Qualification: Pearson BTEC Level 5 HND Diploma in Business

Unit Number and Name: Unit 7: Business Strategy

Assignment title: Formulation and Implementation of Business strategy

Credit value: 15 credits

Level: Level 5


Formulation and Implementation of Business strategy

Learning outcomes

LO1 Understand the process of strategic planning

Assessment criteria: 1.1, 1.2, 1.3

Assess how business missions, visions, objectives, goals and core competencies inform strategic planning

Analyse the factors that have to be considered when formulating strategic plans

Evaluate the effectiveness of techniques used when developing strategic business plans

LO2 Be able to formulate a new strategy

Assessment criteria: 2.1, 2.2, 2.3,2.4

Analyse the strategic positioning of a given organisation by carrying out an organisational audit

Carry out an environmental audit for a given organisation.

Assess the significance of stakeholder analysis when formulating new strategy

Present a new strategy for a given organisation

LO3 Understand approaches to strategy evaluation and selection

Assessment criteria: 3.1 and 3.2

Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for a given organisation

Justify the selection of a strategy

LO4 Understand how to implement a chosen strategy

Assessment criteria: 4.1, 4.2 and 4.3

Assess the roles and responsibilities of personnel who are charged with strategy implementation

Analyse the estimated resource requirements for implementing a new strategy for a given organisation

Evaluate the contribution of SMART targets to the achievement of strategy implementation in a given organisation.


Imagine you are a member of the Strategic Management Team (SMT) of a FTSE 100 company. The SMT reports to the Chief Executive Officer (CEO) of the organisation.

The company wants to remain competitive in spite of its current difficult situation. Consumer needs and demands are fast changing due to continuous innovation and globalisation.

You need to explain what strategies your company is following to maintain its competitiveness and how it is implementing these strategies to improve its level of competitiveness in the future.

Produce a report (giving answers to all the questions below) to help the SMT to understand the strategic planning process and how it can help to plan for likely future outcomes in order to be successful.

Task 1 (AC 1.1, 1.2 1.3):

AC 1.1 Define business strategy, vision, mission, objectives, goals and core competences. Using the UK Business organization you have chosen, assess how it uses each of these to inform its business strategy.

AC 1.2 Analyse the factors that have to be considered when formulating strategic plans.

AC1.3: Evaluate the effectiveness of techniques businesses need when developing their plans.

Task 2 (AC 2.1, 2.2, 2.3, 2.4):
Prepare a presentation (using Power Point) to

AC 2.1 Analyse the strategic positioning of your chosen organisation by conducting its organisational audit.

AC 2.2 Conduct an environmental audit of your chosen organisation.

AC 2.3 Develop a stakeholder mapping of your company and assess the significance of stakeholder analysis when formulating the new strategy.

AC 2.4 Present a new strategy for a given organisation.

Task 3 (AC 3.1, 3.2):

AC 3.1 Analyse the appropriateness for your chosen organisation, of alternative strategies relating to:

1. Market entry
2. Substantive growth
3. Limited growth
4. Retrenchment

AC 3.2 Justify your selection of one of these strategies. (Based on A.C 3.1)

Task 4 (AC 4.1. 4.2, 4.3) :

A.C. 4.1 Assess the roles and responsibilities of personnel in your organisation (functions or individuals, as appropriate) who are directly involved in strategy implementation.

A.C. 4.2 Analyse the estimated resource requirements that your organisation will need to identify and allocate if it is to implement the new strategy you have recommended.

A.C. 4.3 Evaluate the contribution of SMART objectives, which your organisation could employ to achieve its overall strategic implementation.

In addition to the PASS criteria mentioned above, this assignment gives you the opportunity to submit evidence in order to ac hieve the following MERIT and DISTINCTION grades

Grade Descriptor

Indicative characteristic/s



M1 Identify and apply strategies to find appropriate solutions/information

ð Effective judgements have been made.

An effective approach to study and research has been applied.


To achieve M1, you should show effective research and judgment has been applied to justify the significance of strategies.


