Strategic Business Plan
Using the Capsim Core simulation core company a future oriented strategic business plan to be implemented for the up coming year from the round 5 to round 6. The business strategy will be implemented throughout different departments of the organization.
Department objectives:
Research & Development – To explore modifications that could increase the age of the low-tech segment product. Looking at the customer buying criteria, the age life needs to be increased by 1.3 yr. to be at the desired life.
Marketing – Reduce the Sales budget and increase customer accessibility in the low-tech segment, while just reducing sales budget in high tech without losing current customer accessibility. Explore reducing the price of low tech product through promotional sales incentives to increase sales of the low-tech segment. Increase price of high-tech product.
Production – Target automation in the production of the new high-tech product. Reducing labor cost without over extending automation.
Finance – Identify why the taxes being paid are a higher percentage than competitors and lower that amount. Need forecasted amounts of cash from both financing and investing in the break-even point being accomplished.
Strategic Initiatives:
Research & Development – Fully examine the low-tech product parts and find out which part or parts are reducing the life expectancy of the sensor.
Marketing – Utilize a sale price reduction and coupon savings on the sales price to establish the total reduction in price of 10%.
Production – Investigate the increasing automation and cost analysis to achieve each stage of the production process.
Financing – Examine financial records and insure all tax discounts and reductions are being implemented. And all figures are being recorded correctly. Identify any penalties or fees accessed for any reason and get verification of why.
Balanced Scorecard:
Using the Vision Statement – To be the leader in providing the consumers with the most innovative, cost effective, functional, and reliable sensors in any market. Thru technical advancement in the development of materials, design-purpose, and functional needs of a continually changing world. And the Goal Statement for the company to be one of the leaders in sensor manufacturing and development with the production of biodegradable sensor parts as the advantage point in the future. The Balanced Scorecard methodology focuses all efforts on results being able to accomplish the vision and goals of the company. A Progress Development Analysis team will be developed with their focus on the growth of the company as forecasted. According to the BSC suggest strategy to ensure progress goes in that direction.
Critical Success Factors:
Vital elements to achieving objectives will be in the proactiveness of each department to identify problematic situations before they occur and or before costly corrections must be made in the spending of unexpected equity. For example, do not ship known defective products only to have cost in returns and replacement products. If there is a drop-in sales in any area, take action immediately to encourage sales and exam what is causing the drop. Conduct physical check of suppliers and quality of materials provided.
Key performance Indicators:
Research & Development – Reaching desired levels of size, performance, age life expectancy of products.
Marketing – Exceeding forecasted increases in sales, profit margin, contribution margin, market share, stock prices, dividends paid, and exceeding stakeholders and shareholders expectations.
Production – Continued efficiency in operations reflected in the moderate to below average being experience currently, giving the ability for the company to better handle any unforeseen circumstances that may arise.
Finance – Reaching the breakeven point for cash from investing and production from the new product line. The continued maintaining of the best profit to sales margin, lost overall operational cost, and highest net profit gain per volume sold. Included is also the lowest total assets and liabilities of competitors with only one competitor with a higher equity reported.
Time Frame:
Research & Development – Increase age before end of fiscal year.
Marketing – Decrease sales budget and maintain current numbers in sales, customer accessibility before end of fiscal year. Implantation of sales program, within six months.
Production – improve on automation process in new high-tech product. Before end of fiscal year.
Finance – Examining of past taxes paid in six months. Estimating of breakeven point for cash from operations and investing.
Guiding Policy:
Research & Development – Investigate the performance ratings of the parts currently being used to manufacture the sensors. Any noted decreases to be reported to production. Give recommendations for new suppliers. Include in search biodegradable options to all parts.
Marketing – Find more efficient methods of advertising then currently being used. Provide cost analysis of all options.
Production – Assure that there is nothing occurring during the manufacturing process that could be problematic to the durability in the age of the sensor not lasting longer.
Finance – Used secondary source to examine financial statements in relation to high taxes paid to find areas of tax reductions that were missed if any.
Enforcement Policies:
The enforcement of guiding policies will be done in the manner of each department will give updates weekly on the progress of their areas of responsibility. Mandatory weekly department head meetings will be held to evaluate action taken in accomplishing set initiatives.
Systems – The Balanced scorecard, S.M.A.R.T analysis, SWOT analysis
Processes – In compassed in above description of Guide policy.
Procedures – In compassed in Key Performance Indicators, Time Frame, and Strategic initiatives.
Resources Needed:
Research & Development – Performance data from suppliers on the materials supplied. (uncommon)
Marketing – Marketing strategies of competitors and cost. (common)
Production – products of competitors. (common)
Financial – addition outside tax audit company (common)
Accountability:
Each department will have a team. The team will consist of the department manager as team leader and managers of that department as team members. The roles will be dedicated according to team leader’s opinion on which person in the team is best suited for each task derive in the strategic plan in related work expertise.
The Balance ScoreCard gives structure in the measuring of the performance management and measurement of the strategies being implemented. To give reference points to managers in the execution of their independent managerial styles in the governing of what process they choose to use. By the strategy mapping of key performance goals to be accomplished in each department and the time table to accomplish those goals.
The core competencies and key performance indicators are aligned in the continued focus on the different strategies in what is reported through the Capsim report of what it is needs to be addressed to gain more of a competitive advantage. The focus is on the wellbeing of employees to perform at their best. The employees are encouraged to voice any idea they have. While using the mission and vision statements to guide and motivate them.
References:
Kaplan, R. S., & Norton, D. P. (1993). Putting the Balanced Scorecard to Work. Harvard Business Review, 71(5), 134-147.
Niven, P. R. (2005). Balanced Scorecard Diagnostics : Maintaining Maximum Performance. Hoboken, N.J.: Wiley.
Olve, N., Petri, C., Roy, J., & Roy, S. (2004). Twelve years later: Understanding and realizing the value of balanced scorecards. Ivey Business Journal, 68(5), 1.
