Strategic Plan Part III: Balanced Scorecard and Communication Plan

Sep 6th, 2017
Anonymous
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Accounting
Price: $20 USD

Question description

Purpose of Assignment

Students will have the opportunity to develop a Balanced Scorecard. This, in turn, will allow them to create effective strategic objectives to be included as part of their overall strategic plan. They will also be presented with the task of creating a brief communication plan that will be used by their proposed division to efficiently distribute information with regard to their strategic initiatives.

Assignment Steps

Resources: Strategic Planning Outline and Week 4 textbook readings

Create a minimum 1,050-word strategic objectives summary.

Include your balanced scorecard and its impact on all stakeholders, and the communication plan.

Identify key trends, assumptions, and risks in the context of your final business model.

Develop the strategic objectives for your new division of the existing business in a balanced scorecard format in the context of key trends, assumptions, and risks. The strategic objectives are measures of attaining your vision and mission. As you develop them, consider the vision, mission, and values for your business and the outcomes of your SWOTT analysis.

Consider the following four quadrants of the balanced scorecard when developing your strategic objectives:

  • Shareholder Value or Financial Perspective, which includes strategic objectives in areas such as:
    • Market share
    • Revenues and costs
    • Profitability
    • Competitive position
  • Customer Value Perspective, which includes strategic objectives in areas such as:
    • Customer retention or turnover
    • Customer satisfaction
    • Customer value
  • Process or Internal Operations Perspective, which includes strategic objectives in areas such as:
    • Measure of process performance
    • Productivity or productivity improvement
    • Operations metrics
    • Impact of change on the organization
  • Learning and Growth (Employee) Perspective, which includes strategic objectives in areas such as:
    • Employee satisfaction
    • Employee turnover or retention
    • Level of organizational capability
    • Nature of organizational culture or climate
    • Technological innovation

Evaluate potential alternatives to the issues and/or opportunities identified in the SWOTT Analysis assignment and table you completed in Week 3.

Create at least three strategic objectives for each of the four balanced scorecard areas. Base your solutions on a ranking of alternative solutions including the following:

  • Identify potential risks and mitigation plans.
  • Analyze a stakeholder and include mitigation and contingency strategies.
  • Incorporate ethical implications.

Develop a specific metric and target for each strategic objective using a balanced scorecard format.

Example: a strategic objective in the shareholder or financial perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, "The percentage of increase in market share." The target is the specific number to be achieved in a particular time period. The target for the metric of "Increase market share" could be "Increase market share by 2% for each of the next 3 years" of an increase of 2% per year for 3 years.

Outline a brief communication plan discussing how you will communicate the company's strategic objectives including the following:

  • Define the purpose.
  • Define the audience.
  • Identify the channel(s) of communication and why you selected that channel.

Format your assignment consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.

