ILM Level 7 8624-700 Develop a Strategic Business Plan Assignment Answer Help in UK

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Solved Assignment Answer 1: Understand the principles behind creating a strategic business plan.

AC 1.1 Evaluate a range of strategic planning theories and models

• SWOT Analysis: a simple tool for finding the internal strengths, weaknesses, and external opportunities and threats. It is easy to use but lacks depth in execution.
• PESTEL Analysis: helps analyse the macro-environment factors like political and economic trends. Useful but voluminous data creates an overwhelming scenario.
• Balanced Scorecard: It links strategic goals to performance, including four perspectives. It provides a fully-fledged view but is sometimes overwhelming due to too many metrics.
• McKinsey 7S Framework: This framework aligns the inside elements of an organisation, which includes strategy, structure, etc. It’s helpful but tough to implement without concrete action.
• Blue Ocean Strategy: It concentrates on creating a new market space, making competition irrelevant. It is innovative but resource-intensive.
• Ansoff Matrix: Identifies the growth strategies like new products, diversification, etc. Clear-cut, but can reduce complexity and distort decisions.

AC 1.2 Analyse the principles of resource management

Resource management is an efficient and effective use of an organisation’s resources-including human, financial, physical, and informational achieve its goals. It is based on the following key principles:

• Optimal Use: Providing maximum resource deployment and utilisation while preventing wastage and underutilisation.
• Capacity Planning: Maximising resource availability about demand, considering future demands for expansion, and ensuring growth as outlined in future needs.
• It prioritises resources for the most important projects or tasks based on strategic objectives, ensuring high-priority activities are well-resourced.
• Resource sustainability manages available resources in a manner that allows them to be available in the future with minimised waste and long-term efficiency through flexibility in resource allocation into changing circumstances, market conditions, or organisational shifts.
• Cost Control: Resource expenditure and budgetary constraints, with a focus on identifying cheaper substitutes without sacrificing quality or results.
• Collaboration: Communication and coordination among teams or departments to ensure optimal use of resources without repetition of work or process.

AC 1.3 Evaluate the principles of capital investment appraisal

Capital investment appraisal is the process of evaluating capital investments or projects to assess their feasibility in terms of financial viability and alignment with strategic goals. The principles of capital investment appraisal include:

• Time Value of Money: Money is worth more today than equivalent money next year because it has the potential earning capacity. It is a basic principle on which the calculation of the present value of future cash flows would depend.
• Risk Assessments: A process of evaluating risks attached to the investment, among which market volatility, uncertainty, and project-specific risks fall. The riskier the investment is, the greater the return usually is.
• Cost-Benefit Analysis: The evaluation process on the total costs of an investment (also the initial capital outlay, operational costs) against the expected returns (also revenue generation, cost savings) to determine possible value creation.
• Cash Flow Estimation: This will estimate the future cash inflows and outflows associated with the investment, which helps in checking the financial viability of any specific investment and the return on investment (ROI).
• Discounted Cash Flow (DCF): Applying a discount rate to future cash flows to determine their present value. Methods include Net Present Value (NPV) and Internal Rate of Return (IRR), which are typically used in making investment decisions.
• Payback Period: it measures how long it takes for an investment to pay back its initial cost. Although far from comprehensive compared to other techniques, it does provide a simple measure of risk and liquidity.
• Strategic Alignment: the investment should drive the organisation’s long-term goals and strategy. A project may be financially viable but not conducive to the strategic direction of the business.
• Opportunity Cost: The value of alternative investments. The chosen project should have better returns than other possible uses of capital.

