Bus475+final strategic plan

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Bus475+final strategic plan

  1. 1. Final Strategic Plan 1 Final Strategic Plan Lorren Rodriguez BUS/475 September, 2 2013
  2. 2. Final Strategic Plan 2 Introduction Mission, vision, and value in a business offers guidance theories to make organization’s strategic plan. “Strategic planning is creating a vision of the future and managing toward that expectancy. It's operating under a mission statement umbrella that focuses the organization's effort. It's an effective process for aligning short term decisions with your long term goals” (Develop strategic plan , 2013). Companies make their corporate, business, and tactical strategies as well as goals. The business I chose is “L’s Shoes” and I will be going over the mission, vision of this business. It will additionally focus key values through mission and vision statement. All these tools put together will lead to a strategic plan for my business to succeed. Analysis The business plan entails establishing a small shoe store business in my neighborhood that people will love to go to and will use as their first pick to buy their shoes. I will call it “L’s Shoes” which a simple name. I will sell shoes for everyone and all ages. I will have a membership card that is free and on each purchase the customer will earn points. Each quarter customers will earn coupons and or discounts to nearby restaurants/stores and up 10 dollars off on their next purchase at L’s Shoes. This will motivate my customers to come back. Mission Statement  Industry: Shoe industry  Product: Shoes  Service: Shoes for everyone and all ages.
  3. 3. Final Strategic Plan 3  Customers: Offer stylish and comfortable shoes for everyone at affordable prices. Good for the neighborhood and convenient for customers. Mission Statement: Offering a shoe store to the community that everyone will love. Develop strong relationships with customers to make them feel comfortable and welcomed. Vision The mission of L’s Shoes is to be a help to the community. Offer something that no other local businesses do not have which is great service at a good price. Make the customers that they are not only buying shoes but also feel appreciated. The Vision Statement of L’s Shoes is as under: Sell stylish and comfortable shoes at an affordable price. Values and Guiding Principles L’s Shoes key importance includes keeping their customers. We value them and reward back to them with their loyalty. L’s Shoes provides a welcome atmosphere with whoever walks in and our customers is our number one priority. Providing a shoe store in a small town nearby everyone and make them feel they don’t need to go anywhere else. A variety selection of shoes for all ages for female and male. Our shoes provide comfort and quality that will last for a long time. Each purchase will give back to the customers and the neighborhood. Organization’s Strategic Direction
  4. 4. Final Strategic Plan 4 L’s Shoes supposes to achieve growth expansions in the approaching times. L’s Shoes desires to achieve maximum profits and establish competitive edge over competitors. Local businesses will consider developing relationships with L’s Shoes business to benefit their business. They desire to affiliate the name of L’s Shoes with speed, accuracy and knowledge. Customers can have a fairly easy access to the Store and/or on the L’s shoes internet site and can have excellent to the shoe selection they want and need. The L’s Shoes aspires to:  Team up with local business for example local restaurants or clothing stores for the advertising of L’s shoes.  To improve their share of the market via getting assistance from popular internet sites and employing skilled employees with great customer services.  Carry out marketing on social networking web sites for example Twitter, Facebook, and Instagram. Satisfying Customer’s needs and Achieving Competitive Advantage L’s Shoes will provide something that other businesses do not have locally. The business will open up in a small town in the downtown area. The downtown area has small clothing boutiques, restaurants, bakeries and ice cream shops. This will be a perfect location for the business because when people walk around the area they will feel intrigued to go into L’s Shoes. Inside of L’s Shoes will be colorful paintings of historic events that happened in the small town. There will be a big old shoe sculpture in the middle of the store as well. The town that L’s
  5. 5. Final Strategic Plan 5 shoes will open up is known for their old shoe factories and the town has a lot of shoes sculptures around to keep that historic memory alive. L’s shoes will not only provide that but it will be a competitive advantage against others businesses because we will be only one that provides that. When they first come in it will have that comfort and visual of shopping something not in just any shoe store but something that is part of the town. It will also benefit other businesses in the area because; L’s Shoes will provide discounts and coupons to local businesses and that will motivate to go there which will earn more business for them as well. This will develop good partnership with local business and good marketing for L’s Shoes. L’s shoes will also have a store website where people will have the ability to see the selection and future shoe releases so they will have an idea what they want to buy before arriving. L’s shoes will have social media pages to find customers not only in the town but in surrounding areas as well to build more customers. Conclusion “Why is it important that your organization develops vision and mission statements like those above? First of all, because these statements can help your organization focus on what is really important. Although your organization knows what you are trying to do to improve your community, it's easy to lose sight of this when dealing with the day-to-day hassles that plague all organizations. Your vision and mission statements help members remember what is important as you go about doing your daily work” (The community tool box, 2013) Mission and vision statement of a company are reliant of company’s customized values. To achieve success in operation L’s Shoes will need to come up with a mission and vision
