NOTE: Bullet points/contents (Word Doc entitled “Use This to Write The Report) have been prepared already for the below assignment. Just need the expert to edit and convert it to a professional na
ative report better than the given 2 samples.
Strategy Plan Overview Assignment
Use the following as a guide to set out your group’s corporate strategy and sub-strategies. For each section you are required to enter:
· What is your strategy?
· Why you have decided on this strategy?
· How you are going to implement it? That is what are the decisions you will enter to achieve this strategy? – Must relate to the BSB Game decision making parameters.
Refer to Lecture 1, 2 and 3 - Strategy and the BSG
The final document should be approximately 2 pages in length.
Corporate Strategy
What is your overall strategy?
Marketing and Competitive Strategy
How are you going to meet customer needs in a competitive environment?
Operational Strategy
How are you going to make the right quality shoe in the right place, delivered in the right time?
Human Resource Strategy
How are you going to maximise the efficiency of your workers?
Finance Strategy
How are you going to fund the company?
Investor Strategy
What is your dividend policy?
Please note that it is critical that that this assessment is completed as this document is, in effect, an implementation plan which will inform your decisions in the Business Strategy Game.
SAMPLE STRATEGY DOCUMENT
SAMPLE STRATEGY
DOCUMENT
Sample B Company – Your company name
(Make sure the name of your company starts
with the Group Letter assigned to you).
This document is prepared by the management to present the outline of B company new
strategy under the headings of Finance, Operation, Marketing, Human Resource
Management.
11
11
CORPORATE STRATEGY:
B company is operating in four regions from last 10 years, now the new strategy for operations is that company will
follow the cost leadership strategy. Company will sell shoes at the lower price to penetrate into the market. Until
year 10 every company have same market share but now to attract customers and gain more market share we set
the low price. A new plant will construct and existing plant will be updated. This year will be the growth year for
company and we need a lot of finance to support major investments.
OPERATIONAL STRATEGY:
B shoes will produce 6 star quality shoes. To produce this medium level of shoes we need to increase the superior
material, TQM Cost as well. Styling and features cost will be increased to keep products up to dated.
There are two production houses one is North America and second is Asia Pacific. Both plants will distribute shoes
to other regions.
In year 11 we will update the assembly line of both plants which will reduce 50% rejection rate. 15 million is
equired to upgrade the plants.
In year 11 we will also construct a new plant in Europe Africa which will have the capacity of 1.5 million shoes. This
construction will take one year to develop and company will have the benefit that its cost of tariff and transport will
e eliminated to Europe Africa. Another factor is that in coming years when market will grow at 5% - 7% globally
(figure from BSG) this plant will help to counter the demand issue. This new plant will require 75 million dollar.
First we will make
anded shoes and if there is any capacity available we sell shoes to private label market and we
will produce shoes at the minimum global s/q rating.
MARKETING STRATEGY:
We will offer 6 star quality shoes and 200 models in all regions by using all available retailers. We will also support
our retailers in terms of outlet advertisement by giving them 400 dollar for each outlet. We will deliver shoes to
etailers in three weeks time. For year 11 we will keep the same budget for advertisement as in year 10. We will
also offer mail-in rebate to our customers. For internet market we will offer free shipping to customers and we will
offer all the models online. We will not bid for cele
ity in year 11 but later on company could bid, if we increased
the quality of shoes.
STRATEGY DOCUMENT
FINANCE STRATEGY:
As we have explained earlier that company will need 85 million dollar for plant upgrade and new plant. Out of 85
million dollar we will a
ange 50 million dollar by share issue and 35 million dollar by loan. Loan has been taken for
10 year at the rate of 7.2% per annum. We have 5 million dollar cash in hand which may be enough for operations
ut if we need cash we will a
ange it from short term loan i.e. for 1 year. We will not repurchase any share in year
11.
In year 11 our company will refinance the old loan and took a new loan. First loan is at the interest rate of 8.5% but
if refinance we will get a new loan at 7.2% which means that we will save 1.3% interest per annum. So we decided
to save cost in long term and refinance the old loan.
