Running Head: Strategic Planning

Strategic Planning

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Contents
Task 1...............................................................................................................................................4

Organizational vision, mission, strategy and business plans.......................................................4

Effect of external factors on organizations..................................................................................4

Effect of stakeholder expectations on organizations...................................................................6

Task 2...............................................................................................................................................8

Analyses of the vision and mission statements of Vista..............................................................8

Analyses of the external influences effect on a strategy of the organization in a Vista............10

Political Factors.....................................................................................................................11

Economic Factors..................................................................................................................11

Sociological Factors...............................................................................................................11

Technological Factors............................................................................................................12

Environmental Factors...........................................................................................................12

Legal Factors.........................................................................................................................12

Task 3.............................................................................................................................................13

The importance of review in developing business plans and organizational strategy...............13

 The tools which can be used to review organizational strategy and business plans..................14

The competitive weaknesses and strengths of a company’s current business plans and business

strategy.......................................................................................................................................14

Market analysis......................................................................................................................15

Task 4.............................................................................................................................................15

Strategy options for a chosen organization, using modelling tools...........................................15

Criteria for reviewing the potential strategy options.................................................................16

Task 5.............................................................................................................................................17

The structure of a plan required for delivering the strategy......................................................17

How stakeholders are involved in the formulation of the plan..................................................17

A strategic plan for Vista...........................................................................................................18

References......................................................................................................................................19
Task 1

Organizational vision, mission, strategy and business plans

Mission and vision are both related to the purpose of the organization and are typically

communicated in some form in writing. Vision and mission are the statements from the company

which answer questions for the company about where it is leading to (Johnson et al. 2008). The

study by several researchers has concluded that mission and vision depict the perception of the

company. Moreover, an organization with a clearly communicated mission and vision have been

shown for performing better in the market. Mission and vision should be according to the goals

and objectives of the organization (Johnson et al. 2008).

A mission and vision statement communicates the reason for the organization’s existence,

and how they are going to serve stakeholders. Investors, employees, and Customers are the

stakeholders most frequently emphasized, but other stakeholders such as communities or

government can also be deliberated (Pitt and Koufopoulos, 2012). Mission statements are mostly

longer than statements of vision. Mission statements sometimes also consist the summation of

the values of the organization. Values are beliefs of the group or individual and in the case the

firm, in which they are invested emotionally (Johnson et al., 2008).

Effect of external factors on organizations

The external environment of the company consists of several factors, whose existence,

create an effect on the performance and behaviour. The action of the factors can be direct or

indirect, and external analysis of environment is performed in 2 different contexts: macro and
meso environment (Porter, 2008). Those major variables which are affecting the company,

providing, diagnosis of strategy, information on the situation of strategy complementary to the

offered through internal analysis.

Directly interactive forces which are applied in an organization consist of owners,

customers, suppliers, employees, competitors, and employee unions. Management has the

responsibility to each of the groups. In an organization, Owners have much expectation

regarding managers for watching over the interests and provide the investments return.

Customers want satisfaction with the services and products which is provided by the company.

Suppliers need attentive payment, communication, and a strong working relation for providing

required resources (O'Neil, 2010). Competitors present issues as they compete for consumers

within the market with the same products or services. Employees do the work for the

organization for which organizations are mainly dependent on the employees for sustainable

growth in the market.

The second external environment type is the indirect forces. The forces consist of global,

political and sociocultural, technological, economic, and legal influences. Indirectly interactive

forces can create an effect on a single company depending on the nature of the business (Sui

Pheng, and Hui Hong, 2005). For instance, the company which depends mainly on technology

would be more influenced by updates of software than the organization which uses an only a

single computer. Though somewhat eliminated, indirect forces are yet significant to an

interactive organization nature.

The sociocultural dimension is especially significant due to it determines the standards,

services, and goods that are valued by society. The sociocultural force consists of the values and
demographics of the specific base on the customer (Aaker, and McLoughlin, 2010).

Demographics are actions of the several characteristics of the social groups and people that make

up the income, gender, age, and society are instances for commonly used characteristics

demographically. Values are referred to some beliefs which persons have about diverse forms of

products or behaviour (Bryson, 2018).

The legal and political dimensions of the outside environment of the organization include

regulatory limits within that the organization must function. Political parties influence or create

laws, and owners of the business should abide by the trade regulations (Steiner, 2010). Tax

policies, laws, and least legislation of wage are just some instances for legal and political issues

which create an effect upon the way the organization functions. A technological dimension of an

outside environment creates an effect on the scientific processes implemented in varying inputs

(money, labour, resources) to outputs (services and goods). Organization success relies on the

way well they respond and identify to external changes within technology.

Effect of stakeholder expectations on organizations

Stakeholders within an organization can be defined as every entity which is influenced by

the business running the operations and conducting additional activities related to the existence.

