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Assessment Brief

Unit Details:

Unit Code: A/601/0796 (Unit 7)

Unit Name: Business Strategy

Programme Name: BTEC Higher National Diploma (HND) in Business

Awarding body: Edexcel

Unit Level (QCF): QCF-5

Academic term: January 2014

Distribution date: W/C - 20/01/2014

Submission deadline: 04/04/2014

Result and feedback date: 4 weeks from the deadline

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Course Details

Course Name BTEC Higher National Diploma (HND) in BusinessUnit number 7Unit Name Business StrategyCredit Value 15Lecturers Abhijit/Alfred/Abimbola/Ousman/SheenaHand Out/Issue Date January 2014Submission Deadline 4th April 2014

IntroductionStudents are expected to write an essay covering the points listed under each of the learning outcomes. To achieve a pass in this unit, students must successfully address all of the assessment criteria listed (P1-P11). We expect all students to achieve their potentials and would encourage you to address all pass criteria, merit and distinction descriptors.

For certain tasks students are encouraged to use real life examples of their choice and/or the scenario provided below. The scenario given below may not be relevant to all pass criteria listed. Therefore, you should read and cite relevant newspapers and industry journals to find suitable articles from which you can draw examples to support your answers.

There is not set format for this essay. However, like all business essays you should have an introduction, body and a conclusion.

ScenarioCase Study: Strategy at Virgin GroupUnder the strong and populist leadership of its chief executive, Sir Richard Branson, Virgin Group has pursued an opportunistic strategy to build a company with estimated annual sales of over US$10 billion by 2007. Starting from nothing in 1968, Virgin Group tried a series of strategies over the next 30 years. Its aim was to find opportunities to grow the business on the basis of what became the Virgin brand name and on the strong reputation of its founder and chief executive. The strategic trial-and-error process was essentially emergent, rather than prescriptive. This case outlines some of the main strategies with Virgin’s successes, failures and continuing business developments.

Background to the early yearsAfter an experimental launch of a student magazine, the young Richard Branson developed a small record mail-order business in 1969 to take advantage of the end of resale price maintenance in the UK. He opened his first record shop two years later and subsequently developed it into the Virgin Megastore chain.[1] At the same time, he was attempting to

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Nelson College Londondevelop a record label by signing up various pop artists of the time. None of these businesses possessed any clear competitive advantage, though arguably contractual rights to popular musicians and the Virgin brand itself had some real value. He continued to seek business opportunities using the Virgin brand and, by chance, met up with an entrepreneur wishing to develop an airline business. This eventually led to the Virgin airline business with its first route to New York in 1984.[2] In later years, the company moved into a variety of business ventures – from Virgin Bride and Virgin Cola to Virgin Trains and Virgin Mobile telephones – see Table 2.2. In terms of its strategy, Virgin Group claims to examine business opportunities carefully, seeking an opportunity for ‘restructuring the market and creating competitive advantage’.

Virgin Group’s underlying business strategyThe company has developed its strategy over a number of years. Essentially, Virgin takes the view that there are always opportunities available for the hungry business executive. The underlying business logic has been summarised by Branson thus:

Business opportunities are like buses . . . There’s always another coming along.[3]In practice, what this means is that Virgin examines new opportunities to see if the group can offer something ‘better, fresher and more valuable’ than existing companies. It looks particularly at markets where the existing customers are not always receiving value for money and where the existing companies have in some cases become complacent – trains, insurance and banking for example – and where the new internet might deliver a business opportunity. This means that the main thrust of the strategy has been to find new market opportunities where the company believes its brand name can create competitive advantage. ‘Contrary to what people may think, our constantly expanding and eclectic empire is neither random nor reckless. Each new business demonstrates our skill at picking the right market and the right opportunity,’ says the Virgin website.

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All the businesses in the Virgin group is strategically targeted towards a five pillar empire system that Sir Richard Branson is eager to create. At the heart of Virgin’s strategy to develop the five pillars of business strategy travel, leisure, mobile phones, entertainment retailing and personal finance.

Outcome of strategies: Virgin focuses on geographical expansionIn the last few years, Virgin has focused its strategy on geographical expansion of its existing product portfolio rather than adding products. For example, it has taken its highly successful concept of Virgin Mobile telephones to other countries beyond its UK base. However, it remains opportunistic in its main product areas – for example, its bid to rescue the failed UK bank Northern Rock in 2007. The strategy continues to emerge – both into new countries and into new product areas. 

