Running head: RISK ASSESMENT AND MILESTONE 1
RISK ASSESMENT AND MILESTONE
4
Risk assessment, milestone and contingency plans
Floyd Cooper III
MGT – 660
Dr. T
09-24-2014
Risk assessment
Risk assessment process describes the various techniques of determining the risks that Microsoft project faces from project start-up. The severity/impact and frequency of attack forms the basis of risk assessment. The understanding of the risks helps to device contingency plans and other risk prevention and mitigation mechanisms. Major risks facing the project includes price of resources fluctuation due to inflation, insufficient finance, failure of project completion on time and inadequate skilled work force. Microsoft has developed contingency plans to shield itself from the above risks.
Milestone schedule
Typically, the completion of activities in any project involves a stage-by-stage process known as milestone. The developmental process of Microsoft’s windows version 8.1 involves a sequential process as outlined below.
Project milestone
Microsoft Windows 8.1 Milestone Schedule
YEAR 2014/2015 (MONTHS)
ACTIVITIES
SEPT
OCT
NOV
DEC
JAV
FEB
APR
MAY
JUN
JUL
AUG
SEPT
Windows 8.1 initiation
Windows 8.1 development planning
Windows 8.1 requirement analysis
Windows 8.1 design
Windows 8.1 development planning
Windows 8.1 integration and testing
Windows 8.1 implementation
Windows 8.1 operation and maintenance
Windows 8.1 Evaluation
launching the windows 8.1
TOTAL DURATION
Contingency plans
Almost all the projects experience some deviations in time, cost and resources (Caron, 2013). The deviations may impede the project in terms of completion time. The Microsoft project manager has developed several measures in case the project does not go on as planned. They includes developing a contingency budget, procuring extra system development resources to cater for normal and abnormal losses, beginning as many activities as possible simultaneously to ensure project completion on time and conducting a proper risk assessment analysis.
Reference
Caron, F. (2013). Project Risk Analysis. In Managing the Continuum: Certainty, Uncertainty, Unpredictability in Large Engineering Projects (pp. 57-65). Springer Milan.
Financial Plan1
Financial Plan2
Financial Plan
Floyd Cooper III
MGT-660
09-17-2014
Microsoft Inc. financial plan
Overview
With the headquarters in Redmond Washington, Microsoft is a multinational company that manufactures, develops, supports licenses and sells computer software, personal computer, consumer electronics and services.
Mission
The organization mission and values is to aid people and businesses through the world recognize their full potential. We exist to maintain and attract customers. When we observe this maxim, the rest will fall into the right.
Hybridoma Technology ( Production , Purification , and Application )
Running head RISK ASSESMENT AND MILESTONE .docx
1. Running head: RISK ASSESMENT AND MILESTONE
1
RISK ASSESMENT AND MILESTONE
4
Risk assessment, milestone and contingency plans
Floyd Cooper III
MGT – 660
Dr. T
09-24-2014
Risk assessment
Risk assessment process describes the various techniques of
determining the risks that Microsoft project faces from project
start-up. The severity/impact and frequency of attack forms the
basis of risk assessment. The understanding of the risks helps to
device contingency plans and other risk prevention and
mitigation mechanisms. Major risks facing the project includes
price of resources fluctuation due to inflation, insufficient
finance, failure of project completion on time and inadequate
skilled work force. Microsoft has developed contingency plans
to shield itself from the above risks.
Milestone schedule
Typically, the completion of activities in any project involves a
stage-by-stage process known as milestone. The developmental
process of Microsoft’s windows version 8.1 involves a
sequential process as outlined below.
Project milestone
Microsoft Windows 8.1 Milestone Schedule
YEAR 2014/2015 (MONTHS)
6. TOTAL DURATION
Contingency plans
Almost all the projects experience some deviations in time, cost
and resources (Caron, 2013). The deviations may impede the
project in terms of completion time. The Microsoft project
manager has developed several measures in case the project
does not go on as planned. They includes developing a
contingency budget, procuring extra system development
resources to cater for normal and abnormal losses, beginning as
many activities as possible simultaneously to ensure project
completion on time and conducting a proper risk assessment
analysis.
