Unformatted Attachment Preview
Running head: BUSINESS STRATEGIC PLAN
Business Strategic Plan
Sergio S. Skinner
BUS/475
June 26, 2014
James Welch
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BUSINESS STRATEGIC PLAN
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Business Strategic Plan
Introduction
Mission, vision, and values all play a huge part in the successfulness of a business. These
three components help guide the organization to create a strong and viable strategic plan. This is
also a way for company to set their goals base on what they are trying to achieve from these key
components. The provided document shows the research, mission, vision, and values behind
creating a new service called Metro Plus for the Los Angeles Metropolitan Public Transportation
Sector. The document will spotlight key parts to show why Metro Plus differs in a unique and
effective way from their competitors and why this new division will open up doors for not only
the organization, but their customers as well.
Metro Plus Description
The business plan entails establishing a personal public transport (PPT) called Metro Plus
as an additional service offer to customers in the Los Angeles metropolitan area. This will be
part of the existing constantly evolving transportation system known as Metro. Providing service
to over 9.6 million people within its 1,433 square mile service area ("Metro", 2013). Metro Plus
will allow customers who want a more personal ride experience to use Metro app to request a
ride in a personal vehicle. The mobile app will allow Metro Plus to locate the rider through
global positioning satellites, or the rider can put in the exact address of their pick up location.
Customer needs
Metro Plus addresses customer needs through personal experiences through the
following:
•
Personal experience
•
Safety
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Connectivity
•
Time
•
Location
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The five key factors above allows Metro Plus to target a variety of demographics to channel in
on making this service highly successful and affordable to LA county residents and tourists.
Competitive Advantage
Competitive advantage will be achieved through the following:
•
Professional experience
•
Longevity
•
Los Angeles County
•
Tax payers
•
Affordable prices
•
Reputation
Metro has been servicing the Los Angeles Metropolitan area since 1993 ("Tiki Toki", n.d.).
The organization commits to providing innovative practices and continuous improvement. They
are backed by LA County and services nearly one third of California residents. Adding Metro
Plus will give people the confidence to try it out before trying out any other PPT because of the
stability, and the success of the parent company called Metro.
Metro Plus Vision and Mission
Our vision is nothing less than making sure we make it easy for our customers to get to
their destination fast, safe, and on time.
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Mission is to service our customers with safe reliable transportation to get them to their
desire destination, while providing them the best customer service experience to increase our
customer base and loyalty.
Division Alignment
Metro Plus vision, mission, and values align with the mission and vision of the Metro
because it upholds the same fundamentals. Metro puts safety first and so does Metro Plus
("Metro", 2013). The new service wants to shake the transportation world by making public
transportation more accessible to those who don’t live close to a bus stop or train station. This
helps expand a company that mission is partially focus on expansion. Metro Plus will be an
innovation that attracts new customers and allows customers that ride the other services offer to
crossover into the world of PPT.
Strategic Direction
The strategic direction is guided by a constant remind of what we are trying to
accomplish and achieve. Perfect way to do that is by staying focus on our goals and mission.
Staying competitive in the public transportation sector. This is accomplished by keeping up with
new innovations, expanding, and making sure we are staying current or a step ahead in
technology. Putting the customer first and making sure Metro Plus prices always stay affordable
are components that help guide Metro Plus in the direction of success.
Guiding Principles
Metro Plus upholds culture, social responsibility, and ethics by following principles that makes
successful. These principles not only keep the company above float, but it also shows the public
that Metro Plus does the right thing even when no one is looking ("Calpers", 2014). Some of the
guided principles that Metro Plus follows are trust, respect, integrity, staying green, and quality.
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These principles are helping form additional principles that are implemented as well into the new
division to better serve customers.
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SWOTT Table Analysis
There are a lot of opportunities and threats as well as strengths within and outside a
business. In order to fully engage in finding out information that could harm or make Metro Plus
successful. Metro Plus must first create a SWOTT table to summarize the findings of the
research. Below is a copy of the SWOTT table and findings.
Metro Plus SWOTT TABLE
Factors
Strengths
Weakness
Legal &
Regulatory
Economic
There will be
an increase in
the number
of public
vehicles.
Their demand
will reduce due
to the
increased
expenses
Innovation
Actual
budgeting
and the use
of the public
means on
transportation
There will be
higher
charges on
selected
vehicles.