M2 Select / design and apply appropriate methods

ð Appropriate learning methods/techniques have been applied.

To achieve M2, you should use, appropriate methods and techniques available to organisations, and reference all the work using the Harvard Referencing method.



M3 Present and communicate appropriate findings

ð Communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used.


To achieve M3 the work you present will be presented in suitable business formats and will use appropriate business terminology accurately, in line with the scenario described in the case study.


D1 Use critical reflection to evaluate own work and justify valid conclusions

ð Conclusions have been arrived at through synthesis of ideas and have been justified. Realistic improvements have been proposed against defined

characteristics for success.

To achieve D1 you must show that you have evaluated the strategies you have presented in your assignment, such that they are clearly identified in order of importance (as selected by you) in relation to the future success of the company in the case study.

D2 Take responsibility for managing and organising activities


ð Activities have been managed.

To achieve D2 you will have demonstrated an effective approach to independent research and study, and you will have presented your recommendations in an appropriate business format.


D3 Demonstrate convergent /lateral / creative thinking

ð Relevant knowledge gained from previous units has been incorporated in this unit, to demonstrate a synoptic understanding of the business environment.

To achieve D3 you will have to draw conclusions which identify the links between the planning and the implementation of a global strategy for the company cited in the case study. To achieve this you must show that convergent and lateral thinking has been applied to problems and that innovation and creative thought have been applied to your work.







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Task 1
1.1 Assess how business missions, visions, objectives, goals and core competencies inform strategic planning

Strategy is considered to be 'a plan of action designed to attain an overall aim or long-term goal by making use of the readily available resources in an appropriate and pre-planned manner within a stipulated timeframe' (Burrow and Kleindl, 2012). The primary aspects of such a pre-planned approach are the objectives, goals, mission and vision of an organization along with the capabilities and the competencies required to actually execute the plan. The mission, vision, aims; objectives and goals of a business act as cohesive components and their functions together is considered to be decision making and strategic planning.  These strategies are planned and executed by keeping the idea of a business's long-term and short term goalsand also the ways in which such goals can be achieved. The strategic planning requires to keep in mind the strengths and weaknesses; threats and opportunities of an organization that comes in the way of achieving the goals of the organization (Hoang, 2007).

The concept of strategic planning has been described with reference to Kellogg's company. The company's vision is 'To enrich and delight the world through foods and brands that matter' and their mission or purpose is 'Nourishing families so they can flourish and thrive' (Kelloggcompany.com, 2016). The vison and mission statement of the company depicts that the company aims to provide a healthy living to the people of the society and various communities at large with their classic products. The company has been successful in promoting itself as a leading brand which cares for the health of the people and produce superior quality of foods that has helped the company to achieve a distinct position in the market. This has also helped the company to develop and sustain a positive image of the brand among the potential customers and the population of the world. Core competencies of the company can be realized from its excellent previous track records over the years, demand of their products by numerous customers and its presence in various geographical locations across the globe. The other attributes that contributes to the core competencies of Kellogg's are the aspects of corporate responsibility, business ethics, innovation, people-centric approach, environmental accountability and dedication of the brand towards the well-being of the people (Kelloggcompany.com, 2016). These factors are also considered to be a part of decision making process and strategic planning by the management of the company.

1.2 Analyze the factors that have to be considered when formulating strategic plans for Kellogg's

Proper strategic planning requires masterful marketing research and flawless marketing intelligence performed by the management of an organization in order to yield desired results and implement the strategies efficiently and effectively. Formulation of strategic plans involves analysis, identification, evaluation, close examination and accurate scrutiny of various complex and diverse aspects which acts as key inputs to the decision making process and strategic planning (Jeffs, 2008).

