, evaluating the availability of resources,
allocation of resources, identifying the human resources for implementing the
strategy, communicating the strategy, implementing the strategy, feedback from
implementation, revising the plan. The time to accomplish such activities has been
represented using Gantt chart.
Table 1 Gantt chart

Activity/month 1 2 3 4 5 67 8
Formulation of objectives
Setting benchmarks
Organizing and allocating necessary
resources
(financial and human resources)
Communication of strategy to
management
Implementation of strategy
Feedback of the implementation
Revising the plan

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EFERENCES
Journal and Books

Abraham, C. S., 2012. Strategic Planning: A Practical Guide for Competitive Success.
2nd ed. Emerald Group Publishing.

Acur, N. and Englyst, L., 2006. Assessment of strategy formulation: how to ensure
quality in process and outcome. International Journal of Operations & Production
Management. 26(1). pp.6991.

Al-turki, U., 2011. A framework for strategic planning in maintenance. Journal of

Quality in Maintenance Engineering. 17(2). pp.150162.

Dandira, M., 2011. Involvement of implementers: missing element in strategy

formulation. Business Strategy Series. 12(1). pp.3034.

Doole, I. and Lowe, R., 2005. Strategic Marketing Decisions in Global Markets.
Cengage Learning EMEA.

Eigenhuis, A. and Dijk, R., 2007. High Performance Business Strategy: Inspiring
Success Through Effective Human Resource Management. Kogan Page Publishers.

El-Ansary, A., 2006. Marketing strategy: taxonomy and frameworks. European

Business Review. 18(4). pp.266293.

Elbanna, S., 2010. Strategic planning in the United Arab Emirates. International
Journal of Commerce and Management. 20(1). pp.2640.

Galbreath, J., 2009. Building corporate social responsibility into strategy. European
Business Review. 21(2). pp.109127.

Hensmans, M., Johnson, G. and Yip, G., 2013. Strategic Transformation: Changing
While Winning. Palgrave Macmillan Publication.

Johansson, G. and Winroth, M., 2010. Introducing environmental concern in

manufacturing strategies: Implications for the decision criteria. Management
Research Review. 33(9). pp.877899.

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Kourdi, J., 2010. Business Strategy: A Guide to Effective Decision-making. Profile
Books.

Kruger, C. and Mama, M., 2012. Incorporating business strategy formulation with
identity management strategy formulation. Information Management & Computer
Security. 20(3). pp.152169.

Linn, M., 2008. Planning strategically and strategic planning. Bottom Line: Managing
Library Finances. 21(1). pp.2023.

Lpez, S., 2005. Competitive advantage and strategy formulation: The key role of
dynamic capabilities. Management Decision. 43(5). pp.661669.

Marren, P., 2007. High-functioning business strategy. Journal of Business Strategy.

28(6). pp.37-39.

Narayanan, V. K. and Fahey, L., 2013. Seven management follies that threaten
strategic success. Strategy & Leadership. 41(4). pp.2429.

Paswan, K. A., and et. al., 2011. Relationalism in marketing channels and marketing
strategy. European Journal of Marketing. 45(3). pp.311333.

Singer, P. B. and et. al., 2007. Corporate real estate and competitive
strategy. Journal of Corporate Real Estate. 9(1). pp.2538.

Smith, D. R., 2013. Strategic Planning for Public Relations, Fourth Edition. 4th ed.
Routledge Publications.

Stonehouse, G. and Houston, B., 2013. Business Strategy. 2nd ed. Routledge.

Trim, P. and Lee, Y., 2006. The role of marketing intelligence officers in strategy
formulation and implementation. Handbook of Business Strategy. 7(1). pp.125
130.

West, C. D., Ford, J. and Ibrahim, E., 2011. Strategic Marketing: Creating Competitive
Advantage. 2nd ed. Oxford University Press.

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Wilson, W. J. and Eilertsen, S., 2010. How did strategic planning help during the
economic crisis. Strategy & Leadership. 38(2). pp.514.

Online
Core Competencies. 2014. [Online]. Available through:
<http://www.bain.com/publications/articles/management-tools-core-
competencies.aspx>. [Accessed on 1st July 2014].

Corporate Vision. 2014. [Online]. Available through:

<http://www.fujitsu.com/global/about/philosophy/vision/>. [Accessed on 1st July
2014].

Sherman, F., 2014. Advantages & Disadvantages of Limited Growth Strategies. 2014.
[Online]. Available through: <http://smallbusiness.chron.com/advantages-
disadvantages-limited-growth-strategies-41321.html>. [Accessed on 1st July 2014].

Stakeholder Analysis. 2014. [Online]. Available through:

<http://applegmx.blogspot.in/>. [Accessed on 1st July2014]

What is retrenchment as a corporate strategy. 2014. [Online]. Available through:

<http://www.enotes.com/homework-help/what-retrenchmemt-corporate-strategy-
177787>. [Accessed on 1st July 2014].

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