Navy Federal Credit Union Strategy Implementation Evaluation and Control

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jnlsry67

Business Finance

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Purpose of Assignment

Weeks 3, 4 and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is part three of the three part Strategic Management Plan addressing strategy implementation, evaluation and control. The purpose of the Week 5 individual assignment is to allow the student to discuss and explain how the strategies discussed in prior weeks are converted into implementation activities both domestically and internationally, in alignment with legal, social and ethical considerations. Furthermore, the student has an opportunity to explain and discuss how the strategic plan and implementation activities will be monitored.

Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 3 of the three part Strategic Management Plan.

Assignment Steps: You can utilize attached documents if necessary.

Create a 10-15 slide PowerPoint presentation for delivery in class in which you report out on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

  • Strategy Implementation
    • Discuss International Strategy.
    • Discuss Strategic Implementation.
    • Explain the influence of Governance and Ethics.
    • Discuss the Company Social Value.
    • Discuss Innovation and Diversification.
    • Discuss Legal limitations.
  • Evaluation and Control
    • Explain Strategic Metrics.
    • Discuss Key Financial Ratios.

Cite at least 5 scholarly references.

Format your presentation consistent with APA guidelines.

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Running head: NAVY FEDERAL ENVIRONMEMTAL SCAN Navy Federal Environmental Scan MGT 498 January 10, 2018 1 NAVY FEDERAL ENVIRONMENTAL SCAN 2 Navy Federal Environmental Scan International Strategy is the plan that Navy Federal Credit Union utilizes in order to provide its services to the outside market other than the domestic market. This is because new opportunities are discovered by the company from providing the credit services to the outside market to. With this kind of strategy in hand for the company, it is able to create more awareness to the outside market thus creating a large geographical area of customers from different places. This will actually increase the profits for Navy Federal Credit Union thus creating more income for the company. With this Navy Federal Credit Union will be able to enjoy more opportunities as they will be in a position to come up with new methods of giving out credit to their customers and thus coming up with new methods of investments (Covington, 2017).This actually creates a competitive advantage over the other credit companies that only focus on the domestic market because it means that the company will be situated in different regions in a way that it will increase the customer accessibility. Strategic Implementation In the implementation of the Navy Federal Credit Union strategy, the firm has to through several processes in which the plans are put into action in order to achieve the objectives of the company. For the strategy to be implemented successfully the company has to allocate the required resources and capital to their budget. A leader is elected who helps in the allocation of NAVY FEDERAL ENVIRONMENTAL SCAN 3 duties and also communication of the necessary information during the formation and implementation of the strategy. The leader also formulates the vision in which the team members have to follow and also provides the necessary tools for measuring the performance of the employees. Time structure is also initiated in order to prioritize the processes and determining the expected duration of the overall project. For the implementation of such a strategy, only qualified personnel are involved because of the necessary unique skills that are required (Covington, 2017). Also, in the implementation of such a strategy, all the members of the Navy Federal Credit Union are involved in the overall plan in order to create employee involvement and also create a pool of man-power and team-work. The Influence of Governance & Ethics Navy Federal Credit Union has a high and good reputation in terms of governance which ensure that the wealth of the various shareholders involved in maximized to the fullest and also their welfare in prioritizing together with the welfare of the society. This is achieved through the utilization of a control mechanism that is tight in order to ensure that rules and regulations are clearly followed. Governance plays a very important role because it helps Navy Federal Credit Union to acquire more profits. The interest of the customers and that of the organization is aligned with the governance team decisions and also the leaders of the governance team have to ensure that all of the ethical responsibility is completely followed so that the plan can be accomplished successfully. NAVY FEDERAL ENVIRONMENTAL SCAN 4 Ethics is usually the moral discipline that a person has to follow in order to conduct himself in the right manner by following a professional kind of behavior. Navy Federal Credit Union has the responsibility of ensuring that all of their employees follow the ethical rules and have good behavior at the workplace in order to make it easy for the goals to be achieved and also the different kinds of strategies to be implemented successfully. Navy Federal Credit Union has employed qualified personnel who serve customers appropriately and also they ensure that the customers’ needs are satisfied completely. The company is mostly dedicated to providing standard services to their customers and their ethics is that they provide employment which has enabled their workers to earn a living for themselves. The Firms’ Social Value Social value is the change in the values in relation to the experiences of the people. At the Navy Federal Credit Union, their social values consist of creating a better working environment for their employees. The first priority of this company is to provide a friendly working environment for their employees, training the employees, providing medical care for the employees and finally providing remunerations that are favorable to the employees. It is the duty of the firm to ensure that its surrounding environment is protected and this is achieved through the adhering of a better environmental working condition by not polluting the environment in any way. Other than providing credit services to their customers this company has also ensured that it has protected its environment by placing different waste recycling methods at the workplace in order to avoid any form of waste being disposed to the environment. NAVY FEDERAL ENVIRONMENTAL SCAN 5 Navy Federal Credit Union