CMI 704 Developing Organisational Strategy Assignment Example 2026

Introducing Assessment Brief CMI 704

The aim of this unit is to provide learners with an opportunity of understanding what is strategies and how they can be developed if there are in need of effectively operating in national, global and or even in local markets.

CMI 704 assessment is designed in a way that learners understand how they can develop strategies that are effective and can shape direction of their organisation with their strategies  by doing research and learning by themselves. To learn this outcome, you will need to find the factors that drive the development of the strategies that you select for your organisation and find ways for developing strategy successfully. The assessment has been prepared in a way that the future leaders can be able to develop on strategy for the organisation that can help them achieving the goal of business.

Special Note:

It must be noted that this sample is for learning purposes only; do not make the mistake of copying the information here directly into your assignment. This will get you in trouble as you will be caught in plagiarism. CMI qualifications take academic integrity very seriously and can make you fail your subject or even ask you to repeat the whole course. So rather than taking such a big risk, contact us, and we will help you out at an affordable price. 

»  TASK 1

Option 2

You are required to write an account entitled:
‘The principles of developing organisational strategy’

The account must be presented in THREE (3) sections:
The factors which drive the development of organisational strategy 

You are required to critique the factors which drive the development of organisational strategy (AC1.1)

Answer:

Drivers of the Development of Organisational Strategy

Organisational strategy development is driven by a mix of internal and external factors which impact decision-making and strategy. These factors are interconnected, and a leader needs to reassess and re-evaluate the strategic options constantly. An awareness of these factors is crucial to ensure the strategy is fit for purpose, competitive and sustainable.

External Factors

• The external environment is a key driver of organisational strategy. Models like PESTLE analysis show the impact of political, economic, social, technological, legal and environmental factors on strategy.
  
  
• For example, economic factors are critical in defining strategic goals. When economies are growing, firms may pursue strategies that involve growth; whereas in more challenging economic times, corporations may be forced to pursue cost-cutting strategies. But an exclusive focus on economic factors can be restrictive, given that unexpected events, such as global crises, can destabilise strategies.
  
  
• Likewise, technology is both a friend and a foe. Those organisations that embrace new technologies can benefit, while those that do not can be left behind. However, a technology-focused strategy may result in organisations investing in fads without generating value.
  
  
• Competition plays a key role in strategy. Theories like Porter's Five Forces argue that competition within an industry, the threat of new competition and the power of buyers and suppliers influence strategy. This model offers a systematic framework for assessing competition but has been criticised for being overly simplistic in dynamic markets where new business models can emerge that can disrupt established industries.

Internal Factors

• Organisational strengths are as important as competition. A firm's resources and capabilities, its leadership and culture define the scope of its capabilities.
  
  
• The Resource-Based View (RBV) suggests a sustained competitive advantage is created by a firm's unique resources and capabilities that are valuable, rare, inimitable and non-substitutable. This view emphasises the importance of concentrating on internal capabilities instead of external positioning. But a myopic focus can sometimes result in organisations overlooking the competitive environment, which can create a blind spot.
  
  
• The other key internal influence is leadership. Leadership decisions may be influenced by the leaders' goals, experience and risk tolerance. While effective leadership can provide vision and motivation for innovation, it can also be prejudicial. Excessive confidence or success from previous experiences can restrict the organisation's response to change.
  
  
• The organisation's culture is also important. An innovative and flexible culture can be conducive to change, while a conservative culture may not. But culture can be resistant to change, and is thus frequently a barrier.

Stakeholder Influence

Shareholders, employees, customers and regulators are important stakeholders. Strategies need to address multiple, potentially conflicting, interests.
For instance, shareholders might want short-term profits, but employees might want security and growth opportunities. Customers want value and innovation, while regulators require adherence to regulations. This poses a challenge, with leaders needing to prioritise.
Although stakeholder theory encourages participation, it can also be a slow and unwieldy process if it considers too many stakeholders.

Critical Evaluation

While the above factors offer insight into how strategy is developed, they are not without their problems. Historically, many models have been based on the assumption of predictability that no longer holds in today's business world. A rapidly changing technological environment, globalisation and uncertainty mean that strategy needs to be more dynamic and responsive.

