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Strategic thinking is the most important ability that managers of every organization whether the big or small needs to possess (Goldmanand Scott, 2016). Because of the various kinds of difficulties that are experienced by the company, it is a very serious matter and needs a manager to be capable of strategic thinking (Betz, 2016). The report has been conducted to recognize the dimensions of strategic thinking in a start-up company and the report have also considered the case company Nicycle a start-up company looking to launch in the UK market. In this regard, the managers of the company need to have their own opinions on strategic thinking and the views which are analyzed by the report. The main purpose of this report is to analyze the result which further suggests having the vision, having classification philosophy, the capability to analyze, the ability to question, the aptitude to create, to make synergy and creativity and innovation which provides advantage which are the main elements of strategic thinking process for successful managers of the case company. In addition, the report also discusses the strategic simulation and its importance in the start-up business Nicycle. The report highlights the strategic thinking process involved in simulation and also the importance of value created by strategy is been explained.
Strategic analysis is procedures that involve researching the external business environment of an association in which it operate which is possible through the PESTEL analyses as shown in figure 1.
Figure 1 PESTEL Analyses
Strategic analysis is very significant to originate strategic planning for decision making and effective working in the organization. With the help of strategic planning, the goals and objectives are fulfilled efficiently which is only possible through SWOT analyses which also analyse the possibilities and threats to re-evaluate the business strategies.
Figure 2 SWOT Analyses
Some important features of strategic analysis are:
Strategy simulation is a very strong method in the development of strategy and also in teaching strategic analysis. A strategic simulation is an under used tool in an organization it is a method for understanding the effects and causes of relationships in a complex world (Loonet. al. 2015) It represents a complex system in the virtual world it observes the behaviour of the system in a single frame and concludes about the cause-effect pattern in the system.
Strategy formulation means the procedure of selecting the most suitable action for realizing the goals and objectives of the organization to achieve the target made by the administration. The procedure of strategy formulation is made of basically six steps. These steps are not into following a rigid order but are in a very rational form that can be easily followed. The steps of strategy formulation are as follows:
Strategic thinking includes planning of attainment of goals by evaluating several factors which affect the planning of success. Thinking strategically also includes being able to involve the potential capabilities and impact of the company's action (Brysonet. al. 2018). It also comprises the capabilities of reviewing and optimizing the plans to fit the altering realities of the external and internal environment. Generally thinking strategically is applicable for long-term goals attainments. As an outcome, the ability to strategic thinking is very important for the manager of the company. the process of strategic thinking for a start-up company during the simulation is as follows:
Strategic philosophy is one of the most significant characteristics of a manager in today's organization. While the tools and techniques of planning and implementing a strategy in the organization had a growing trend nowadays, research and findings which are related to abstract and subjective concepts like strategic thinking are still limited and have a very narrow scope (Buckingham and Goodall, 2015). The significance of strategic thinking is very essential for an organization, an organization needs a manager who can promote and think strategically in all individuals working in the organization (Hickmanand Silva, 2018). Strategic thinking is not so clear concept, but this concept is used quite frequently in an organization. Strategic thinking plays very important startup businesses like the case company Nicycle which needs good strategic thinking to develop in the market and work on the achievement of its goals and objectives. There strategic thinking helps in the improvement of the planning process of the company, the broader perspective of strategic thinking involves the following essential points:
The case company Nicycle is a start-up company which looking forward to operating in the UK market. A growing company like Nicycle which is running a start-up in UK market is the best option because it is the greatest location as the country is a business-friendly destination and also attracts several start-ups and customers from all over the world. The main reason for which the company has chosen the UK for doing business is as follows:
The company has focused on investing more in marketing and research and development because these two factors are most helpful for every start-up company.
Marketing – it is very important for every business to focus on marketing because it offers several benefits especially to start-ups business like Nicycle.
Research and development – R&D is very helpful for start-ups as it helps in improving the processes and creates better and new products and services and increases profit for the company (Renet. al. 2015) benefits of conducting R&D are
Strategic management provides the company with a normal direction and makes clear goals of the organization; it also helps in developing plans and policies which are made for the achievement of particular goals. Allocating business functions for implementing the strategies for supportable growth of the organization (Grover et. al. 2018). Company plan on making value-creation strategy that are base on knowledge and also focus on jointly reviewing the following important aspects with the team members in the company and the stakeholders:
As a result of the company's strategic planning, some of the team choices failed because of improper planning. The management team of the company did not focus on preparing a plan they just used the secondary data and copied the planning of other companies. The second most important reason for failure is that R&D did not focus on understanding the environment and also did not consider the previous results (Tantalo and Priem, 2016). The planning team is required to pay attention to bring change in the business environment ad required to set meaningful priorities by developing the needs of the company and pursuing results. The next important aspect behind failure is that team has the partial commitment, the team needs to be fully understood the strategic planning and work on improving their enterprise. The major reason for failure is the ignoring of the marketplace reality by the team members. The team has fully neglected the market reality and problems which were arising from earlier plans. It is very important to focus on facts and assumptions before planning any kind of strategy and making any kind of decision.
