CC Create Great Products Strategic Plan

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Abeznghgbe70

Business Finance

Carrington College - Phoenix

Description

Your strategic plan submission must be uploaded before your enter your competitive round 1 decisions. The SMART goals have to defined round by round, product by product for four rounds within each functional area. It's better to show your SMART goals using a table for each functional area. The SMART goals should indicate the decisions that you are going to make for each product in each round. That is, size, performance, MTBF, age, and material costs for R&D. Price, promotion budget, sales budget, awareness, accessibility, and sales forecast for the Marketing area. Production order, ending inventory, automation, and capacity additions or subtractions for each product, for each round, in the Production area. For the Finance area, show how you are going to fix the leverage problem in one or two rounds. You should also show your SMART goals by round for the HR and TQM areas and explain why you have chosen those SMART goals. Look at the attached examples and use the attached Excel spreadsheet to create the information for your strategic plan.

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Broad Differentiator For our company, we have decided to seek a broad differentiator strategy. Our goal with this strategy is to rule every portion within the market. The company will gain a competitive advantage by creating products with an excellent design, high awareness and easy accessibility. The company will develop an aggressive R&D strategy that keeps designs new and exciting. Our R&D strategy will stick to release deadlines religiously and will bring innovative products to the market in a quick time span. Most products will keep pace with the market, offering improved size and performance. Prices will be above average. Capacity will be expanded as higher demand is generated. Mission Statement Premium products for the industry: Our brands withstand the test of time. Our stakeholders are customers, stockholders, management and employees. Tactics Research & Development: We will keep our existing product line, maintaining a presence in every segment. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability. The company will do this by ensuring that product revisions are completed within a timely manner. The overall goal is to develop products that will be completed and released before the end of June or July of the current year. The purpose of this is to maximize the amount of sales for the current year. To do this, each products reliability or MTBF will need to be set as soon as possible. Since the Performance segment is the only segment that prioritizes MTBF, the company’s product, Aft, will be set at a maximum of 27000 MTBF to satisfy the needs of the consumer. As for the rest of the segments, they will be all set to the minimum MTBF, Traditional will be set to 14000, Low will be 12000, High will be 20000 and Size will be 16000. The other reason for this is to reduce the cost of the products and maximize profitability. Marketing: Our company will spend aggressively in promotion and sales in all segments. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. We will price at a premium. Our company is planning to price our products based on the competition and customer expectations. For the Low end segment, price is an important factor and because of this the price of the product needs to be either the same as the competition or lower. As for the remaining segments, the prices will most likely be priced at the maximum possible to make the product profitable as well as to cover the costs involved with the product. The main goal of marketing for the company is to ensure that each product is budgeted correctly for both sales and promotion. Our company’s primary objective is to get every product to 100% awareness by the end of round 4. We will do this by budgeting 1,500 to 2,000 for each product based on how much funds are available. Our best selling products will most likely receive a budget of 2,000 and as for the lower selling products, they will receive a budget of 1,500 until they improve. Once a product has reached 100% awareness, the budget will be reduced to 1,400 because that is the area whether it will maintain 100% awareness and help the company save money for other areas. As for the sales budget, this is will most likely be the same as the promotion budget. The only difference is that since it takes a lot longer for accessibility to reach 100% than awareness, the goal of 100% by the end of round 4 is unreasonable. So, the goal for the sales budget is to reach that 100% threshold before the 7th round at the latest. Product Segment Round Price Able Tradtional 0 $ 28.00 1 $ 29.50 2 $ 29.00 3 $ 28.50 4 $ 28.00 5 $ 27.50 Promo Awareness Sales Accessibility Forecast $ 1,000 25% $ 1,000 25% 1,049 $ 2,000 50% $ 2,000 50% 1,251 $ 2,000 75% $ 2,000 75% 1,366 $ 2,000 90% $ 2,000 90% 1,491 $ 1,400 100% $ 2,000 100% 1,628 $ 1,400 $ 2,000 1,778 Acre Low 0 1 2 3 4 5 $ 21.00 $ 21.00 $ 20.50 $ 20.00 $ 19.50 $ 19.00 $ 900 $ 2,000 $ 2,000 $ 2,000 $ 1,400 $ 1,400 25% 50% 75% 90% 100% $ 900 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 25% 50% 75% 90% 100% 1,671 2,085 2,329 2,602 2,906 3,246 Adam High 0 1 2 3 4 5 $ 38.00 $ 39.50 $ 39.00 $ 38.50 $ 38.00 $ 37.50 $ 800 $ 1,500 $ 2,000 $ 2,000 $ 1,400 $ 1,400 25% 50% 75% 90% 100% $ 800 $ 1,500 $ 2,000 $ 2,000 $ 2,000 $ 2,000 25% 50% 75% 90% 100% 424 573 666 774 899 1,045 Aft Pfmn 0 1 2 3 4 5 $ 33.00 $ 34.50 $ 34.00 $ 33.50 $ 33.00 $ 32.50 $ 700 $ 1,500 $ 2,000 $ 2,000 $ 1,400 $ 1,400 25% 50% 75% 90% 100% $ 700 $ 1,500 $ 2,000 $ 2,000 $ 2,000 $ 2,000 25% 50% 75% 90% 100% 374 543 651 780 934 1,119 Agape Size 0 $ 33.00 $ 700 25% $ 700 25% 364 1 2 3 4 5 $ 34.50 $ 34.00 $ 33.50 $ 33.00 $ 32.50 $ 1,500 $ 2,000 $ 2,000 $ 1,400 $ 1,400 50% 75% 90% 100% $ 1,500 $ 2,000 $ 2,000 $ 2,000 $ 2,000 50% 75% 90% 100% 509 602 713 843 997 Production: We will grow capacity to meet the demand that we generate. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map. The goal for production is to produce 120% of the forecasted amount to prevent a stockout situation if the possibility occurs that the company sells more than what was forecasted. As for capacity, the company will increase these amounts only for two segments, the low end and the traditional segments. So, the company will increase capacity for low end products by 200 a round and traditional products by 100. These numbers will be adjusted based on the amount of financing available and low end capacity will have priority over the traditional. The reason for this decision is that the size of the other three segments will not grow to the point where the top company will sell over 2,000 units. So, the best capacity for these other three segments will be 1,000 because at maximum production it will produce 2,000 units. Product Segment Round Forecast Production Capacity Automation Able Tradtional 0 1,800 4.0 1 1,049 1,032 1,800 5.0 2 1,251 1,501 1,800 6.0 3 1,366 1,639 1,800 