AC 1.4 Evaluate the role of stakeholders in the development of strategic business plans

Stakeholders play a crucial role in the development of strategic business plans, as their interests, needs, and inputs can significantly influence the direction and success of an organisation. Here’s an evaluation of their roles:

• Defining Objectives and Goals: Stakeholders, particularly senior management and board members, provide valuable insights into the organisation’s strategic objectives and vision. Their input helps define clear, measurable goals that align with the overall mission of the business.
• Resource Allocation: Stakeholders such as investors, shareholders, and financial officers are critical in determining the resources available for implementing the strategic plan. They ensure that the necessary financial, human, and physical resources are allocated to support the plan.
• Risk Management: Stakeholders, including risk managers, legal advisors, and compliance officers, contribute by identifying potential risks associated with the strategic initiatives. Their role is to assess, mitigate, and plan for uncertainties that could affect the achievement of business objectives.
• Feedback and Alignment: Employees, customers, suppliers, and community groups provide feedback on proposed strategies, ensuring that the plan aligns with market demands, operational capabilities, and external factors. This helps in making adjustments to meet stakeholder expectations.
• Decision-Making and Approval: Senior executives, management teams, and board members often make final decisions on the strategic direction of the business. Their support or approval is vital for securing the implementation of the business plan and ensuring alignment with organisational goals.
• Sustainability and Ethical Considerations: Stakeholders such as environmental groups, regulators, and ethical bodies ensure that the strategy adheres to sustainable practices and ethical guidelines, which is important for the long-term success and reputation of the business.
• Monitoring and Evaluation: Once the strategy is implemented, stakeholders continue to play a role in monitoring its effectiveness and making adjustments as needed. Feedback from customers, employees, and investors helps track the performance of the business plan and ensure it remains relevant.

AC 1.5 Explain how to involve stakeholders in the development of strategic business plans

Stakeholders should be included in the crafting of strategic business plans to ensure that the plan is comprehensive, aligned with organisational goals, and supported by those who influence or are affected by the business strategy. Here’s how one does it:

• Identify Key Stakeholders: Identify the different types and categorise stakeholders internal (employees, managers, board members) and external (customers, suppliers, investors, regulatory bodies). The knowledge of their interests, needs, and influence on the organisation will be crucial while strategising engagement.
• Stakeholder Consultation and Feedback: Engage the interests of the various stakeholders early in the planning process through surveys, focus groups, interviews, and brainstorming sessions. This way, their input will be useful in helping identify crucial issues, opportunities, and risks to have in the strategy. Thus, the plan will be representative of diverse views and needs.
• Collaboration in Goal Setting: Involve the stakeholders in defining the goals and objectives of the organisation. For example, high-level strategic goals can be guided by senior leadership and employee and customer input can occur on operational priorities and customer needs so collaboration creates ownership and alignment.
• Transparent Communication: All stakeholders should be kept informed of the process. Reports on the strategic planning progress through meetings, newsletters, and reports help build trust and ensure stakeholders’ feelings of being included and valued. Additionally, it’s a must to explain how the input has caused change in decisions.
• Incorporating diverse perspectives: Involving stakeholders in the discussion process to determine appropriate strategic options by considering their insights. For instance, finance teams can evaluate financial feasibility, and the marketing as well as customer-facing teams can give inputs on customer demands and market trends.
• Building Consensus: Work toward building consensus on strategic decisions. Facilitate discussions and workshops encouraging dialogue among stakeholders, allowing them to voice their concerns and suggestions. This helps get the final plan aligned with the interests of all parties involved.
• Utilise Stakeholder Expertise: Engage stakeholders in using the various expertise they may possess to enumerate and assess risk and potential, as well as operational challenges. For example, subject matter experts or senior advisors could make important contributions regarding technical and regulatory issues or industry trends impacting the business plan.
• Secure Buy-In and Commitment: After a strategic business plan is drawn up, commit stakeholders to implementing it. That may include negotiating on certain points, addressing concerns, and ensuring that the final product reflects a shared vision.
• Continuity in engagement: The stakeholders must be involved, not only in developing the strategy initially but also in following up and assessing it. With continuous feedback loops and engagement, changes can be made based on new circumstances.

Solved Answer 2: Be capable of getting ready for implementing business strategies.

