STRATEGIC PLAN PART 1
1
Strategic Plan Part 1
Patrick P. Bailey
BUS/475
April 23, 2018
Prof. Vellore Sunder
STRATEGIC PLAN PART 1
2
Strategic Plan Part 1
As the business climate is rapidly evolving, strategic planning is necessary for gaining a
competitive advantage in the market. Having a great impact on the strategic direction are the
mission, vision, and values of a company and they should be considered in the whole process
of planning. In an organization, the executives should analyze the needs of the customers,
shareholders, and employees to have an optimization of the strategic decision efficacy. To
achieve a strategic objective, it is necessary to formulate a mission and vision statement that
serves as future choice foundation made by the management.
For the purpose of this paper, I will focus on the conceptualization of the merger
between DKS and Big Five Sports. These are two sportswear business companies operating
within the country. Entertainment is one of the biggest trends and sports is among them. There
are various sporting activities in the country, therefore there is a need to produce different
types of software. For that reason, there has been a great completion in the market for the
production of these costumes, and every company wants to get the biggest share. There are big
companies in the market like Nike and Adidas who takes the largest share of the market. DKS
and Big Five Sports, therefore, decided to form a major, to increase their market foundation, to
compete with the bigger market-holders. The merger is expected to go international, producing
sportswear for other countries as well.
Vision Statement
An essential component of the process of strategic planning is the vision statement. The
importance of the vision is to provide a picture of what the company wants to be if it
accomplishes its mission. It is an idea of how the business will appear when all the decisions
STRATEGIC PLAN PART 1
3
fall into place and the primary goals are achieved (Bryson, 2018). In its entry, the vision may
take longer to accomplish, but it gives a general summary of the guiding principles of an
organization.
As for the merging between DKS and Big Five Sports, the mission statement will have
to be modified to suit the needs of both the companies involved. Most of the sporting clubs do
not have a long-lasting relationship with their sportswear companies. This is because they
always have to pay expensively for the production of a good quality product. These two
companies saw this as an opportunity to beat the other competitors. Through merging, they will
have a collective resource, with sufficient personnel. They will, therefore, make high-quality
products at a relatively cheaper price. This will help them build a strong relationship with the
customers in the locality and implement a market plan that is aggressive. The merger will have
a national recognition brand, synonymous with sportswear production. Customers will gain
trust in the technical team and consider the merger as the leader in the industry.
Mission Statement
The second major step is the mission statement, towards the development of a powerful
strategic plan. Its aim is to act as a guide that the managers and employees will follow when
the companies in the merger are making a decision (Bryson, 2018). The mission statement is
also supposed to be reflected in by the sentiment the customer's display. For instance,
customers should be in a position to easily identify the values and ethics that the companies
outwardly promote. Provide below is the general framework designed to illustrate the goals of
the companies as well as the business aspirations.
STRATEGIC PLAN PART 1
4
The mission statement of the merger will be; ‘With exceptional customer service
commitment, the DKS and Big Five Sports Merger will seek to provide its customers with
affordable solutions to high quality and cheap sportswear. With the establishment of a strong
relationship with the local market, the merger aims at generating a steady business flow, with a
positive reputation and referrals from satisfied and happy customers. The merger will gain a
strong focus on the economic business practices, which will give it the ability to expand into
the international and new market and therefore, deliver increased value to the shareholders.
Core Values
Core values are the guiding principles that the shareholders of the business value. With
the communication of the core values of the management will ensure that they are displayed in
the operational decisions the merger makes (Dibrell, Craig & Neubaum, 2014). The target
customers are supposed to easily recognize the merger’s core values in the business model if
they are completed successfully. A constant referral to the mission and vision statement of the
merger will help in achieving this goal.