RUNNING HEAD: WALMART STRATEGIC PLANNING1 Walmart Strategic Planning Kyle Risberg August 28, 2017 BUS/475 Robert Stokes WALMART STRATEGIC PLANNING 2 Introduction In this paper, I will consider Walmart and define a new division of its business. Currently, it operates across the world and it is the highest earning revenue company in the world and the employer of more than two million employees across the globe. It has a chain of operation in hypermarkets, grocery shops and discount departmental stores. Despite having a series of operations, Walmart has a chance to incorporate a new division that will increase their profits and ensure the growth of the company. There are retail stores that are coming up and Walmart need to ensure they grow and supply their customers with variety to gain the competitive edge. Some of the upcoming retail stores are aggressive that they have a line of business divisions to expand and gain more market. Customers like stores where they can get a lot of item and administration to save on time of moving from store to store. The paper introduces an imaginative thought on the products that Walmart can benefit equally with its current operation. The line of division will meet the need of the customers and has a relationship to its major activities. The paper will give strategic plans that will help expansion and progress of the company. The division should line with the current vision, mission and with the core values of the business. Proposed Product The proposed division is fast food where the shops include selling of snacks and beverages. This will require Walmart to employ more workers, and the initial cost of starting of the division is costly, but in future will be profitable. Currently, the firm is looking for new way of growth where they can empower the activities in other business division. Walmart has a brand name in the current business operations and a wide market share across the globe. The firm can use this advantage to incorporate the fast food division to the existing market WALMART STRATEGIC PLANNING 3 share. It is a development where Walmart stores will provide a lot of goods under one roof. In the current period, fast food deals with nourishment generation and therefore the division is proper for Walmart implementation. Since the company has a line of grocery shops in their stores, they will have the items required from their store (Saad & Conway, 2016). They can buy items to be used in the fast food shops in their stores. They will be discounted price thereby holding prices lower than competitors. It will also spare time and cash for the organization and its customers for better business relations. Walmart’s mission is "Save money. Live better". With the introduction of the mentioned product, it will line with the current mission. Customer Needs Introduction of the snacks and beverages in the eateries will expand and open to adults, children and young generation. It is in the strategic plan of the company to offer quality even in future to its customers. As stated in the mission Walmart has low-value sustenance to its customers and that why it's able to beat its competitors in their services (Hut, 2012). By the development of the new business line, it will be able to provide quality at a lower price than the current fast food eateries. To attract the young generation, they need to have pizzas and sandwiches to ensure they capture their interest in the shops. Another need is time-saving. It is taking less time to prepare snacks and beverages thereby saving customers time. In this aspect, fast food eateries are profitable since they service customers in a short time. Beverages like coffee, tea and soft drinks are mechanical gear for growth and meet the need of adults as well as business class. Proposed Business Model The best business model that will be adopted by the new division is the uniqueness, variety of in the menu, have a good customer base, proper assessment of the competitors and WALMART STRATEGIC PLANNING 4 marketing strategies. Incorporation of these elements will help Walmart attract more customers and face the competition. To acquire uniqueness the new business should be innovative and use of a computer controlled to serve and receive payment (Kim & Kim, 2014). The business should be located inside Walmart stores where it can easily attract the customers in the stores. Use of machine to serve will help the company to provide cook base to avoid wastage and maintain freshness (Saad& Conway, 2016). Also, it will manage the inventories to ensure supply of products on time before they go out of stock. This model will help Walmart to attract more customers and improve the profitability. There is need to conduct the assessment of the other food eateries that around the business to determine the level of competition. Another element that improves the business model is providing the variety of snacks and beverages to it customer. In so doing the Company will be able to increase its customers' base. The prices should be affordable and attractive to new customers. Quality and low price will help maintain and gain customers’ loyalty. Intensive advertising at the start of business development is necessary to tell clients what they offer and at what price. How the mission, vision and core values align with Walmart mission and vision The vision and mission of the new business line emphasis on costs, uniqueness and quality. These are the needs of the customers and companies need to adhere for business survival in the current period. Walmart vision statement is "To be the best retailer in the hearts and minds of consumers and employees. “Per the company's vision, it aims to create full satisfactions to its clients which can be gained by providing products at affordable price, maintain uniqueness and maintain high quality. On the other hand, the mission statement is "Saving people money so they can live better." This indicates that the overall aim is to hold prices low and ensure that their customers enjoy the product prices. In the new division cost WALMART STRATEGIC PLANNING 5 is the main determinant that will help Walmart beat the competitors and uniqueness and quality will help to maintain the customers (Stankevičiūtė, Grunda & Bartkus, 2013). Therefore it is clear that the new division mission and vision align with the overall Company's vision and mission. The new division guarantees innovation development and willingness of the Walmart to serve its clients. Use of the serving machine will reduce time