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Resources: Vision, mission, values, SWOTT analysis, balanced scorecards, and communication plan
Write a 700- to 1,050-word section for your strategic plan in which you add your strategies and tactics to implement and realize your strategic objectives, measures, and targets. Include marketing and information technology strategies and tactics. Develop at least three methods to monitor and control your proposed strategic plan, being sure to analyze how the measures will advance organizational goals financially and operationally. Finally, recommend actions needed to address ethical, legal, and regulatory issues faced by the organization, and how they can improve corporate citizenship.
Combine your completed strategic plan. This includes the vision, mission, values, SWOTT analysis, balanced scorecard, and communication plan. Your consolidated final strategic plan should be 2,800 to 4,200 words in length.
Prepare three to five Microsoft® PowerPoint® slides in which you briefly outline the vision, mission, values, and balanced scorecard that you have developed for your business.
THE BUSINESS IS ACE GYM !!!!!!
Runninghead:
STRATEGIC PLAN, PART II: SWOTT ANALYSIS
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| STRATEGIC PLAN, PART II: SWOTT ANALYSIS |
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Strategic Plan, Part II: SWOTT Analysis
Shannon D. James
BUS/475
November 11, 2013
Gregory Kosicki
Strategic Plan, Part II: SWOTT Analysis
Introduction
The paper performs the situation analysis of a new business opportunity O’Magic Auto Sales, Inc. It is a medium size pre-owned auto sales business in the southwest area in Orlando, Florida. The business is surrounded by medium high class families, close to the airport and the community high school. Very often taxi drivers stop by the business looking to buy specific cars like, large size passenger vans, ford crown victorias, and Lincoln town cars. In the external environment analysis, the assignment would discuss legal and regulatory factors, economic forces, environmental forces and social culture forces and their impact on the company. This would be done take into consideration the demography in which the company is operating and the based on the current as well as future business forecast of the segment. Post external the paper would analyze internal environment factors of the company. This would primarily focus on the strategic planning, business structure and business culture of the company.
External Environment Analysis
Legal and Regulatory Analysis
The US market has a lot of competition especially in the vehicle industry, so that this area is one of the largest types of competition. O’Magic will find a lot of competition from several companies in US. (Solomon et al. 2009) said that there are different types and methods of competition one of them is product competition, which is competitors offer a new product to attract the customers for the other brands. Governments and policy have serious effects on large companies, but smart company put itself as an essential partner in supporting the local industries (Fifield, 2007). O’Magic also has with US government secured investment support that has been critical to attract new investments. Also law changes in the near term can have severe impact on the business of the company. Being a new company any changes in legal and regulatory codes can lead t severe material impact on the operations of the company.
Economic Forces
There was a significant impact caused by the global financial crisis significantly (GFC) affected the banking sector and the household debt and consumption to become a fear of consumer turbulence (Abernethy, 2010). Technological factors are the fastest change with the evolution of computers as it makes companies concerned, while showing a new technique that makes the company’s products are useless and difficult to handle. This technical development has made a key factor in buying a product (Fifield, 2007). Also impact on banking and household debt means that car financing in the near term won’t be an easy task. This can lead to loss of customers for the company. Also, the company would be required to have special tie-ups with the banks in the area for ease of financing to its customers.
Environmental Forces
Environment is the new challenge for automotive industries where companies see that the environment will be the main obstacle. This factor will reduce the production of cars. Although this factor is a recent issue, but many countries have adopted the idea and started working on it such as US (Fifield, 2007). O’Magic in US has an active role in the protection of the environment by raising awareness about environmental issues and creating hybrid electric vehicles. Moreover, O’Magic has a strategy that is used in new products. This strategy works for using technology to reduce damaged material. Also it work for using resources for the recycling of old products and the following chart shows this strategy.
Socio-Cultural Forces
It is difficult to deal with the motives, needs and beliefs of people, so that companies should read and predict future customer requirements. Every company needs to know the social culture of its customers and the segment in which it is operating. Though Socio-cultural forces won’t have a high and material impact on the operations of the company but as a start-up it needs to know the culture of the people to take a demographic advantage. The company would keep automobiles that are particularly according to the likes of the segment.