The core values of the merger between DKS and Big Five Sports can be summed up as
innovation, dependability, and community involvement. First, dependability is necessary for
the merger since it allows the companies to provide a dependable service that leads to a
positive experience. Innovation is also crucial as it leads to lower cost of production and
provides the necessary capital for the companies to grow and expand. When the merger works
towards an innovative-based business model, it will lead to shareholders value and
simultaneously build a competitive advantage in the market. Community involvement is the
last core value that the merger will poses. It will lead to the interaction required to uphold a
STRATEGIC PLAN PART 1
5
positive relationship with customers. The success of the merger largely depends on strong
reputation maintenance to encourage steady referral from past customers
Strategic Direction
A clear communication of the vision, mission and core values is necessary for the
implementation of a strategic plan. Managers and employees should always have an
understanding of the key principles that constitute the mergers business model. Corporate
executives, at the top of the hierarchy, must make high-level decisions that give room for the
flourish of the core values (Dibrell, Craig & Neubaum, 2014). For instance, it will be necessary
to select new locations that will ensure that the employees interact smoothly with the locals,
like the densely populated urban shopping centers. The choice of rural store locations will not
allow the exposure of the employees to follow the core value of the merger; community
involvement. Besides, training of the employees that is continuous will be conducted to have
them focused on the merger’s strategic involvement. Perpetual training programs will enable
employees to give exceptional customer service as they also keep a solid focus on the brand
growth broad objective.
Competitive Advantage
Obtaining a competitive advantage over other sportswear companies can be achieved
through adhering to the core values. It will be important for the executives to make assets
investments to promote innovation of the sportswear. The design of the sportswear is
constantly changing and it is important to maintain a strong understanding of the technology
leading edge. With a maintained focus on the innovation, it will allow the merger to position
STRATEGIC PLAN PART 1
6
itself appropriately with the major changes in the market. Those companies that lag behind in
technology trend will find themselves unable to give affordable high-quality sportswear.
More competitive advantage can be achieved through generation of a positive brand
that the general public can easily recognize (Cassidy, 2016). Through the implementation of
the core values, of community involvement and dependability, the DKS and Big Five Sports
merger will have a high amount of it public image control. A positive image will make sure
that the brand is recognized as the first choice for consumers when there is a need for
sportswear. Also, this is expected to produce a high amount of advertising through word of
mouth that will further improve the image of the brand in the market.
Conclusion
With the implementation of a comprehensive strategic plan, the DKS and Big Five
Sports merger seek to achieve a leading position in the sportswear industry. Having a great
impact on the strategic direction are the mission, vision, and values of a company and they
should be considered in the whole process of planning. The two companies can communicate
their core values by summing them up with a vision and mission statements. The importance of
the vision is to provide a picture of what the company wants to be if it accomplishes its
mission. The mission aims at guiding the managers and employees when the companies in the
merger are making a decision. These summarized statements act as the guiding force used
during decision making among the managers, executives as well as the employees. Besides,
they are mediums of describing the shareholder's core values. The plan has content that will be
the core driving force for the overall direction of the merger. As the strategic plan will be
implemented, it will lead to the prospect growth of the merger, elevating the shareholders’
value and provide a competitive advantage over the competitors in the market.
STRATEGIC PLAN PART 1
7
References
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning
process, planning flexibility, and innovativeness to firm performance. Journal of
Business Research, 67(9), 2000-2007.
Cassidy, A. (2016). A practical guide to information systems strategic planning. CRC press.
Running head: STRATEGIC PLAN PART II
Strategic Plan Part II
Patrick P. Bailey
BUS/475
April 30, 2018
Prof. Vellore Sunder
1
2
STRATEGIC PLAN PART II
Strategic Plan Part II
Economic. Regulatory and Legal Forces
It is important to understand that the organization operates in a global
environment and this subjects the organization to external pressures. Factors such as
culture as well as economic and legal situations have subjected the organization to
pressure. Laws and regulations in different countries have a direct impact on the
organization and its performance. The organization is subject to quality regulations as
well as accounting and business regulations (Elms & Low, 2013). The Company has to
follow the relevant laws if it is to maintain its business operations. Changes in these
laws have a direct effect on the organization and it will directly impact business. There
are environmental laws which the organization is expected to comply to and these will
have an impact on how the company maintains its operations. Economic factors will
have a direct impact on the business and factors such as the recent global financial
crisis have had a major impact on operations of the organization.