For more information, you can visit www.virgin.com

Source: http://www.global-strategy.net/emergent-strategy-at-the-virgin-group/

(Or, you can research and analyse any organisation of your choice by using internet , trade journals, business magazines, books etc., and provide answers to all tasks given below.)

To achieve a pass in this unit you must successfully address the following tasks (P1-P11):

P1 Explain strategic contexts and terminology- mission, vision, objectives, goals, core-competencies. (AC 1.1)

P2 Review the issues involved in strategic planning ( Guidance : consider impact on managers in formulating strategic planning; targets; when to plan; who should be involved; role of planning). (AC 1.2)

P3 Explain different strategic planning techniques (Guidance- you should use any two of the following techniques: BCG growth-share matrix; directional policy matrices; SPACE, PIMS

etc.,) (AC 1.3)

P4 Produce an organizational audit for Virgin or any other organisation of your choice (guidance : you may consider use of one or more the following techniques:

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Nelson College Londonbenchmarking; SWOT analysis; product positions; value-chain analysis; demographic influences, Competitive advantage profile analysis etc.,) (AC 2.1)

P5 Carry out an environmental audit for Virgin Group or any other organisation of your choice (guidance- you may consider use of any one of different models such as PESTEL, Porter’s 5 force analysis etc.,) (AC 2.2)

P6 Explain the significance of stakeholders analysis (Guidance: you may define the concept and importance of Stakeholder Analysis, tools & process of analysis, Stakeholders

Analysis Matrix etc. You can link it with Virgin Group or any other organisation of your choice) (AC 2.2)

P7 Analyse possible alternative strategies relating to substantive growth, limited growth or retrenchment A (AC 3.1) (You may define strategic choice available to a business

unit and kind of alternative strategies available)

P8 Select an appropriate future strategy for Virgin group or any other organisation of your choice (You may be allowed to use any organization of your choice] (AC 3.2) ( You may

do the analysis of existing strategies and alternative strategies available to the selected organisation)

P9 Compare roles and responsibilities of Senior Management towards strategy implementation (AC 4.1) ( You may reflect on the different levels of senior management towards strategy implementation)

P10 Evaluate resource requirements to implement a new strategy for Virgin Group or any other organisation of your choice (AC 4.2) (You may evaluate the resource requirements like

Finance, HR, Marketing, etc., and the keys to implement a new strategy of the given or any chosen organisation)

P11 Discuss targets and timescales for achievements in a given organization to monitor a given strategy (AC 4.3) ( You may propose target and a plan to implement proposed strategy/new strategy based on some assumptions you have made)

Achievement of a merit grade

To achieve a merit grade you must achieve a pass grade and also your essay/assignment/coursework demonstrates your abilities and skills as given in the merit descriptors from M1 to M4:

Merit Descriptors Indicative CharacteristicsM1 Submit your Work on time and in appropriate Format.

Your Assignment must be submitted by the due date

Word processed The report should comply with the word count

of 3000 with +/-10% margin. The report must be written in professional

manner and properly referenced.M2 Identify and apply strategies to find solutions through effective judgement.

Relevant theories and concepts have been successfully applied to the work.

Effective judgements of the leadership and management concepts have been made.

Effective approach to study has been used.M3 Select/design and apply appropriate methods/techniques. You are judged on the application of relevant techniques and the justification for their application.

A range of sources of information has been used, requiring different methods of research.

Justification for using different approaches to research has been given.

Ability to deal with complex information and identify what is important in order to produce a synthesis has been shown.

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Nelson College LondonM4 Present and communicate appropriate findings. This includes the use of an appropriate structure and approach with coherent, logical development of principles/concepts for the intended audience.

Different methods of presentation have been used.

A clear and concise written style which would allow someone unfamiliar with the issues to understand the arguments. For example, good referencing (Harvard style).

Achievement of a distinction grade

To gain a Distinction grade you must achieve all the pass mark criteria and all the merit mark criteria and in addition you must satisfy the criteria as outlined below.

Distinction Descriptors Indicative CharacteristicsD1 Use Critical reflection to evaluate own work and justify valid conclusions including realistic improvements which have been proposed against defined characteristics for success.

Critical thinking has been used to generate valid conclusions discerned from a thorough understanding of various theoretical concepts.

The validity of results has been judged. Self-criticism of approach has taken place.

D2Demonstrate convergent/ Lateral/creative thinking by showing evidence on receptiveness to new ideas and effective thinking in unfamiliar contexts.