Internal Environmental Analysis
Strategy
Strategic planning is defined as the organization’s process that defines its strategies, directions and making decisions about allocating resources for pursuing the strategy, which includes its capital and people. While the appropriate timeframe of a strategic plan depends upon the type of industry in which the company is operating but still in most cases the appropriate timeframe for a strategic plan is 5 to 10 years, depending upon the industry. The company would use best cost provider strategy and differentiation strategy for its business. The strategic planning of O’Magic is to become a large scale automobile dealer in the coming 5 years. . Best cost strategy combines strategic emphasis on low cost as well as focused differentiation. It focuses on giving its customers more value for money. The aim of focused differentiation strategy to be employed by O’Magic Auto Sales is to secure a competitive advantage through offering customers of niche market with a product that they perceive as vary well suited to their needs, tastes and preferences. The strategic target of focused differentiation strategy is a narrow market in which needs and preferences of the buyers are distinctively different. Attributes appealing specifically towards niche members forms the basis of competitive advantage in focused differentiation strategy. The company would aim to raise the level of customer satisfaction through the strengthening Bonds and building strong long-term relationship. Also speed up the growth and the emergence of the brand through the company attract customers, and instill the desire to acquire a car through a phased and offers different services.
Business Structures
Though the company is a small organization being a start-up but it needs to have a proper business structure. I truly conquer with the idea that hyper-competition organizations should adopt a decentralized structure. An organizational structure is the structure designed within the organization for task allocation, supervision as well as coordination. Different types of organizational structure are as Functional structure, Bureaucratic structures, Divisional structure and Matrix structure. Decentralized and centralized structure forms the major categories of organizational structure. In the current competitive scenario even a small organization like O’Magic needs to have a defined organizational culture.
The company thrives of innovative techniques in terms of selling automobiles. So the company would have Self-Managed work teams as its organizational structure. It also form a part of a prevalent organizational structure prevalent in the current scenario. Self-managed work teams are the teams formed in the O’Magic Sales will consist of around 12 to 15 employees that are then assigned the responsibilities those were formerly being handled by their supervisors. The responsibilities included the plan and design of work schedules, operating decision making capacity and to handle the problems related to work. These teams within the organization are completely by themselves, that reduces the supervisor’s role in the organization. Many of the organizations in the present scenario, has used the concept of self-managed teams successfully and effectively, but some of these were not able to convince about of team value to their employees. The employees in O’Magic sales will feel that co-operating the concept of self managed work team is analogous with the assistance of their own execution.
Business Culture
O’Magic sales will use hierarchy business culture in its organization. Hierarchy culture is more inclined towards maintaining proper hierarchy levels within the organization where each employee has a reporting authority and a boss. This type of culture defines the career goals of an employee in terms of fixed systematic promotions and salary appraisals over the job years. The organization would have proper hierarchical structure wherein there are ground staff that are there at the showroom and agency, showroom managers, garage manager, area manager, regional managers and so on. The proper hierarchical structure maintains a proper reporting authority within the organization.
One of the completive advantages that our business has is that each client or potential client is treated like family to develop the long-lasting relationship that our mission establishes. This is important because our business plan is to be operating for years to come and establishing trust in clients who will bring customers coming back and provide referrals.
Conclusion
The paper performs the situation analysis of a new business opportunity O’Magic Auto Sales, Inc. It analyzed numerous internal and external environment factors that could affect the operations of the company. It also analyzed strategies and tactics required by the company to perform well under the prevailing circumstances. Based on the factors above it can be concluded that the company needs to focus on its core strategies to surge ahead of competition.
References
Automative News. (2011). Retrieved Jul 17, 2011, from http://www.autonews.com/: http://www.autonews.com/
Barney. (n.d.). Strategic Management-Cases. Retrieved Hul 17, 2011, from fb3.fh-ludwigshafen.de: http://fb3.fh-ludwigshafen.de/fileadmin/user_upload/westphal/Strategic_Management_Cases_and_Examples
Hussain, A. (2006). A text book of business finance. Nairobi: East African Educational publishers Ltd.