It is also, important to note that consumer behavior will change during recessions
as they will have less money to due to decline in economic activity. Another issue that
organizations will deal with is the rising labor as well as operational costs. The
inflationary environment as well as reducing profitability will have a negative impact on
the organization and its performance (Elms & Low, 2013). Another issue of concern is
the fact that many of the organization’s business practices will usually raise concern
with activists as well as international advocacy groups. The company should also
3
STRATEGIC PLAN PART II
ensure that it does not violate any laws and regulation in the home market as well as in
other nations. Licensing regulations are another major issue that the organization is
expected to consider in its operations. Stricter customs and trade regulations are yet
another major issue that the organization is expected to deal with.
Adapting to Change
The organization had to consider its past heritage and used this as a motivation
to move forward. The company realized that it had a distinctive history which was rich
with memories. The company went through a transitional event where it suffered record
losses and near bankruptcy and this forced the company to reconnect with its past. The
company managed to gather its managers, innovators and designers who managed to
look at its past and discuss the relevance to the future (Bryson, 2018). The company
leaders were able to rediscover the company heritage and learn what worked for the
company as well as what did not work for the company. The company managed to
reabsorb into the organizational culture which led the company to define its strategic
choices. The company also realized the importance of being able to meet the future
needs of its customer base effectively.
The company also realized the importance of hands on approach to innovation
and it adopted this technique. It developed a stream of innovative products which
enhanced the performance of the organization at all levels/Another important aspect
that the company was able to look into included creating emphasis on branding
(Bryson,2018). The company effectively used past knowledge to brand its future in ways
which were effective. The management of the company was able to design better ways
4
STRATEGIC PLAN PART II
of understanding the customer and was able to use technology to create product as well
as service improvements. The company understood the importance of facing rising
competition as well as uncertainty and it was able to develop ways of distinguishing
itself as a brand.
Supply Chain
The organization will have to implement supply chain planning and this will help
the company to predict future requirements to balance supply as well as demand. The
company has been able to take into account the available capacity of its network and
this has included a consideration of an ability to react to demand signals as well as the
supply chain risks (Swayne, 2011). The company has also understood the need to
building an integrated supply chain planning process ranging from long term planning,
sales and operations planning as well as operational planning. The company has also
understood the importance of effective execution of planning processes as well as
achieving the right demand and supply balance. Big 5 and Dicks Sporting Goods have
also implemented the use of supply chain planning capability assessment and
opportunity identification. The operational structure of the organization has enabled the
direction which has been set by the business as well as the commercial strategy of the
organization. The manufacturing as well as service model of the organization has been
able to determine how the company delivers on its strategic differentiators. Big 5 and
Dick Sporting Goods have created a supply chain strategy which has been effectively
aligned with the corporate strategy of the organization. The supply chain strategy of the
organization has been able to synchronize all components of the supply chain
effectively.
5
STRATEGIC PLAN PART II
It has included the process of resource allocation as well as the uses of business
unit’s top successfully achieve its business goals. The organization has also
implemented the use of a supply chain operating model and this has allowed for the
right capabilities and ensured leadership alignment to support organizational change
(Swayne, 2011). Yet another major development of the organization has been the
strategic consideration in tax effectiveness of the supply chain. The supply chain
transformation initiatives have reduced operational costs and increased profits of the
organization. Big 5 and Dick Sporting goods have improved operating margins and
increased asset efficiency and this has improved the quality of operations for the
company. It has implemented a lean six sigma process which has ensured structural
and proven performance of the organization.