spent in the shop before being served which will attract more people. This will be in the short term and long run saves costs for Walmart thereby increasing its profits. Walmart vision, mission, and values guide the division's strategic direction The vision of Walmart aims to create the best for its customers and employees. The vision guides that strategic direction of the new division to offer best services and products to customers to gain loyalty. Additionally, the employees should be treated properly and given enough wages and salaries as much as the division tries to hold costs low. The vision guides the new business that low price should not compromise quality since customers deserve the best from the employees (Hankinson, 2017). A clear management plan of the new division should be set to create best out of the available resources at a reasonable price. The mission aims to save cash for its clients and improve their lives. The new division mission revolves around cost, quality and uniqueness. The mission guide that the management of the new division should set low prices that will help customers to save and improve their lives. The pricing of snacks and beverages should not be overpriced. Guiding principles and values of the new division The guiding principle of the division is to prioritize on customers' need. A better platform to deal with customer complaint will be considered to ensure they fully express their problems. This will create a good business environment as they try to improve the business relationship with the customers. Another principle is saving time: The new division is WALMART STRATEGIC PLANNING 6 projected to use self-serving machine that also manage the inventory to avoid wastage of time arising from such. In any business environment, there is need to understand the culture of the business location, for Walmart, it has stores across the globe and the operations will be guided with cultural environment in a specific place (Woiceshyn, 2014). Additionally, in the current business culture respect to social responsibility, technology is the guiding principle that helps effectively in business operations. It can be used to take customers view. It is also the responsibility of the new division management to act ethically both locally and internationally and in line with the values of Walmart Company. This is by ensuring that the business is guided by the overall vision and mission of the company. WALMART STRATEGIC PLANNING 7 References SaadAndaleeb, S., & Conway, C. (2016). Customer satisfaction in the restaurant industry: an examination of the transaction-specific model. Journal of services marketing, 20(1), 3-11. Hut, U. K. (2012). Research methods for business and management. Stankevičiūtė, E., Grunda, R., &Bartkus, E. V. (2013). Pursuing a cost leadership strategy and business sustainability objectives: Walmart case study. Economics and Management, 17(3), 1200-1206. Woiceshyn, J. (2014). Lessons from "good minds": How CEOs use intuition, analysis and guiding principles to make strategic decisions. Long Range Planning, 42(3), 298-319. Hankinson, G. (2017). The management of destination brands: Five guiding principles based on recent developments in corporate branding theory. Journal of Brand Management, 14(3), 240-254. Kim, W. G., & Kim, H. B. (2014). Measuring customer-based restaurant brand equity. Cornell Hotel and Restaurant Administration Quarterly, 45(2), 115-131. WALMART STRATEGIC PLANNING 8
Running head: WALMART SWOT ANALYSIS Wal-Mart SWOTT Analysis Kyle Risberg BUS/475 September 4, 2017 Robert Stokes WALMART SWOT ANALYSIS 2 Walmart Inc. is an international company that operates in very many countries around the world, selling a wide range of products in its stores and hypermarkets. Recently, the company strategized to open a new division that would offer fast food and would be in the main store as a move to increase the customer base and serve their customers in all aspects, an eatery for this case, instead of them having to move from store to store. The low-price considerations as well as offering quality and time saving services in this new division will create a sense of customer comfort ability and loyalty as well to the overall company. This strategy is very prospective and since before start up every business venture must take an analysis of the internal and external factors surrounding the business, this paper will focus on evaluating the strengths, weaknesses, threats, and opportunities within and around the venture to clearly ascertain its success, barriers, and points where it can improve service delivery in the market. In a business or market platform, strengths are those points which a company boasts of, which can be used for the benefit of the venture, and which the competitors do not have and when identified and utilized well can lead to numerous gains against its competitors (Hollensen, 2015). Walmart boats of many strengths which it can utilize to its advantage. The primary strengths that Walmart has over its competitors are the global organizational size, global supply chain and high efficiency of the supply chain which directly points to a wide customer base. Walmart serves different countries around the world from the most developed ones to the developed and to the underdeveloped ones. This has created a wide customer base which is also scaled by the low prices for high quality goods and services to the customers. This factor has put the company on the most successful ventures in the world. The global supply chain is strength in that the company can detect and prospect the demand of certain goods and services and supply them to the stores in good time which gives the customer a variety to choose from. The company WALMART SWOT ANALYSIS 3 also boasts of customer loyalty which is an acute determiner of the success of any venture in the market. The ability to create a base of its own customers, maintaining them and even attracting more with time has kept the company on the verge of success in both wholesale and retail ventures. The company also boasts of a wide range of assets and resources where it can finance any operation and can offer quality and a wide range of goods and services as opposed to some of its competitors. Therefore, Walmart has a great chance of succeeding in this new venture owing to these many strengths. Weaknesses are those points which can easily negatively affect the business if not taken care of, which mostly include internal factors (Hollensen, 2015). The primary weaknesses