Strategy Level. (2009). Retrieved Jul 17, 2011, from www.referenceforbusiness.com: http://www.referenceforbusiness.com/management/Sc-Str/Strategy-Levels.html
SWOT analyis. (n.d.). Retrieved Jul 17, 2011, from www.quickmba.com: http://www.quickmba.com/strategy/swot/
SWOT analysis method. (2007). Retrieved Jul 17, 2011, from www.businessballs.com: http://www.businessballs.com/swotanalysisfreetemplate.htm
US Auto Sales. (2011). Retrieved Jul 17, 2011, from online.wsj.com: http://online.wsj.com/mdc/public/page/2_3022-autosales.html
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Running head: STRATEGIC PLAN, PART III: BALANCED SCORECARD |
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| STRATEGIC PLAN, PART III: BALANCED SCORECARD |
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Strategic Plan, Part III: Balanced Scorecard
Shannon D. James
BUS/475
November 18, 2013
Gregory Kosicki
Strategic Plan, Part III: Balanced Scorecard
Balance scorecard is essential for developing a healthy business growing place. This is a vital key for defining the goals and targets of a company as well as the vision, mission, and the SWOTT Analysis. A Balanced Scorecard is, “A set of four measures directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth” (Pearce and Robinson, 2009, p. 202). This term paper will relate Sweet Creations values, mission, vision and SWOTT Analysis with the four perspectives of the scorecard (financial performance, customer knowledge, internal business process, and learning and growth).
Financial Perspective/Shareholder Value
A strong and well defined vision and mission statement will facilitate the company to achieve its target. The objectives of Sweet Creations should be implemented as a daily routine so as to increase the performance of the company. The first and foremost responsibility of a company is to seek its customer satisfaction, benefit utilization, increased net revenues, and also to achieve financial stability. To evaluate the financial stability of a company, one should calculate the Operating cost, Earnings per share, growth revenue and return on interest and capital. “If we succeed how we will look to our stakeholders” (BSI, 2009, 5).
Customer Value Perspective
The customers determine the success of the company. The ups and downs in the market share of the company as well as the delivery of services and products relates to the customer satisfaction. The more the customer satisfied and engage with the company, the more will be the increase in the brand image in the market, but there must be consistency in the value and quality of the product. It is the responsibly of Sweet Creations to generate awareness in the public and should also offer benefits to them, time to time. “To achieve our mission, how must we appear to our customers” (BSI, 2009, p. 5).
The company should organize survey, time to time, so that to have an idea of the customer’s taste. For this the company has to monitor their brand value in the market constantly. On of the most important tool of obtaining more and more customers engage with the company, the holders of the company should introduce new products at a very low price and also offers some rewards for the regular customers. A way to gather the attention of the customers is to introduce reward programs before them; this will look very attractive to them. If the company and employees performance reviews by the customers are in the favor that means the company is strong enough to hold its position in the market. Just in case, if the customer reviews are poor regarding the service and the performances of the employees, this will lead a company to a huge downfall.
Process/Internal Operations Perspective
Strategic planning is very effective to give a sweeterie to customers. It should be done in accordance with the customer’s need and satisfaction. To improve the business efficiencies, market value as well as the current position; one should has an effective strategic management to overcome all the resistances. The most important thing is to define the purpose or intention of the strategy because this will lead a company smoothly toward its goals. The goals highlight the vision and mission statement of the company. “To satisfy our customers, at which processes must we excel” (BSI, 2009, p. 5).
For the satisfactory outcome of the company the strategic objectives and goals should be monitored on a daily. The company should set its objective, and the path to be followed while keeping in minds the values and interest of the customers. There should be a tool or set of measurements, which may be used to measure the targets, public interest, brand value in the market and budget in hand. In strategic planning, surveys must be done, time to time, so that it will be helpful for the company to have an idea that ‘what are the market needs’? And ‘what is already available in abundant in the market’? Survey techniques should be used to know about the ground realities and choice and need of the customer. Sweet Creations is constantly taking initiatives to improve the services and products so as to increase their customer circle.
Learning and Growth Perspective
Learning and growth process is considered as the most important aspect in Balance Scorecard, because this perspective focuses on the growth and prosperity of the company as well as the learning of internal and external public. “Learning” in accordance with Sweet Creations means to learn about the attitudes of the internal employees and external customers. This technique of Balance Scorecard, help the company to maintain its position in the market and also bring technological changes. “To achieve our mission, how must our organization learn and improve” (BSI, 2009, p. 5). The strategic planning should focus on employee training to have competent employees who constantly develop their skills and ultimately provide benefits to the company.
For Sweet Creations, the strategic objective should bring some improvements in the company. The improvements will be in the form of new technology in the company, constantly recruitment of the deserving candidates but retaining of the highly skilled workers, increasing the organization’s trust and customer circle. The organization needs to develop a strategy to provide more benefits to the customers e.g. online purchasing and billing, constantly introducing new products and services and also introducing attractive packages and offers like purchase and pay later.