Considerations for the Development of a Strategic Plan
Strategic planning is important at the organizational level because it ensures the
identification of trends as well as issues which affect the organizational performance. It
will also ensure the delivery of an overall planning process that will directly influence the
work processes at organizational level. It would be important to gather all the
information which would be needed and this would help to identify issues as well as
challenges and trends which affect the organization (Wheelen, Hunger, Hoffman&
Bamford, 2017). Strategic planning would also involve gathering information concerning
the target clients. The management would also have to consider the analysis of external
as well as internal outputs and this would set the general direction for organizational
achievement. The organization will also have to create objectives and use a strategy
map and this will ensure that all the key issues facing the organization are dealt with
6
STRATEGIC PLAN PART II
effectively. The use of visual tools may be helpful as this will enable the presentation of
objectives in the strategy map of the organization. It will be important to ensure that the
internal as well as external inputs have been collected and analyzed.
Another important aspect that the organization will have to consider is the
choosing of effective performance measures. These measures should be relevant to the
strategic objectives of the organization and they should be used in the strategic review
process (Wheelen, Hunger, Hoffman& Bamford, 2017). Managing risk will also be
important for the organization and it will be important to ensure the effective
identification as well as mitigation of risks by the organization. Developing a risk
management approach will be necessary for the organization as it will ensure sufficient
identification as well as prioritization, mitigation and monitoring of the organizational
processes. Managing the strategy will also be important as this will ensure effective
strategic management processes aimed at improving the performance of the
organization.
Issues and Opportunities Faced by the Company
One major issue that the organization continues to face is competition, especially
since the market is very competitive in the United States as well as around the globe.
There are a number of prominent sports equipment firms and this market the same
range of products. Competition between the sellers to gain market share exists in
various areas such as new technologies as well as product performance, price and
service as well as design. Rapid changes in technology and consumer preferences
have led to risk factors for the organization (Lipsey, 2006). Demand for products will
7
STRATEGIC PLAN PART II
also depend on the popularity of sports and fitness activities by the organization.
Another major issue affecting the organization is the current market volatility especially
since the company is exposed to fluctuations. The company has lacked sufficient
mechanisms to lessen the impact of unfavorable exchange rates. It is also important to
consider that the purchase price will directly affect the customer and this will create
natural competition between the manufacturers. The company also struggles to find a
balance between quality and price, which is key to success for the organization.
One major opportunity that the organization has is the emerging market segment
and this has led to expansion of the organization to areas such as South America and
Africa. The company continues to focus on future change and it aims at enhancing its
brand image in such areas. The company has also successfully managed to build an
effective distribution network and this has ensured success for the organization. Big 5
AND Dick have managed to create close relationships with the manufacturers and this
has led to improved product sales. Yet another positive aspect for the organization has
been the ability to analyze as well as predict demographic as well as macro-economic
trends (Lipsey,2006). The company has also successfully built a good reputation and
brand loyalty through enhancing god customer relations. Furthermore, it has improved
marketing practices and this has enabled expansion into the international market. The
company has also managed to successfully analyze the current marketing trends and it
has used the information to improve its business practices. Proper planning and
management has enabled the organization to develop effective ways of managing its
operations and this has been effective for the organization.
8
STRATEGIC PLAN PART II
References
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide
to strengthening and sustaining organizational achievement. John Wiley & Sons.
Elms, D. K., & Low, P. (Eds.). (2013). Global value chains in a changing world. Geneva:
World Trade Organization.
Lipsey, R. A. (2006). The sporting goods industry: History, practices and products.
McFarland.
Swayne, L. E. (Ed.). (2011). Encyclopedia of sports management and marketing (Vol.
1). Sage.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy. Pearson.
Running head: STRATEGIC MANAGEMENT
Strategic Plan Part III
Patrick P. Bailey
BUS/475
May 7, 2018
Prof. Vellore Sunder
1
STRATEGIC MANAGEMENT
2
FINANCIAL PERSPECTIVE
•
•
•
To increase the market share of the business
through reaching other areas. The company
predicts a 5% increase in market share in the
next 2 years. Market volatility and consumer
preferences are risks involved. Banks will help
mitigate them.
To increase revenue and reduce costs in two
years at a7% rate. Expose the firm to economic
and regulatory risks. Local business lawyers will
mitigate.
To improve profitability in the next 3 years at a
5% rate.
CUSTOMER
•
•
•
To increase customer
retention. The business
seeks a 5% customer
retention in the next 2
years.
