Name of the student
Topic-“The Business company”
University Name ?
Executive summary
This report is accompanied with the all the details and data related to strategic decision making. Strategic planning and management system is accompanied with several details of “The business Company”. In this report, internal and external analysis of “The business Company has been discussed. Apart from that, SWOT analysis, strategic plans and balance score card approach of the company have been evaluated. This report has shown the key understanding on the strategic map and how “The business Company has been running its business in the market throughout the time. The balance score card and strategic mapping is the main important tool to evaluate the business performance of company. Nonetheless, balance score card approach of the company could be used to evaluate the business performance of “The business Company and how this company could make effective changes in the business functioning. This report would reflect the better understanding on the business performance of “The business Company which could be used by manager, John Clarkson to make effective changes in business. ?
Table of Contents
Executive summary 2
Introduction 5
SWOT analysis of company 5
Balance score card of “The business Company” 8
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Introduction
In this report, strategic management of the business of “The business Company” has been prepared to evaluate how company could make good improvement in the business. There are several objectives which “The business Company” needs to change in the business functioning of organization. This report has divided into various parts for instance, in starting, SWOT analysis of “The business Company” has been done after that strategic decision making and use of balance score card have been taken into consideration. In the end of the report, proper recommendation has been given to the manager, John Clarkson to make effective changes in business of “The business Company”. The SWOT analysis will be used to identify the strength, weakness, opportunity and threats of the company. The balance scored card approach is used to evaluate the four specific part of the organization such as customer’s perspective, financial performance, value chain activities of company and stakeholders analysis. After that, evaluation of the business have been made to identify where “The business Company” needs to make changes in its existing business functioning. This report has shown various key intents and business plans which could be used by The business Company” to improve its existing business performance and increase its overall sale of the company. However, by using SWOT analysis, management department of The business Company” could easily identify its drawbacks and factors of business to improve its existing business performance of organization. The balance score card approach would also help company to re-engineering of its existing value chain activities so that it could achieve its set objective and goals in determined approach.
SWOT analysis of company
This SWOT analysis is the strategic plan of company to identify its strength, weakness, opportunity and threats of business where company needs to focus for the better accomplishment of its set objectives and goals.
Strength of “The business Company”
It is evaluated that “The business Company” has strong brand image in market. However, operating revenue of company is AUD $ 1000 million which is very high and company could use it to implement effective business functioning. In addition to this, company has more than 23 stores around the globe which may be used to expand its business and run its business effectively. In terms of technical strength, company has planned to install cyber computing enterprises resources planning in its business to increase the overall sales of company and run the business smoothly. “The business Company” could also create cost leadership strategy in market to increase its overall share of business.
Weakness
The main weakness of “The business Company” is related to its set targets and less return on its sales. “The business Company” has planned to increase its overall sales to AUD $ 5 billion within five years which is 5 times higher as compared to present year data. The main drawback of “The business Company” is related to its pricing strategy. Company has charged high price for all of its products and services which may decrease the demand of its products and services in market. In addition to this, “The business Company” has to face high level of investment in its business to re-engineering its value chain activities which may also increase its overall cost of production.
Opportunity
There is high growth in hardware and building supplies retail industry. “The business Company” by installing cyber computing enterprises resources planning in its business could enhance its business market share. This level of business functioning and changes in its existing business structure will be used by company to make changes in the business functioning. “The business Company” could easily increase its overall sales by offering best quality of services and product in competitive market. There are several opportunities as well in market which could also grasp by “The business Company to increase its overall return such as diversifying the business in other business sectors. Apart from that, company by using cyber computing system, could also establish proper online dashboard to increase its overall return
Threats
With the ramified economic changes and complex business structure, “The business Company has been facing complex issues and problems from its internal and external factors of business. There are several big rivals who are coming up with different leadership styles in market to gain over the hardware stores operations. In addition to this, increasing growth of the hardware store operations could also attract more rivals in market.
Results
After evaluating all the strength, weakness, opportunity and threats of business where company needs to focus, it is determined that company should install cyber computing system enterprises resources planning and hiring experts staff members to increase its overall return. However, the targets and goals which “The business Company has set is somewhere hard to achieve. If company advance its existing value chain activities and adopt new mechanism then it could use these above given methods in determined approach.
Description of Company
This company has gained momentum throughout the time while running its hardware store operation on international level. However, company has focused to create cost leadership strategy to increase its overall turnover.
Vision of company
The main vision of “The business Company is to achieve 5 billion sales within 5 years. It is observed that company wants to offer customized products for its clients in market.
Mission of company
“The business Company would reduce its overall cost of production by using cyber computing system and effective planning process in its business.
Overall strategy
It is evaluated that “The business Company by using proper cyber computing system and cost leadership style could easily win over the domestic and international market share. The main strategic focuses of company would be to re-engineering of its value chain activities to increase its overall production. The business Company implements two specific strategy named cost leadership and product differentiation strategy. By following proper activities designed in balance score card, company could easily reduce its overall cost of production and by installing cyber computing system it will put the business of “The business Company one step ahead from the other rivals in market.