The success of the company depends on its vision and mission statement. The best way to attain the targets and goals of the company is to have a strategic plan which, can effortlessly explains and deliver the objectives of the company. The achievements and goals of the company should be measured. The well-balanced business should have to develop the Balance Scorecard, which is the most significant technique to achieve all targets. It is impossible that if one Balance Scorecard technique is fit for a business will also suitable for another business. The Balance Scorecard’s four perspectives defined herein are: Financial perspective, Customer perspective, internal process, and Learning and Growth. With each perspective, we will define the strategic objectives, performance measures, targets, and initiatives.
Balanced Score Card
Shareholder Value/Financial Perspective
Strategic Objectives
•Benefit utilization and decrease in per unit cost
•Financial stability should be achieved
•Market share should be increased
•Production cost of store should be minimized
•Net revenues should be increased
•Operating cash flow should be increased with respect to previous year
Performance Measures
•Per share earnings
•Return on interest and capital
•Increased operating cost
•Revenue growth
Targets
•6 – 8% market share increase over the next two years
•30% profit margin
Initiatives
•Should acquire a strong Competitor
Customer Perspective
Strategic Objectives
•Community support should be expanded
•Quality products should be delivered
•Constantly improving brand image in market
•Value services should be delivered
•Focus on public interest
•Market share should have increased
Performance Measures
•Awareness of brand in public
•Research should be on regular basis
•Market share should be increased
Targets
•30% increased of customers for the next five years
•100% customer satisfaction
Initiatives
•Special benefit and rewards program
•Brand should be expanded to other cities
Internal Process Perspective
Strategic Objectives
•Marketing of store and product should be improved
•Additional services should be acquired
•Investment infrastructure should be made
•Business process and efficiencies should be improved
Performance Measures
•Internal employee and External Customer satisfaction
•Profits from New Programs
•Redundancies on products and services should be decreased
Targets
•20% reduction in customer returns over the next four years
•100% satisfaction of customers
•30% increase of customer circle
Initiatives
•Marketing campaign
•Card purchasing program should be expanded
Learning and Growth Perspective
Strategic Objectives
•Technology should be improved
•Increase in employee’s retention
•Constant recruitment but retain highly skilled workers
•Organizational trust and teamwork should be improved
Performance Measures
•Customer satisfaction should be achieved
•The employee turnover rate should be decreased
•Proper survey, monitoring and training
•learning from outcomes and experiences
Targets
•100% participation of all employees
Initiatives
•Analysis of Staffing Optimization
•Online Billing Upgrade
•Service Training
Reference
Balanced Scorecard Institute (2009) Balanced Scorecard Basics. Retrieved July 31, 2011 from URL: http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx
Pearce, J. A. II, and Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York: McGraw-Hill.
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Running head: STRATEGIC PLAN, PART I: CONCEPTUALIZING A BUSINESS |
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| STRATEGIC PLAN, PART I: CONCEPTUALIZING A BUSINESS |
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Strategic Plan, Part I: Conceptualizing a Business
Shannon D. James
BUS/475
November 4, 2013
Gregory Kosicki
Strategic Plan, Part I: Conceptualizing a Business
Introduction
Mission, vision, and value documents offer guidance theories to make organization’s strategic plan. Companies make their corporate, business, and tactical strategies as well as goals. The provided document gives a comprehensive research on the mission and vision statements of Ace Gym and how are these documents useful in developing the company unique and effective from its rivals. It will additionally spotlight key values through mission and vision declaration. These values assist in leading the strategies and therefore increase earnings, sustain edge against your competitors and satisfy stakeholders.
Analysis
The business plan entails establishing a web based Gym, called Ace Gym. This IT based company provides useful services at a cost of $ 30 a month for daily fitness regime personalized to customer requirements. The offer will also incorporate interactive classes with a teacher who will make a physical fitness and health program for you on information gathered from the customers. Then teacher will monitor the diet plan and exercise plan through an automatic attendance system.
Mission Statement
· Industry: Online Service Industry with Expertise in IT as well as Health
· Product: None
· Service: Physical fitness and health guidance on weight exercise diet plans, as well as health supplements.
· Customers: Health conscious or fitness freaks people because of hectic schedules are not able to enroll in actual gymnasiums therefore by making use of internet they seek and get physical fitness and health guidelines.