AC 2.1 Prioritise strategic objectives in a way that is consistent with an organisation’s vision and values

To Prioritise Strategic Objectives in Line with the Organisation’s Vision and Values:

• Understand Vision and Values: Align objectives with the organisation’s long-term goals and core values.
• Assess Organisational Needs: Identify the most urgent needs that the objectives need to answer
• Align Objectives: Ensure that each objective supports the vision and manifests organisational values.
• Engage Stakeholders: Involve key stakeholders to ensure that objectives meet internal as well as external expectations.
• Evaluate Feasibility and Impact: Prioritise based on the impact and feasibility of resources.
• Balance Quick and Long-Term Objectives Ensure the blending of immediate and long-term goals.
• Regular Review: Track progress and review and update priorities as appropriate.

AC 2.2 Identify programmes of activity that are capable of achieving strategic objectives

To identify programs of activity that can help meet strategic objectives:

• Review Strategic Objectives: The critical strategic goals to be aligned.
• Focus Areas: Those areas where changes or improvements will directly impact meeting the objectives.
• Assess Resources: The resources required, including budget and time and the people involved.
• Choose Suitable Programs: Select those programs that go to the right areas, are feasible, and align with the strategic vision.
• Have Stakeholders’ Input Sought: Engage key stakeholders to ensure that only those chosen programs meet their needs and expectations.
• Monitor and Measure: Outline metrics to track each program’s progress and performance.

AC 2.3 Develop risk management plans that address identified and likely potential risks

To design risk management plans that mitigate known and potential risks:

• Identify Risks: Assess thoroughly to identify known and potential risks (for example, financial, operation risks, reputational).
• Assess Likelihood and Impact: Assess the probability and potential impact of each risk on the organisation’s objectives.
• Prioritise Risks: Prioritise the risks based on their severity and likelihood, focusing on the most severe ones.
• Establish Mitigation Strategies: Identify specific actions to reduce or eliminate each high-priority risk.
• Establish Response Plans: Determine the response action for each risk and responsible individual in managing the risk if it occurs
• Design Monitoring Systems: Structure systems for regular reassessment of risks and their mitigation strategies.
• Communicate with Stakeholders: Keep stakeholders abreast of the identified risks and the strategies in place to address those risks.
• Assess Strategic Objectives: Understand key strategic goals so that what is being identified is in balance.
• Identify Key Areas: Focus on areas where change or improvement will directly affect the achievement of the identified objectives.
• Evaluate Resources: Determine what budget, time, and personnel resources will be available.
• Identify Appropriate Programmes: Select the programmes that cover the appropriate fields, are realistic, and align with the strategic plan.
• Involve Stakeholders: Inclusion of key stakeholders to ensure that the selected programmes meet their needs and expectations.
• Track and Evaluate: Establish metrics to measure the progress and success of each program.

AC 2.4 Identify current and likely future resource requirements

Steps to determine the present and future resource requirements

• Evaluation of Present Resources: Start by checking the present physical resources, human resources, technological resources, financial resources, etc.
• Alignment to Organisational Goals: All resources have to be aligned with strategic objectives. The current resources should be sufficient to achieve the present goals
• Forecast future needs The estimation of a future requirement for resources based on the future growth of the business, expansion plans, and market and technological changes.
• Monitor External Conditions: Track regulatory changes, changes in the industry or economic developments that may impact a particular resource requirement.
• Resource Gap Analysis: Compare current resources versus future resource requirements to position the organisation to meet future demands.
• Resource Acquisition Plan: Identify how resources can be acquired to fill gaps, for example, hiring talent, investing in technology, or securing finances.

