Normandia Strategic Framework
When it comes to competitive advantage, this is everything that makes Normandia Inc.’s sensors better than the rest, better than the competition and more efficient. According to Kimberly Amadeo, (2018) “a company must create clear goals, strategies, and operations to build sustainable competitive advantage”. Therefore, it is important to perform a SWOT analysis, a PESTLE Analysis and a GAP analysis off of all of the previous years of data.
SWOT Analysis
As management and leaders here at Normandia Inc., it is important to formulate a SWOT Analysis on our sensors for the Capsim Core Simulation. The easiest way to get around all this is by creating a SWOT Analysis which stands for strengths, weaknesses, opportunities, and threats. What is the company suffering from, what is it soring away at, what’s its struggling with and what sort of opportunities may arise. Various strengths and weaknesses were seen across the board starting with the first strength being, the labor costs in the production department were down to $8.90 which put Normandia Inc. in third place over other competitors. Another strength being the good inventory that was kept on hand at 648 units. If there is enough in stock, Normandia Inc. will be able to provide the best service to its customers by being quick and efficient. When looking at the High-Level Overview, the biggest weakness compared to all competitors, was that Normandia Inc. still had to take out an emergency loan for $1,467. If that can get paid back by a small rise in prices, we will be off to the races. There are opportunities across the board for continuous improvement in all areas. Increasing our stock price, contribution margins and profits. Threats would have to be one of our competitors, “Digby” who has a stock price of $43.36 compared to our $20.06 stock price. That won’t work, we have to do something about this and make some changes.
PESTLE Analysis
With a PESTLE Analysis, we are working more with marketing and operations in order to track the environment that Normandia Inc. is operating in.(What is PESTLE Analysis?’., 2018). Here in the United States, the goal is to achieve ultimate economic success by keeping up with how the ever-growing market through successful advertising. One main question would be, what are the environmental concerns for this sensor industry. As we continue to grow technologically, we will continue to produce a lot of pollution and use a lot of resources like power due to the manufacturing of our sensors to be placed in your phone or even elevator. If we can address these before they get out of hand with our new and improved solar panels we installed, hopefully we will be very successful.
GAP Analysis
With the GAP analysis, we are living in the now and future and how can we achieve what is in between those two. We first look over where we stand as of round 4. We are currently last place in the running compared to all of our competition with sales of only $36,677 followed by Erie who has $61,515. That is a thirty-grand difference between us and the competition, so where we are at now, we do not want to be at all! We want to catch up and be closer to sixty-five thousand. This will take a lot of time and focus by creating a more efficient product at a bit more cost to our customers to compensate for the ever-growing market.
Enterprise Level Strategic Framework
It is important for Normandia Inc. to have a vision statement that is not only catchy, but simplistic in order to keep it fresh and alive in our consumers’ minds. We have chosen our vision statement to be, “modernizing the worlds sensors, one device at a time.” Here at Normandia Inc., it is important that we strive to constantly create the up to date technologically, fastest and most efficient sensors in our consumer’s everyday life styles. This is our mission as a company. By making people’s lives easier with our simple sensors in devices such as your everyday cell phone or an elevator as the company continues to grow and the market continues to grow, we need to ensure we are creating better faster more efficient performing sensors. It is the purpose as a company to continuously grow our business by simply, “making people’s lives easier” with our everyday sensors. We can achieve this by ensuring we are keeping up with the size, reliability, and performances of our product in comparison to the other companies. Normandia Inc.’s values make up its philosophy and those values are, to ensure we are creating problem solvers who are prepared for it all while being ambitious, accountable, and having some strong integrity for him/herself and the company.
When it comes to the organizational long term goals and objectives for Normandia Inc., it is important that the company sees increased revenue by 5% by the end of year one. Increased growth is a good sign for the future 6 years yet to come. A three-year plan would be to revamp the production floor and make things more efficient and have less space taken up and more room for product storing and raw materials. Having healthy organizational goals will help Normandia Inc. to be able to determine how the growth of the company is moving along as well as how the goals are playing to affect within the organization and externally.
