Final Strategic Plan
BUS/475 – Integrated Business Topics
University of Phoenix
Strategic Plan, Part 1: Conceptualizing a Business
Everyone wants to relax by some reasonable means. There are many products available for the relaxation therapy by using them one can get comfort after the tiredness of the whole day busy life. These products include lots of body and cosmetic services, body sprays, perfumes, aromatherapy products, candles and reflexology. These products provide body as well as spiritual relaxation.
Business, Products and Customers: Mission Statement
Not every individual wants relaxation, religion and culture matters. All the stressed persons are in search of a treatment or any other technique to reduce their mental stress. The sources of relaxation are relaxation therapy stores and spa. In spa customers, pay lots of dollar for relaxation therapy while in healthy place stores they can buy all the products related to relaxation therapy and take all the spa comforts at home. The mission of healthy place therapy is to provide all the high quality products of relaxation therapy in reasonable prices for the satisfaction of customers at home. Now the healthy place store have set a business market and become a competitor for spa. Now the customer has to go on these stores and see the displayed products, if any product is beneficial to them then they can buy it. This technique has saved not only the customer money but their precious time also.
Vision refers to the strategic planning of a company used to achieving its goal. “A vision statement presents the firm’s strategic intent that focuses the energies and resources of the company on achieving a desirable future” (Pearce & Robinson, 2009, p37). The aim of is to provide quality services and tools to the customers so that they can get comfort and enjoy their lives without any stress. The future planning of the company is to get precise services of skilled employees to make new products, which will attract the customers. The company’s future planning will be achieved by getting customer’s support and their feedback. Some principles and values are required to complete the Healthy place’s goals. The values of are can help the company to achieve the target, which is stated in the company’s mission and vision. “Values are standards which require efforts to achieve. Values are practical habits which enable us to live, be successful and happiness” (Pearce & Robinson, 2009, p45). ’s mission describes that the products and services will be in the way that the company’s targets and goals can achieved easily.
Guiding principles: Culture, social responsibility, and ethics
is following many cultures and values according to the need of customers. Their products in the stores represent different cultures that can attract all the customers of different societies and cultures. Healthy place’s stores are multi-cultural and offering wide range of aromatherapies and candles to represent different cultures. Healthy place give priority to the values of integrity and honesty to get the full support of their valuable customers. The company is also offering such perfumes and sprays, which are widely used in to relief the stress. According to the company’s mission outline it is responsibility to overcome customer’s needs and make the products according to the customer’s demand. It is duty of the company to remain all time socially and environmentally responsible. The responsibility of the company can judge by the fact that company treats its employees, customers and investors with honesty. Company has vital interaction with community and it organize program to assist community needs. Communities are base on the societies, which work to fulfill the requirements of societies. By arranging such program with communities, is enabling to make a partnership with community to demonstrate the company’s vision and its honesty for the customers.
Organization Strategic Direction
Strategic direction is very important to a company for the implementation of its mission and vision. It is defined as strategies made in order to fulfill the company’s mission. Strategic direction helps the employees and owner to know what efforts are required to achieve the company’s mission. If all the future planning is already defined including the vision and strategies then it is easy to give a direction to the company vision to boost its progress. Similarly, the according to its vision has made a plan for the implementation of its strategies accordingly.
Customer needs and competitive advantage
It is very important for a company to provide a relaxed and comfortable atmosphere to the customers so that they can feel like at home. Therefore, has following the same mechanism to provide maximum facilities to the customers to feel them comfortable at the store. It is also a positive point of the that there is no priority of any religion or culture, every individual can access the store. Honesty is the key thing of while dealing with customers. The strategy planning reviews the company’s vision and mission to analyze that whether company is going on the right way to achieve required goals. Company’s future planning and vision have a impact on company’s strategy and also to decide that how the company will do the business over the few decade of years. The company has to utilize its mission and vision planning to make new decisions, which are in the benefit of the company.
Healthy place is largest company having large number of stores worldwide. The mission of company is regarding the social services, which is to relief the stress of every person no matter from which culture and religion he is belonging. The honesty policy of makes it unique while dealing with customers and make customer feels like at home. is proud to its services and staff. It is duty of company’s employees and owner to support company’s mission and vision while dealing with customers. Strategic planning will help the company to achieve its goal. Company’s strategic direction is based on the mission and vision from which the decisions for the future planning are made. To improve company performance requires reviewing company vision and mission statements to make changes step by step.
