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Running head: STRATEGIC PLANNING
1
Strategic Planning
Name
Institution
Date
STRATEGIC PLANNING
2
Table of Contents
Executive Summary ...................................................................................................................................... 3
Strategic Plan Part 1: New Business Division of Microsoft Corporation ...... Error! Bookmark not defined.
Introduction ................................................................................................ Error! Bookmark not defined.
Vision ......................................................................................................... Error! Bookmark not defined.
Mission....................................................................................................... Error! Bookmark not defined.
Value Proposition....................................................................................... Error! Bookmark not defined.
Strategic Plan Part 2: SWOTT Analysis ........................................................ Error! Bookmark not defined.
Strategic Plan Part 3 ....................................................................................... Error! Bookmark not defined.
Assumptions, Risks and Change management plan................................... Error! Bookmark not defined.
Summary of Strategic Objectives .............................................................. Error! Bookmark not defined.
Conclusion ..................................................................................................... Error! Bookmark not defined.
References ..................................................................................................................................................... 9
STRATEGIC PLANNING
3
Executive Summary
This paper mainly focuses on outlining the strategic plan of Microsoft Corporation as it
plans to form a new division by restructuring the existing platforms and services division so as to
improve the existing windows. Microsoft Corporation purposed to ensure that the organization is
able to deliver fully equipped software services to their customers; individuals and companies all
over the world. Products and services from Microsoft Corporation are widely used all over the
world. Most companies depend on Microsoft software to run their operations. Due to changes in
consumers tastes and preferences Microsoft windows need to be updated and the operating
systems redesigned so as to meet and satisfy all consumer needs. This strategic plan aims at
highlighting how this new division will meet the consumer needs and the advantages that come
with the invention of this new division. The division should have a clear business model to
ensure that the invented brand grows in future.
STRATEGIC PLANNING
4
Strategic Plan Part 1: New Business Division of Microsoft Corporation
Introduction
Microsoft Corporation is an old organization that came into existence back in 1975. This
is an American company whose headquarters is in Redmond, Washington. This company was
founded by Bill Gates and Paul Allen. This company major in manufacturing computers and
computer soft wares and licensing them. They also produce other electronics such as televisions,
mobile phones, printers, and laptops. The most common software on sale include; Microsoft
Office suite, Internet Explorer, and Edge Web Browser. This company offers service to its
customers where they are able to access the windows and store; they can update their windows
anytime there is a new update confirmed and access games from Xbox Live.
Microsoft
Corporation is recognized as the largest company producing software worldwide due to the high
revenue the company was able to record in 2016 (Kaplan & Norton, 2011).
Vision
The vision of this main division is to ensure that the organization maintains its large
market share worldwide and still remains to be the company number one in software production
in the whole world. The vision is to see that the organization contributes to maintaining a healthy
complexion with its competitors in the market (Kapferer, 2012).
Mission
The mission of this main division is to ensure that all the consumer needs, tastes, and
preference are catered for. Due to technological advancements, the organizations should be so
keen to notice any changes in the market and new market gaps that need to be addressed (Kaplan
STRATEGIC PLANNING
5
& Norton, 2011). For example, the online shopping is a very new trend in the market that needs
to be catered for by providing consumers with shopping platforms online. Provide customers
with web browsers to be able to access shopping sites.
Value Proposition
Microsoft Corporation should be able to convince all customers and prospective
customers that they are offering the best. If they delay in convincing the customers they will go
for alternative options. The company can decide to prepare a written value proposition. This
document will clearly outline how the service will solve their problems and the benefits they
should expect from it. The service will be a bit cheaper compared to a similar service offered by
competitors. Customers will be able to save up some more money to use it for other activities.
The services being easily accessible to all people despite their location will also make a very
strong first impression to attract more customers. (Kapferer, J. N. 2012) This service will provide
a web browser which will ensure quick access to online shopping sites and online advertising
sites. All these services will be very cheap and hence affordable for most people.