  6. 6. Final Strategic Plan 6 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. Strategic Plan, Part II Introduction `SWOTT examination is a crucial systematic device utilized for evaluating the elements both external as well as internal which have an influence over the company. In existing business conditions firms use SWOTT to assess their market standing regarding share of the market, competitive edge as well as complete feasibility. SWOTT examination offers a company with upgraded information about its achieved and achievable weaknesses and strengths, possible opportunities, dangers as well as risks and business trends. The main elements of SWOTT examination can be split under the heads of external as well as internal elements. “A SWOTT (strengths, weaknesses, opportunities, threats and trends) analysis can help you identify and understand key issues affecting your business, but it does not necessarily offer solutions. You should be aware of the limitations as well as the benefits of a SWOT analysis before you decide to conduct one. Knowing what you can reasonably expect to achieve will make the SWOT analysis more useful for your business, and will save you time” (Benefits and Limitations of SWOTT analysis, 2013) This paper describes an in depth evaluation of elements external as well as internal which can have an effect on the business of L’s Shoes. Because of this evaluation administration of L’s Shoes can evaluate the main elements which can influence the feasibility, establishing competitive advantage as well as stakeholders’ satisfaction for the company.
  7. 7. Final Strategic Plan 7 External Environmental Analysis A lot of outer elements might have an influence over L’s Shoes ability to accomplish its objectives as well as goals. To be successful, L’s Shoes will need to find out an appropriate strategy which can maintain the business anticipations in the real situations and also to keep L’s Shoes expectation with the provisions exterior environment can provide. The exterior factors incorporate: legal as well as regulating elements, economic elements, sales strategy, and socio- cultural elements. Legal and Regulatory factors: “The legal and regulatory environment plays an important role in the success of innovation based economic development. The relative importance of taxes and regulations among other regional factors, such as availability of skilled workforce, is frequently overstated. Nevertheless, regional tax and regulatory burdens—real or perceived—can affect the location and resource allocation decisions of companies and should be accounted for in regional economic analysis” (Legal and regulatory environment, 2013). It is very important that L’s shoes have this in place accordingly so the business will not be in position to put the business at risk. Legal issues is a very delicate situation in the business world. L’s shoes will make sure that this will not happen and will chose the right strategy to keep everything in line. Although, it is a small business there is still a lot in stake and legal issues will be handled correctly. Economic factors:
  8. 8. Final Strategic Plan 8 The expansion as well as progress L’s Strategy business will also get influenced with the customer’s needs and styles that they like the most. But L’s Shoes will need to take into account that at present world economy is experiencing a downfall, market variability as well as downturn. The administration of the company can set strategies after watching the economical trend as well as economical tendency for the future. Socio-cultural factors: The exterior element, socio -culture of targeted audience also impacts the company. With changing styles and seasons and what the customer desires it is important that L’s Shoes provide that. Customer wants whatever that is in style available and affordable. L’s Shoes caters to this requirement of consumers by offering the latest shoe fashion for everyone at a good price and a company website which provides what they want. . Internal Environmental Analysis To get better understanding of the inner elements a comprehensive analysis is required of company’s design, key skills, systems Process, as well as strategies. Structure: A shoe store business structure is usually the same as a retail store. It will include the department heads that ultimately control their area of responsibility. The department designations may include operations, finance, sales, marketing and human resources. Core competencies:
  9. 9. Final Strategic Plan 9 Core competency of L’s shoes is related with a shoe store that the community will love and it will keep the history alive and give a little something back for the people to enjoy. As businesses are transforming greatly with differing market conditions L’s Shoes will have to continuously upgrade its core competencies in order to have competitive edge over the competitors. Systems process: The good point for L’s shoes is having good customer service and offering the latest shoe style in a manner that it will create higher profits and help with other business in the community. To accomplish this task company will need to receive products from the factory at a timely manner, skilled staff and is well qualified in customer service. L’s Shoes can use its procedures so it will benefit everyone. The company also requires introducing training and development programs for the workers so they can improve their skills and well knowledge in fashion. Strategies: The best strategy for L’s Shoes is a sales strategy. First L’s shoes should create sales plan that will all the sales and goals documented to stay on progress with everything. Having a sales goal that is specific and measureable based on the nature of the product. For example, selling 50 units in 30 days and sales activities which are the tactics on how to make the sale. The sales plan will include the target account which is how to reach the customers if it is through social media, the local restaurants or flyers in the neighborhood. It is also very important to set timelines to meet all the goals to the sales strategy.