Increase in the
conductivity
cost and
maintenance
cost
Having online
based
registrations
to make it a
The applicants
would in need
of the printed
copies of their
Strategy
rocesses &
Systems
Some vehicles
may avoid the
protocol
Opportunities Threats
Trends
The licenses
on the public
transport
sectors are
given on loan
basis to
enable each
and every
willing
person has
the license.
Targeting the
low income
earners
The presence of
legal rules
governing the
conductivity of the
project
The county
government
has been
providing a
copy of an
agreement
to all the
stakeholders.
Disagreements
between the rich
and the poor as
they argue on the
suitable means of
transport.
The publicity lacks
the privacy of the
passengers
Increased
use of the
public
vehicles by
the residents
Competition from
the private
transport sector
The increase
in the
competition
from the
private
transport
sectors.
Manual and
electronic
means of
data storage
The
transport
system can
access the
remote
areas.
Having the
payments
cards for
customer
efficiency
Records on
the
registrations
to be keep
Fast required data
may not be
accessed quickly
due to the
Having an
incentives of
free
magazines to
the clients
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fast process
Goals
Culture
Less common
routes will be
less
competitive
Well
maintained
vehicles to
earn more
profits
verification
into the public
transport
sector
Number of the
passenger
would be low
beyond the
expected rate
The different
age brackets
have the taste
for different
types of
vehicles
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for reference
methods of storage to be
of the data.
involved
Charges may
change due
to the
number of
passengers
Increase in
job
opportunities
on the look
for age
suitability.
Different cheap
ways may be
applicable
Train
transport
maybe
preferred
Lack of vehicle
identification by
the target group
Demand for
the unique
vehicles
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Synopsis
Metro is dedicated to the provision of a world-class transport system to the residents of
Los Angeles County. It envisions a safe, clean, reliable and time conscious service delivery
(Metro, 2013). Being a recognized and a well-perceived company, metro is introducing a new
personal car service to its customers. This service is known as metro plus. Metro plus is a service
whose dedication is to the customers in need of personal riding experiences as they travel with
metro. Passengers who use the metro plus service can request a personal car through the mobile
phone application.
The legal and regulatory forces play a major role in the implementation of this service.
The legal licenses issued by the government for the public transport means are much cheaper
than those issued for the private transport means (CalPERS, 2014). This is a opportunity for
metro since the legal conditions will be met effectively. Although the licenses are cheaper,
implementing the project fully is much costly because it requires more vehicles for the
personalized experience. Implantation of the whole project is hence a regulatory weakness. The
legal system offers opportunities to everybody willing to acquire the public transport license by
issuing the licenses on a loan basis. The same legal system also has some regulatory measures
brought by enforcing rules that govern the project conductivity. This may limit metro from
implementing strategies that are against the law. Recently, there has been dissemination of an
agreement copy to the stakeholders by the county government (CalPERS, 2014). Metro is
therefore planning to prepare a standardized set of terms and conditions that will enhance
operation of the metro plus service.
There are inevitable changes that occur both in the public, the transport sector and even
the governmental forces. Metro is well prepared and equipped to adapt to these changes.
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Strategically, metro is planning to enhance customer efficiency and stay ahead of its competitors
by introducing the payment cards (Metro, 2013). This will allow cashless payments and hence
save on time and reduce the hustle by customers. For more executive service delivery, metro plus
will charge higher on selected vehicles. These vehicles may however avoid the set protocol.
Although the private transport sector is increasingly bringing up competition, the unique
payment method for metro plus users will match up the competition given and stay ahead of the
market.
Economically, metro has identified a target on the low-income earners who make a
majority of the community. Metro is planning to increase the number of public vehicles, which
will serve the public. This however has its own weakness in that the demand will be reduced due
to the increase in expenses. This move is also threatened by disagreements, which arise between
the poor and the rich regarding the preferred means of transport. Metro has however noted that
currently, there is a considerable increase in the use of public vehicles by Los Angeles residents.
It has therefore decided to do an analysis to ensure that the public transport sector is suitable for
the residents.
The company has been budgeting actual figures and using the public means of transport.
This has given it more experience on the operations of the transport business. The processes are
however increasing in cost of their maintenance and conductivity (Metro, 2013). The public
transport system is also threatened by lack of privacy to customers due to the publicity.