Reference
Caron, F. (2013). Project Risk Analysis. In Managing the
Continuum: Certainty, Uncertainty, Unpredictability in Large
Engineering Projects (pp. 57-65). Springer Milan.
Financial Plan1
Financial Plan2
7. Financial Plan
Floyd Cooper III
MGT-660
09-17-2014
Microsoft Inc. financial plan
Overview
With the headquarters in Redmond Washington, Microsoft is a
multinational company that manufactures, develops, supports
licenses and sells computer software, personal computer,
consumer electronics and services.
Mission
The organization mission and values is to aid people and
businesses through the world recognize their full potential. We
exist to maintain and attract customers. When we observe this
maxim, the rest will fall into the right place (Wallace et al,
1993). Our services will surpass our customers’ expectations.
The objectives
The Microsoft objectives for the projected three operational
years is to develop a reliable financial management system that
produces value for their customers, to increase the revenue by
five percent each year and to cut down on the recurrent business
expenditure.
Sources of finance
8. For the purpose of investment, Microsoft operation will be
financed by various sources. The major source of investment
finance is loan from banks. This will contribute about 60
percent of cash required. The friends and family will contribute
about30 percent and the remaining 10 percent will come from
SSBA.
Marketing strategy
The financial information will enable the business develop
investor confidence (Keown et al, 2011). The trust between the
company and the investor is essential for generating the
sufficient cash required to sustain the business strategic
investment. The company is strategizing on becoming the
technology market leader as evidenced by the recent launch of
Windows 8. The investor’s cash injected to support this
strategic investment decision is projected to be recovered fully
in the 3 years of operation.
Financial performance ratio
To measure the financial performance, the company will apply a
number of ratios. Liquidity Ratios will be applied to measure
the company’s ability to meet its short-term growing financial
obligation as and when they fall due (Brigham et al, 2012).
These ratios include the quick ratio, current ratio, net working
capital ratio and cash ratio. Turnover ratio will be applied to
measure the efficiency with which the company will utilize the
asset or the fund it has to generate turnover.an example of such
ratios is the inventory turnover ratio and the account receivable
turnover ratio.
PRO- FORMA INCOME STATEMENT
Microsoft Inc.3 year Pro-forma income statement
From 2014 through 2016
Year
2014
2015
2016
9. $
$
$
Revenues
62482
68960
72560
Operating expenses
cost of revenue
12395
12750
12840
fixed cost
20714
20888
20943
Sales and marketing
13340
13340
13589
General and administrative
2014
4070
4100
Goodwill impaired
400
0
0
Total operating expenses
48863
51048
51472
Operating income
10. 13619
17912
21088
Provision for income taxes
3234.513
4254.1
5008.4
Net income
10384.49
13657.9
16079.6
BREAK-EVEN POINT ANALYSIS
Break-even point = (fixed cost/contribution) for the three years
Where; contribution = selling price per unit-variable expenses
(in our case = average revenues -3 year average costs)
average fixed cost =
20848.33
average contribution =
133.74
BEP = $
155.8871
11. References
Brigham, E., & Daves, P. (2012). Intermediate financial
management. Cengage Learning.
Keown, A. J., Martin, J. D., Petty, J. W., & Scott, D. F. (2011).
Financial management: Principles and applications. Prentice
Hall.
Wallace, J., & Erickson, J. (1993). Hard drive: Bill Gates and
the making of the Microsoft empire. Harper Business.
MICROSOFT OPERATION PLAN1
MICROSOFT OPERATION PLAN4
Microsoft Operation Plan
Floyd Cooper III
MGT – 660 Strategic Management
Dr. T
12. September 10, 2014
Microsoft Operation Plan
Microsoft Supply Chain
Microsoft Corporation purchases its products and services from
different business enterprises at a very high competitive price.
