Scenario

The owner/directors of a coach hire company called A2B have been making policy and taking all the strategic decisions. This is a well-established family business which has been passed down through several generations. Despite existing in a highly regulated and competitive market, A2B has been growing rapidly over the past 18 months. Now new opportunities have emerged for further growth and development, as a result of new tenders being published by the local authority for school coaches.  There is also an opportunity to acquire a larger repair and maintenance facility at little extra cost.

At a recent family meeting it was evident, from their approach to these developments, that the owners/directors did not understand the main elements of strategic management. You have been appointed to work alongside the owners/directors in an interim capacity, as you have studied strategic management as part of your qualification. Your role is to help develop their knowledge and understanding of how they can successfully apply strategic management to maintain growth and gain from these developments.

Section 1:

Following the Board meeting the Directors have asked you to produce a reference guide, using the headings listed below

• Explain the concept of strategy
• Identify the elements of the strategic management process
• Critically analyze the role of values, vision and mission statements in the strategic management of organizations
• Identify and evaluate different approaches to formulating strategy
• Demonstrate the influence the external environment has on strategy formulation

AC 1.1, 1.2, 1.3, 1.4, 1.5

Section 2

Having gained the support of the Directors the next step is to conduct some strategic analysis relating to other organizations.  The Directors will then be able to use this information to inform their thinking about developments in A2B.  You have been asked to write a report which:

• differentiates between organisations’ general competitive and internal environments
• critically appraises the tools available for the analysis of the general, competitive and  internal environments