BTEC HND IN BUSINESS

Unit -7 : Business Strategy (QCF)

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Assessors Name:
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East End College of Business &

Computing

Centre No:

10562

Date:
First Submission Final Submission
Date:
Date

Feedback Date:
Learner Declaration
I declare that all the work submitted for this assignment is my own work or, in the
case of group work, the work myself and other members of the group in which I
worked, and that no part of it has been copied from any source.
I understand that if any part of the work submitted for this assignment is found to be
plagiarised, none of the work submitted will be allowed to count towards the
assessment of the assignment.
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1 May 2015

Assessment Feedback Sheet

Assessment Criteria (AC)

Achieved
Y/N

1.1 Assess how business missions,

visions, objectives, goals and core
competencies (In the context of the
mini case given, show that Virgin
Groups business ventures are
different than those of its
competitors, Virgin has differentiated
itself from the rivals and made the
strategies difficult for the competitors
to imitate. Also specifically
demonstrate that Virgin has made
the differences and created
uniqueness in customers services)
inform strategic planning in the
context of Virgin
1.2 Analyse the factors (such as
needs of the customers, gaining and
maintaining competitive advantage,
when to plan, who should be involved
in planning etc.) which Virgin should
consider when formulating strategic
plans.
1.3 Evaluate the effectiveness of
techniques, such as BCG growthshare matrix and SPACE used when
developing strategic business plans
in Virgin
2.1 Analyse the strategic positioning
of Virgin by carrying out an
organisational audit by applying
SWOT and Value Chain Analysis.
You must complete the answer by
drawing a logical conclusion.
2.2 Carry out an environmental audit
of Virgin by applying PESTLE and
Porters 5 Force analysis. You must
complete the answer by drawing a
logical conclusion.
2.3 Applying stakeholder
significance grid/stakeholder
mapping techniques, assess the
significance of stakeholder when
formulating new strategy for Virgin.
You must complete the answer by
drawing a logical conclusion
2 May 2015

Comments

2.4 Considering the above analysis

on AC-2.1, 2.2 &2.3, prepare and
present a new strategy for Virgin. You
must complete the answer by
drawing a logical conclusion
3.1 Analyse the appropriateness of
alternative strategies relating to
market entry, substantive growth,
limited growth or retrenchment for
Virgin. You must complete the
answer by drawing a logical
conclusion
3.2 Justify the selection of a strategy
for Virgin. You must complete the
answer by drawing a logical
conclusion
4.1 Assess the roles and
responsibilities of personnel who are
charged with strategy implementation
in Virgin
4.2 Analyse the estimated resource,
such as finance, human resources,
materials and time requirements for
implementing a new strategy for
Virgin. You must complete the
answer by drawing a logical
conclusion
4.3 Evaluate the contribution of
SMART (e.g. Specific, Measureable,
Achievable, Realistic and Time)
targets to the achievement of
strategy implementation in Virgin.
You must complete the answer by
drawing a logical conclusion.
M1
Identify and apply strategies to find
appropriate solutions for Virgin and
focus its targets; when to plan; who
should be involved (follow 1.2)
M2
The students work shows that
relevant theories and techniques
have been applied to explain the
significance of stakeholder analysis
in Virgin (follow AC 2.3)

3 May 2015

M3
Student used appropriate structure
and approach. Further, coherent,
logical development of
principles/concepts for the readers
has been taken place in the
presentation
D1
A critical reflection to evaluate own
presented strategy has been justified
and valid conclusion have been
drawn (follow AC2.4)
D2
Resource estimation has been
calculated and presented in a chart
as part of evidence for AC4.2.
Students work demonstrated that (i)
substantial resources have been
planned and managed (ii) unforeseen
factors have been accommodated in
the calculations.
D3
The student has shown self
evaluation and appropriately
supported arguments with the help of
literatures and examples (from the
real world situation) across the
whole assignment.
General Comments:

Overall Grade

Pass/Merit/Distinction/Referral

Assessors
Signature

Date

Candidate
Signature

Date

4 May 2015

Aim
The aim of this unit is to give learners the knowledge and understanding of how a
business unit can strategically organise and plan for likely future outcomes in order to
be successful.
Unit abstract
One of the aims of this unit is to build on learners existing knowledge of the basic
tools of business analysis such as PESTLE, and other analysis tools needed for the
process of strategic planning. So they will be tested through this assignment brief to
explain the significance of stakeholder analysis and carry out an environmental and
organisational audit of a given organisation.
Learners will learn how to apply strategic positioning techniques to the analysis of a
given organisation and prepare a strategic plan based on previous analysis. They will
also learn how to evaluate possible alternative strategies (such as substantive
growth, limited growth or retrenchment). So they will be tested to select an
appropriate future strategy for a given organisation.
Finally, learners

will

compare

the

roles

and

responsibilities

for

strategy

implementation and evaluate resource requirements for the implementation of a new

strategy for a given organisation. Learners will then be able to propose targets and
timescales for implementation and monitoring of the strategy in a given organisation.
The Assignment:
There are four learning outcomes (LO) in this unit to achieve through this
assignment:
LO1- Understand the process of strategic planning
LO2- Be able to formulate a new strategy
LO3- Understand approaches to strategy evaluation
LO4- Understand how to implement a chosen strategy.
There will be 2 to 4 questions to answer as evidence of achievement for each
learning outcome. Each question has been set to satisfy one relevant assessment
criteria under each learning outcome. Satisfying all the pass criteria will mean the
student has achieved a Pass in this unit. There are 3 merit (M) and 3 distinction (D)

5 May 2015

criteria mentioned in the feedback sheet may be satisfied in order to achieve an

overall Merit or Distinction in this unit.
Case study
Emergent strategy at Virgin Group
Under 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 Virgins successes, failures and continuing
business developments.
Background to the early years
After 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. At the same
time, he was attempting to develop a record label by signing up various pop artists of
the time. None of these businesses possessed any clear competi-tive 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. 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. In
terms of its strategy, Virgin Group claims to examine business opportunities carefully,
seeking an opportunity for restructuring the market and creating competitive
advantage.