  10. 10. Final Strategic Plan 10 The company’s objective, perception, and value statements have a direct influence over the corporate and business strategies of the shoe store. The strategy will be productive for the company when the individual targets of workers are in line along with the general company objectives. L’s shoes will focus on the sales, customer service, and keeping their business for a long period of time. Conclusion For a good company it’s necessary to evaluate both its exterior as well as interior elements. L’s shoes goal is to maintain their success and keep their business going long term. It is necessary for the firms to appreciate that all these points are interconnected and can't be evaluated on individual basis. For example the exterior regulations and rules influence the interior organizational design as well as strategies. The assessments must be made from holistic point of view to get better outcomes as well as advantages. Additionally the significance of continuous evaluation of points must be understood since it helps to stay ready for suggested or sudden alternation in surroundings.
  11. 11. Final Strategic Plan 11 Appendix 1 SWOTT ANALYSIS TABLE Factors Strength Weakness Opportunity Threat Trend External Factors Economic Small sum of starting money is required; fewer funds are needed for executing daily functions. Unreliable expansion of Online business; Influence of international economic depression. Excellent opportunity of developing a brand name and thus higher economic development by supplying values to customers. Present international economic slowdown. Opening a business in the community. Legal & Regulatory Rules as well as laws will assist in improving company’s strategic plans. Lenient rules as well as regulations. Clients are more conscious of the rules and may have more trust. No fix/reliable rules for scams. Rules may or may not become more rigid. Internal Factors Strategy Efficient formulation & execution of plan It needs massive capital investment. Big modifications to get competitive advantage via Danger of failing is higher, in case it doesn't examine all Effective formulation & execution plan
  12. 12. Final Strategic Plan 12 is designed as the base for the company accomplishment. beneficial strategy. aspects of the company such as financial and growth. contributes in competitive position, share of the market & development. Structure A well developed design will boost performance, each division and every worker will know specifically what is expected from them. It will also contribute to swift decision making. Ineffective design can result in decline in expansion and developmental risks. Business will be able to watching its organization as well as operational services. In case important processes are ignored in that case it can lead to loss of business. Increasing tendency for organizational structure in customer service and sales. Systems/ Processes Successful and financially lasting processes can result in business expansion. Higher money requirement and regular requirement of training. Excellent chance for increasing company’s business and upgrading operational procedures. Prospective opposition from workers. Specific methods are on progress.