To conduct a proper and appropriate SWOTT analysis of Healthy Place certain questions related to the strengths of the company, the resources that it has, the pros and cons of the company, its position and strength in the market and its competition are required to be answered. Beside these, the company needs to assess which factors may cause a loss in its sales and revenue. It’s also required to pay close attention to the feelings of the customers from an internal and external perspective.
To figure out the future opportunities for it is essential to find out the strengths and weaknesses of the company first. The questions related to patterns of customers’ purchasing trends, technological changes and market trends and how the company can deal with all these will assist in assessing the opportunities of the company. By assessing the strengths can lead to different opportunities and also can create new ones. More opportunities can be created by eliminating various weaknesses.
Finally through the SWOTT Analysis the threats which the company is facing or may face can be located. To find out the threats it has to be seen that which are the hurdles faced by the company at present or maybe faced in the future. Furthermore which are the threats that the company may face in regard to technological changes, market trends, competition in the market, its financial standing or problems etc that may bring a change in its present position in the market? Certain weaknesses may also change into a threat; this can be avoided with the help of a proper SWOTT Analysis.
Information regarding the products, services, tools and techniques, related income levels will comprise of the economic environment of . It will be such a place which is easily affordable by every member of the society and everyone can benefit through it. Therefore it will be required that the store should contain the stocks that is the products and services which will attract and appeal the preferences and taste of the people from every race and culture. For this purpose constant efforts will be made that those products and services are provided which will accommodate the local cultures of the community. It should have the opportunity where new product lines and services should be developed and offered to the customers through which they can get the relaxation at their own places.
Here it is highly required to monitor the economical weaknesses and threats which are faced by the company as they might affect the successfulness of the company. One of the major weaknesses that the store will have to deal with in routine will be the present situation of the economy. Due to the slump in the economy the customers nowadays, are looking for the best they can get against the dollar they are paying, therefore new ideas and ways are badly needed to satisfy the customers. Because of the tight budgets the customers will only attend the free workshop and will not buy anything and this fact will be a threat for the company.
Nowadays since the economy is in slump the customers are not willing to pay large amount at the spas, rather they’ll appreciate easily affordable ways to get the relaxation, due to this, the demand for alternative healing products is increasing and the economic trend will require the store to meet these needs. As a lot of alternative medicines are available in the market, it is required that a sense of loyalty is created amongst its customers, then only the store can meet the changes in the trends. This sense of loyalty in the customers will help in increasing the sales and will enhance the reputation of the store.
The purchasing strategy and the prices of the products and the services offered at the store will be influenced by the type of the business structure used by the store. Therefore it is essential to find out about the legal structure of the company.
with only one stakeholder that is the bank or the lender will be a Sole Proprietorship which will mean that all its assets will be owned by the proprietor only. No alcohol, lottery tickets, firearms or gasoline will be sold at therefore it will not need to get any special license and this is its biggest strength. As far as health inspection certificate and a state business license is required in order to conduct free workshops. Beside these a sales tax license will be required for the store to sell its merchandise. Furthermore it will have to register and obtain an employer identification number from the state Department of Revenue or Treasury Department. From the legal aspect another strength that Healthy Place will have is the ability to purchase insurance for its employees, customers and the store itself. This will ensure that any harm to the customer whether in the store or by using the products is protected along with the initial investment. The proper and adequate insurance will protect the store against being sued by any customer and will make its initial investment safe.
To lease the building will be an opportunity for the store and if the store is financially stable in the future it can even purchase the building later on. Now this opportunity will bring in certain weaknesses and threats along with it. Due to the leasing of the building it will not be possible for the company to get certain insurances which will mean that the building of will not be 100% insured. Because of this there would always be a risk that the initial investment will not be protected and this is one of the weaknesses. Secondly because of not being completely insured it will not be possible for the company to meet all the legal and regulatory requirements. Technological
The marketing decisions are very much effected by the technology and the changes occurring in it. Health Place will also have to keep up with these technological requirements and the free workshops for the customers and their ability to purchase the products from here will be the technological strengths of the store. Beside this to remain in touch with new advancements and their better understanding store will hire the students from the field of healthcare and relaxation therapy. One weakness which the company could face here is the limited funding at the initial stage so it’ll be better to rent the equipment like massage tables and computers instead of buying them. As far as threat from this aspect is concerned it will be the competition with other products available in the market and how they can well compete by using the advanced technologies related to their products and services so that the customers can get the best.