However, access to remote areas is a great opportunity for this sector to scale and win even more
loyal customers. The current trends of the transport sector in Los Angeles County are having
incentives of free magazine provision to customers. Metro has taken up this trend and is sending
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its magazines only to its loyal customers as a way of appreciating them and keeping them
updated about the company new operations and strategies.
The processing system used in metro has been made more efficient and fast by
implementation of the online based registration process. Although this is a fast process, it has a
weakness in that the customers would require a hardcopy printed proof of registration to the
public transport sector. This might be disadvantageous to the customers who do not have the
printed copy. Due to this, there arises the need for keeping details of the online registrations for
reference and this is an opportunity that metro ought to exploit. The methods used to store the
data also may not allow a fast access to required data. To curb this, both manual and electronic
means of data storage should be employed just in case the online system develops some technical
problems. Currently, the company is using the online system for user registration (Metro, 2013).
Due to the accessibility to remote areas by metro services, the less common routes
available in the remote areas provide less competition. The reason why other transport
companies do not venture in such places is due to the lower number of passenger turnout than
expected. The low turnout will therefore cause a change in the pricing and as a result, passengers
may opt to seek other cheaper means of transport like the use of trains. Due to the high
preference of train transport, metro has opted to concentrate only on one mode of transport
(Metro, 2013).
BALANCE SCORECARD AND STRATEGIC OBJECTIVES OF METRO PLUS COMPANY
Planning objectives
Metro plus is a company that deals with the personal public transportation car service if someone
does not want to use a bus or train. Planning strategies is critical for a company’s success
because it defines the communication of what the company needs to achieve. It is unfortunate
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that less than 10 % of the strategic objectives are executed in the company. Quantifying a
strategic plan will measure in terms of development or success of the metro plus company that is
determined by the working plan of the company. The new service needs to shake the
transportation world by creating public transportation more available to those who don’t live
close to the bus stop or train station. This helps expand a company that mission is partially focus
on expansion. The company will adjust before encountering any problems that can accumulate,
and drain resource that increase the costs. Locating the customer first and making sure Metro
Plus costs will always stay affordable to the components that help guide Metro Plus in the way of
success. The metro company will face the short-term versus the long-term goals (Smith, 2013).
The company will compete financially with one business to another that integrates into balance
scorecard. This is significant because it will focus on financial goals that will value, and sustain
the company by making sure that balance scorecard is addressed. The benefits of a balance
scorecard build the capacity that maintains organizational growth effective for the company’s
financial success over a long period. Balance scorecard will provide transparency across the
company; increase accountability with the employee performance in the metro plus company.
This will also involve the government performance whereby it will assist the business to grow
successfully.
Metro Plus will be a novelty that attracts new clients and allows customers that
trip the other services present to crossover into the planet of PPT.
Operational objectives
Metro plus vision has the prestigious pattern designer and fascinating design services. Its
strength is unique and inherent interest of the services and the diversity of its services is
originality designed for the company. The company has a goal to grow and be successful in the
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international areas as a strong company. The company will create more international profile and
raise unique and fascinating services. Metro plus company involves the company with high
quality and innovative expertise that maintain the factors that boost competitiveness. A customer
in this company will be driven by the profitable services that are built in metro plus company.
The growth of this service is sought with the new client groups and the service innovations that
coordinate and integrate the service lines (Kaplan & Norton, 2006). Metro plus company will
enhance the profitability of the service concept and distribute more profitable branches. The
company competitiveness and attraction will be distributed in the different channels that will
expand a controlled manner. It is expected that metro plus company will focus on the natural
demand because it will be efficient, and it will work systematic in order to coordinate with all
competitive business areas. A creative service will emphasize with internal entrepreneurship that
will encourage the personnel’s reinforce expertise. The attractive services will help the company
to maintain strong markets. It will also raise the international sales within a year. Metro plus
company expects the profit growth of consolidated net sales of approximately 10 % in a year. Its
operating profit will be net sales of about 10 % because the company has the planned financial
goals. The business is expected to have a return on equity of about 15 % and the equity ratio of
approximately 60 %. Metro plus company will help to maintain financial position and plan an
appropriate workforce finance objective strategy. It will also help the company to negotiate about
the new enterprise agreement. It evaluates financial statement ratios, return ratios, sales revenue,
and it provides health score that will determine the components of the company.