that Walmart has are the thin profit margins and an easily copied business model. Under the thin profit margin, the company mostly offers high quality products as well as a range of products in low prices which reduces the profits that it gets from these ventures as compared to other stores. This greatly affects the company in the sense that it cannot boats of great returns to cover some of the underlying expenses which are a potential setback. Additionally, the company has a simple business model where it tries to draw different customers, but unfortunately, this model is easily copied by its competitors making it hard for the company to sustain and own a model that can only be identified with the company. This increases competition which also acts as a setback to the company. Other weaknesses include the over reliability in data and market statistics in determining the most probable market variations as well as customer bases which sometimes do not work. Additionally, in some goods and services provision, the company lacks competitive strength in the sense that it sometimes becomes hard for it to go head on with another company in services and goods provision. This leaves the company to try other ways of maneuvering in the market such as being innovative and varying the modes of goods and service provision. WALMART SWOT ANALYSIS 4 These weaknesses may eventually affect the strategized venture where its competitors may copy the model as well as the working of the division. This will eventually act as a setback to the division. Opportunities are the factors which when utilized properly, may lead to an expansion of the venture as well as its success in the market (Hollensen, 2015). Walmart has several opportunities which when it exploits, it will lead to a wider customer base, a greater profit margin among others. The primary opportunities that the company should dwell on are the expansion in developed countries, improvement in human resource services and improvement in quality standards. In most developed countries, the value of quality gods and services is high even if they are at a higher price. If Walmart would extend its market and major in every developed country I n the world, and continue providing the quality goods and services they offer even at a higher price, it would lead to more returns as compared to offering the same commodities in the developing and underdeveloped countries at lower prices. Also, the company should improve o the human resource services such that the staff are committed, experienced and motivated as a well as fast enough in provision of services which will not only create an attractive image to the customers but also ensure that the mission, vision and company goals are met and the staff focuses on attaining them. Most importantly, such a venture as the proposed division requires efficient and reliable staff that is capable to serve as many customers as possible in a short period of time. Additionally, the company has an extra opportunity of increasing the quality of the goods and services offered because their competitors are already offering some of the food products strategized and therefore majoring in increasing the quality standards of these products would draw more customers to the stores as compared to their competitors. Walmart also enjoys a global influence in the provision of goods and services, If the WALMART SWOT ANALYSIS 5 company was to utilize this influence and make it strength and thereafter base on it, the division would equally acquire a large base of customers as do the stores. Finally, Walmart can reach to different geographical locations and serve different types of markets as compared to its competitors due to the large pool of assets and resources. If this opportunity is well utilized, the company would easily maneuver in the market beating its competitors and creating a rand in the new division. A threat is a factor that may be posed by a competitor or any internal or external influence that if not taken care of in an early stage, may lead to the company losing a portion of its market or even failing terribly (Hollensen, 2015). Walmart also faces a few threats mostly from its competitors the primary ones being the aggressive competition from other businesses, the healthy lifestyle trend, and small scale online selling. The aggressiveness of the competitors in providing quality products at low prices in cases of eBay and Amazon poses a great threat to Walmart such that to tackle these cases, the company must come up with unique effective strategies. Also, the healthy lifestyle trend in the world today that focuses more on vegetables and fruits as opposed to snacks and other fast foods, may pose a great threat to the existence and success of the fast food venture that the company wants to invest in. Additionally, the small scale online selling that has taken root with such companies as eBay, Amazon and Alibaba, poses a great threat to Walmart since the company now must keep up with the recent technological developments and advancements in the market to cater for their pool of customers and maintain their loyalty as well as can counter this competition. In conclusion, Walmart should keenly consider the above factors to ensure that its global customer base is maintained and continues to pull more customers to its new strategized division. It is also equally important to consider these factors to keep up with the current and future trends WALMART SWOT ANALYSIS 6 in the market for the company to remain relevant in its provision of quality but low priced products. Strengths Weaknesses Organizational Size Business model Global supply chain Small profit margins Efficient Supply Chain Opportunities Threats Expansion into developed Healthy lifestyle trend countries Aggressive Competition Improvement of human resources Small scale online businesses Improved quality standards WALMART SWOT ANALYSIS 7 References Davis, G. (2014). Quality Management for Organizational Excellence Hollensen, S. (2015). Marketing Management: A Relationship Approach. Pearson Education. Smithson, N. (2017, January). Walmart SWOT Analysis and Recommendations: Business Management. Panmore Institute.