is also highly involved in humanitarian campaigns in which it helps the less fortunate people by providing different kinds of donation to helps these people earn a living. Diversification & Innovation Innovation at Navy Federal Credit Union includes the company being able to come up with many new different methods of providing services to its customers in order to increase the company’s profits and also attain a competitive advantage over the other credit companies at the market. This has been a strategy that has actually helped this company to gain more and more customers because of being more innovative than the others (Peterson, 2017). Diversification in the sense that Navy Federal Credit Union has been able to provide services to the outside market other than the domestic market has really enabled this company to be diverse in regards to providing services and meeting the needs of different clients from different geographical regions. Diversification is a strategy that has enabled the company to reduce their overall risks and also maximize their profits. Legal Limitations For any of the strategies to be implemented successfully usually, there are legal laws and regulations that should be followed. These kinds of laws are usually set by the U.S government and it depends on the industry in which a company is operating. Some of the laws may end up limiting the operations of the company such as the limits in which the company has to give credit. The rules usually limit the amount of credit that the company can offer to a client. In order for this company to operate without any form of limitation, it has to license itself by the NAVY FEDERAL ENVIRONMENTAL SCAN 6 government and a certain fee that is put in place by the U.S government. Another important aspect is the paying of taxes which is mandatory for any company whether private or public and for this reason, taxation is one of the factors that is reducing the level of profits of Navy Federal Credit Union because without any form of deductions the company makes a lot of money in return. The Strategic Metrics The strategy is usually a set of actions that enables a person or a company to achieve certain goals. Also, a company should follow a certain procedure in order to achieve its goals. Statistical analysis of metrics is important for the formulation of a reliable plan which can lead to the attainment of the company’s objectives. The important metrics include differentiation and cost. Differentiation is important because it helps Navy Federal Credit Union to be able to establish a trade-mark for themselves which its customers can easily familiarize themselves with because of the services that are provided by the company. Vertical Integration is an important aspect of Navy Federal Credit Union because it enables the company to have easy governance in terms of the resources being supplied in their different institutions. This is a great way for the reduction of the cost that comes with such a process and also helps in customer satisfaction. Strategic alliance with the stakeholders involved is an important aspect to Navy Federal Credit Union because it helps to build a strong relationship with their various stakeholders in NAVY FEDERAL ENVIRONMENTAL SCAN 7 order for the company to always remain relevant in the future. Being innovative and also giving the first priority in terms of the company’s reputation is very important for the day to day continuation of a company. Also, in terms of competition, it is important that a company should be able to keep an eye on their competitors in order to remain relevant (Peterson, 2017). The competitive advantage of Navy Federal Credit Union is very important because in relation to the above metrics NFCU will be able to build a brand that the customers can easily relate to and this is a great sign to show that a company is profitable and relevant. The Financial Ratios The financial ratio is the key indicator of the stability and performance of a company. Profitability ratio is the most frequent type of ratio in use by many companies. Profitability ratio offer provides various types of measures in terms of a company’s success in profit formulation. The main focus of profitability ratio is the return on assets, return on equity and the gross profit margin (Yard, 2018). In relation to this profitability ratio usually focuses on the measurement of the gross profit that is earned from the sales or the services being provided, also it focuses on the effectiveness of the assets being used for the generation of the profits and also the measurement of the amount profits attained from the various investments. Another important ratio is the liquidity ratio which is an important ratio to enable Navy Federal Credit Union to be able to check on its capability to attain its short-term goals. The dividend policy ratio enables the company to check on the potential to grow in the future. Asset turnover ratio helps the company to effectively use its assets in terms of profits generation and NAVY FEDERAL ENVIRONMENTAL SCAN 8 finally, the financial leverage ratio enables the company to achieve a long-term financial capability. References Covington Jr, H. E. (2017). Lending Power: How Self-Help Credit Union Turned Small-Time Loans into Big-Time Change. Duke University Press. Peterson, C. (2017). Choosing Corporations Over Consumers: The Financial Choice Act of 2017 and the CFPB. Yard, F. (2018). For Lease. POPULATION, 6(92,888), 295-692. Running head: STRATEGY FORMULATION 1 Strategy Formulation Wayne Felder MGT 498 January 17, 2018 Craig Southern STRATEGY FORMULATION 2 Strategy Formulation Every business lies in the desire to make profits. However, not all enterprises achieve this willingness during their operation. Some fail in the initial establishment phases. Some also fail because of poor management as well as strategy formulation and implementation. If a business is going to success, it must ensure that it has the most desired strategies outlined before beginning its respective operations. The first steps in starting a business are identifying the relevant goals and objectives. The manner in which the goals and objectives relate to the strategies used. Strategy formulation Considering the Navy Federal Credit Union, it currently serves a large number of members from diverse backgrounds as far as the forces are concerned. However, to reach to more customers across the US and the other countries, the union needs to formulate a growth strategy. The first plan for the union is to device a marketing and public sensitization mechanism. Sensitizing the public or the desired group of target members would play a huge role in attracting them into joining the union. Consequently, an excellent public image backed up by a robust marketing