Implementation and designing the strategic plans for Kellogg's Company involves considering its vision, mission, long and short term goals and the objectives. A special emphasis requires to be given to the brand image and reputation of the Kellogg's Company along with the factors that has helped the company to achieve a distinct position in the market and reproducing a good image in the eyes of the customers for appropriate formulation of strategic plans. Apart from being consistent distributor and manufacturer of superior quality of food, it is also an excellent corporate citizen which cares for the health as well as well-being of the population. This accounts for considering the quality of food stuffs, management of customer relationships, customer services and appropriate marketing strategies as the imperatives for implementation of successful strategic plans for any FTSE organization and the same goes for Kellogg's Company (Sen, 2008).

Appropriate decision making process for formulation of strategic plans involve price affordability, roles played by the competitors, consumer purchasing behavior, aspects of brand image and post-sale customer services to play a vital role in the process for Kellogg's Company.

1.3 Evaluate the effectiveness of techniques used when developing strategic business plans that Kellogg's can use

Strategic Position and Action Evaluation abbreviated as SPACE is a four dimensional framework which is helpful for the management of any business to analyze and assess the various dynamics of external environment of the organization. SPACE method in other terms helps the management of a Company to choose or decide on the best strategy from being 'aggressive, conservative, defensive or competitive' in a particular situation (Maxi-pedia.com., 2016). This method is very useful and aids the managers to decide, adopt and implement the best or most suitable strategic approach towards achieving a competitive advantage and to stand out like a winner in highly competitive world. It also helps the organization to be better than those of its competitors (Narayana et. al, 2010).

The SPACE concept mainly functions on two internal strategic dimension and two external strategic dimensions which helps in determining the strategic position of the organization in the market. These four factors are as follows:

Internal strategic dimension:

  • Competitive advantage (CS)
  • Financial Strength (FS)

External strategic dimensions

  • Environmental stability (ES)
  • Industry strength (IS) (Narayana et. al, 2010)

The SPACE method applied on Kellogg's Company includes consideration of aspects of its financial strength, effectiveness and speed of creativity and innovation, brand image, loyalty, level of satisfaction of the customers and market niche under the internal dimensions. In contrast to this, the external dimensions of the Company include different constituents of GDP, economical health, competitiveness of economy, and price elasticity. 

On application of SPACE method to the Kellogg's company depicts that the company should an aggressive strategic stance towards the formulation and implementation of strategy. It shows that the company must be involved in mergers and acquisitions, collaborations, takeover of other firms, engage itself in product diversification strategy and expansion of the business in order to tap various new ventures and opportunities for business prosperity and growth for a long term. The aggressive strategic approach would definitely help the company to compete with its rivals and the new entrants in the market. This also enables the company to endure its brand image and reputation by enhancing the customer satisfaction level by producing the products which can effectively meet the needs of the customers. It would also significantly help company to cope with the shift in trends of the customer behavior and attitudes (Dess and Miller, 2013).

2.1 Analyze the strategic positioning of Kellogg's by carrying out an organizational audit

Appropriate strategic planning requires assessment of strategic positioning by the help of organizational audit. An effective audit of the organization can be performed with the help of SWOT analysis which significantly helps in analyzing the Strengths, weaknesses, opportunities and threats of the Kellogg's Company.

SWOT analysis of Kellogg's Company


  • Excellent reputation of the company over the years
  • Stable and very loyal stakeholders
  • Appropriate production as well as distribution channels to spread their products across the globe
  • Immense awareness and popularity of the Brand
  • Effective, motivated and efficient workforce
  • Highly responsible managerial personnel
  • high corporate social responsibility towards the well-being of the people at large


  • Saturation of the markets where the Company operates
  • Low probability of product differentiation and innovation of new products due to the production of stereotype products
  • Challenges faced to maintain the hygiene and quality at the production process


  • Extensive use of online platform by the Company to reach a maximum number of customers
  • Opportunity to increase customer base by marketing through social media and other online medium
  • Collaboration with major wellness and fitness centers, educational institutions and sports club
  • People are becoming more and more health concerned and look for ecofriendly and healthy products similar to the products of Kellogg's Company


  • High level of competition in the market
  • Presence of numerous substitutes for the products of Kellogg's Company by other similar companies
  • Economic stagnation and the burden of debt
  • Modifications of health, nutritional and safety standards by the government

2.2 Carry out an environmental audit for Kellogg's

For an efficient environmental audit of the Kellogg's Company, Porter's five forces analysis and PESTEL analysis has been chosen to achieve appropriate findings  and observations of the external environmental factors that might influence the Company and its operations. 