  13. 13. Final Strategic Plan 13 Core Competencies Rapid and responsive specialized services that is cost effective for clients. Huge competitive expansion from both small as well as big participants can result in swift loss of competitive advantage. Skills can be created and updated regularly. In case the rival can nullify competitive advantage. Market is expanding for organizations having a special competitive advantage. Introduction `SWOTT examination is a crucial systematic device utilized for evaluating the elements both external as well as internal which have an influence over the company. In existing business conditions firms use SWOTT to assess their market standing regarding share of the market, competitive edge as well as complete feasibility. SWOTT examination offers a company with upgraded information about its achieved and achievable weaknesses and strengths, possible opportunities, dangers as well as risks and business trends. The main elements of SWOTT examination can be split under the heads of external as well as internal elements. “A SWOTT (strengths, weaknesses, opportunities, threats and trends) analysis can help you identify and understand key issues affecting your business, but it does not necessarily offer solutions. You should be aware of the limitations as well as the benefits of a SWOT analysis before you decide to conduct one. Knowing what you can reasonably expect to achieve will make the SWOT analysis more useful for your business, and will save you time” (Benefits and Limitations of SWOTT analysis, 2013)
  14. 14. Final Strategic Plan 14 This paper describes an in depth evaluation of elements external as well as internal which can have an effect on the business of L’s Shoes. Because of this evaluation administration of L’s Shoes can evaluate the main elements which can influence the feasibility, establishing competitive advantage as well as stakeholders’ satisfaction for the company. External Environmental Analysis A lot of outer elements might have an influence over L’s Shoes ability to accomplish its objectives as well as goals. To be successful, L’s Shoes will need to find out an appropriate strategy which can maintain the business anticipations in the real situations and also to keep L’s Shoes expectation with the provisions exterior environment can provide. The exterior factors incorporate: legal as well as regulating elements, economic elements, sales strategy, and socio- cultural elements. Legal and Regulatory factors: “The legal and regulatory environment plays an important role in the success of innovation based economic development. The relative importance of taxes and regulations among other regional factors, such as availability of skilled workforce, is frequently overstated. Nevertheless, regional tax and regulatory burdens—real or perceived—can affect the location and resource allocation decisions of companies and should be accounted for in regional economic analysis” (Legal and regulatory environment, 2013). It is very important that L’s shoes have this in place accordingly so the business will not be in position to put the business at risk. Legal issues is a very delicate situation in the business world. L’s shoes will make sure that this will not happen and will chose the right strategy to keep everything in line. Although, it is a small business there is still a lot in stake and legal issues will be handled correctly.
  15. 15. Final Strategic Plan 15 Economic factors: The expansion as well as progress L’s Strategy business will also get influenced with the customer’s needs and styles that they like the most. But L’s Shoes will need to take into account that at present world economy is experiencing a downfall, market variability as well as downturn. The administration of the company can set strategies after watching the economical trend as well as economical tendency for the future. Socio-cultural factors: The exterior element, socio -culture of targeted audience also impacts the company. With changing styles and seasons and what the customer desires it is important that L’s Shoes provide that. Customer wants whatever that is in style available and affordable. L’s Shoes caters to this requirement of consumers by offering the latest shoe fashion for everyone at a good price and a company website which provides what they want. . Internal Environmental Analysis To get better understanding of the inner elements a comprehensive analysis is required of company’s design, key skills, systems Process, as well as strategies. Structure:
  16. 16. Final Strategic Plan 16 A shoe store business structure is usually the same as a retail store. It will include the department heads that ultimately control their area of responsibility. The department designations may include operations, finance, sales, marketing and human resources. Core competencies: Core competency of L’s shoes is related with a shoe store that the community will love and it will keep the history alive and give a little something back for the people to enjoy. As businesses are transforming greatly with differing market conditions L’s Shoes will have to continuously upgrade its core competencies in order to have competitive edge over the competitors. Systems process: The good point for L’s shoes is having good customer service and offering the latest shoe style in a manner that it will create higher profits and help with other business in the community. To accomplish this task company will need to receive products from the factory at a timely manner, skilled staff and is well qualified in customer service. L’s Shoes can use its procedures so it will benefit everyone. The company also requires introducing training and development programs for the workers so they can improve their skills and well knowledge in fashion. Strategies: The best strategy for L’s Shoes is a sales strategy. First L’s shoes should create sales plan that will all the sales and goals documented to stay on progress with everything. Having a sales goal that is specific and measureable based on the nature of the product. For example, selling
  17. 17. Final Strategic Plan 17 50 units in 30 days and sales activities which are the tactics on how to make the sale. The sales plan will include the target account which is how to reach the customers if it is through social media, the local restaurants or flyers in the neighborhood. It is also very important to set timelines to meet all the goals to the sales strategy. The company’s objective, perception, and value statements have a direct influence over the corporate and business strategies of the shoe store. The strategy will be productive for the company when the individual targets of workers are in line along with the general company objectives. L’s shoes will focus on the sales, customer service, and keeping their business for a long period of time. Conclusion For a good company it’s necessary to evaluate both its exterior as well as interior elements. L’s shoes goal is to maintain their success and keep their business going long term. It is necessary for the firms to appreciate that all these points are interconnected and can't be evaluated on individual basis. For example the exterior regulations and rules influence the interior organizational design as well as strategies. The assessments must be made from holistic point of view to get better outcomes as well as advantages. Additionally the significance of continuous evaluation of points must be understood since it helps to stay ready for suggested or sudden alternation in surroundings.