STRATEGIC PLANNING
6
Strategic Plan Part 2: SWOTT Analysis
This section focuses on the strengths, weaknesses, opportunities, threats, and trends that
come with the implementation of the new division. This new service must have an impact on the
business and also outside the business in the market (David, 2011). The new service will ensure
delivering software services that promote online business a new updated window will ensure
easy access to marketing sites. The company aims at targeting the new growth opportunities in
the market. This will be able to bring solutions to the emerging markets. The sellers will be able
to create websites to advertise their products. They will have the opportunity to have live
platforms where they can interact at a personal level with their customers. The only weakness is
that the cost might not be affordable for all people willing to use the service hence not be able to
cover the whole target population (Kaplan & Norton, 2011). In the market today in the whole
world there are new form factors and new emerging trends.
An operating system developed will be responsible for product management. This will be
aimed at being the leader to help individuals and business realize their full potential. A possible
threat is the possibility of steep or unhealthy competition between Microsoft Corporation and
other companies offering substitute goods. In every new day, the technology is evolving creating
new opportunities in the market. So far people can place orders and purchase items from all over
the world. New discoveries are made to ensure that the ordered goods are delivered to their
destinations as fast as possible. This new software will provide a base for more research to be
conducted and ensure the software is updated to cater to the changing needs of consumer
(Kapferer, 2012).
STRATEGIC PLANNING
7
Strategic Plan Part 3
Assumptions, Risks and Change management plan
The assumption made is that the service shall be received in the market warmly and there
shall be fair completion with other companies offering substitute goods. Also, the corporation
assumes that this product will be able to meet consumer needs and will be relevant to their tastes
and preferences (Kaplan & Norton, 2011). The possible risk is that the product may not match
the customer’s need causing losses to the organization because of the great investment made in
product development.
Summary of Strategic Objectives
This product is expected to aid in raising the company’s revenue and ensuring that the
expectations of the stakeholders are met. Good leadership of the new division is very important
to ensure its success in the market. All employees should be well-taken care by providing them
with favorable working conditions (David, 2011). They should be equipped with the necessary
gadgets they require while on duty. Frequent motivations for the employees are also important to
keep up a good level of production. Targets should be set and a balanced scorecard to be used to
analyze if the targets have been achieved as required. An excellent customer service should be
set up to ensure that the customers are able to communicate the feedback after using the product
and give suggestions on any improvement that should be implemented if any.
STRATEGIC PLANNING
8
Conclusion
Strategic planning is so important for any organization that is determined to succeed
especially in forming a new division that aims at introducing the product into the market (Kaplan
& Norton, 2011). A strategic plan will outline to all stakeholders what the whole organization
expects from the new division formed. It also helps in setting priorities during the
implementation of the new division. Microsoft Corporation after setting up a strategic plan is
very ready to allocate its resources to begin the formation of the new division.
STRATEGIC PLANNING
9
References
David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Kaplan, R. S., & Norton, D. P. (2011). The strategy-focused organization: How balanced
scorecard companies thrive in the new business environment. Harvard Business Press.
Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
1
Running head: SWOT ANALYSIS OF ELDE
SWOT Analysis of Elde
Amber Lynn
BUS/475
Fredric Hibbler
June 25, 2018
2
SWOTT ANALYSIS OF ELDE
SWOTT Analysis of Elde Info Solutions PVT LTD
This paper is a synopsis of Elde Info Solutions PVT LTD. It assesses the internal and
factors of growth and conducts a strengths, weaknesses, opportunities, threats, and trends
(SWOTT) potential.
External Forces and Trends
Industry Changes: The company partners with global firms to reduce risks (elde.tech). The
failure to initiate its direct entry into new emerging markets limits its market’s growth potential.
Elde has a broad base of loyal customers like Konark that improve its potential to get referrals
for new clients. However, partnering with other firms limits its independence. The company has
adopted cloud computing as the future of information technology relies on it.