HUMAN RESOURCE STRATEGY:
We have to manage cash in year 11 so company will not increase the base wage in year 11. Also incentive pay will
e given but we will decrease the rate as in year 10 rate of incentives was too high. We will give best practice
training to our workers in both regions.
INVESTORS STRATEGY:
We will give dividend every year to shareholders. Amount of dividend will vary each year depend upon profit and
cash in hand. We will invest in workers diversity program and ethical training program which will cost us 1.05
million dollar and help to increase the image rating.
STRATEGY DOCUMENT
Corporate Strategy
Overall corporate strategy of the organization is quite significant to enhance organizational performance and achieve organizational goals. In this ambit, I Company will focus on employing cost leadership strategy. By employing cost leadership strategy, I Company will reduce costs by focusing on increasing the efficiency or productivity of workforce. By doing this, I Company will reduce the prices of products to ensure better penetration in the footwear market in order to take competitive advantage over rivals in the industry. Investments in new plants will not be made rather updating existing plants will be a key area of focus of I Company.
Marketing and Competitive Strategy
Overall marketing budget of the I Company will be increased year by year with fixed percentage. Cele
ity endorsements will be made in the year 12 and 13. Customer satisfaction will be the key area of concern of the I Company in this ambit. Rebates will be offered to the end customers and local distributors or retailers in order to increase the customer base. Expenditure on advertisement of products will be increased significantly year by year and pricing will be considered every year for any amendments. Cost benefit analysis will be performed by taking services of the independent analyst. Delivery time will be focused more and it will be reduced significantly. Free shipment will be offered to the customers who place orders online to buy the products of the I Company. This will increase the margin of internet sales of the organization.
Operational Strategy
Operational strategy is also an important aspect which paves away in the success of the business organization. It results in delivering the right product (i.e. product exactly the same as required by the customer) at the right time. I Company will focusing on taking services of independent auditors to review the overall operations and systems of the organization in order to identify the deficiencies which exist in the operations of the business and deliver a system review report to give their recommendations. I Company will then implement those recommendations to improve the overall operations of the company in much better way. Styling features and compliance with quality rating will also be considered as important to deliver the best quality products to the customers. In order to enhance the operations, I Company will make investments in the emerging markets and increase its marketing staff to penetrate in the emerging markets in a much better way. Overhauling of the existing plants will be made every year with sole purpose to increase the efficiency of those plants.
Human Resource Strategy
With sole purpose to increase the efficiency of workers, base wage will be increased by 1% every year and incentives will also be provided to the workers which will be increased from year to year. Also, expenditure on best practice training of the workforce will be increased which will automatically affect the quality of the products and increase the efficiency of the workers in the best possible way. Along with other incentives, performance based bonus will also be provided in the year 12 to enhance the satisfaction of employees.
Finance Strategy
Financing is quite important for every business. Finance strategy of the I Company will be to reduce the cash outflows and increase cash inflows as much as possible to maintain a desired level of cash for investments. Expenditure on best practice training of employees will be made which will increase the productivity of workers by 30% and ultimately reduce the labor costs. This will improve profitability of an entity. Expenditure on best practice training and investments to increase operations in other regions will take around 5 Million and this will be covered by taking a five years bank loan. New stocks will also be issued in the year 13.
Investor Strategy
Dividend will be paid to the shareholders every year but this will entirely depend on the cash flow and profitability of an entity. I Company will focus on improving the earnings per share in order to comply with investor expectations and improve the image rating of the company in the market and in the perspective of investors. I Company will focus on using energy efficient resources which will ultimately increase the profitability of the organization and improve image rating.
COPMANY NAME: A SHOE COMPANY
Corporate Strategy
What is your overall strategy?
· Focused low-cost strategy
· We are going to craft regional strategies and tailor-made it to compete in each region
· Focus on profit growth per region by optimizing S/Q , number of models and price
Marketing and Competitive Strategy
How are you going to meet customer needs in a competitive environment?
· Cele
ity endorsement (at least place a bid for 2 cele
ities)
· Study carefully each region’s demand and design activities with the retailers and online to meet those needs
· Attract new customers by having seasonal offers (cele
ate athletes foot day)
· Have models to suit the market where we are