Moreover, too much emphasis on analytical models can result in "analysis paralysis" - a paralysis resulting from too much analysis. Managerial judgement, flexibility and agility are therefore needed to complement analytical techniques for the development of strategy.

• Approaches for the development of a strategy

You are required to critically appraise approaches for the development of strategy (AC1.2)

Answer:

Approaches for the Development of Strategy

There are various approaches to strategy development for organisations based on their objectives, organisational structure and environment. Several approaches to developing a strategy have been developed, each with its own pros and cons. Although they offer some valuable advice, none is entirely satisfactory, and some may not work in all circumstances.

Planned Strategy Approach

The planned strategy (or deliberate) approach is one of the most conventional approaches to strategy. This involves strategy development in a deliberate way, often by senior management, through the planning process. This approach includes establishing goals, environmental analysis and the development of a specific plan to achieve longer-term objectives.

This approach is beneficial because it sets goals and helps to coordinate efforts in the organisation. It also facilitates resource and decision-making management. But one of the challenges is that it presumes a degree of predictability about the future. In the rapidly evolving business world, this may not always be feasible.
For instance, organisations that are overly focused on long-term plans may find it difficult to adapt to rapid changes in the market or unforeseen events. This means that a planned approach can often be inflexible.

Emergent Strategy Approach

The emergent approach is in opposition to the planned approach, and implies that strategy is formed over time rather than being developed upfront. It emphasises learning, responding and adapting to change.

It's an effective strategy for uncertain and rapidly changing environments. It enables businesses to respond quickly and creatively to situations, since strategies can be changed as they are being implemented. This strategy is widely adopted by many businesses, particularly in the tech industry.

But there are drawbacks to the emergent approach. The lack of a long-term vision can lead to organisations becoming dispersed or even reactive. It may also lead to confusion and a lack of direction among employees if there is no strategic direction.

Top-Down and Bottom-Up Approaches

Another distinction of strategy development is the top-down and bottom-up approaches.

In a top-down strategy, the strategy is dictated from the top and given to the rest of the organisation. This provides uniformity and control, which might be necessary in large organisations. But it might overlook valuable insights from lower levels of the organisation.

Alternatively, the bottom-up model has staff at various levels involved in strategy. This approach can result in more creative strategies and increased motivation due to employee participation. However, it can also be time-consuming and challenging to coordinate.

In reality, organisations often attempt to find a balance between the two by using a combination of approaches.

Analytical and Model-Based Approaches

Strategic models, such as SWOT analysis and Porter's Five Forces, are used by many organisations. These models are used to evaluate internal and external strengths and weaknesses, opportunities and threats.

These approaches are helpful as they offer a framework for thinking about problems and aid decision-making. But they are sometimes seen as limited and oversimplified, and failing to adapt to real-life complexities.

A SWOT analysis, for instance, may highlight key factors, but it does not always illustrate the interactions and dynamics between the factors. Likewise, Porter’s model is based on stable industries, which may not be the case in rapidly evolving markets.

Critical Evaluation

There are merits and drawbacks to each of the strategy development approaches. Deliberate strategies are structured but not responsive, while emergent strategies are flexible but unstructured. Likewise, top-down strategies maintain control but can stifle creativity, while bottom-up strategies promote engagement but can slow down processes.

As a result, organisations rarely use one or the other. They may select a mixture, depending on their circumstances. The challenge for managers is to know how to use the right approach at the right time.

• The challenges of developing and leading organisational strategy

You are required to discuss the challenges of developing and leading organisational strategy (AC1.3)

Answer:

Challenges of Developing and Leading Organisational Strategy

Developing and leading organisational strategy is a complex task. Despite having objectives and a plan, organisations can encounter several challenges that can impact the strategy. They can be internal, related to issues within the organisation, or external, related to the environment.

Uncertainty and Rapid Change

Uncertainty is a major challenge in the development of a strategy. The environment of business is fast changing because of new technologies, globalisation and changing needs of customers.

As a result, it is challenging for companies to forecast the future. What works today may not work in the near future. Therefore, it is difficult for organisations to plan for the future, and they must continually re-evaluate their strategy.

Although change is a way to cope with uncertainty, excessive change can also lead to confusion and uncertainty in the organisation.

Resistance to Change

A further issue is employees (and sometimes even managers) being resistant to change. Strategies can include process changes, organisational restructure, introduction of new technologies, and so on.