Legal and Regulatory Factors: The government is reducing the corporate tax in the next four
years hence the company stands a chance to increase its revenues (ukibc.com, 2018). The
company fails to outline on its website how it protects data under the data warehousing services.
The Indian government supports the growth of domestic companies hence there is protection
from Foreign Direct Investors. Elde lacks clear policies data protections, therefore, can be used
against it by competitors. The trend adopted by Elde involves acquainting itself with the labor
laws.
Global Forces: Elde adopts alliance as a method of entry into the global arena. Majority of the
companies working with Elde are Indian-based. However, the alliances provide an extensive
range of clientele for the firm. There is stiff competition from larger consultancy firm like Tata
Consultancy Services (TCS). There is a trend in cloud computing in all major IT companies, so
there is a stern challenge.
3
SWOTT ANALYSIS OF ELDE
Economic Forces: India has a continually growing economy. Elde does not utilize the
opportunities for mergers when the trade policies support it. India’s telecommunications industry
is growing with many opportunities available. However, the government’s policies on foreign
direct investment promote competition. The Digital India policy by the government will make
many customers seek IT services (ibef.org, 2018).
Technological Factors: The government supports digital initiatives and data analytics services.
The company’s marketing strategy is weak on-site. There is a growing demand for Big Data
analytics. Contrastingly, there are less aggressive marketing techniques than the competition.
There is need to perform digital marketing as a promotional strategy.
Innovation Factors: Elde is upgrading the services offered and partnering with bigger
companies to increase popularity. The many alliances bar the activities of the company. The
Human capital management (HCM) and Enterprise resource planning under Ramco have huge
market potential (elde.tech). Elde lacks differentiation in its services. The trend such as
nanotechnology should be adapted to capture a new market internationally.
Social Forces: Elde is using Facebook and LinkedIn to interact with the broader customer base.
The company ignores other interactive sites like Twitter. Social media interactions have a
positive impact on the company’s brands hence should be adopted. The little focus on digital
marketing offers competitors a first-mover advantage over Elde Info Solutions PVT LTD. The
trend that involves sharing of videos of served customers on digital platforms can be helpful in
winning the trust of existing customers and prospects.
Environmental Forces: The Company deals with products and services that are not directly
affected by sanctions from environmental organizations. Lack of activities that promote
4
SWOTT ANALYSIS OF ELDE
sustainability lower positive publicity concerning conservation. Elde can partner with
environmental conservation groups as a way of boosting their corporate citizenship goals. It is
most likely that the government can ask for the disposal role of the company, failure of which the
fate of the organization may be uncertain. The Indian Government requires that all firms disclose
their corporate social responsibility (CSR) plans (ibef.org, 2018).
Competitive Analysis: The partnerships with the global companies offer an entry strategy to
international business (elde.tech, 2018). Elde has failed in opening more outlets to the global
networks. Partnering with global organizations provide avenues for studying potential markets
and gaps to be explored. The threat is that the government supports competition. Computer
software and hardware and telecommunications are attracting many foreign investors to India,
the domestic market for Elde.
Internal Forces and Trends
Strategy: The primary strategy employed by the organization is the formation of partnerships
with large business giants like Salona Bichona. The alliances protect the unpredictable
investments hence lowering the risks. Unfortunately, Elde’s marketing strategy ignores some
online platforms like Twitter. The associations offer an excellent opportunity to market new
products through the trust gained from the customers that are loyal to the partners. However,
depending on one strategy is not as safe as some may not obey the set agreements. Mergers and
acquisitions (M&A) may be a better alternative to the alliances. The trend in foreign direct
investment through exportation may offer a low-risk style for entering new markets with low
risks intended.
5
SWOTT ANALYSIS OF ELDE
Structures: Elde uses a flexible delivery system to serve customers. The fact that it can sell the
products on-cloud, on-premise and on-mobile expand its reach. The organization supports
inclusivity and diversity whereby all the employees contribute to meet organizational goals. The
inclusivity breeds motivation and success in the firm. However, the company does not indicate
its policies on talent development and customer retention. There is an opportunity for Elde to use
the companies it collaborates with as benchmarks for its operational overhaul. The challenge
remains to beat the significant competitors like Tata Consultancy. Elde should use a
decentralized structure of operation whereby all employees’ ideas can be considered for progress
purposes.