To bring value in this supply chain, The Company requires that
the suppliers provide reports indicating how they adhere to the
standards that are outlined in its vendor’s code of conduct
(Zambelli, 2013). This code of conduct sets business ethics
standards, legal compliance, human rights and labor standards,
intellectual property respect and environmental protection. This
makes the company to be successful in getting benefits like
reduced environmental impact risk and reduced cost from its
supply chain.
Partners and Suppliers
The company has several partners and suppliers. In early 2014,
Intergen was recognized as an outstanding contributor as a
supplier of Microsoft corporation. Intergen has its plants in the
UK, Netherlands, Australia and Mexico. Main partners include
BT Engage IT located in the UK and Certified Security
Solution
s based in Kirkland which receives 35% of its revenues from
Microsoft ( Zambelli, 2013).
Operational Contingency Plan
Microsoft should plan for future growth by planning for risks of
the business. The company needs to keep copies of its disaster
recovery plans both at off-site and on-site locations. The key
13. personnel of the company should also keep a copy of important
data at home. Things to consider include the data that require
back up, configuration information to critical computers and
necessary training to administrators and operators at the
company (Boyson, 2014).
Optimizing Operational Effectiveness
To optimize the operational effectiveness, Microsoft will use its
infrastructure services to empower the company and create a
dynamic workplace. The company will use its competent team
and other assets to provide an end-to-end design, high quality
and delivery of solutions. To ensure the firm is lean, the firm
will use value streaming and also conduct continuous planning
and improvements of processes. Value stream mapping will
enable the company to understand its processes and measure the
value-added or waste in these processes (Heizer, 2014).
Continuous improvements will enable the company to optimize
solutions, goals and needs of all the stakeholders
14. References
Boyson, S. (2014). Cyber supply chain risk management:
Revolutionizing the strategic control of critical IT systems.
Technovation, 34(7), 342-353.
Heizer, J. H., & Render, B. (2014). Principles of Operations
Management: Sustainability and Supply Chain Management.
Prentice Hall.
Zambelli, A. (2013). IIS Smooth Streaming Technical
Overview, Microsoft Corporation, Mar. 2009.
Running head: SOUTHWEST’S STRATEGIC MANAGEMENT1
SOUTHWEST’S STRATEGIC MANAGEMENT6
15. Southwest's Strategic management
Name
Course
Tutor
Date
The management team will comprise the Chief Executive
Officer, the Chief Financial Officer, the Chief Operating
Officer, Culture and Communications, Strategy and Planning,
Administration and Human Resources, a Procurement officer , a
Marketing Manager, Customer Service, Operations, legal, Chief
Technology officer, Chief Information Officer and Directors.
The CEO will be a highly innovative person with good
leadership abilities. He or she will also require having the
16. ability to make strategic decision and be a risk taker. The chief
Financial Officer should have good financial planning sills and
the ability to control finances. The chief operating officer will
be required to be a good co-coordinator of operations. He or she
must possess good management skills. The culture and
communications officer will need to have good inter-personal
skills and be effective in maintaining good customer
relationships (Freeman, 2010).
The strategy and planning manager should be a good decision
maker and innovative. The administration and human resources
manager will require good management skills. They will require
good change management skills and be very competent. The
marketing officer will be in charge of the marketing department.
He or she will require strong interpersonal and communication
skills and also have the ability to influence. The customer
service officer will require good interpersonal skills to enable
him or her handle consumer cases. Procurement will need a
person with good management skills, be persuasive, have good
communication skills and be able to influence. The operations
officer will require having sound judgment, strong interpersonal
skills and high integrity. The legal officer will require having
adequate knowledge of the law and good communication skills.
The chief technology officer will require strong technical skills.
The chief information officer will require good interpersonal
skills and communication skills. Finally, the directors will be
17. required to have adequate governance knowledge, interactive
sills and very competent in the industry (Dess, 2006).