Now it’s time to put it all together! In this module, you’ll be preparing a report drawing on the S LPs from modules 1-4. The task is not to simply combine these documents, but to show how the business functions relate to each other and lead to strategic action. The special trick, which you’ve seen in action in the case, is to construct one or more causal chai ns that relate the objectives, starting with the most basic level (learning and growth) and leading to the most visible (financial/effect performance). Assignment Expectations: The first step is the construction of a consolidated table summarizing all your objectives, measur es, targets, and action initiatives. This will then enable you to draw the arrows that make up the c ausal chains implicit in your objectives. You can find a dandy example to follow here: BSI (2007) Balance Scorecard Example for the Regional Airline. Balanced Scoreca rd Institute. Retrieved from http://www.balancedscorecard.org/Portals/0/PDF/Re gional_Airline.pdf Here’s a form that you may wish to copy and paste into your report and fill in: Objective Measure Target Action Financial Customer Internal Learning Now you need to examine your causal chain(s) and consider them as statement(s) of organization al goals and the strategy necessary to reach those goals. As the remainder of this assignment, supplement the table you just prepared with a 2-3 page repo rt that addresses the following: Considering causal chains, organizational goals, and strategies, choose either the "is" or "is not" position in the following statement as a thesis statement for constructing a well reasoned 2-3 pag e argumentative essay: The balanced score card approach is (or is not) a useful tool, applicable to most organizatio ns for identifying strategic action plans. Use the organization you chose for your SLP as an example to support your position. In this paper you will need to clearly present your thesis statement. That is, what is your position statement that you plan to support with your upcoming argument (Hint... provided above in blue) ? The body of your essay should include well reasoned and well supported arguments. You shoul d finish up with a concluding paragraph which ties your arguments into a convincing and cohesiv e whole. . MODULE 1 Improving Wal-Mart’s financial position Balanced Scorecard: Wal-Mart’s Financial Perspective Objective Measure Target Initiatives Better than Return on assets 1% higher than Membership engagement score market returns and return on retail industry initiatives (for SAM’S club). equity average Vendor selection and associate recruiting and engagement. Earnings per Earnings per 10% growth per Control costs through vendor share growth share year management and training, sales growth, disciplined capital spending. Retail unit Number of retail 5% growth Appeal to “generation next” by growth outlets and total annually making shopping possible sales through smartphones, online purchases and drop-ship directly to homes. Bring together bestin-class online, mobile and social capabilities. New search engine for online customers. Positive financial Residual Income 5% growth Finance through the lowest cost leverage (operating annually outlet (loans, bonds, stock). income less Repurchase stock and finance a capital charge long-term historically low rates. based on cost of capital) Module 2 Objective Low price check available while shopping competitors to snag customers when in other stores Deep assortment Best shopping experience Balanced Scorecard: Wal-Mart’s Customer Service Measure Target Initiatives Number of orders from 10% growth year over Permit customers using a mobile phone or low price checking on year computer to check the price of an item and devices buy it while shopping out of store. The era of price transparency is right here, right now and in real time. Number of customers No customers leave Deep assortment in every category so all who leave the store without a purchase (not customers find something to meet their without a purchase finding what they need) shopping need Customer satisfaction 100% good or very good Create displays and store layout that make survey measure of experience shopping, browsing and inspirational shopping experience shopping choices possible with the least confusion and “hunting.” Shopper guides available at all hours. Module 3 Balanced Scorecard: Wal-Mart’s Internal Business Processes Objective Utilizing more IT instead of personnel in carrying out internal business processes Increase business educational training for business process personnel Reducing the number of departments within business operations Measure Reduction in the number of staff that are needed to carry out internal business over a 6-month period Percentage increase in the number of business operations personnel that have at least an Associate’s degree in business within two fiscal years Percentage decrease in the number of departments within business operations within a six-month period Target 5% reduction of staff involved with the internal business over 6 month time period 20% increase in the number of personnel that have at least an Associate's degree every two fiscal years Initiatives Increased training and advanced IT equipment utilization by business operations personnel 10% reduction in the number of departments within business operations within a six-month period Remaining departments to be trained in handling additional responsibilities as a part of their job duties, with a 2% increase in their annual pay A program that needs to be developed is a tuition assistance program for online college courses for business operations personnel MODULE 4 Balanced Scorecard: Wal-Mart’s Learning and Growth Perspective Objective Remove discrimination of women and minorities Increase employee satisfaction Measure Number of discrimination complaints received Employee satisfaction survey Increase innovation at Wal-Mart Number of new and useful ideas generated by employees Target Reduce employee complaints to zero each year for the next three years Increase the satisfaction score on the survey by 3% every year for the next three years Increase in the number of ideas from employees by3% every year for at least three years Initiatives Initiate training for supervisors and managers for inclusion of women and minorities at WalMart Increase employee training. Improve employee benefits Allow employees more authority for making decisions Revisions (if any) to Module 1, 2, and/or 3 Objectives Objective Measure Target Initiatives Increasing Customer Increasing Allow employees more authority customer satisfaction Index customer for making decisions satisfaction satisfaction by 4% every year for next three years Increasing Sales Annual Sales Increasing annual Increase employee satisfaction sales by 8% every through better training, and more year benefits