7.0 4 1,491 1,789 1,800 8.0 5 1,628 1,954 1,800 8.0 Acre Adam Low High 0 1 2 3 4 5 0 1 1,671 2,085 2,329 2,602 2,906 1,959 2,502 2,795 3,122 3,488 424 461 1,400 1,400 1,600 1,800 1,800 1,800 5.0 6.5 8.0 10.0 10.0 10.0 900 900 3.0 3.0 2 3 4 5 Aft Agape Pfmn Size 0 1 2 3 4 5 0 1 2 3 4 5 573 666 774 899 374 543 651 780 934 364 509 602 713 843 688 799 929 1,079 900 900 900 900 3.0 4.0 5.0 6.0 355 652 781 936 1,121 600 600 600 600 600 600 3.0 3.0 3.0 4.0 5.0 6.0 362 611 723 855 1,012 600 600 600 600 600 600 3.0 3.0 3.0 4.0 5.0 6.0 Finance: We will Finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets/equity (leverage) between 1.5 and 2.0. Strategic Plan - Example Spreadsheets.xlsx Example Spreadsheet to Prepare a Broad Low-Cost Producer Strategic Plan NOTE: This Spreadsheet is incomplete. It's your job to update it with your own numbers and to expand it to fit your needs. Use the Round 0 Capstone Courier to Verify the Information Entered for Round 0 Round 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 Product Able Able Able Able Able Able Able2 Able2 Able2 Able2 Able2 Able2 Acre Acre Acre Acre Acre Acre Acre2 Acre2 Acre2 Acre2 Acre2 Acre2 Acre3 Acre3 Acre3 Acre3 Acre3 Acre3 Adam Adam Adam Adam Adam Adam Aft Aft Aft Aft Aft Aft Agape Agape Agape Agape Agape Agape R&D Category Traditional Traditional Traditional Traditional Traditional Traditional Traditional Traditional Traditional Traditional Traditional Traditional Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End Low End High End High End High End High End High End High End Performance Performance Performance Performance Performance Performance Size Size Size Size Size Size Marketing Pfmn Size MTBF 5.5 14.5 17500 Promotion Budget $1,000 - - - 3.0 17.0 - Production Awareness Sales Budget Accessibility Price 55% $1,000 54% $28.00 - Production Schedule - - 0% - - - - 14000 $900 52% $900 54% $21.00 - - - 0% - - - - - - 0% - 8.0 12.0 23000 $800 49% 9.4 15.5 25000 $700 4.0 11.0 19000 $700 Age Cost Market Share 4 Capacity Needed - - - - - - 5 - - - - - - - - - - - - $800 48% $38.00 - - 3 - 46% $700 48% $33.00 - - 3 - 46% $700 42% $33.00 - - 3 - Sales Forecast Automation Strategic Plan - Example Spreadsheets.xlsx Example Spreadsheet t NOTE: This Spreadsheet is incomplete. It' Use the Round 0 Capst Round 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 Product Able Able Able Able Able Able Acre Acre Acre Acre Acre Acre Adam Adam Adam Adam Adam Adam Adam2 Adam2 Adam2 Adam2 Adam2 Adam2 Aft Aft Aft Aft Aft Aft Aft2 Aft2 Aft2 Aft2 Aft2 R&D Category Traditional Traditional Traditional Traditional Traditional Traditional Low End Low End Low End Low End Low End Low End High End High End High End High End High End High End High End High End High End High End High End High End Performance Performance Performance Performance Performance Performance Performance Performance Performance Performance Performance Pfmn Size MTBF 5.5 5.5 5.5 5.5 5.5 14.5 14.5 14.5 14.5 14.5 17500 17500 16000 15000 14000 3.0 3.0 3.0 3.0 3.0 17.0 17.0 17.0 17.0 17.0 14000 14000 13000 12000 11000 8.0 8.0 8.0 8.0 8.0 12.0 12.0 12.0 12.0 12.0 23000 23000 22000 22000 22000 - - - 9.4 9.4 9.4 9.4 9.4 15.5 15.5 15.5 15.5 15.5 25000 25000 24000 24000 24000 3.0 3.0 3.0 3.0 3.0 10.0 10.0 10.0 10.0 10.0 10000 10000 9000 9000 9000 5 0 1 2 3 4 5 0 1 2 3 4 5 Aft2 Agape Agape Agape Agape Agape Agape Agape2 Agape2 Agape2 Agape2 Agape2 Agape2 Performance Size Size Size Size Size Size Size Size Size Size Size Size 4.0 4.0 4.0 4.0 4.0 11.0 11.0 11.0 11.0 11.0 19000 19000 18000 18000 18000 - - - xample