  18. 18. Final Strategic Plan 18 Appendix 1 SWOTT ANALYSIS TABLE Factors Strength Weakness Opportunity Threat Trend External Factors Economic Small sum of starting money is required; fewer funds are needed for executing daily functions. Unreliable expansion of Online business; Influence of international economic depression. Excellent opportunity of developing a brand name and thus higher economic development by supplying values to customers. Present international economic slowdown. Opening a business in the community. Legal & Regulatory Rules as well as laws will assist in improving company’s strategic plans. Lenient rules as well as regulations. Clients are more conscious of the rules and may have more trust. No fix/reliable rules for scams. Rules may or may not become more rigid. Internal Factors Strategy Efficient formulation & execution of plan It needs massive capital investment. Big modifications to get competitive advantage via Danger of failing is higher, in case it doesn't examine all Effective formulation & execution plan
  19. 19. Final Strategic Plan 19 is designed as the base for the company accomplishment. beneficial strategy. aspects of the company such as financial and growth. contributes in competitive position, share of the market & development. Structure A well developed design will boost performance, each division and every worker will know specifically what is expected from them. It will also contribute to swift decision making. Ineffective design can result in decline in expansion and developmental risks. Business will be able to watching its organization as well as operational services. In case important processes are ignored in that case it can lead to loss of business. Increasing tendency for organizational structure in customer service and sales. Systems/ Processes Successful and financially lasting processes can result in business expansion. Higher money requirement and regular requirement of training. Excellent chance for increasing company’s business and upgrading operational procedures. Prospective opposition from workers. Specific methods are on progress.
  20. 20. Final Strategic Plan 20 Core Competencies Rapid and responsive specialized services that is cost effective for clients. Huge competitive expansion from both small as well as big participants can result in swift loss of competitive advantage. Skills can be created and updated regularly. In case the rival can nullify competitive advantage. Market is expanding for organizations having a special competitive advantage. Strategic Plan, part III Introduction The paper relates to the methods which organizations use in creating as well as executing methods. Specifically this paper would discuss the method of balanced scorecard method which is extensively getting used by big as well as small companies. To elaborate the concept papers would cope with the use of the idea to the business design of an organization known as L’s Shoes. As soon as the organizations’ importance, objective, perception and profits are evaluated after that the strategic plan of balanced scorecard can be developed considering them. The document would also concentrate on the contingency planning, danger elimination and moral dimensions of the developed plans.