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(Top Tutor) agneta
School: UT Austin
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Running head: BALANCED SCORE-CARD

Balance Score-Card
Institution Affiliation
Date

1

BALANCED SCORE-CARD

2
Balance Score-Card

A balanced scorecard is usually essential to companies as they use them to outline
their strategies and goals, as well as how they intend to achieve this. Balanced scorecards
thus give companies and their stakeholders a sense of direction and seriousness. Without
balanced scorecards, it is difficult for employees to know what direction the company intends
to take. Employees also become unaware of the big picture and how their actions can affect
the company in the long run (Jawad, 2017). Balanced scorecards come in handy especially in
summarising strategies as it makes it easier and simpler to understand. Employees and
customers are also able to know what to expect from companies. Companies are thus able to
market themselves especially if their objectives are appealing to the customers. With well
written balanced scorecards, the company can also attract investors. Investors like to invest
their money in promising investments. Balanced scorecards will enable investors to know
what to expect in return after a period of time.
Objectives are goals that are aimed at in order to bring the mission and vision of an
organization to fruition. Wal-Mart’s balanced scorecard is aimed at outlining the objectives
of the food division, how they will be able to measure the achievement of these objectives,
the targets and the initiatives they intend to take in order to achieve the objectives. The
objectives in the score card are aligned with Wal-Mart’s intention to maintain uniqueness and
quality all at affordable prices. This objective will enable Wal-Mart to retain its customers by
satisfying them and also to increase their profit margin so that they can manage the business
effectively.
Objectives
The first objectives are the financial objectives. Wal-Mart intends to increase the
money it earns in profits (Spicer & Hyatt, 2017). They will do...

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