SOUTHWEST ORGANIZATIONAL STRUCTURE
(
Chief Operating Officer
) (
Chief Financial Officer
) (
CEO
)
(
Culture and Communications
)
(
Strategy and Planning
)
(
Administration and Human Resources
)
(
Marketing
)
19. McKinsey 7-S model
The model examines how seven key variables relate. The key
variables include strategy, systems, structure, style, shared
values, staff and skills. These variables must be aligned for the
organization to be effective. If the variables are misaligned, this
represents performance deficiencies of the organization (Van
Waveren, 2002). To examine the effectiveness of southwest
airlines, the following is an exploration of the key variables.
Strategy
This is the overall plan of creating and maintaining a
competitive advantage. It also refers to actionable items
implemented by an organization for the purpose of achieving
the objectives. Southwest aims are changing with the changes as
the world evolves. Its departments are driven by service of high
levels, efficient processes and high performance expectations.
The company is also committed to the development of
employees by maintaining a growth and development
environment. Southwest is also centered on transparency,
prudence and accountability. It is therefore clear that the
company’s strategy has positioned it well in the airlines
industry allowing pursuit to its long term goals and objectives.
Structure
20. As indicated in the above organizational charts, the company’s
authority rests with functional heads. The company has a chief
executive officer assisted by the Chief Operating Officer, the
Chief Financial Officer and the Chief Technical Officer and
chief information officer. These help the CEO to make strategic
decisions.
Systems
These are inner workings supporting the structure and the
strategy of the organization. In southwest airlines, they include
the HR system, financial system and technical system. These are
all in good place and constantly monitored by the company’s
command center.
Shared values
These are values and beliefs of the company. Southwest’s
shared values include a free and friendly culture, casual dress
code, has a code of ethics and fundamental values. The company
is also driven by innovativeness and creativity that improves its
performance.
Style
This is defined by the culture and norms of the business (Van
Waveren, 2002). Southwest company is centralized, hierarchical
and directive. Teamwork exists in the company’s management
21. team and other employees.
Staff
The company has staff that differs in gender, abilities, ethnicity
and age. This allows the organizational to have diversity that
enables the company to be very competitive.
Skills
The company has very strong skills in the airlines industry
giving them the ability to offer very good airlines services.
Skills are also monitored constantly and the team members
performing well are rewarded in terms of pay rise or promotion.
Business-level strategy and how it fits with the corporate-level
strategy.
Business level strategies refer to the decision that the company
makes to create, maintain and use its competitive strategies
(Thompson, 2001). The corporate level strategies are
opportunities that arise outside the industry of the company.
The corporate-level strategies fit into the business- level
strategy by contributing to its profitability, efficiency, and
competitive advantage of the company.
References
Freeman, R. E. (2010). Strategic management: A stakeholder
approach. Cambridge University Press.
Thompson, J. L. (2001). Strategic management. Thompson
Learning.
22. Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2006). Strategic
management: text and cases. Richard d Irwin.
Marketing Plan for the Capstone Project
1
Marketing Plan for the Capstone Project
Floyd Cooper III
Grand Canyon University
08/27/2014
Selected company: Microsoft
Target market
This is a group of consumers that a business organization
directs its marketing efforts. A target market that is well
defined is among the most fundamental parts of a successful
marketing strategy.
Microsoft Inc has various target markets for its products and the
23. most targeted consumers are young adults. After clearing
college, young people go through various changes in their lives.
Some look for jobs, others want to get married while others plan
to buy their own homes. Throughout all these changes, the
young adults always want to be connected to media and
technology. Microsoft saw that this is a perfect opportunity to
avail its products to the youth. The company has provided
different software that can be used on various devices to keep
the youth connected. Apart from young people, the company’s
target market also includes businesses. The company provides
various computer programs that businesses and offices can use
in running their daily operations.