The strategy simulation process forces the company to reflect critically and focuses on making strategic decisions, even if the start-up company has never worked with strategies before. Strategy simulations are made around chosen Strategy Tools, the tools and the software into one experience, linking the boards (Punt et. al. 2016). International strategy's main target is an online business simulation in which all the team members all allowed to be part of the decision-making process which applies to international strategies made by companies in the dynamic competitive environment. This case Nicycle Company belonging to the UK and the main target behind developing the simulation with the scope to be adaptable for a company belonging to any country, The strategic simulation is a managerially oriented simulation that further provides a theoretical as the well practical application of international strategy. A business simulation is a very powerful tool for development and learning in an organization. Business simulation permits people to be aligned on basis of strategy, improvement of their business insight, and also financial skills. The main focus is on the improvement of the overall organization working especially in the case of a start-up company like Nicole's.
ACS strategy simulators depend on the principles of competition, not generalized trend lines or accounting rules, it is not technicality detail. It is the difference in the effects and cause and also the willing-ness to think. It is the difference between a truthful view of business and a viewpoint on how the business spreadsheet goes wrong.
For analysing the competitive advantage, the case company can consider the porter’s five force model which helps in analysing and evaluating various factors by which company can attain competitive advantage and also their ability to attain maximum profitability. The porter’s five force model states the five forces which are related to attainment of competitive advantage for the company the forces are competitive rivalry, threats of entry, bargaining power of suppliers, bargaining power of buyers, and threats of substitutes. The detailed description of forces is as follows:
The business simulation reflects the competition faced by the company against all its rivalry companies, without any kind of strategy it is very difficult or nearly impossible to maximize profits and gain share in market. The industry will try to enter market by offering several prices and different and better products which will drop as the business grow. When the competitive rivalry is high the company is permitted to offer lower prices to retain their position in the market. If the competition is low then company can charge the price according to its perspective. The company is allowed to charge low prices to achieve more sales, retain its business position and also to maintain its market share.
A business market share is impacted by the threats of new entrants. The company’s position in the market is threatened by usage of fewer resources to enter the industry. The less time and money cost for a competitor in entering market is an effective option for competitors then establishing a whole new position in the market. The industry with the well-built barriers to entry is ideal for existing company within the industry since the corporation will be able negotiate on term and also able to allege high prices.
The next important factors in the model are the power of suppliers which addresses how easily supplier has control up the price of input. This is pretentious by the number of supplier of main inputs needed for the goods and services. The importance of suppliers depends on the how unique the materials are they providing and how much it will cost for company to switch to other supplier. Because switching to whole new supplier cist huge cost for the company, if there are less supplier in the industry it will more costly for the company to switch. As the outcome of this supplier enjoys the power and drives the input cost and attains other advantage in trade.
The ability which customer has to affect the prices is one of the most important factors of the five force model. It depends in the number of customers or buyer a company have and also on the significance of each customers, that how much it will cost the company to find new customer base or a totally different market for its output. Smaller client base reflects more powerful customer’s power over company.
The last factor of the force model is the threats to substitute product, every company have a substitute product or service to it, and in this the case company Nicycle have many different substitute which deals in the same market which poses threats to the company. Companies which produces goods and services which do not have any substitute enjoys more power in the market and also have control over the price. But in case of the close substitute here the customer enjoys the power of controlling the power of prices and demand.
The report highlights the aptitude to reflect strategically which often originates from experience. One good way of improving the company’s capability of thinking strategically could be submerging in the sentiments of people working in the company, strategic planning focuses on providing opportunities to all those with creative and innovative opinions. The report key features include importance of strategic planning and thinking. It discusses the strategic thinking process used in the simulation of a case company Nicycle which is a start-up company. The report states the importance of the strategic planning and its importance in a start-up company, the company's manager and its team need to focus on proper strategic planning before implementing any kind of decision or plan and also before planning on goals or objectives.
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