  21. 21. Final Strategic Plan 21 The Balance scorecard The BSC (balance scorecard) method can be shown as a method which evaluates the efficiency of the company through four main areas i.e. economical, client, inner business procedures and research and development. These four areas can be described keeping in consideration the organization’s objective, perception and value declaration as: 1) Financial L’s shoes would have to concentrate on developing a competitive edge for itself through allocation of correct adequate sources as well as through keeping a client database so as to decrease the element of danger by a mechanized process. The organization would concentrate on boosting its share of the market through diverse methods such as online promotions, advertisements on the local newspaper/magazines and local businesses. To be able to attain the 10% quarterly rate of growth organization will need to be creative in promoting the latest styles and offering things that other nearby shoe stores does not offer. 2) Customer
  22. 22. Final Strategic Plan 22 In any kind of business client is respected the most in the company and achieving client satisfaction is essential for any kind of company. Some of the L’s Shoes objectives would concentrate at: Strong customer relationship is essential for any kind of company success. L’s Shoes main priorities are their customers because they are ones who will keep the business going. The business will concentrate on building and maintaining solid relationships with its dedicated and prospective customers. This could be achieved by solid promotional customer rewards, promotions, and the local convenience. These methods would assist L’s Shoes in accomplishing its goal of 18% increase of customer base. 3) Internal business processes L’s Shoes can find out the functionality of its functions and procedures utilizing this scoreboard. Some of the main focus goals for the shoe store would be: In order to boost sales and enhance customer base the shoe stores would concentrate on upgrading its marketing methods by advertising in electronic as well as print media. Make more efficiency in the store. A way of doing this would be motivating workers to work more and provide more customer service skills. L’s Shoes would develop and create devices to evaluate and keep an eye on the workers efficiency. These devices could be a combination of fiscal as well as non fiscal structure of performance assessment. 4) Research and development
  23. 23. Final Strategic Plan 23 L’s shoes would launch employee incentive and growth programs so as to keep its valuable workers. The main focus of goal would be to keep the turnover ratio per annum below 7%. L’s shoes thinks that employee efficiency levels can be enhanced leading to accomplishment of overall organizational goals in case the objectives of people are achieved. The store will concentrate on devising SMART goals keeping equilibrium between organizational objectives with that of personal. Conclusion: In conclusion, before using the above described viewpoints L’s shoes would need to evaluate the consequences related to them for example moral viewpoints. They would also need to concentrate on creating a contingency or a backup plan. This would assist to reduce the danger involved with these alternatives. In case any of these flops organization would have a backup plan to reduce the probable damages. The best alternative to select would be which satisfy all dimensions i.e. overall organizational turnover, element of price and satisfaction for the clients and stakeholder profit. Final Strategic plan This part of the paper consists of adding to the paper the strategic and tactics toward implementing and realizing the strategic objectives, measures, and targets for the company. Then mentioned for paper three methods to monitor and control the company’s proposed strategic
  24. 24. Final Strategic Plan 24 plan. Last in paper recommended actions needed to address the ethical, legal, and regulatory issues facing the company and how to improve corporate citizenship within the company. When a company wants to reach the objectives and intents a plan needs reaching through short and long-term goals, and desired success. This sets the guidelines to accomplish a company’s purpose for one’s business. To reach those goals an organization needs to include the following in the strategic planning: 1.) Mission and vision statements 2.) Short and long-term goals and objectives 3.) Values 4.) Strategy External and internal analysis needs conducting before a strategic plan for the company becomes set. This analysis should include the following: External Analysis a.) Legal and Regulatory factors b.) Economic factors c.) Socio-cultural factors d.) Environmental Internal Analysis a.) Structure b.) SWOTT analysis (strengths, weaknesses, opportunities, threats, and trends) c.) Core competencies
  25. 25. Final Strategic Plan 25 d.) System process When a company needs to monitor and control the proposed strategic plan, first by making sure the vision statement becomes set, through creating advertisement schemes for the surrounding areas needs accomplishing. Also by putting up fliers in public areas such as local restaurants, gas stations, and laundry mats, to name a few may help in gaining new customers. Last by going online and creating a company web page this also may help in monitoring and controlling some aspects of the business strategic business plan. Next making sure the company’s mission is clearly understood and accepted by the company and public needs accomplishing by-weekly meetings for managers to discuss new plans created for the business and making sure everyone is focused on the customer needs. By monitoring and controlling next the company may create monthly meetings so as to maintain fresh new employee ideas that may help to gain public awareness for the company. Last the company employees and managers need to remember the customer comes first in any decision made by the business. The strategic plan for the business needed timelines handled, this requires weekly meetings held to discuss new products, and conducting by-monthly meetings to communicate to the employees any new changes made toward the company by the head of the business. L’s shoes will make sure that the company will be strategically prepared in sales so the company know where is at all times. Having a sales goal that is specific and measurable will keep things organized and intact. It is very important that employees are aware of the businesses
  26. 26. Final Strategic Plan 26 objectives. L’s shoes main focus is to meet the customer needs by building long lasting relationship and be financially successful in the community. References (2013). Retrieved from Develop strategic plan : http://www.ustyleit.com/Strategic_Planning.htm (2013). Retrieved from The community tool box: http://ctb.ku.edu/en/tablecontents/sub_section_main_1086.aspx

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