(P1.3) Once the business strategy is formed, there are different techniques in developing the strategic plans of the business using various tools by the organization. These techniques show the strengths and weaknesses of the organization and as well as their opportunities and threats that are possible to the business in order to form an effective developed strategic plan during the process of operation. In this case, Nordstrom uses these types of tool in developing their strategic plans which are the BCG matrix and SOAR analysis.
BCG matrix is the matrix which determines the level industry relative share of the industry and the business with the help of four dimensions. Strategic business plans are set by considering the growth rate of the industry and current situation of the business. It determines the industry growth rate along with the concerned business share. The four dimensions are question mark, stars, cash cows and dog.
The question mark is the position where the business share is low than the
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The other factors like customers taste and preference, demand supply, and competition level are being ignored.
The business can only be measured from the view point of high and low as there is no scope of the medium in this technique.
SOAR Analysis is an evaluation that focuses on the positive and opening up opportunities. It enhances inspiration in the organization when developing a strategic plan in focus on enhancing their strengths or what the organization is good at. In other words, it combines data about an organization’s current position with people’s ideas and dreams about its future, so that the business can build an energizing vision to work toward. It seeks to understand the whole system by including the voices of the relevant stakeholders. This evaluation helps focuses