An influence might be direct in a case of customers and suppliers of business or indirect in a

community’s case in which an organization selects the place (Noe et al. 2006). The organization

is required to consider the expectations and needs of the stakeholders, though the company is not

required to consider stakeholders as equal. Some stakeholders like investors and owners are more

significant than others.

Business Stakeholders

A stakeholder is a catch-all term which consists of a wide range of dissimilar entities

ranging by separate people to large-scale private and public organizations. On the whole, the

most prominent stakeholders of business consist of investors and owners, host communities,

customers, creditors, personnel, and suppliers the governments of the communities (Andreasen et

al. 2008).

Stakeholder Analysis

Before the business might consider the expectations and needs of the stakeholders in the

course of the planning, it should identify the stakeholders and categorize them in the order of

their significance in the company. One technique for accomplishing that is to consider all

stakeholders, and after that, the company is required to determine a degree of the interest and

effect in the company (Smith, 2013). If investors have the greater interest in the company, the

company is required to communicate with them on a regular basis and make them informed for

the activities. The company is also required to make them placated.

Stakeholder Expectations and Needs

Once a business has signified the stakeholders and the importance to a company, it might

begin for planning based on the expectations and needs. Every stakeholder is concerned about

the expectation to be met in the company in which they invest their company. For instance, the

owners of business imagine that the company should be profitable and they would get a huge

return on their investment. Most of the time, they end up losing their money, and they also get a

huge amount of return on their investment. As per investors of the Company, they have received
a high return because the company has earned a huge amount of profit in its last five years

(Poister, and Streib, 2005).

Stakeholders and Business Planning

The influence of stakeholder expectations and needs on companies is ubiquitous and

inescapable. Companies exist for meeting the needs of one particular stakeholder in a sense that

company are made and operated for generating profit for the investors and owners. Companies

should consider the expectations and needs of every stakeholder to be profitable due to the

ability for helping and hindering the operations (Eddleston et al. 2008). For instance, a company

must be considerate of the host communities due to that improves the standing of the company

and strengthens the presence in the market. On another side, if a company selects for ignoring the

host communities, which disregard becomes the black spot on the standing and might result in

many sanctions if relationships become immoral enough. The stakeholders which companies

might ignore are the ones who have less interest in the company or in the operations of the

company (Allison, and Kaye, 2011).

Task 2

Analyses of the vision and mission statements of Vista

The mission statement of the Vista Company says that Vista is the leader in providing value-

added services of construction to the customers by generating the successful partnership with

them throughout the process of construction (Cassidy, 2016). Vista pledge is to make lasting

connections with the customers by exceeding the expectations and attaining the trust by an
exceptional presentation by each member in the team of construction (Tavakoli, and Skehan,

2005).

The vision of the Vista Company says that they want to be the preferred contractor of choice.

And they want to build the company which is loved by their customers, and they want to make

employees so happy that they would be proud to work for the company (David, 2011).

Vista business plan strategy relies on the joint development of the 2 main businesses that

includes Contracting and Concessions. Vista intends for making this business model even much

robust by widening the range of expertise of the company and the geographical footprint

(Harrison, and Association of University Programs in Health Administration, 2010). Because

Vista’s business activities are placed at a mobility intersection, energy transition and the urban

development, they would benefit from sustained and substantial investments designed for

addressing buoyant trends in long-term in the sectors. Vista’s business plan objective is to open

up new value creation sources by harnessing the exceptional expertise range as the investor,

service provider, operator and builder for building comprehensive solutions commensurate with

the issues (Ishak, and Alias, 2005).

Vista Company has the vision statement and mission statement strongly linked with a

company. A corporate vision statement of Vista Company sets an anticipated future business

state, for guiding direction and strategic management. Vista company vision statement marks

importance in the business leadership in the construction industry (Newman, 2008). In relation,

the corporate mission statement of the Vista Company determines the action types which

describes the company and directs the strategies and tactics development. The mission statement

of Vista focuses on construction operations in the market. The Five Forces analysis of Porter of
Vista Company depicts that competition is rising for the firm like Vista Company. As there are

many companies which are rising in the business of construction work. So Vista Company is

required to maintain the stakeholders according to the mission and vision statement of the

company (Taylor, and Machado, 2006).

There are several ways by which external factors affect organizations. All external factors

which can affect the organization make up the outside environment. The external environment is

separated into 2 parts: the first part is directly interactive which says that this environment has

the firsthand and immediate influence upon the organization like Vista international. The second

part is indirectly interactive which says that this environment has the secondary and more

withdrawn effect on the organization like Vista international company. New legislation taking

over can have a higher impact (Van Hentenryck et al. 2010).