6 May 2015

Virgin Groups underlying business strategy

The 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 . . . Theres always another coming along.
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.
Outcome of emergent strategies: Virgin focuses on geographical expansion
In 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.
(Source: www.global-strategy.net/emergent-strategy-at-the-virgin-group.Dated: 02/09/2014)

To achieve the pass criteria you must successfully meet the assessment
criteria (1.1- 4.3) by taking into consideration the above-mentioned case study
on Virgin Group.
7 May 2015

The tasks are intended to test the understanding of the Strategic Management
Process. Therefore, the learners need to read the case carefully and plan the
answers in a logical sequence:
Task 1:

For this task, read the case on Virgin carefully and answer the following questions in
its context:
Q1.1: Assess how business mission, vision, objectives, goals and core competencies
( For example Virgin Groups business ventures are different than those of the
competitors, Virgin has differentiated itself from the rivals and made the strategies
difficult for the competitors to imitate. Also specifically demonstrate that Virgin has
made the differences and created uniqueness in any kind of customers services)
inform strategic planning in the context of Virgin (AC 1.1)
Q1.2: Analyse the factors (such as needs of the customers, gaining and maintaining
competitive advantage, when to plan and who should be involved in planning) which
Virgin should consider when formulating strategic plans (AC1.2).
Q1.3: Evaluate the effectiveness of techniques, such as BCG growth-share matrix
and SPACE used when developing strategic business plans in Virgin (AC1.3)
Task 2:
For this task, answer the following questions in the context of Virgin:
Q2.1 Analyse the strategic positioning of Virgin by carrying out an organisational
audit by applying SWOT and Value Chain Analysis. You must complete the answer
by drawing a logical conclusion (AC2.1)
Q2.2 Carry out an environmental audit of Virgin by applying PESTLE and Porters 5
Force analysis. You must complete the answer by drawing a logical conclusion
(AC2.2)
Q2.3 Applying stakeholder significance grid/stakeholder mapping techniques assess
the significance of stakeholder when formulating new strategy for Virgin. You must
complete the answer by drawing a logical conclusion (AC2.3)
Q2.4 Considering the above analysis on Q 2.1, 2.2 and 2.3 prepare and present a
new strategy for Virgin. You must complete the answer by drawing a logical
conclusion (AC2.4).

Task 3:
8 May 2015

For this task, you must continue with the same company (e.g. Virgin) you have used
for the previous task:
Q3.1 Analyse the appropriateness of alternative strategies relating to market entry,
substantive growth, limited growth or retrenchment for Virgin. You must complete the
answer by drawing a logical conclusion (AC3.1).
Q3.2 Justify the selection of a strategy in Virgin. You must complete the answer by
drawing a logical conclusion (AC3.2)
Task 4:
For this task, you must continue with the same company (e.g. Virgin) you have used
for the previous task:
Q4.1: Assess the roles and responsibilities of personnel who are charged with
strategy implementation in Virgin (AC4.1)
Q4.2 Analyse the estimated resource, such as finance, human resources, materials
and time requirements for implementing a new strategy for Virgin. You must complete
the answer by drawing a logical conclusion (AC4.2)
Q4.3 Evaluate the contribution of SMART (e.g. Specific, Measureable, Achievable,
Realistic and Time) targets to the achievement of strategy implementation in Virgin.
You must complete the answer by drawing a logical conclusion (AC 4.3).
Plagiarism/Collusion
Any act of plagiarism or collusion will be seriously dealt with according to the
regulations.
In this context the definition and scope of plagiarism are presented below:
Plagiarism is presenting somebody elses work as your own, It includes copying
information directly from the Web or books without referencing the material; submitting
joint coursework as an individual effort; copying another students coursework; stealing
coursework from another student and submitting it as your own work.
Collusion is working collaboratively with another learner to produce work that is
submitted as the individual learners work.
Suspected acts of plagiarism or collusion will be investigated and if found to have
occurred will be dealt with according to the college procedure.

Guideline

9 May 2015

 Ensure that all work had been proof-read and checked prior to
submission.
Ensure that the layout of your documents is in a professional format.
Ensure that all references are quoted at the end of any
question/document submitted (preferred: Harvard referencing).
Ensure that you back-up your work regularly and apply version control to
your documents.

Ensure that there is an accompanying front cover sheet with your details,
the unit details and your lecturers name.
The college will retain your assessment copy so it is advisable for you to
keep a copy for your own record.

Support Materials

10 May 2015

Textbooks
HNC/HND BTEC Business Course Book, Core Unit 7 Business Strategy, 2009,
Pearson Pub. Limited, Essex.
Johnson, Whittington and Scholes Exploring Strategy, 9th Edition, (Prentice Hall, 2011)
ISBN: 0273651129 96
Lynch R Corporate Strategy (Prentice Hall, 1999) ISBN: 0273643037
Thompson J L Understanding Corporate Strategy (Thomson Learning, 2001)
ISBN: 1861527551
Newspapers
The Financial Times and other quality newspapers
Videos
Blood on the Carpet series
The Business
Trouble at the Top series
Trouble Shooter series (John Harvey Jones)
Websites
www.global-strategy.net/emergent-strategy-at-the-virgin-group/
www.bloomberg.com Bloomberg, provider of worldwide financial information
www.emerald-library.com/EMR provides access to journals
www.ft.com The Financial Times
www.hemscott.net provides company information

11 May 2015