Size of potential target market
The potential target market basically refers to all customers that
a business organization has the potential or reaching. The size
of this market is virtual; it is not limited because depending on
the efforts that the company puts in, its target market can cover
the whole universe. But due to the different limits and
constraints that exist in the market, it is not practical for a
company to have the entire universe as its target market,
instead, those customers that are likely to consume its products
form the potential size of the target market.
24. Having Microsoft Corporation in mind, it is important to realize
that the company engages in the production of personal
computers, software and related products. This implies that the
size of the potential target market of Microsoft is actual the
segment of the market that is likely to demand Microsoft’s
products. With relevant strategies and efforts, the company is
able to reach its potential target market.
As stated earlier, young adults are among the primary targets of
Microsoft. Basically all young people who need to use computer
software are potentially target markets for Microsoft. But not
all young adults consume Microsoft’s products due to the
existence of competitors and other factors, but with proper
marketing plan in place, the company can reach them.
Businesses are also potentially Microsoft’s targets. The
company produces products that can be consumed by these
businesses. This implies that the company has the potential of
having all businesses consume its products. The size of the
potential target market of a company basically refers to the total
consumers that the company could influence had there been no
competitors as well as other factors.
4 p’s of marketing.
Product
25. Just like any other business organization, Microsoft too has it’s
products which are subject to similar conditions like products of
other companies. Microsoft’s products include windows
operating system, office suite, and consumer electronics among
others. These are the goods and services that the company offers
to its consumers. The company realized that there is demand for
the products and that that is why they are available to
consumers to meet their demands. There are various ways
through which marketers can ensure that the company realizes
maximum returns. This can be achieved by expanding the
product mix of the existing products by either increasing the
depth of the product line increasing the quantity of product
lines. It is upon the responsibility of marketers to make sure
that the product is well positioned and the brand is exploited.
Pricing
Price in simple terms refers to the quantity that needs to be paid
by a customer in order to acquire a product. The pricing
strategy of a company is very crucial given the idea that it
determines the company’s profitability. In some cases, It may
be necessary for a business organization to adjust its prices
depending on various factors. Microsoft prices its products
26. competitively but this depends on both internal and external
factors. Among the factors that affect Microsoft’s pricing is the
production cost. This is directly related to the price at which
products will be charged. The demand of the products in the
market comes in as a factor that determines how much
consumers will pay for products. Prices at which competitors
sell their products also have a say in this. While pricing, the
company should have its interests as well as the interests of
consumers in mind. The price should be high enough for the
company to make sufficient returns. It should also be low
enough for consumers to comfortably afford.
Promotion
Promotion refers to all techniques that a marketer uses to
communicate to the market about a particular product.
Microsoft’s marketing team uses various methods to provide
information about the products of the company. One of the
methods is advertisements; this is done on various platforms
that include the following: Internet, television, radio, print
media among others. Promotion also takes the form of public
relations whereby forums are organization and the company
engages the public by informing them about their products.
Sales promotions also are used here. In some cases, sales people
move from one place to another with the aim of promoting the
27. products of the company. In order to come up with the most
effect way of promotion, the company must consider the kind of
product being sold as well as its ability to reach the consumer.
Placement
Placement or distribution is concerned with availing the product
where customers can access conveniently. In order to achieve
this goal, Microsoft applies various strategies such as
franchising, selective distribution, intensive distribution and
exclusive distribution. The method depends on how easy it is
for a customer to access the product. Placement is an important
component of marketing because it enables a firm to know
where to find products for its consumers. Through placement,
products are availed at the most strategic places where they can
easily be reached by consumers.
References
George, S. (2013). Science in marketing. New York: John Wiley
and Sons
Keller, P. (2006). Marketing and Management. Upper Saddle
River, NJ: Pearson Prentice Hall
Philip, K. (2012). Marketing Management. Upper Saddle River,
NJ: Pearson Education
Luis, R. (2008). Management: People, Performance, Change,
28. 3rd (ed). New York: McGraw-Hill
Environmental Analysis 1
Floyd Cooper III
Dr. T
Grand Canyon University
MGT 660
08/21/2014
29. Question
Environmental
And Industry Analysis Review "MGT-660 Capstone Project
Overview "Based on the organization you selected in Module 1,
use the following guidelines to write an environmental analysis
and an industry analysis of 350-500 words:
1.