Spreadsheet to Prepare a Broad Differentiator Strategic Plan heet is incomplete. It's your job to update it with your own numbers and to expand se the Round 0 Capstone Courier to Verify the Information Entered for Round 0 R&D Marketing Age Cost 3.1 3.1 3.1 3.1 3.1 11.59 10 10 10 10 Promotion Budget $1,000 $1,500 $1,800 $1,800 $1,800 4.6 4.6 4.6 4.6 4.6 7.81 6 6 6 6 1.7 1.7 1.7 1.7 1.7 15.98 14 14 14 14 2.5 2.5 2.5 2.5 2.5 15.87 14 14 14 14 1.9 1.9 1.9 1.9 1.9 9.87 8 8 8 8 Awareness Sales Budget Accessibility Price 55% 65% 80% 90% 100% $1,000 $1,200 $1,500 $1,500 $1,500 54% 60% 70% 85% 100% $28.00 $27.00 $25.00 $25.00 $25.00 $900 $1,300 $1,500 $1,500 $1,500 52% 65% 80% 90% 100% $900 $1,100 $1,500 $1,500 $1,500 54% 60% 70% 85% 100% $21.00 $20.00 $18.00 $18.00 $18.00 $800 $1,100 $1,300 $1,300 $1,300 49% 65% 80% 90% 100% $800 $1,000 $1,500 $1,500 $1,500 48% 60% 70% 85% 100% $38.00 $37.00 $35.00 $35.00 $35.00 - 0% - - - $700 $1,000 $1,200 $1,200 $1,200 46% 60% 70% 85% 100% $700 $900 $1,500 $1,500 $1,500 48% 60% 70% 85% 100% $33.00 $31.00 $30.00 $30.00 $30.00 $200 $500 $500 $500 0% 20% 30% 50% 70% $200 $500 $500 $500 20% 30% 50% 70% $14.00 $18.00 $18.00 $18.00 2.6 2.6 2.6 2.6 2.6 13.62 12 12 12 12 $700 $1,000 $1,200 $1,200 $1,200 46% 65% 80% 90% 100% $700 $900 $1,500 $1,500 $1,500 42% 60% 70% 85% 100% $33.00 $31.00 $30.00 $30.00 $30.00 - 0% - - - rs and to expand it to fit your needs. d for Round 0 Production Market Share 13 20 35 55 75 Sales Forecast 999 1100 1150 1300 1500 Production Automation Schedule 1200 4 1250 8 8 8 8 Capacity Needed 1800 1800 1800 1800 1800 17 20 35 55 75 1763 1850 2000 2200 1500 1820 1900 5 8 8 8 8 1400 1400 1400 1400 1400 14 20 35 55 75 366 400 600 800 1000 410 450 3 8 8 8 8 900 900 900 900 900 - - - - 17 35 45 65 85 358 400 700 1000 1100 440 500 3 3 5 7 9 600 600 600 600 600 200 - - 10 25 40 55 200 300 400 500 15 20 35 55 75 314 400 700 1000 1100 380 420 3 8 8 8 8 600 600 600 600 600 - - - - Segment Centers (at end of round) Traditional Low End High End Performance Size Round Pfmn Size Pfmn Size Pfmn Size Pfmn Size Pfmn Size 0 5 15 2.5 17.5 7.5 12.5 8 17 3 12 1 5.7 14.3 3 17 8.4 11.6 9 16.3 3.7 11 2 6.4 13.6 3.5 16.5 9.3 10.7 10 15.6 4.4 10 3 7.1 12.9 4 16 10.2 9.8 11 14.9 5.1 9 4 7.8 12.2 4.5 15.5 11.1 8.9 12 14.2 5.8 8 5 8.5 11.5 5 15 12 8 13 13.5 6.5 7 6 9.2 10.8 5.5 14.5 12.9 7.1 14 12.8 7.2 6 7 9.9 10.1 6 14 13.8 6.2 15 12.1 7.9 5 8 10.6 9.4 6.5 13.5 14.7 5.3 16 11.4 8.6 4 Table 2 Segment Centers at the End of Each Round: As shown in the Perceptual Map Form above, size is on the vertical axis and performance (Pfmn) is on the horizontal axis. Ideal Spot Offsets Traditional Low End High End Performance Size Pfmn Size 0 0 -0.8 0.8 1.4 -1.4 1.4 -1 1 -1.4 Ideal Spots (at end of round) Traditional Low End High End Performance Size Round Pfmn Size Pfmn Size Pfmn Size Pfmn Size Pfmn Size 0 5 15 1.7 18.3 8.9 11.1 9.4 16 4 10.6 1 5.7 14.3 2.2 17.8 9.8 10.2 10.4 15.3 4.7 9.6 2 6.4 13.6 2.7 17.3 10.7 9.3 11.4 14.6 5.4 8.6 3 7.1 12.9 3.2 16.8 11.6 8.4 12.4 13.9 6.1 7.6 4 7.8 12.2 3.7 16.3 12.5 7.5 13.4 13.2 6.8 6.6 5 8.5 11.5 4.2 15.8 13.4 6.6 14.4 12.5 7.5 5.6 6 9.2 10.8 4.7 15.3 14.3 5.7 15.4 11.8 8.2 4.6 7 9.9 10.1 5.2 14.8 15.2 4.8 16.4 11.1 8.9 3.6 8 10.6 9.4 5.7 14.3 16.1 3.9 17.4 10.4 9.6 2.6 Table 2 Ideal Spots at the End of Each Round: As shown in the Perceptual Map Form above, size is on the vertical axis and performance (Pfmn) is on the horizontal axis. Running head: HO WEIHUNG LLC 1 Strategic Planning Li Jia Xin LLC Weihung Ho Calypoly Pomona HO WEIHUNG LLC 2 Ho Weihung LLC Strategic