Processes and Systems: Elde provides management with growth tools, cloud-systems, more
natural transaction processes, mobile-enabled solutions, decision-making tools, performance
monitoring tools, and inclusivity tools. The diverse methods and systems promote employee
commitment. The loopholes with the systems are that they tend to be technology-focused than
human resource support. Despite the challenges, the systems are on demand by the customers
who seek to boost competitiveness. The company’s website does not support free navigation, a
negative reflection of the policies it promotes. Most companies are shifting to digital metrics to
gauge their performance.
Resources: Elde generates about $2.5 million and has a close to 45 employees (owler.com,
2018). The company has adequate financial resources to compete with small business
enterprises. It does not conduct intensive promotions hence lower market potential. Elde should
grow its employee base to offer service to many clients. With the lower financial power and
workforce, it is difficult to challenge large companies in the same market. Outsourcing is a trend
that can help in solving the problem of a few employees.
6
SWOTT ANALYSIS OF ELDE
Goals: The Company strives to provide good-quality to customers regardless of the service
offered (elde.tech, 2018). The firm also intends to enter the global market. The goals are precise
but need proper strategies that can improve the services continuously and also expand the
company’s return of investments (ROI). The organization is suffering from employee shortage
and financial power. The firms that it serves can offer exchange mentorship services on growth.
Elde also needs to adopt social goals to gain consumer trust. The goals of the organization must
be divided internally divided into smaller objectives for easier achievement.
Strategic Capabilities: Elde holds good market knowledge in different regions of its domestic
market. It has however failed to set outlets regionally. Having agents can be an excellent start to
holding new markets. Upcoming small businesses enterprises may pose challenges for entry.
Prior market research may be helpful in penetrating new markets.
Culture: The Company believes in transformative authority, professionalism and competence to
boost its operations. However, the culture pushes the workforce and can lead to burnouts. The
organization’s culture can attract new talents that believe in recognition for work done. The
setbacks can also involve increased cases of low motivation when group work is not supported.
Talent retention is a new trend that helps firms to keep a committed workforce.
Technologies: The company offers the highly on-demand cloud computing and data analytics
services. The company’s marketing strategy is weak on-site. There a growing demands for Big
Data analytics. Contrastingly, there are less aggressive marketing techniques than the
competition. There is need to perform digital marketing as a promotional strategy.
Innovation: Its solution based administrations, subsequently helping diverse clients get out
various obstacles system warehousing, system integration, application support, the enterprise
7
SWOTT ANALYSIS OF ELDE
application implementation and project management. Notably, the open-door policy can only
serve the domestic clients. The video-conferencing techniques expand the interaction with
potential customers. The low risks incurred can only result in low returns on investments. The
virtual alliances are increasing in global business.
Intellectual Property: Elde intends to protect its ideas from unfair competition to utilize the
maximum benefits. The law of fair competition still would not permit complete protection. The
intellectual property rights should be implemented for novelty ideas.
Leadership: The management of the company believes in solving the matters that affect
customers and provide convenience. The challenge remains the barrier that would still prevail
with the virtual system of service to customers.