The mission statement of Ace Gym will steer in the direction of general aim of the organization; regarding what item they will deal in, who will be the projected audience of the Gym, why and how will this be performed. The Gym will continuously improve its mission declaration to keep an eye on development, to be sensitive towards customer requirements and be ready to cope with competitor’s techniques. (SBN, 2008). The Mission Statement of Ace Gym is as under (CARI, 2007):
Mission Statement: To develop a web based entry to help health conscious individuals in supervising and managing efficiently. The web based gym will incorporate interactive, cost-effective, and dynamic training sessions by expert teachers.
Vision
The mission of the Gym will motivate workers in using available options in web based and ecommerce areas. A strong perception will be a source of delight for the workers for the beneficial change Ace Gym is developing the lives of its clients.
The Vision Statement of Ace Gym is as under:
To deliver its clients with health facilities that’s free of cost, fast and personalized.
Values and Guiding Principles
The key importance of Ace Gym includes the requirement by all to keep a good and fit body in existing and fastidious atmosphere in which they don’t find time sufficient to satisfy this requirement, requirement for correct directions and specific coaching to develop and comply with a workout routine. Ace seem to fulfill the requirements of its clients by developing a virtual atmosphere depending on web, and assisting in safe mode an active outstanding specific health related help.
Ace Gym Ace thinks that great number of clients who will to have a rapid as well as efficient workout can be crafted nicely by coordination of technology with health consultancy. The administration of Ace Gym trusts in delivering their clients with an inexpensive health support i.e. at a realistic and competitive cost of $1 per day.
Organization’s Strategic Direction
Ace Gym supposes to achieve horizontal and vertical growth expansions in the approaching times. Ace Gym desires to achieve maximum profits and establish competitive edge over competitors. They are considering to develop partnerships with some other top Gyms for example Gold Gym to build up coordination in practical as well as technical areas. They desire to affiliate the name of Ace Gym with speed, exactness and knowledge. Individuals can have a fairly easy access to the Gym’s on the internet site and can have superb customized help to their health inquiries.
The Ace Gym aspires to:
· Team up with popular sites for example Yahoo and Hotmail for the advertising and interaction purpose for their unique concept.
· To improve their share of the market via getting assistance from popular internet sites and employing skilled health specialists and instructors.
· Using SEO, Search Engine Optimization tools.
· Carry out marketing on social networking web sites for example YouTube, Facebook, and Flickr.
Satisfying Customer’s needs and Achieving Competitive Advantage
The industry has hardly any Gyms operative with equivalent facilities and also handful of clients. This shows that market has a whole lot of prospects for more growth and development. Keeping this expansion element in mind the administration of Ace Gym must think about the undeniable fact that rivalry and competitors will boost later on and to differentiate its professional services from the rivals they’ll need to create differentiation plans.
Ace will create this difference by setting up a lasting value for users and the company. To boost brand availability, quantity of internet surfers and operations efficiency the Gym must execute enormous offline and online campaigns and promotional initiatives. Clients will get the additional benefits for enrolling and buying upsize package. Clients will have a 24/7 access with no disruption to the online Gyms site, they can exercise in isolation and similar to live Gyms there will not be any delays involve. Ace Gym keeps its competitive advantage through much less operating cost, online trainings, skilled gurus and 24/7 accessibility. Gym offers its clients with customized and tailored facilities dealing with to their personal requirements.
Employees of Ace Gym would be technically sound and nicely trained in managing. The internet procedures and tools would be high in technology and quality so the specialists can have continuous web communication with its clients. In beginning Ace Gym may encounter problems regarding high cost, deficiency of related information and data storage capability, costly online tools and exceptionally skilled experts associated with medical care however the problem would be surmount when the quantity of online client visitors would boost, by correctly channeled marketing, advertisement promotions e.g. person to person. Satisfied clients will assist to make Ace Gym a founder of the physical fitness and health industry (Small Business, 2008).
For easy running of the functions Ace Gym would be needed to have good connection with skilled individuals, marketers for the web, and skilled health specialists. The composition of Ace Gym would be Matrix style in which IT gurus and fitness gurus would work in collaboration. The composition will be flat with basic and restricted hierarchy. Ace Gym would work on the way to worker fulfillment through adjustable job hours and also providing them with the alternative of working at home or office without trouble of schedule.
Conclusion
Mission and vision declaration of a company are reliant of company’s customized values. To achieve success in operation Gym will need to come up with a mission and vision declaration which is solid and long lasting. This subsequently will assist in inspiring workers and assist company to produce and preserve a good reputation out there. The full analysis of this document demonstrates that mission and vision statements certainly perform an important role in the expansion and growth of a company.