In regard to strengths and opportunities related to innovation the store will have to highly focus on the fact that it must offer a vast range of products and services keeping in view that it must cater to the needs and requirements of its customers who belong to different races and cultures. Efforts would be made in order to expand the operations by attracting different companies and customers to participate in the workshops conducted by the store to teach them different relaxation therapy and techniques to alleviate and cope up with the stress. This will help the store to make its strong and well known position in the community. Here the challenge of marketing the products and services to everyone in the best possible manner is one of the weaknesses of . If the store will not adopt the uniqueness in regard to quality of its products and services to meet and exceed the expectations of the customers it will become a threat for the company.
In order for the company to grow and expand a unique strategy has to be designed through which the company should offer those products and services which the customers could not get from anywhere else. The selection of the most suitable and easily approachable location for the store is one of the other opportunities for the company. For this purpose the store will be located strategically in the downtown square so that not only a local college but also different companies in the downtown have an easy access to it. Due to the economy slump the customers do not have a good purchasing power at present and this is the weakness and the threat faced by the company. It’ll have to cope up with this pressure and must make the efforts to overcome it.
The biggest strength in regard to structure is that the store will be using an already existing building rather than making a new one. Furthermore this building is present in the centre of the downtown therefore it is easily approachable. Different massages and workshops will not only be offered in the store but also the customers can avail the range of tools and techniques to get relaxation at their homes. The use of an existing building for the store may not allow utilizing the building to its best. This maybe because of the structure of the building or at the later stage the size of the building might become a hindrance in the expansion plan. Also at times required changes may not be allowed by the owner of the building. All these things can convert this strength into a weakness.
Again the company has the opportunity that it can purchase a building suitable according to its requirements. This will also allow making new rooms and addition to the building as per the requirement at the time of expansion. But since do not actually own the building this may become a threat for the company. In case of any natural disaster like a tornado or flooded area because of heavy rainfalls, the building might get harmed and the store will not posses the control over the timeframe for rebuilding or making repairs.
Company’s recourses are the strength of and it can utilize them to the fullest. The resources comprise of the knowledge of the employees in regard to relaxation therapy and the products, the equipment of the company, the products of the company and the funds available from the bank or the lender.
Again, the employees besides being the strength can also be considered as the weakness of the company. It is necessary that for providing best services like relaxation therapy techniques, the staff should be fully trained, this could become a difficulty and challenge for the company since many employees working could be students who would be working on part time basis. Another opportunity related to companies’ resources will be to find such capable and worthwhile suppliers who can supply the different products to the target market in the best possible manner. Whereas the only threat related to resources which is anticipated is that a change might occur in the buying behavior of the customer who will consider an alternative healing therapy more appropriate.
The ability of the store to attract customers from different ethnicities will help making a culture which will be mixture of all cultures. This will be strength of the company. The company will make sure to be proud of the fact that here honesty and integrity are definitely incorporated and whatever actions are against this honest culture, they will be accountable for it. Measures will be taken to minimize the negative impact on the environment. Like this the company will also prove itself to be socially responsible. The limitation of finances because of poor economic growth may become a hindrance to adopt and meet different cultures and customs. This could be a weakness about which the company will have to work on. Beside this being a weakness, it could also be an opportunity that to cater these people a new line of production can be developed. While embracing these cultures and spiritual customs some people may get offended this could be threat for the company. This adaptation of different cultures would have to be done with great care and the company will have to deal with the differences in meanings and actions, since anyone could be offended by any action. Whether it maybe a hand gesture or body language. Therefore proper and updated training of the staff is highly recommended.