Analyses of the external influences effect on a strategy of the organization in a Vista

The business strategy is very important for the development and growth of business in the

long term for the organizations including Vista Company. Without the proper strategy, it is very

tough for Vista Company to provide and implement meaningful objectives and goals (Gates,

2010). In determining the strategy of the business, a logical environment analysis in which Vista

Company operate would both influence and inform the result. This assessment is called as

PESTLE which analyses political, environmental, legal, technological, sociological and

economical and it paves the path to identify threats and opportunities, and effective planning for

the business (McLean, 2006).

 Political Factors

Political factors consist of how policies and regulations imposed by the local or national

government may create an effect on the way it conducts the business. Policies and regulations

can create an effect on the Vista company in the way that if the company changed the policies

and regulation on the business of construction, it could be in danger at that time (Boyne, 2010).

Either in terms of increasing or in the form of restriction on construction business.

Economic Factors

The performance and strength of the international, national and local economy might all

create an effect on the company, presenting both threats and opportunities. It can create harm for

Vista Company in a way that it can create different taxation types and there are other things

which can affect the company including duties, and it is also important in terms of preparing

viable forecasts for financial purposes. The factors which can affect the construction business are

labour costs, interest rates, government policy, taxes and management (Boyne, 2010).

Sociological Factors

Sociological profiles and attitudes are changing quickly. It is important for Vista to develop the

demographic profile of their consumers’ base and this would help Vista understand what inspires

them (Dye, and Sibony, 2007). Vista Company should keep abreast of problems like gender bias,

religion and ethnic origin, as well as to be conscious of lifestyle expectations and social norms,

might help the company with the strategy related to marketing. Social factors which can create

an effect on Construction Company include lifestyles, such as religion, family or wealth. These

can change over time (Al Ghamdi, 2005).

 Technological Factors

The sole thing permanent for technology is change. Continuous advances in technology

in construction business has made it difficult for several companies to survive in the market that

is the reason, Vista is required to develop every upcoming technology in construction.

Maintaining updated changes in construction business might help the company for developing

the advantage within a market by means of competition. Change in technology is much evident

in terms of communication, with tablet computers and smartphones becoming common. Vista

Company should look at methods in construction to harness the potential in technology to service

and identify emerging and new markets (Albert, and Steinberg, 2011).

Environmental Factors

Concerns related to the environment have developed to be important in last years, with

the broader influence of doing business progressively recognized by customers as the factor in

the behaviour of the buyer. Vista Company must look for methods for minimizing the impact of

the environment of their operations (Johnson et al. 2008). For instance, several companies are

looking for methods for lowering the influence of the consumption of energy. A positive effect

of the responsible attitude to the environment can create an effect on attracting the new clients

for Vista company that are waiting for waiting for ethically built projects to buy.

Legal Factors

Legal factors are external factors of the construction business which refer to how the law affects

the way businesses operate and customers behave that includes product transportation, profit

margins, and viability of certain markets which can be influenced by lawful factors. Lawful
factors can decide whether or not there is a business behind selling a certain product, and can

also influence the mechanisms through which a company stocks their inventory or interacts with

the customer.

Task 3

The importance of review in developing business plans and organizational strategy.

The most important step in the process of planning is to evaluate and review the progress.

It is similar to the way it is checked the signposts along the road after completing the journey; it

is similarly significant for the development in running or going according to the instructions.

Vista Company is required to use reports against the annual plans of operation for reviewing the

developing business plans and strategy of organization for maintaining sustainability in the

business and it is important for keeping the work according to goals and objectives of the

organization (Evans, 2013). For that reason, Vista Company is required to ensure the employees

are maintaining and keeping proper records of every action and transaction within the operation

of business so that business plans and organizational strategy can be analysed. This also includes,

at the application stage of the company plan, to be clear what structures and systems are needed.

The things the company has decided for measuring would provide an indication of the method

which is implemented correctly or not. Hence, it is important to review the development process

and business plan to maintain the strategy according to the goals and objectives of the company

(Pitt, and Koufopoulos, 2012).

The tools which can be used to review organizational strategy and business plans

There are several tools which can be used for strategic analysis of Vista Company. But

there are many challenges which are faced while selecting the best tool to review organizational

strategy and business plans (Johnson et al. 2008). Another challenge which is faced by Vista

Company in the understanding of what strategy analysis means, as there might be several

definitions. This can be confusing for the company, as there are numerous ways by which tools

can be applied for mapping, researching, analyzing, and facilitating the organization’s abilities

for achieving a future envisioned state based on present reality and frequently with consideration

of processes of the organization, business development, technologies and capabilities of people

(Porter, 2008). All these tools are being used for bridging the gap which exists between the

operational, tactical, and strategic aspects of the company. It is required for looking at the future

state, the present state, financials and risk and the change requirements creation for achieving the

desired results.