To increase customer
satisfaction. The rate will
increase by 10% in the
next 2 years.
To increase customer
value. The value will
increase by 40% in 2 years.
INTERNAL BUSINESS
•
VISION AND STRATEGY
•
•
LEARNING AND GROWTH
•
•
•
To improve employee satisfaction. The satisfaction is
determined to increase by 80% in 2 years.
To increase employee retention. Retention will
increase by 85% in 3 years.
To increase the technological innovation in the
business. The tech innovation will increase by 30% in
the next 2 years.
To increase the positive
impact of change. The
change hopes to be increased
by 20% in the next 3 years.
To increase the productivity
of the business. The
productivity will increase by
50% in the next 2 years.
To increase the measure of
process performance. Will
increase by the 20% in the
next 5 years.
STRATEGIC MANAGEMENT
3
On the financial aspect, the first objective was to increase the market share of the
business by 5% in the next two years. The business intends to expand the operations to other
continents and areas which will result in increased revenue and therefore market share. The
shareholders stand to benefit from the increased market share. The risk involved in this venture
entails the customer preference and the market volatility. The market volatility is because of the
economic factors. To mitigate the economic factors, the business will employ the services of
banks which have their branches in the U.S and in the areas marked for expansion. The other
markets in foreign countries may cause the economic risks and the bank will help alleviate by
using the Forex trading. The other aspect of the strategy is to increase revenue and reduce costs
by 7% in the next two years. The risks involved here are the economic and regulatory risks. To
mitigate the risks, the business will employ the services of a business lawyer in the foreign
country to assist in understanding the regulations (Barrick et al., 2015).
Customers are an integral part of the business and therefore the objectives should
incorporate their importance in the business. The business seeks to achieve a 5% increase in
customer retention. This increase will help improve the business’ profits by 25%-125%.
Customer’s retention is crucial for the continued growth of the company. It’s worthwhile to
retain customers to realize revenue growth. To retain them, the business will introduce surveys
which will serve the purpose of following up marketing to gather the customer’s feedback. The
ethical implications here entail privacy concerns that arise from not protecting the customer’s
data during surveys. However, their data are guaranteed to be kept anonymous when using in the
survey. The next strategy is to increase customer satisfaction by 10% in the next two years. The
Key Performance Indicator will assist in monitoring the progress (Hill et al., 2014). The
customer value is destined to increase at a rate of 40% in the next two years. The increase will
STRATEGIC MANAGEMENT
4
help to generate 50% additional revenue. To increase the customer lifetime value, the business
intends to take customer advice and act on it accordingly and feature the fans in the content.
On the international business front, there are three strategies the business targets. The
first strategy is to positively increase the impact of a positive change in the organization. The
business plans to increase the impact of changes in the organization by 20% in the next three
years. The move will work through initiatives such as bringing in new people with fresh ideas,
rotating managers having different views concerning operations. The strategy faces the risk of
culture trap. However, the introduction of new people will lead to improvement of behavioral
performance changes that will impact the culture change. The business also seeks to improve the
business productivity to 50% in the next two years. To achieve this strategy, the business will
inject into the employees’ minds that they will get held accountable for their decisions. The
company will also inquire real-time update and at the same give feedback on the tasks that
employees are given. The company also seeks to improve the process performance measures.
The increase has a projection of 20% in the next 5 years. The risks associated here include the
changes in technology which may affect the performance areas. To mitigate this risk, the
business will identify the elements vital to the business success and the measure the metrics to
create a continuous performance through the development of a system that will do the same.
