(Solution) 5CO01 Rational Approach to Strategy Formulation at Chaffinch Group (1.2)

Solution

Rational approach to strategy formulation means developing logical structured decisions that are made on data and analysis (Athuraliya, 2024). The tools that this model will facilitate the adoption of in strategic planning include SWOT (Strengths, Weaknesses, Opportunities, Threats) and the PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis coupled with the market research. In the case of Chaffinch group, rational strategy application would perhaps serve to redefine the services of Calmere House to be in response to customer demands therefore putting this institution back in the map giving it reputation and occupancy.

Advantages on Rational Approach

Although it has drawbacks, rational approach is transparent and objective. It enables Chaffinch Group to apply PESTLE as a means of gaining insight of the external forces that might be pushing their environment like increased costs of operation or customer age-related demographically changes in their care needs. With the help of a SWOT analysis, it is possible to determine such internal strengths as financial resources and weaknesses such as a high turnover (CIPD, 2025). It is an evidence-based tool that allows making informed decisions and prevents the most costly strategic mistakes. It is also accountable in the sense that it ties action with actual measure. In the case of Calmere House, a logical approach would probably do the services in fear of having them more in line with the preferences of the residents and satisfying them more.

Challenges of a Rational Approach Although evidence-based strategy

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