strategy would ensure that the union attracts potential customers. What is the best market for the company? Well, currently, the union serves in the US. The company decided to venture into the other geographical locations such as in Europe, and Asia would present not just an opportunity to grow but also a chance to achieve the desired returns regarding the annual income. The European market is one of the most wanted business environments by many companies due to its large and ready potential population. In the new markets, the company would offer a more flexible way of saving and better loan application STRATEGY FORMULATION 3 terms as compared to the existing similar local businesses. Going for better loan terms and conditions is a good step in luring more people into the company as members. The more the members the company has, the better the annual returns it gets. Each investment lies in its workforce as well as the other resources allocated for the various tasks. As such, it then follows that the company requires enough capital as well as other resources to establish a firm foundation in the new markets fully. The most crucial funds for the company are the infrastructure. The company needs to purchase and install the necessary equipment to expand its territories in the mentioned markets. Such pieces of equipment include the technological support systems for enhancing and improving their overall activities such as computers and servers. In addition to the technical support components, the company may employ new members to act as support staff to aid in the various activities. After harmonizing the newly hired personnel and the implemented systems, the company then can start its operations in the targeted countries and markets. As a means of guaranteeing the credibility as well as the availability of the services in the new markets, the company may opt to implement new back up services. Sustaining competitive advantage is a difficult task for many companies. Because a credit company deals with issuing loans, mortgages, as well as savings services, differentiating the activities undertaken, would ensure to achieve and maintain the competitive advantage. As such, the terms of loans, interest rates on repayment, the interest earned on savings and also offering promotional services to members for attaining a given level regarding the total withdrawal or debit transactions would help in differentiating the company`s services from those of the rivals. STRATEGY FORMULATION 4 Business management strategy The company may opt to provide its services at a lower price to compete with the rivals. Ensuring that its products differentiate from those of the competitors in the market would provide an excellent opportunity for the overall growth and success in the market. Today, businesses strive to attain competitive advantage through product or service differentiation. The primary position of product differentiation is that it helps to set a company a pace ahead of the competitors. Every customer, therefore, gets the desire to get associated with the leading group. In case of the company in context, differentiating its services would help to attract more potential customers in the new markets. To enter and the new market successfully the company may require a strategic alliance with an already established business within the targeted area. The strategic partnership is a powerful tool that brings together two different entities to provide the desired services while keeping the independence of each establishment. In vertical integration, the company has the opportunity to control all the available resources allocated to the different areas and channels (Joskow, 2012). As such, the primary advantage of vertical integration is that it enables a business to reduce the overall costs that otherwise third parties assigned the respective tasks can use. The Navy Federal Credit Union may benefit regarding lowering the total amount of finances associated with employing third party personnel to manage the other activities that it may undertake. The corporate strategy involves targeting a smaller or a narrow group of customers. The tight association of the targeted STRATEGY FORMULATION 5 customers receives the most desired and custom-made products that are inclined to meet their specific needs (Grinblatt & Titman, 2016). In this case, the Navy Federal Credit Union has already selected a target group, which includes the members of the different forces. Providing the desired services to the members is a huge contributing factor that would attract more members of the same group to join the company. Combining the corporate strategy with the best marketing mechanisms would not only render the union as the best company to the target group but also as a reliable financial institution. See figure A, below for NFCU Organizational Chart Organizational chart Organizational chart for Navy Federal Credit Union Members (Customers) Board of Directors Audit teams Management Supervisory team STRATEGY FORMULATION 6 In conclusion the Navy Federal Credit Union currently offers its services to the members located within the United States. In the country, although there are numerous similar companies, the Navy Federal Credit Union has always maintained its top position where it has earned the trust of the members through its robust competitive advantage aspect. Navy Federal Credit Union is definitely for longevity. STRATEGY FORMULATION 7 References Grinblatt, M., & Titman, S. (2016). Financial markets & corporate strategy. Joskow, P. L. (2012). Vertical integration. The Antitrust Bulletin, 57(3), 545-586.
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Strategy
Implementation

International strategy


The organization commenced its pilot program of instant card issuance through
the implementation of the instance issuance solution of Entrust Data card in
2014.Following three months the union continued to implement the program in
other branch locations. After performing the program, the federal members do
not have to wait the conventional five to ten days to get their card creating
satisfaction among member service representatives.



Additionally, the organization has utilized the social media to engage more
people especially through engaging content on the YouTube and
Facebook.(Kelly, 2013)



The implementation of the CIO strategy has resulted to organization of the
efforts of development as well as application management into various services
which give provisions for bigger specialization and focus.

Strategic Implementation


The number of staff has grown in response to the increase in
demand.



It has aimed at becoming proficient at service processes, and
places focus on efficiency...


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