Balance scorecard is essential for developing a healthy place. It is a vital key for defining the goals and targets of a company as well as the vision, mission and the SWOTT Analysis. A Balanced Scorecard is, “A set of four measures directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth” (Pearce & Robinson, 2009, p. 202). This term paper, will relate a healthy place values, mission, vision & SWOTT Analysis with the four perspectives of the scorecard (financial performance, customer knowledge, internal business process, and learning and growth).
Financial Perspective/Shareholder Value
A strong and well defined vision & mission statement will facilitate the company to achieve its target. The objectives of the healthy place should be implemented as a daily routine so as to increase the performance of the company. The first and foremost responsibility of a company is to seek its customer satisfaction, benefit utilization, increased net revenues and also to achieve financial stability. In order to evaluate the financial stability of a company, one should calculate the Operating cost, Earnings per share, growth revenue & return on interest and capital. “If we succeed, how will we look to our stakeholders” (BSI 2009, 5).
Customer Value Perspective
The customers determine the success of the company. The ups & downs in the market share of the company as well as the delivery of services & products relates to the customer satisfaction. The more the customer satisfied & engage with the company, the more will be the increase in the brand image in the market, but there must be consistency in the value & quality of the product. It’s the responsibly of the healthy place to generate awareness in the public and should also offer benefits to them, time to time. “ To achieve our mission, how must we appear to our customers” (BSI 2009, 5).
The company should organize survey, time to time, so that to have an idea of the customer’s taste. For this the company has to monitor their brand value in the market constantly. On of the most important tool of getting more & more customers engage with the company, the holders of the company should introduce new products at a very low price & and also offers some rewards for the regular customers. A way to gather the attention of the customers is to introduce reward programs before them; this will look very attractive to them. If the company & employees performance reviews by the customers are in the favor that means the company is strong enough to hold its position in the market. But in case, if the customer reviews are poor regarding the service and the performances of the employees, this will lead a company to a huge downfall.
Process/Internal Operations Perspective
Strategic planning is very effective to give a healthy place to customers. It should be done in accordance with the customer’s need and satisfaction. In order to improve the business efficiencies, market value as well as the current position; one should has an effective strategic management to over come all the resistances. The most important thing is to define the purpose or intention of the strategy, because this will lead a company smoothly towards its goals. The goals highlight the vision and mission statement of the company. “To satisfy our customers, at which processes must we excel” (BSI 2009, 5).
For the satisfactory outcome of the company the strategic objectives and goals should be monitored on a daily basis. The company should set its objective and the path to be followed while keeping in minds the values and interest of the customers. There should be a tool or set of measurements, which may used to measure the targets, public interest, brand value in the market and budget in hand. In strategic planning, surveys must be done, time to time, so that it will be helpful for the company to have an idea that ‘what are the market needs’? And ‘what is already available in abundant in the market’? Survey techniques should be used to know about the ground realities & choice and need of the customer. A healthy place is constantly taking initiatives to improve the services and products so as to increase their customer circle.
Learning and Growth Perspective
Learning and growth process is considered as the most important aspect in Balance Scorecard, because this perspective focuses on the growth and prosperity of the company as well as the learning of internal & external public. “Learning” in accordance with a healthy place means to learn about the attitudes of the internal employees & external customers. This technique of Balance Scorecard, help the company to maintain its position in the market and also bring technological changes. “To achieve our mission, how must our organization learn and improve” (BSI 2009, 5). The strategic planning should focus on employee training to have competent employees who constantly develop their skills and ultimately provide benefits to the company.
For a healthy place, the strategic objective should bring some improvements in the company. The improvements will be in the form of new technology in the company, constantly recruitment of the deserving candidates but retaining of the highly skilled workers, increasing the organization’s trust and customer circle. The organization needs to develop a strategy in order to provide more benefits to the customers i.e. online purchasing and billing, constantly introducing new products and services and also introducing attractive packages and offers like purchase and pay later.
The success of the company depends on its vision and mission statement. The best way to attain the targets and goals of the company is to have a strategic plan which can effortlessly explains &deliver the objectives of the company. The achievements and goals of the company should be measured. The well-balanced business should have to develop the Balance Scorecard, which is the most significant technique to achieve all targets. But it is not possible that if one Balance Scorecard technique is fit for a business will also suitable for another business. The Balance Scorecard’s four perspectives defined herein are: Financial perspective, Customer perspective, internal process and Learning & Growth. With each perspective, we will define the strategic objectives, performance measures, targets and initiatives.