Using the GCU library or other external credible sources, resear
ch the segments of the general
environment to write the environmental analysis of your Capsto
ne Project.
2.
Incorporate the five forces of competition to help write the indu
stry analysis of your Capstone
Project.
3.
If you are entering global or international markets, use the CAG
E model (see "Distance Still
Matters: CAGE Distance Framework") to help you write the ind
ustry analysis of your Capstone
Project.
30. 4.
What do you see as being the trends, outlook, or forecast for the
type of organization that you are
writing about in your Capstone Project?
Prepare this assignment according to the APA guidelines found
in the APA Style Guide, located in the Student Success Center.
An abstract is not required.
Environmental Analysis
The professional Training service institutes train medical staff
and certify medical practitioners around the world. Present job
market is tough. Sometimes we found the most qualified person
with the most education in the field but still not get hired for a
good job because businesses are not hiring or that person lacks
in having enough experience. Sometimes recruiter find the
person that can be considered over qualified for a job and that is
the reason they don’t get hired for their proper job. While it is
common thought that medical field is always hiring. Most
vacancies are there for the medical laboratory technician and
31. medical technologist. A recent research showed that at least
70% of all medical decisions rely on some sort of other
practitioners like nurses, lab technicians etc. By adopting
medical field, professionals play a huge role in the processing
and analysis of medical results. Every Medicare, hospital or
Medical Treatment Center has a pool of all kind of medical
experts for when tests need to be drawn and analyzed. Everyone
does not run every single test that is needed, so the tests get
sent to other practitioners for analyzing. That costs money for
that lab for outsourcing but sometimes the test just can’t be
performed.
Medical experts try each day; by running the simple, day-to-day
tests on blood, tissues, body fluids, and other samples with
high-tech equipment in laboratory. Some state laws require
Medical Laboratory Technicians to be licensed or registered so
that to preserve its citizens against fakes persons. Information
on licensure can be obtained from state departments of health or
boards of occupational licensing. Certification: Many employers
prefer to recruit applicants who are certified by a recognized
professional association, such as the American Medical
Technologists. while recruitment process employer seek
Medical Laboratory Technicians with good analytical judgment
and the ability to work under pressure. Close attention for each
small detail is also essential for Medical Laboratory
Technicians because small differences or changes in test
32. substances or numerical readouts can be crucial to a diagnosis
and health of ill patients. Manual dexterity and normal color
vision are highly needed for due care, and with the widespread
use of automated laboratory equipment, computer skills are
important for lab workers. Laboratory Technicians in medical
field can be advance and become technologists through
additional education and experience. Technologists may be
promoted to supervisory positions in laboratory work or may
become chief technologists or managers in hospital lab. Home
diagnostic testing kits manufacturers and laboratory equipment
and supplies also search for experienced technologists to work
in product development, marketing, and sales. Professional
certification, specialization and/or a graduate degree in medical
technology, one of the biological sciences, chemistry,
management, or education usually speeds advancement.
Approximately annual wage of medical laboratory technicians
was $36,280 in May 2011. The lowest 10 percent earned more
than $24,210, and the highest 10 percent earned more than
$56,040. In short we can say that, salaries are higher in a
hospital setting than in physician offices .
According to the AACN (2008), nursing field has been
identified for making the biggest impact on a transformation of
health care delivery to a safer, higher quality, and more cost-
effective health system. By increasing awareness for need of
change in the healthcare system, nursing has recognized the
33. need to educate future professionals to deliver patient-centered
care as members of an inter professional team, emphasizing
evidence-based practice, quality improvement approaches, and
informatics. Health profession schools are required to mandate
external community issues when addressing curricular issues
(AACN).