Workshop objectives
The balanced scorecard is a managerial process that plans to help the organization to be
accountable, agile, productive, focused, and successful. This will be the measurement of the
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existing continually evolving transportation method known as Metro. It will provide services of
about over 9.6 million residents within its 1,433 square mile operational area. Metro plus
company will establish quantitative and qualitative performance that indicates the scorecard that
clarify the goals and reconcile competing priorities that improve the budget tracking the process.
It will also help to assess the outcome and the impacts of the services offered by the company.
Balance scorecard will help to focus the internal and external constraints of sustainable excellent
performance. This process will translate the metro plus company strategic intentions into
measurable goals, and mobilize change that makes strategy for everybody’s responsibility
through assessable critical success factor that improve behavior performance. Scorecard will
assess the financial, client, learning or growth and internal operations of the metro plus company
(Niven, 2006). This approach will help the company to achieve superior results, and build
excellent value for its stakeholders. The company will demonstrate on the accountability of good
governance. It contributes to greater balance of the financial report that indicates a customer
inquires of the services provided by metro plus company. Balance scorecards encourage or
develop internal communication in the company. Workshop objectives build and implement the
skills of operational needs for the company. It identifies the performance, and links the
operational objectives to targeted mission. Use of balance scorecard will provide strategic
management tools and give a strong motivational tool that focuses on the details of the company.
Metro Plus upholds culture, social dependability, and ethics by following doctrines that makes
successful.
Communication Plan
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Creating a communication plan is essential to the successfulness of all strategic
objectives and Metro Plus long-term goals. The purpose of Metro Plus communication plan is to
ensure all accuracy in the delivery of messages. The communication plan helps by helping
employees and managers communicate with each other throughout the course of all projects and
daily duties. Placing this plan into effect creates a protocol to diverse any information needed to
better help the division succeed in accomplishing their strategic objectives.
The audiences in Metro Plus communication plan are their employees. Metro Plus
primary target audience is the first line supervisors/managers. Secondary target audience is their
employees who are actually driving the customers. Internally all employees must know the
communication plan of Metro Plus because it motivates the employee to do their job to the best
ability, allows employees to set their own personal goals with Metro Plus, and it can increase
employee retention when employees know the company’s strategic plan.
Types of communication that will be used in Metro Plus Communication Plan will be
face-to-face, electronic, and written. Face-to-face communication will be used in the plan to
deliver messages that need immediate acknowledgement and understanding of what the speaker
is saying.
If the audience does not understand or need clarification on the matter being
discussed, he or she can respond to the speaker with a follow up question(s) to better grasp an
understanding. Electronic communication is good for Metro Plus because their employees are
constantly moving around. If they need to send out a mass message to all employees it can
easily be done through email or text message if it’s just to inform employees of certain things or
changes within in the division. This channel is more effective within the new division because it
will be hard to get all employees in one building every time a message needs to be
communicated within the company considering they operate 24/7 365 days a year. Metro Plus
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will utilize the written communication channel, when there is no need for interaction.
Communicating with employees does not always mean you have to have interaction with them.
Posting memos, policy changes, and announcements in public places will deliver the message.
Employees who don’t understand can than follow up with face-to-face or electronic
communication for better understanding.
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References
CalPERS. (2014). Retrieved from http://www.calpers.ca.gov/index.jsp?bc=/about/strategicbusiness/values-principles.xml
Kaplan, R. S., & Norton, D. P. (2006). Alignment: Using the balanced scorecard to create
corporate synergies.
Metro. (2013). Retrieved from http://www.metro.net/about/agency/mission/
Tiki Toki. (n.d.). Retrieved from http://www.tiki-toki.com/timeline/entry/49819/MetroTransportation-Library-and-Archive-History-of-Transit-in-Los-Angeles/#vars!date=1873-0703_00:00:00!
Niven, P. R. (2006). Balanced scorecard step-by-step: Maximizing performance and maintaining
results. Hoboken, N.J: Wiley.
Niven, P. R. (2008). Balanced scorecard step-by-step for government and nonprofit agencies.
Hoboken, N.J: J. Wiley & Sons.
Smith, R. F. (2013). Business process management and the balanced scorecard: Using processes
as strategic drivers. Hoboken, N.J: Wiley.