PESTEL analysis of Kellogg's Company

Political factors: The smooth functioning of the business is dependent on the cordial and good relationship with government. The political stability in the areas where the Company operates is essential for it to run at ease. The various aspects which are related to adequate supply of the human resources and raw materials which are required by the Company for its production process are important factors that requires attention for the running the business in a desired manner (Jeyarathnam, 2008).

Environmental factors: The aspects which are related to the responsibility and accountability towards the environment, safety and protection of environment, sustainable business activities and eco-friendly procedures of production are the environmental factors that have an impact on the operations of Kellogg's Company (Saloner et. al, 2011). In addition to this some of the environmental factors like natural calamities like floods, droughts cannot be controlled by human beings and hence these factors pose a risk to the operations of the Company if they occur.

Technological factors: the technological advancements and the technological status of the geographic locations wherein Kellogg's Company operates or are planning to expand their business into the markets plays a crucial role for proper internal functioning, promotions, advertising and other processes of the organization. The technological factors make the operations and working of the company much easier if implemented appropriately ( Saloner et. al, 2011).

Economic factors: The performance of Kellogg's Company and its organizational output is influenced by the economic structure of the destinations where the Company operates. Some of the financial factors that have an impact on its performance are the GDP, price elasticity, economic health and structure of the country or location where it operates (Jeyarathnam, 2008).

Legal factors: The rule and regulations regarding taxes, duties and tariffs on import and exports of materials or products imposed by the government, employment laws, environmental laws, health and safety laws, taxation policies, etc. are important factors which influences the performance and sustainability of  Kellogg Company. As Kellogg is an FTSE Company and are manufacturers of food products, the two most important laws for the Company are the health and safety law and the law governing the quality of food (Williams, 2009).

Porter's five forces analysis of Kellogg's Company

Threat of new entrants: the threat experienced by Kellogg Company from the new entrants is significantly low. This is because the Company has achieved popularity and loyalty of the customers over the years. The reputation and popularity of the brand among the customers and also the presence of other competitors makes the threat from the new entrants unlikely (Williams, 2009).

Competitive rivalry:the wellness and food sector of any market is highly competitive and the competition is increasing day by day.The toughest competitors of Kellogg's are Quaker and General Mill. Each of the companies produces good quality and innovative products to attract the attention of the customers which decreases the sustainability of the firms if appropriate strategies are not implemented by the management(Subba, 2010).

Bargaining power of the suppliers:the power of bargaining of the suppliers with Kellogg's company is low because the Company tactfully controls the suppliers. They are well connected with higher levels and hence can exert pressure on the suppliers (Migliore, 2009).

Bargaining power of the customers:the bargaining power of the customers for the Kellogg Company is very high due to the presence of a number of brands in the market which produces similar kind of products in the market. Hence, the customers have the access to different substitutes at a lower cost and good quality in the market (Subba, 2010).

Threat of alternatives and substitutes: The threats from the substitutes and alternatives are also quite high. This is because the market of wellness food is increasing day by day and several companies are intruding into this sector and producingproducts that effectively meet the needs of the customers(Migliore, 2009).

2.3 Assess the significance of stakeholder analysis when formulating new strategy for the Kellogg's scenario

It is important to manage the stakeholders in an efficient, timely and effective manner. It requires engagement of the stakeholders with various activities and processes of an organization and this is the most vital strategy of stakeholder management at Kellogg's Company.

In order to achieve the desired results from the strategies and policies in a timely manner, it is important to formulate, implement and execute the strategies effectively. It is important to communicate each and every processes or issues of the company to the stakeholders for successful operations of the company and to determine the successfulness of the strategies as well (Wilson and Giligan, 2015).