SWOTT Summary Table
Internal
Strength
Weakness
Opportunity Threat
Trend
Industry
Partnership
Reduced
Wide
Cloud
Changes
reduces
growth
customer
risks
potential
base
Force
Legal
Regulatory
& Reduced
corporate
Poor online Support
loyal Reduced
independence
for Unclear
computing
data Labor laws
strategies
SMEs
policies
Most
Larger
Stiff
Cloud
partners
clientele
competition
computing
tax
Global
Easier entry
domestic
8
SWOTT ANALYSIS OF ELDE
Economic
Technological
Innovation
Stable
No
Growing
Government
Digital
economy
acquisitions industry
supports FDI
policy
Government Website
Big data on Less
to demand
India
Digital
support
hard
aggressive
marketing
digitization
navigate
Partnerships
Limited
Services are Differentiation Nanotechnology
increase
activities
novelties
marketing
lacking
popularity
Social
Facebook
Poor online Positive
Competition
and
presence
branding
get
impact
mover
LinkedIn
provide
Videos
first- marketing
advantage
wide
customer
base
Environmental Welldefined
Low
Partnering
Risk
publicity
with
sanctions due responsibility
conservation
to
NGOs
disposal plans
Massive FDI
services
Competitive
Easy global Few
Easy
analysis
business
business
analysis
entry
outlets
market gap
of
of Corporate social
poor
Foreign
direct
investments
(FDI)
9
SWOTT ANALYSIS OF ELDE
Internal
Strength
Weakness
Opportunity Threat
Trend
Rusk
Elimination Fast
Contract
Mergers
reduction
of key
customer
breach
acquisitions
online
loyalty
platforms
acquisition
Forces
Strategy
Structures
Processes
systems
(M&As)
Flexible
No
delivery
growth
as
plans
benchmarks
Burnout
Increased
& Employee
talent Partners act Stiff
commitment issues
and
Decentralized
competition
Key
by system
SMEs
of
operation
Difficult
demand
structure
performance
navigation
indicators
(KPIs)
Resources
Available
Low
staff Advantage
financial
numbers
over SMEs
Realizing
Need
Barriers from Outsourcing
market leaders
resource
Goals
Clear goals
goals
challenge
for Poor
goal Goal-setting
a social goals setting
to
gain priorities
due to few customer
workers
trust
Strategic
Good
Fewer
Agents
can Competition
capabilities
market
outlets
be used to from SMEs
Market research
10
SWOTT ANALYSIS OF ELDE
knowledge
penetrate
markets
11
SWOTT ANALYSIS OF ELDE
References
Elde.tech (2018). Web accessed June 23, 2018 from http://www.elde.tech/?page_id=29
Ibf.org (2018). About Indian economy growth rate and statistics. Web accessed June 23, 2018
from
https://www.ibef.org/economy/indian-economy-overview
Owler.com (2018). Elde Info Solutions competitors, revenue, number of employees, funding,
and
acquisition.
Web
accessed
June
23,
2018
from
https://www.owler.com/company/eldeindia
quora.com (2018). How much is demand for Big Data analytics in India. Web accessed June 23,
2018 from https://www.quora.com/How-much-is-the-demand-for-Big-Data-Analytics-inIndia
Ukibc.com (2018). India’s legal and regulatory framework. Web accessed June 23, 2018 from
https://www.ukibc.com/india-guide/how-india/legal/
Target
Financial Area
Stategic Objective
Measure
Metric
Year 1
Year 2
Year 3
ROIC
Increase 3%
Increase 5%
Increase 10%
Financial
Revenue from
purchase of
equpment
$150,000
Increase 10%
Improve return
Maximinze Profits on capital
investments
Increase Market share increase revenue
within the exercise year by year by at
equipment least 10%
Increase
Increase Market Share percentage of
within the fitness market share
market
within the
exercise markets
Increase 15%
margin of
increase
Increase 3%
Increase 5%
Increase 10%
Targets
Year 2
Customer Areaa
Year 1
Year 3
Strategic Objective
Customer Purchase
Metric
Customer
Purchases
75%
78%
80%
Customer
Customer Service and
Satisfication
Postitive rating
85%
89%
92%
Measure
Initial customer
purchase of 75
Conduct surveys
for customers
who purchase
equipment
Increase in
number of
customers aware
of new division
Increase awareness of
exerices equipment for
purchase
Review survey
responses to
awareness
questions
500 customers
Increase 35%
Increase 40%
Purchase answer to see full
attachment