AC 2.5 Assess the costs and benefits of different approaches to strategy implementation

Steps for the evaluation of cost and benefit analysis associated with alternative means of strategy implementation include the following:

• Identify Implementation Approaches: Determine the various methods available for implementing the strategy, such as top-down, bottom-up, or hybrid approaches.
• Evaluate Costs: Consider the financial, human, and time resources required for each approach. Direct costs include direct expenditure on projects, while indirect costs may include training and possible disruption in operations.
• Evaluate Benefits- Consider how the method may lead to increased efficiency, market share, customer satisfaction, or employee engagement. Analyse which method will deliver on strategic objectives.
• Risk Analysis: Identify threats to each approach: resistance to change, resource shortages, or implementation delays. Weigh those risks against the expected benefits.
• Aligned with Organisational Culture: Determine how well each approach aligns with the company’s culture, structure, and values. Some strategies will be better suited to collaborative environments while others to more hierarchical ones.
• Long-term Sustainability: Consider the sustainability of each method. Does the chosen method result in long-term success, or is it likely to provide only short-term results?
• Feedback and Adaptation: Rate the flexibility of each strategy to respond to shifts in market conditions, feedback from stakeholders, and internal challenges.

AC 2.6 Develop policies that are consistent with the strategy and vision and are capable of meeting the objectives

Produce policies that align with strategy and vision and meet objectives appropriately by following the steps given below:

• Understanding Organisational Strategy and Vision: Be assured of having a clear understanding of the organisation’s long-term goals, mission, and values. Policies should directly support those elements and be well-aligned with strategic objectives.
• Identify areas of focus: Identify some key areas where policies are required (e.g., employee conduct, resource allocation, sustainability) to drive the strategy forward.
• Clearly Define Objectives: Identify and clearly define the SMART objectives the policy will achieve, which would then support the overarching strategy.
• Consult with Stakeholders: Consult with key stakeholders such as management, staff, and customers to ensure their needs are considered and that policies also address potential causes for objection.
• Legal, Regulatory, and Ethical: Review of legal, regulatory, and ethical considerations pertinent to the policy area, ensuring that it is achieved without risks or legal issues.
• Actionable Guidelines Within the Policy: The policy must clearly outline what must be done, by whom, and how to achieve the stated objectives.
• Risk Management Consideration: the policy must have a risk management consideration of possible challenges and barriers to the successful implementation.
• Monitor and Evaluate: Provide metrics for monitoring the implementation of the policy and determine whether it is yielding the desired results. Schedule for periodic reviews or updates.
• Communication and Training: Communicate the policy to all parties involved and provide any necessary training to ensure understanding and adherence.

AC 2.7 Set meaningful and realistic Key Performance Indicators (KPIs) and evaluation criteria

To set meaningful and realistic KPIs and criteria for evaluation, follow the following steps:

• Alignment with Organisational Goals: Ensure that KPIs directly reflect the strategic objectives and vision of the organisation. They should be tied to key results that will drive success.
• Make KPIs SMART: Ensure that all KPIs are Specific, Measurable, Achievable, Relevant, and Time-bound. This provides clarity as well as makes it easier to track progress.
• Define Clear Outcomes: Identify exactly what you are trying to measure through the KPIs, such as revenue, customer satisfaction, and employee performance. The KPI should reflect measurable results.
• Engage Stakeholders: Converse with key stakeholders to ensure your selected KPIs are relevant, realistic, and meaningful across various departments.
• Choose Balanced KPIs: Include the following within your KPI set. Both leading indicators (predictive measures of future performance) and lagging indicators (measures of past performance) will give you a complete view of progress.
• Benchmark and set targets: Compare KPIs against industry standards or historical data to set realistic and challenging targets. As a result, it is understood where performance gaps have arisen and what areas require improvement.
• Review and adapt: Review the KPIs regularly to make sure they remain current with changes in organisational needs and market conditions.
• Establish evaluation criteria: Clearly define success and failure metrics for each KPI. Ensure there are thresholds or targets to determine whether performance is on track.

Solved Assignment Answer 3: Be capable of creating plans to execute the business strategy.

AC 3.1 Take action to ensure the strategic plan is comprehensive in its coverage of products and/or services, quality, human resources, finance and marketing

Ensure the strategic plan addresses all key areas:

• Products/Services: Evaluate and align the product/service portfolio with market demands, focusing on innovation and the needs of customers.
• Quality: Set quality standards, put quality management systems in place, and use customer feedback to ensure high quality.
• Human Resources: Align HR strategies with business goals, focus on talent development, and prepare for workforce needs.
• Finance: Developing a financial strategy, and key financial metrics, and ensuring investments support growth and sustainability.
• Marketing: The marketing strategy is to be aligned with the business goals. Market research should be done, which help understand customers; also, the KPIs for measuring performance.