This can make employees feel anxious about these changes, particularly if they are not well communicated. This may result in a lack of motivation, productivity loss and even implementation failure.

While giving employees a say in the decision-making process can minimise this effect, it can be difficult to deal with diverse views and expectations.

Limited Resources

Companies don't always have sufficient resources to put their strategies into action. These can be financial, human, time or technology resources.

For instance, an organisation may be looking to grow by expanding into new markets, but may lack the financial and human resource capability to do so. This resource gap can result in the effective implementation of the strategy.

Even when financial, human and other resources are present, they must be managed appropriately. If not managed properly, this can undermine the strategy.

Leadership and Decision-Making Issues

Effective leadership is crucial to strategy development and execution. But leadership can also present an issue. Leaders can have conflicting ideas or perspectives on the best strategic approach. Sometimes decisions may be made based on subjective feelings or prior experiences. This can result in poor decision-making.

Moreover, poor communication from management can result in uncertainty among employees about the organisation's direction and objectives.

Stakeholder Conflicts

A business needs to take into account the wants of multiple stakeholders, including shareholders, employees, customers and regulators. These stakeholders may have varying priorities.

Shareholders may be interested in profits, whereas employees may be more concerned with job security. Consumers may want higher quality at lower cost, and regulators want compliance with regulations.

Striking a balance between these stakeholders can be difficult and lead to decision-making dilemmas. Attempting to meet the demands of multiple stakeholders could dilute the strategy.

Problems with Implementation and Monitoring

Even with a good strategy, it can be difficult to execute it. For many organisations, it's not what they plan that determines their failure, but how they execute it.
Common issues include:

• Lack of clear action plans
• Inadequate communication between divisions
• Inadequate monitoring systems

Organisations need to monitor to know whether the strategy is effective or not. This means that they can't make timely improvements or adjustments.

Critical View

The problems illustrate that strategy is not only about planning but also implementation and leadership. Although models and frameworks can aid the process, they are not a guarantee of success.

Ultimately, organisations must be adaptable, communicate well and include stakeholders. But they also need to focus on ensuring clarity.

Key challenges of organisational strategy development and leadership include uncertainty, lack of commitment, resource allocation, leadership problems, and conflicting stakeholder interests. These can impact both the strategy formulation and execution. So, leaders need to be ready to deal with these challenges by planning and being flexible and communicative.

TASK 2

To complete Task 2, you are required to develop an organisational strategy to achieve a business objective, accompanied by a series of recommendations for its implementation and monitoring.

Your evidence must be presented in TWO (2) sections:

2a. Develop an organisational strategy to achieve a business goal (AC2.1)

Answer:

The organisational strategy is put together for a medium-sized clothing retailer that primarily operates a brick-and-mortar store. The company is well-established in the local market, with a strong customer following. But, over the past few years, there has been a trend towards online shopping because of the convenience, variety of products and price points.

Meanwhile, many of its competitors have established an online presence and are capturing more of the market. As a result, the company is in danger of losing its customers if it does not expand its business beyond the brick-and-mortar stores. So, it is essential that the company keeps up with these trends and revises its strategy.

This should help the company to grow in the online market and to increase its performance.

Strategic Objective

The main goal of the company is to gain a more competitive advantage and create a strong web presence. The strategy aims to:

• To grow the total revenue from sales by 30% in the next two years
• To reach more customers, online and offline
• To enhance the customer experience by providing e-commerce capabilities
• These goals are achievable and measurable, so it will be easier for the organisation to monitor progress and evaluate success.

Strategic Analysis

The first step in creating the strategy is to assess the current situation. SWOT analysis can be used to discover the strengths, weaknesses, opportunities and threats.

• Strengths: It already has an established brand in the local market. It has gained the confidence of customers and has a supplier network. These can be leveraged to help make the shift to selling goods online.
  
  
• Weaknesses: Not having a website is the major weakness. Another weakness is the lack of digital skills in the company's workforce, and being reliant on in-store sales. This puts it at a disadvantage with online stores.
  
  
• Opportunities: There is an increasing need for online shopping, particularly by young people. The growth of Internet usage and smartphone penetration offers the opportunity to penetrate the market.
  
  
• Threats: It will compete with other e-commerce players. It also needs to provide low prices and quick shipping, which may be difficult for a new e-commerce business.