There is an higher rate of chronic illness presence that results in
an increasingly older adult population. Environmental threats,
lifestyles which increase the risk of disease, and enhanced
technological and therapeutic interventions which prolong life
all put a strong impact the nursing profession according to the
report of (AACN, 2008). Such external factors directly
influenced on how nurses will provide care and it is this
writer’s belief that the curriculum for health profession schools
has a responsibility to reflect this in order to increase
globalization of healthcare to meet the needs of the nation’s
diverse population in present age.
34. References
Lab Manager: Run Your Lab Like a Business. August 31, 2007.
The Lab Manager Salary and Budget Survey.Retrieved from
http://www.labmanager.com/leadership-and-
staffing/2007/08/the-lab-manager-salary-and-budget-survey
Academic Invest: Open Doors for Students, n.d.How to Become
a Laboratory Manager - Laboratory Manager Career.Retrieved
from http://www.academicinvest.com/science-
careers/chemistry-careers/how-to-become-a-laboratory-manager
American Association of Colleges of Nursing (AACN). 2008.
The essentials of baccalaureate education for professional
nursing practice. Retrieved from
http://www.aacn.nche.edu/Education/nurse_ed/BSNArticle.htm
AMT: 75 Years of Certifying Excellence, 2013. Retrieved from
http://www.americanmedtech.org/Certification/MedicalTechnol
ogist.aspx
ASCP, 2014.Career Center.Retrieved from
http://www.ascp.org/functional-nav/career-center
35. GoArmy, n.d.Careers & Jobs.Retrieved from
http://www.goarmy.com/careers-and-jobs/amedd-
categories/medical-service-corps-jobs/clinical-laboratory-
scientist.html
Introduction
This project deals with applying the principles of strategic
management to real life situations. This paper will help in
understanding the nature of the organization, its mission,
vision, goals, strategies, strengths, weaknesses, the
opportunities available and the threats imposed by the business
environment.
About the company
The company, XYZ Inc. is a medium sized chain of luxury
hotels which provides the services of bed and breakfast as well
as a wide variety of ancillary services like spa, swimming pool,
business centers, etc equivalent to a four star hotel. The first
hotel was established in Manhattan two years back. The first
year was a start up year which faced heavy losses. However, the
second year saw a zestful increase in profits and from then on
there is no looking back.
36. Vision and Mission of XYZ Inc.
The company's long term vision is to open a 100 and more
restaurants across the United States and expand to make its
presence felt across the world. The mission of the company is to
provide high quality restaurant service, a wonderful food
experience to its customers. The company has to maintain a
level of brand standards and adhere to the same continuously.
The customer satisfaction is the most important aspect in this
industry and that needs to be achieved.
Strategy of XYZ Inc.
The company can achieve the vision and mission by following a
combination of different strategies. Initially, the company will
follow Michael Porter's low cost strategy. In this case, the
company looks at providing good quality food at low costs. This
will ensure penetrative pricing also. Hence, it will attract more
customers in the beginning. Once the company has sustained
itself for four to five years, it will look at the second strategy of
differentiation. The company will start providing additional
quality services as well as classic signature dishes on its menu
to enable it to differentiate itself from its competitors. This, as
rightly suggested by Porter, entails a higher cost than the
37. previous strategy. That is the reason why this is required to be
implemented only when the company is stabilized and earning
profits.
Sources of competitive advantage
The company was the first to introduce an iPad based menu card
and ordering system which is directly connected to the kitchen.
Hence, the guests can directly place orders. This reduces the
need for people waiting at the table. For the first time in the
history of the world, robots are going to be used in the kitchen
to ensure precision and quality. One needs to test it thoroughly
before implementation.
Business opportunities
The business opportunities available are plentiful. Hotel
industry is a growing market with many new players and new
strategies coming in. Tourism has increased by leaps and
bounds and many people resort to holidays to reduce their stress
levels. Hence it is up to the company to tap such business
opportunities available.