AC 3.2 Take action to ensure that organisational structures and processes are capable of delivering the plan

To Organisational Structures and Processes Support the Strategic Plan:

• Review Current Structure: Determine if the organisation’s current structure supports strategic objectives. Identify points to realign.
• Align Processes: Align the company’s key business processes so that they are efficient and in line with company strategies.
• Allocation of Resources The proper talents, technologies, and budgets must be allocated to deliver the plan.
• Define clear roles and responsibilities, leading to clear lines of accountability and effective decision-making.
• Monitor and adjust: it continuously monitors performance, adjusting processes or structures as required to stay within strategic goals.

AC 3.3 Develop plans to manage the supply chain, interdependencies and the potential for friction

To effectively manage interdependencies and possible friction in supply chain management, the following are steps taken:

• Identification of Key Interdependencies: All critical touch points between internal and external stakeholders, suppliers, and departments were mapped out to explain how each part of the supply chain was interlinked.
• Formulation of Contingency Plans: Contingency plans are devised for possible interruptions in the supply chain so that the operation is minimally affected. Alternative suppliers or logistics solutions are considered.
• Improve Communication: Establish open and regularly occurring channels of communication between teams and suppliers to resolve issues timely and in concert.
• Measure Performance: Utilise KPIs for observing the effectiveness of the supply chain and for early alerting of potential friction points so that corrective measures can be taken in time.
• Establish Relationships: Maintain strong, transparent relationships with the suppliers and other stakeholders to resolve disputes amicably and eliminate instances of friction.
• Risk Management: Continuously focus on risk assessment within the supply chain and implement measures to reduce friction points by diversifying the suppliers or seeking technology for an integrated platform.

AC 3.4 Address any legal or ethical requirements

To meet the legal and ethical requirements in devising a strategic plan and its implementation, there are these key steps as given below:

• Compliance with Laws: All activities, including supply chain management and marketing, must comply with relevant national and international laws, such as labour laws, environmental regulations, and data protection laws.
• Ethical Standards: Ensuring ethical business practices that respect human rights, are fair and transparent. This includes ethical sourcing, fair treatment of employees, and responsible marketing.
• Risk Assessment: Identify any legal and ethical risks connected with the plan’s implementation. Address such risks through policies and procedures that ensure compliance and provide a minimum level of legal exposure.
• Stakeholder Involvement: Engage stakeholders in conversations related to ethical considerations ensuring transparency and accountability in decision-making.
• The strategy is to be under continuous review and monitoring to keep in line with the ever-evolving legal and ethical standards, thereby staying compliant and ethical.

AC 3.5 Articulate the business plan and gain the support of stakeholders

To articulate the business plan and gain stakeholders’ buy-in, the following steps should be performed:

• Clear Communication: Outline the business plan in simplistic terms, highlighting strategic objectives, anticipated results, and organisational goals achieved. Jargon-free language and compelling visual effects make complicated information simple to understand.
• Stakeholder Engagement: Include key stakeholders early in the process to take account of their views and concerns. Trust is built, and buy-in is increased.
• Highlight Benefits: Share benefits to stakeholders, demonstrating how the plan will meet their needs and interests, operational, or reputation.
• Risk Mitigation: Identify risks and how they will be managed. Be transparent about challenges and come up with practical solutions to assure them.
• Regular Updates: Keep stakeholders informed of progress through regular updates and feedback mechanisms. This keeps them involved and confident in the execution of the plan.
• Tailored Communication: Modify the message to be of interest to different stakeholders (board members, employees, investors), making it meaningful and adding value for each one.
• Appeal to Values: Align the plan with their values- growth, sustainability, or innovation-to evoke emotional support.