The above analysis demonstrates that digitisation is not only a choice but a strategic imperative.

Strategic Direction

The organisation will pursue growth by moving to an online strategy based on the analysis. This would mean the company will focus on building its online business model, but also maintain its offline business.

This strategy is appropriate as it means the company can leverage its existing strengths and resources to expand into new areas. Rather than reinvent itself, the company is growing its existing business model, lowering the risk.

Key Strategic Actions

To meet the goal, the company will take several actions:

1. E-commerce Website: The organisation will create a website for its customers to shop. This website should be user-friendly, responsive and secure. It should also have features such as product reviews, easy returns and various payment methods.
   
   
2. Online Marketing Strategies: The organisation will promote its products online. This will involve social media promotions, search engine marketing and email marketing. Discounts can also be given to attract new customers.
   
   
3. Collaborations with Online Marketplaces: As well as its own e-commerce site, the company can join existing marketplaces. This will increase its exposure and help it reach customers faster.
   
   
4. Improve Supply Chain and Logistics: Timely delivery is an important part of the e-commerce business. It will need to partner with delivery companies to provide fast delivery. It will also have to work on inventory control to prevent stockouts.
   
   
5. Staff Training and Development: Staff will require digital marketing and e-service training. This may also require the company to recruit new employees with IT and digital marketing skills.

Resource Requirement

The company will need resources to execute this plan. And this means investing in website development, promotion, and logistics. It will also need to hire qualified staff and have appropriate technology systems. Failure to plan the resources of the strategy could lead to failure, despite a good strategy.

2b. Recommend an approach to implement and monitor the strategy to ensure its success (AC2.2)

Answer:

The next step after formulating the organisational strategy is to put it into practice and monitor its execution. A good strategy won't be a success if it is not executed effectively. This part of the document sets out the organisation's approach to implementing the strategy for online expansion and how it will track its performance to ensure that the aims of the strategy are realised.

Implementation Approach

The organisation will use a structured approach to implementation. This approach will involve the strategy being rolled out in stages. This is helpful as it is less risky and the organisation can learn from its experiences.

However, at the same time, a top-down approach will be taken to decision-making, in which senior management leads. But staff input will also be sought to help with implementation.

Key Processes and Activities

The organisation will ensure the strategy is executed by undertaking the following:

1.  Planning and Preparation

First, there will be the planning. This involves establishing deadlines, roles and responsibilities and creating a budget. A project team will be established to oversee the development of the e-commerce website and the project in general.

It's important to communicate at this point so that employees understand the strategy and what they are expected to do.

2.  Build the Online Platform

The organisation will build its e-commerce website. This includes:

• Designing an easy-to-use interface
• Ensuring mobile compatibility
• Setting up secure payment systems
• The product will be tested before its release to ensure any bugs are sorted.

3.  Marketing and Launch

Once the website is launched, online marketing will be used to raise awareness. This includes:

• Social media campaigns
• Online advertisements
• Special offers for new customers

It's crucial to make an effective launch to get people's attention and start sales.

4.  Training and Support

Staff will be trained in online processes, such as customer support and processing orders, as well as technology use. They will be offered ongoing assistance to adapt to the system.

5. Logistics and Operations Management

The company will coordinate with suppliers for effective shipping. It will also optimise its inventory management systems.

Monitoring the Strategy

It's essential to monitor the strategy to ensure it's working. The organisation will monitor success in several ways and improve it as necessary.
Key Performance Indicators (KPIs)

The organisation will track the following KPIs:

• Growth in online revenues
• Number of website visitors and conversions
• Customer satisfaction and feedback
• Order processing speed and accuracy

This will help the organisation determine if it is on track.

Regular Performance Reviews

The organisation will regularly review the progress it is making, for example, at monthly and quarterly meetings. These reviews will involve managers examining the data and highlighting any problems.

This will allow modifications to be made to the strategy if it is not working.

Feedback Systems

Reviews, ratings and surveys will be conducted to gather customer feedback. This will inform the organisation about customer requirements and enable it to better serve customers.

Staff feedback will also be taken into account, as they may offer insights into problems.

Use of Technology and Data

The organisation will utilise technology such as data analytics programs to monitor website traffic and other key customer behaviour. This will inform business decisions and help to fine-tune the strategy if necessary.