Planning / Action
Types of planning
Long term planning
Elements of planning
Define the audience
Communication / Production
Types of communication
Internal employee communication
External employee communication
Steps of communication
Slogans and symbols
Evaluation / Feedback
Steps / Methods of evaluation
Measurement of production
Measurement of distribution
Measurement of message exposure
Measurement of message accuracy
Measurement of audience acceptance
Measurement of action
|External forces and trends considerations:|
|Legal/Regulatory||Special licensing is not required||Rental insurance for the building||Purchasing the rental building sponsoring community programs & events||The customers can easily sue in case of any serious problems caused by the productsMeeting regulations would become hard at times|
|Global||Reputation all over the world||Geographical Coverage||Global Markets||Global Markets||Online Businesses|
|Economic||Easily AffordableVariety of products and services Adaptability||Due to economic slump decreased purchasing power of the customers||New product lines will be developed||Slump in economy means customers do not have an abundance of disposable income|
|Technological||Students with advanced learning’s in this field will be employedTo teach new techniques & tools workshops conducted for the customers||Lack of initial funding will result in renting the equipment||Adaptability to embrace new technology & incorporate it into the business||Competing with the competitors offering more advanced products, services and workshops|
|Innovation||Appeal for diversified customer Products in accordance to meet all the customers’ needs||Marketing of the products to the diversified customers||Expansion by giving free massages, & workshops related to new products & techniques||Bring in uniqueness in regard to all products and services|
|Internal forces and trends considerations:|
|Strategy||Appropriate location for the storeEasily accessible and approachable||Products and services for everyoneBest product at low costs||Successfully grow and expand by offering more than the competition||Better facilities at low prices for the customers at home, better than they get at expensive spas|
|Process and Systems|
|Resources||products & services are cutting edge||Updated and appropriate training to use the techniques and tool to all employees||Efforts to find better quality products, suppliers & value-added products & services||changes in the customers buying habits away from alternative healing for relaxation|
|Culture||Appealing to customers from different culturesvalue-oriented culture||Limited finances Poor economy||New product lines, different techniques & toolsAbility to expand culture||Unable to meet all the cultures|
Balanced Score Card
Shareholder Value/Financial Perspective
•Benefit utilization & decrease in per unit cost
•Financial stability should be achieved
•Market share should be increased
•Production cost of store should be minimized
•Net revenues should be increased
•Operating cash flow should be increased with respect to previous year
•Per share earnings
•Return on interest and capital
•Increased operating cost
•6 – 8% market share increase over the next 2 years
•30% profit margin
•Should acquire a strong Competitor
•Community support should be expanded
•Quality products should be delivered
•Constantly improving brand image in market
•Value services should be delivered
•Focus on public interest
•Market share should increased
•Awareness of brand in public
•Research should be on regular basis
•Market share should be increased
•30% increased of customers for the next 5 years
•100% customer satisfaction
•special benefit & rewards program
•Brand should be expand to other cities
Internal Process Perspective
•Marketing of store and product should be improved
•Additional services should be acquired
•Investment infrastructure should be made
•Business process and efficiencies should be improved
•Internal employee & External Customer satisfaction
•Profits from New Programs
•Redundancies on products & services should be decreased
•20% reduction in customer returns over the next 4 years
•100% satisfaction of customers
•30% increase of customer circle
•Card purchasing program should be expanded
Learning & Growth Perspective
•Technology should be improved
•Increase in employee’s retention
•Constant recruitment but retain highly skilled workers
•Organizational trust & teamwork should be improved
•Customer satisfaction should be achieved
•The employee turnover rate should be decreased
•Proper survey, monitoring & training
•learning from outcomes and experiences
•100% participation of all employees
•Analysis of Staffing Optimization
•Online Billing Upgrade
Balanced Scorecard Institute (2009) Balanced Scorecard Basics. Retrieved March 5, 2010from URL: http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx
Pearce, J. A. II, & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York: McGraw-Hill.