The competitive weaknesses and strengths of a company’s current business plans and business

strategy.

Strong plans of business provide the roadmap to turn the small business into the most

lucrative enterprise. Vista company current business plans and business strategy have several

strengths and weaknesses. Company’s strength is that the company’s projects are rare, not

imitable and not easily substitutable, but the weakness of this company is that the company’s

current business plan and business strategy is limited to certain countries, but in some countries,

company is less successful in terms of generating profit from its operation (Porter, 2008). The

company is required to set code of conduct for all over the world. The company’s business plan
indicates one of two things that either this strategy or plan was not researched and well written,

or the concept of business is not sound. Once the company’s all strengths and weakness have

been identified, then it would be easy for the company to decide on how much money and time is

required for putting into an endeavour. Weaknesses in the company’s plan used for securing

funding often recommended that the plan is not worthy of a cash infusion (Sui Pheng, and Hui

Hong, 2005).

Market analysis

A thorough assessment of the potential market is critical for creating the strong plan of

business. The plan must explain the characteristics of the market and recommends a new market

to capture (Aaker, and McLoughlin, 2010). A strong analysis of the marketing section also

depicts the customer’s reason for buying the products. Same is the case of Vista Company; they

are required to know their strengths. A weak analysis section of marketing does not mention

trends of the industry and the consequence of the trends on the business. Regulatory tendencies

are also significant for Vista Company if they pertain towards the company idea; without them,

the plan of business seems like it lacks information and it is not finished (Bryson, 2018).

Task 4

Strategy options for a chosen organization, using modelling tools

There are several options which are available for Vista Company for making strategy. By

assessing the outside environment (opportunities and threats), and the company’s internal

environment (strengths and weaknesses), which can be used the techniques for thinking about a

strategy of the Vista company, a team or a department (Smith, 2013). It can also be thought
about the process, a campaign of marketing, or even the own experience and skills (Steiner,

2010).

Figure 1: SWOT analysis of Vista

Criteria for reviewing the potential strategy options

It is significant for establishing monitoring and control mechanisms for achieving the

objectives of the strategy (Noe et al. 2006). Vista Company has been recommended with the

market, and product development strategies that are required to develop the products and
advance previous products and enter into the markets. All the strategies are required for

comprehensive criteria for reviewing on the basis of what they would be examining (Eddleston et

al. 2008). Another strategic model which can be applied to Vista company is SWOT analysis

discussed above in Figure 1.

Task 5

The structure of a plan required for delivering the strategy

The structure of a plan for Vista is required for delivering the strategy of company. The

structure has been seen something which is separate from strategy (Andreasen et al. 2008).

Structure tells that how whole company should operate within the environment, not just the chart

of the organization. All aspects of a structure of organization, from the creation of departments

and divisions to a designation of reporting relations, must be made when keeping the firm’s

strategic intent in mind. Strategy, obviously, lines up the markets and arenas in that the firm

would compete, proclaims the targeted base of customer, and asserts a matters by that the

organization would seek for differentiating itself (Smith, 2013).

How stakeholders are involved in the formulation of the plan

Companies should consider stakeholders for decision making in the organization. All

stakeholders are not equally important to the company, and not every stakeholder is involved in

the formulation of the plan for the company. In the case of Vista Company, several stakeholders

are involved in the formulation of the plan including managers, governments, etc (Allison, and

Kaye, 2011). Vista Company considers stakeholders as the major decision makers for the

company in the formulation of the plan. In numerous cases, stakeholders are those that have
vested interest in what the organization does but are not the actual decision makers. In some

situation of the company, the role of stakeholders varies because of the situation of the company.

A strategic plan for Vista.

Vista Company is required to follow 5 steps for creating a strategy. The first step is that

the company is required to know itself and determine its competencies. So that the company can

target the market accordingly (Allison, and Kaye, 2011). The company is needed to provide a

full picture of its position in the market and should conduct internal and external audits for

achieving the clear knowledge about its market position, the competitive environment, and the

competencies of the company. The second step is that the company is needed to understand the

important things about the company and should focus on the future of the company and the

company is required to target the market accordingly. This analysis would create a focus for the

company on the particular market, so it would be easy for the Vista Company to analyze and

target the customers (David, 2011).

The third step is to decide the achievable outcomes that the company want to achieve in

an upcoming period of its turnover. The fourth step is to determine the accountable person for

any mistake or appraisal. This thing will give the company direction and guide the company

towards its goals and objectives (David, 2011). The last step is to review all the previous things

for ensuring the plan performs as designed; the company should hold regularly scheduled

process reviews and refine as essential. It is vital for the Vista Company to achieve sustainability

in the market (Ishak, and Alias, 2005).

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