INTRODUCTION
Welcome to the module Strategic Planning. As the business environment is becoming ever more complex, more turbulent, more global and more competitive, thinking strategically about how a firm should position itself in order to compete successfully is becoming increasingly critical. Those firms that will survive, grow and create value are firms with a clear vision of what is their competitive advantage and how to maintain/ enhance it. Therefore strategic planning has become one of the core tasks of leaders today.
This course will give students a foundation of basic strategic concepts for application at
both the corporate and business unit levels. The emphasis is on developing strategic thinking to enable students to approach complex multi-disciplinary problems and opportunities confidently. Students will be able to forecast and evaluate the effects of major business decisions; assess the benefits and problems of integrating corporate and functional strategies; and to formulate approaches for managing strategic change.
The other key objective of this course is to review the main concepts, methods and tools
used in strategy formulation and implementation processes, identifying the business situations in which they can be applied most effectively, as well as understanding the limitations of various approaches.
I do hope that you enjoy this module and find it worthwhile for your academic and professional development.
Assessment
Course Work: 100 % weighting:
A Strategic Plan of about 3500 words is to be developed by individual students which
creates recommendations for revising a business strategy to improve the competitive position and financial performance of the organisation. To support the recommendations the student must identify and evaluate the current competitive strategy of a business, analyze the conditions and trends in its environment, assess its resources and competencies, and examine its organization, culture, and leadership.
COURSE WORK
Assignment
Due Date: March 22, 2011
By 12.00 midnight (Singapore & Malaysia
As part of the Strategic Planning module, students are required to analyze a case study
and write a report to the CEO to help him / her on how IKEA determines the strategic
position of the company in the future. The report must address the following 5 (FIVE)
management questions:
1. What business and corporate level strategy did Ingvar Kamprad predominantly follow to attain impressive growth of IKEA? What distinctive competencies has the company built over the years to achieve competitive advantage?
2. Why do you think IKEA failed in the USA
3. IKEA’s goal of maintaining growth would mean expansion into non-western markets, including most notably in China
market. Is IKEA’s competitive advantage secured in China
4. Based on previous experience of diversification in China and Japan
that IKEA should go for more diversification in other Asian countries? Justify your answer with arguments. Critically evaluate the diversification strategies options (acquisition, internal new venture, joint venture) that would add more value for IKEA to follow.
5. What form of innovations in IKEA has contributed to the growth of its business?
What factors are critical to continue its success in innovations?
Your findings and recommendations must be supported by:
1. Identification of the stage of life cycle of the firm’s industry
2. Identification of any changes taking place in the macro environment (political, legal, economic, social, cultural, technological, demographic etc.) that might have an impact upon the firm’s competitiveness
3. Evaluation of the organization in relation to its competitors by presenting a strategic group map of the relevant industry
4. The detailed SWOT analysis and presentation of TOWS matrix in order to identify strategies (plans) for the future
5. Application of any other relevant strategic management framework that will make a contribution to your analysis
As this is a dated case study, part of your task would include researching updated information. The case study is attached as per Appendix 1 “Ikea: Furniture Retailer to the World”