Planning Ho Weihung LLC intends to use broad differentiation approach. This will involve having high quality products, easily accessible to customers and carrying out constant promotional activities. The customers will be able to identify with products. The organization intends to create a niche market. Achieving this will involve various strategies which are further discussed below. Vision Memorable products-The consumers will be able to identify with the products instantly due to their high quality and convenience.. Strategies for Success Research and Development (R & D) The organization will not only maintain the current product line but add a new product Aft, under the performance segment. The organization listens to its customers and all products are requested based on their needs. The company will increase the promotional budget steadily as shown in the excel sheet. By round 2, promotional budget will be maintained at a constant, for example in the traditional segment it will be at $1800. This will also be done for sales budget and in traditional segment from round 2 sales budget will be a constant of $1500. MTBF will be reduced steadily by 1000 units for each round so that costs are contained and profitability maximized. HO WEIHUNG LLC 3 Marketing Sales and promotion will go hand in hand. Promotional and sales budgets will be increased by between $100 and $200 and then maintained at a constant as the promotional activities are done. The company intends to go full throttle on marketing so that current market size increases to 75 percent by the 4th round. Production Production capacity and size are to be maintained but automation increased to 8 across all segments in order to achieve efficiency. Finance The organization will use operational cash to expand and if need be there will be borrowings or shares offered to the public so that the company raises money. Borrowing is to be used as a last resort as the company does not want to keep paying debt since it increases costs and minimizes profits. Strategic Plan - WEI Spreadsheet.xlsx
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Outline: Strategic Plan


Introduction

A business or an organization without a strategy is like a ship without radar.


Mission Statement

To create memorable products that consumer all over the globe will be able to identify with due
to their quality and convenience.


Choice of strategy

Michael Porter designed a few generic strategies for successful business operations.


Research and Development

As the company’s decision makers, we understand that research and development is crucial to
the success of a business.


Capacity Planning

We understand that producing a surplus could be detrimental to the organization while a deficit
could be a potential disaster when it comes to client retention.


Finance

The strategy adopted in the finance department is the use of operational cash for current business
needs and expansion purposes.


Marketing

It is important that a business create awareness of its products and generally its existence to
consumers through various channels.


Running Head: STRATEGIC PLAN

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Strategic Plan
Name
Institution
Date

STRATEGIC PLAN

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Strategic Plan

Introduction
A business or an organization without a strategy is like a ship without radar. It will never
achieve its objectives si...


Anonymous
Really great stuff, couldn't ask for more.

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