The significance of the stakeholder analysis in formulating new strategy for Kellogg's Company is represented by a two dimensional approach that has been adopted and implemented by the management of the Company and they are the analysis of internal stakeholders and analysis of external stakeholders.

The internal stakeholders like the employees, executives, staffs , etc. are motivated to actively participate and engage themselves in the decision making process of the company and they are also provided with K-value facilities in  a timely manner.

The external stakeholders such as the suppliers, customers, etc. are analyzed pertaining to their behavior and attitudes towards the products of the company and these observations or findings are used as the inputs to the decision making process of the Kellogg's Company (Wilson and Giligan, 2015).

2.4 Present a new strategy for a Kellogg's Company

New strategy that can be developed for the Kellogg's Company is the identification of new opportunities in new markets through product diversification. This would help the Company to expand their business and increase their profitability. For instance, in order to catch the attention of more and more customers the Company must aim at producing new line of products of categories like cereal bars, healthy biscuits, etc. with an eye catchy tagline. This would reduce the risk of alternatives and substitutes in the market and help the Company to perform better and secure its good position in the market.

Task 3
3.1 Analysis of possible alternative strategies relating to substantive growth, limited growth or retrenchment for Kellogg's

The possible alternative growth strategy for Kellogg Company requires being less complex and flexible so that the Company is able to prosper in the future. The alternative strategies would help the Company to increase their profitability and maximize their return rate with respect to their investments. This constant growth and profitability of the Company would help it to reduce the risks from its competitors as well as the new entrants into the market. However, to bring down the risks to minimal the Company must take into account some aggressive measures towards the business strategies. Some of the other factors that require to be taken into account for the formation of substantive growth strategies are product innovation and product diversification. It also seeks the attention to invest capital for the development of efficient marketing strategies and building the brand image of the Company. Hence, it can be truly mentioned that there is a wide range of possible alternative strategies available for Kellogg's Company (Jeyarathnam, 2008).

3.2 Selection of a suitable future strategy for Kellogg's

To maintain the stability and sustainability of the Company as a leading brand of producer of nutritional foods the company must formulate efficient and effective future strategies. Wise selection of future strategy would enable the Company to secure a top position amongst its competitors in the market. Hence, it is essential for the Company to restructure and modify their existing policies as well as formulate a future strategy. They must consider their pricing policy, product diversification, product innovation policy and up gradation of their existing products to build a suitable future strategy. Moreover, they must put emphasis on increasing the nutritional value and quality of the food stuffs produced by them. These would effectively help Kellogg's Company to secure a distinctive position in the market (Jeyarathnam, 2008).

Task 4
4.1 Assess the roles and responsibilities of personnel who are charged with strategy implementation for Kellogg's business scenario

The devising of the strategic vision, mission and key policies of the Company is the responsibility of the CEO of Kellogg's Company. The responsibility of the departmental managers is to communicate the vision, mission, policies and strategies of the Company to the supervisors and the line managers. It is also their duty to monitor the performance and working of the subordinates and check if they abide by the policies and norms of the company. The employees and the line managers are responsible for carrying out various tasks and jobs related to the achievement of goals of the Company (Kelloggcompany.com., 2016).

4.2 Analyze the estimated resource requirements for implementing a new strategy for Kellogg's

The estimated resources requirements for the purpose of implementing new strategic processes and activities for Kellogg's Company are the infrastructural resources, financial resources, communication resources, human resources, marketing resources, and technological resources. The other intangible resources includes brand equity, brand image and brand perception (Kelloggcompany.com., 2016).

4.3 Evaluate the contribution of SMART targets to the achievement of strategy implementation in Kellogg's

The SMART targets play a pivotal role in strategic planning and decision making process. These SMART variables help the Company personnel and the management having various responsibilities and roles to implement and achieve appropriate strategic planning. The objectives of SMART enable the devising and fulfilment of specific, measurable, achievable, and realistic and time based goals or objectives of a strategy development in a stage wise process. It helps in meeting the short term as well the long term goals of the Company. These objectives aids in arranging resources with objectives, analyzing their practical feasibility against resources and time in hand.