On learning and growth strategy, the company intends to increase the employee
satisfaction by 80% in two years. The ethical implications involved include the employees
behaving ethically if the company cultivates employee satisfaction. To increase satisfaction, the
business will recognize the employees’ performance and show respect towards them. The other
strategy is to increase the employee retention. The retention is targeted at 80% in the next three
years. Employees are a vital part of organizations and should be retained to prevent high turnover
STRATEGIC MANAGEMENT
5
which is expensive to the business in terms of hiring new employees. To prevent this scenario,
the business will offer training to enhance the skills of the employees. Technology changes,
employment law amendments, and the modern selling techniques are issues which foster
employee retention especially the permanent staff. The company can mentor them, organize
seminars, and offer computerized classes. The business also has a strategy of increasing the
technological innovation in the next two years at a rate of 30%. Technology is now a critical
component in businesses. Technology makes the difference in being competitive and remaining
behind the competition. Technological changes pose a risk to the business if will use outdated
technology instead of modern ones which enhances operations. To prevent the risk, the business
will utilize technology such as cloud for communication and automation in the processes to
speed up operations and achieve efficiency (Santoro et al., 2016).
Communication Plan
The communication plan is a platform where an organization communicates its
objectives. The plans entail the objectives, the resources used in producing communications, and
the audience intended. The first purpose of a communication plan is to act in a proactive measure
in ensuring that employees in the organization get the communicated information in a timely
fashion. The plan is also responsible in describing the person responsible for producing
communication type and its frequency on distribution and updating. Additionally, the
prioritization of the communication needs assists the company in identifying the required time
for the roles in planning for the organization.
The plan institutes the type of message and the recipient of the same message. The
audience should be clearly identified to make the drafting of the communication easier. For
instance, the newsletters meant for staff should have upcoming events as its content, recognize
STRATEGIC MANAGEMENT
6
the staff’s outstanding performance, and communicate the mission statements to demand input
from staff among others. This scenario presents a communication plan that is directed towards
the management and the employees of the company because it explains the desired strategic
objectives. The strategic objectives touched on the internal operations, the customers, the growth
and the financial objectives which the management will find critical and allocate time and
resources to accomplish them (Tara, 2018).
The channels of communication are the ways that people in organizations use to
communicate. The channels should be chosen carefully because using inappropriate channels
may lead to negative consequences. The first channel is the face to face mechanism and can be
used in organizations. The form suits the complex messages because it enables interaction
between the speaker and recipient and can ask for clarity. The second is the broadcast media
which uses radios, TV’s, and other broadcast channels. The businesses only use this form when
communicating to the customers informing them of new products. Written messages do not
require interaction and are primarily used in communicating to the employees. Memos, letters,
and policies are all examples. This is the best channel for communication because of the follow
up that exists if questions arise. The scorecard is also included in this form of communication.
The electronic channels are the other forms which use the internet, email, and the social media
for communication. The option offers a one-on-one and a group and a group form of
communication. However, it is less personal abut efficient (Williams, 2018).
STRATEGIC MANAGEMENT
7
References
Barrick, M. R., Thurgood, G. R., Smith, T. A., & Courtright, S. H. (2015). Collective
organizational engagement: Linking motivational antecedents, strategic implementation,
and firm performance. Academy of Management Journal, 58(1), 111-135.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Tara, D. (2018). Effective Communication Plan. Retrieved from
http://smallbusiness.chron.com/effective-communication-plan-3174.html
Van Der Aalst, W. M., La Rosa, M., & Santoro, F. M. (2016). Business process management.
Williams, O. (2018). What Are Communication Channels Within an Organization? Retrieved
from http://smallbusiness.chron.com/communication-channels-within-organization61447.html
Strategic Planning Outline
BUS/475 Version 7
1
University of Phoenix Material
Strategic Planning Outline
I. Title Page
II. Table of Contents
III. Executive Summary
IV. Strategic Plan Part 1: New Business Division of an Existing Company; Vision, Mission, and Value Proposition
V. Strategic Plan Part 2: SWOTT Analysis – Internal and External Environmental Analysis; Primary
Internal Considerations for the Development of a Strategic Plan.
VI. Strategic Plan Part 3: Assumptions, Risk and Change Management Plan; Summary of Strategic
Objectives; Corporate Social Responsibility: Balanced Score Card and its impact on stakeholders; the
Communication Plan
VII. Strategies and Tactics Section
VIII. Conclusion
IX. Reference Page
Purchase answer to see full
attachment