The target markets for Normandia Inc.’s sensors would be cell phone companies like Apple, needing to purchase our sensors and even elevator companies looking to purchase sensors for the doors on elevators. Knowing the target market and who Normandia Inc. needs to focus the most on will give the company a bit more of a competitive advantage. Currently, Normandia Inc. has the competitive advantage over 8 other competitors in the market of 11 in labor costs. Currently it costs $8.90 for Normandia Inc. to produce the low-tech product. The lowest competitors price is at $7.78 giving Normandia Inc. the chance to catch up to that particular price.
The organizational design of Normandia Inc. starts with the President in the first place, followed by the Vice-President. Under the Vice-President, you will find Upper Management and regular Management. Those two handle the Team Leaders which consist of those in the Research and Development department, Marketing, Finance and Production teams. These leaders are in charge of seeing that the company runs smoothly from day to day and that everyone is performing his or her own jobs.
Corporate Level Strategic Framework
By the end of year one, it is in the company’s best interest to have doubled its customer satisfaction ratings. Therefore, the company should see an increase in both low tech and high tech. Low tech being at a rating of 16 currently, this should at least be at 32 by the end of the first year. In the high-tech side, customer satisfaction is at a rating of 9, this should be at minimum 18 by the end of the first year as well, with hopes of it being a bit more than even 18. Normandia Inc. would like to see sales triple by the end of year 3, thus meaning that the company will be bringing in $110,031 by the end of year 3. By the end of year 5, Normandia Inc. should be able to have reached at least 90% customer accessibility. Currently, it is at 24%. As for year 7, Normandia Inc. shall be able to have achieved a 30% profit increase leaving the company competing well.
Accomplishing the Corporate Level Goals and Objectives
As a company, if all departments work together, it will be easy for Normandia Inc. to accomplish the corporate level goals and objectives. In order to reach and achieve the year one corporate level goal, it is important for the marketing team and customer service departments to team up. It is the responsibility of marketing to ensure that the costs stay extremely competitive and always better than our competitions. This initiative will lead to further growth helping us reach that seven-year goal. In order to triple sales by the end of year three, it will take a lot of marketing and ensuring pricing stays competitive while creating a quality product that is unique and has its differences from the rest of the market. Creating more customer friendly websites and each to use technology applications for cell phones, computers and tablets, ensuring that Normandia Inc. is also keeping up with the growth of technology while staying true to the company’s vision, mission, purpose, and philosophy. To close that gap with the seventh-year goal to achieve a 30% profit increase, this can be done by a small increase in the price of Normandia Inc.’s products, compensated by quality performance and sizing.
Policies and procedures for the marketing department for will include maximizing opportunities to enhance the visibility of the company. This can be done by creating better advertising and enhancing the website. Social media posts need to be included in those policies and procedures because they create the foundation for the advertising of our website. So, it is important to do these on a daily basis. Being customer service oriented is another big policy for marketing to ensure it is keeping up with. This will attract new customers and increase sales between the customers you already have. Last but not least, the employee conduct. It is up to the employees of Normandia Inc. to carry the name proudly and to ensure they are dressing to code, no under the influence of drugs, and on time to work daily. This creates a positive environment and promotes equality.
Conclusion
All these goals and objectives will align with the corporate level strategic framework as well as the enterprise level goals and objectives. Both sides are in the long run, for the better of Normandia Inc. The main goal behind our strategic plan is to provide all management with the right directions to lead our company to better success over the next 7 years. Creating plans for years 1, 3, 5, and 7. By having good management skills and leading your departments to these new goals, we can achieve the additional finances we wish to receive. It is the sole responsibility of each department manager to implement these strategic directives in order to achieve long term successes. This can be done by providing leadership skills as well as your management skills to encourage your employees.
References:
Amadeo, K. (2018). What is Competitive Advantage? Three Strategies That Work.Retrieved from https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work-3305828.
Olsen, E. (2018). The Ten-Step, One-Day Strategic Plan. Retrieved from https://www.thebalancesmb.com/the-ten-step-one-day-strategic-plan-1200828.
‘What is PESTLE Anlysis?’. (2018). Retrieved from http://pestleanalysis.com/what-is-pestle-analysis/.
Yochum, C. (2018). Conducting a Gap Analysis: A Four-Step Template. Retrieved from https://www.clearpointstrategy.com/gap-analysis-template/.
Cincotta, C. (2015). Top 8 Values Every Company Should Live By. Retrieved from https://www.entrepreneur.com/article/246480.