New ideas have been generated Evaluation of performance Limits of the theories used in the text

explained and relate to the organisations. Innovative and creative interpretations have

been offered and receptiveness to new ideas demonstrated.

Good referencing and arrangement (Harvard style).

D3Take Responsibility for managing and organising activities including accommodating the unforeseen and recognising the importance of interdependence.

The work student’s own work and shows originality and independent.

The work has been well planned, managed and organised.

The work has been submitted on time.

Submission Instructions:

This assignment must be completed by all the candidates undertaking Edexcel HNC/HND Diploma in Business.

Reasonable consideration will be given in the case of failure to submit the assignments on time due to any medical reasons. ( Provided the sufficient medical proof is made available at the time of exemption)

Late submissions are not allowed and will be penalised. Referencing should be provided in Harvard Style referencing. The assignments should be completed in Font Type: Time New Roman/Arial with Size 12 and

1.5 spacing between lines.

Appendix A: Plagiarism and Collusion

Any act of plagiarism and collusion will be seriously dealt with according to the regulations. In this context the definition and scope of plagiarism are presented below:

“Using the work of others without acknowledging source of information or inspiration. Even if the words are changed or sentences are put in different order, the result is still plagiarism”. (Cortell 2003)

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Collusion describes as the submission of work produced in collaboration for an assignment based on the assessment of individual work. When one person shares his/her work with others who submit part or all of it as their own work.

Appendix B: Harvard Referencing System

Any information that is not yours needs to be referenced or else turns to be plagiarism. Copying from someone’s work can be unintentionally if you are unaware of the rules of acknowledging and referencing direct quotations.

The Harvard system of citation requires you to acknowledge certain information which are mainly the surname and year of publication within the text.

For example

According to Bell (1999), as you write up your research you will use a citation to indicate in your text the source of piece of information, ......

The authors and publication information cited within the main body of your work must be listed in the reference list. For example:

Bell, J. (1999) ‘Doing your research Project’. (3rd Ed) Buckingham: Open University Press

Detailed guidance on the Harvard Referencing System (HRS) is available on the Virtual Tutor (VT).

LEARNING OUTCOME AND ASSESSMENT CRITERIA (EXTRACT FROM EDEXCEL UNIT SPECICIATION

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Content of this unit (to be able to address the above tasks you should cover all of the contents listed below)

LO 1:Understand the process of strategic planningStrategic contexts and terminology: role of strategy; missions; visions; strategic intent; objectives; goals; core competencies; strategic architecture; strategic control

Strategic thinking: future direction of the competition; needs of customers; gaining and maintaining competitive advantage; Ansoff’s growth-vector matrix; portfolio analysis

Planning systems: informal planning; top-down planning; bottom-up planning; behaviouralApproaches

Strategic planning issues: impact on managers; targets; when to plan; who should be involved; role of planning

Strategic planning techniques: BCG growth-share matrix; directional policy matrices; SPACE,PIMS

LO 2:Be able to formulate a new strategyStakeholder analysis: stakeholder significance grid; stakeholder mapping

Environment auditing: political, economic, socio-cultural, technological, legal and environmental analysis (PESTLE); Porter’s 5 force analysis; the threat of new entrants; the power of buyers; the power of suppliers; the threat of substitutes; competitive rivalry and collaboration

Strategic positioning: the Ansoff matrix; growth; stability; profitability; efficiency; market leadership; survival; mergers and acquisitions; expansion into the global marketplace

The organisational audit: benchmarking; SWOT analysis; product positions; value-chain analysis; demographic influences; scenario planning; synergy culture and values

LO 3:Understand approaches to strategy evaluation and selectionMarket entry strategies: organic growth; growth by merger or acquisition; strategic alliances; licensing; franchising

Substantive growth strategies: horizontal and vertical integration; related and unrelatedDiversification

Limited growth strategies: do nothing; market penetration; market development; product development; innovation

Disinvestment strategies: retrenchment; turnaround strategies; divestment; liquidation

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LO4:

Understand how to implement a chosen strategyThe realisation of strategic plans to operational reality: communication (selling the concepts); project teams; identification of team and individual roles, responsibilities and targets; programme of activities; benchmark targets at differing levels of the organisation

Resource allocation: finance; human resources; materials; time

Review and evaluation: an evaluation of the benchmarked outcomes in a given time period in relation to corporate, operational and individual targets

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