Strategic map
This strategic map is designed with a view to make changes in the existing business structure of “The business Company” to achieve its set objectives and goals. It reflects the diagram and chart which would be used by company to document the primary strategic goals being pursued by organizations in determined approach. This strategic map is designed by considering its present and future objective and goals. This strategic map has shown the critical understanding on the present and future outcomes of the organization and how company could increase its overall turnover of company. This strategic map focuses on re-engineering of its existing business functioning so that company could achieve its objective of selling more than 5 billion units in domestic and international market within 5 years. Nonetheless, the main focus of this prepared strategic map is to improve the working quality and efficiency of the employees in determined approach.
Objectives included in the strategy map
• Company has planned to achieve 5 billion units sales by offering the quality of its products and services in market.
• Covering at least 25% market share of retail hardware stores to increase its overall return.
• Re-engineering of its business process to improve the functioning of business.
• The strategic map implemented has focused on installing advanced technologies to increase its overall brand image share.
Draft preparation of the strategic map of The business Company”
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The diagram of strategic map of company has shown the areas in which company needs to improve its business functioning to achieve its set objectives and goals in determined approach. This diagram has shown the phases and parts where The business Company” needs to improve its business in determined approach. After analysing the SWOT analysis of company, the strategic map has been designed.
Balance score card of “The business Company”
Particular Target Measures Indicators Initiatives
Financial perspective Increase the revenue of company to 5 billion within 5 years. Increase the overall sales within 5 years Financial statement and internal business functioning. Installing new cyber system and implementing proper business functioning.
Customers perspective Having customer’s satisfaction and increasing the overall sales of the company. Increase the value of clients Focus on customers satisfactions. Improve product mix and generate cost leadership strategy.
Internal process system Re-Engineering of its value chain activities. Increase the overall production and business outcomes. Determine the target market and focus on generating cost leadership strategy. Install new system and implement proper business functioning.
Learning and growth Hiring of experts and installing new system. Implementation of training and development program Entering into strategic alliance with the company Develop strategic alliance with the newly advanced and action plan for profitable growth.
Implementation of the balance score card approach
It is evaluated that balance score card of “The business Company” has changed business structure and focus on implementing newly advanced business mechanism to increase the overall outcome of the organization. However, the main objective of “The business Company” is to increase its sales to 5 billion within 5 years. This will increase the overall outcomes and decrease the cost of production of company.
Evaluation of the effectiveness of your balanced scorecard in achieving the overall strategy of “The Business Company”
The balance score card of “The business Company” has been designed in such a way which would increase the overall production of the company and help management of company to sell more units in market. It is considered that if company has planned to change its business functioning by re-engineering of its existing value chain activities and inject more money to increase its overall production. This level of business functioning will help company to focus on its set objectives and goals and achieve all the determined targets in effective manner. For instance, financial perspective of “The business Company” will focus on arrangement of finance for enhancing the business and how to deploy more funds in the business of “The business Company”. In addition to this, other customer perspective of company would also be considered to customize all of its goods and services in market as per the needs and demand of the market. This customers oriented business functioning will help organization to increase its overall outcomes of the business. Another phase of balance score card of “The business Company”, would focus on re-engineering of its existing value chain activities. This will be done by collecting data from the market to customize the products and services of hardware store operations in market. “The business Company” would hire more experienced staff members in their business to make changes in existing quality and offer more clients oriented products through its hardware retail operation. The another important point of business would be installing cyber computing enterprises resources planning in the value chain activities of “The business Company” which will establish automation in the business process and increase the overall quality of the business. These three business steps of company will improve the existing business performance of company and increase the overall production of company. After that, another implementation of the balance score card of The business Company” is related to learning and growth segment of company. It will help company to implement proper training and development program and hiring of new experienced staffs in organization. These persons would improve the business performance of company to increase the sales and outcome of the organization. This learning and growth part of the organization will focus on installing cyber computing system and advance its existing value chain activities to customize its products and services more clients oriented.
In addition to this, if focus is made on the industry growth and past performance of company, it is determined that industry has shown growth of average 15 % each year which is good indicators. Nonetheless, the targets and goals set by “The Business Company is comparatively high and arise gap could be diminish by implementing advance technologies in business. Therefore, it could be inferred that “The business Company should focus on implementing two specific strategy named cost leadership and product differentiation strategy. By following proper activities designed in balance score card, company could easily reduce its overall cost of production and by installing cyber computing system it will put the business of “The business Company one step ahead from the other rivals in market. The effectiveness of the balance score card approach of company is based on the employees oriented strategic planning of company. It is considered that if company needs to implement reward system to promote employees to put extra efforts to meet the stipulated target. This level of functioning will help company to achieve its overall turnover and set targets in determined approach. For instance, increasing the targets of employees in value chain activities should also be accompanied with the reward system of organization. After evaluating the Maslow motivational theory, it is considered that by using reward system such as incentives, bonus and tip points, company could easily motivate employees to deliver higher level of outcomes in organization. This business functioning will not only increase the overall production level but also increase the return on capital employed.
There are several important points which have been identified in the developed balance score card of company
• Company needs to improve its existing business to increase the quality of its products and services in market.
• There is need to install cyber computing system to keep the business advance as compared to existing business functioning.
• Cost leadership and product differentiation strategy will be used by company to make effective changes in the overall business functioning.
• The strategic map implemented has focused on all the four important area of the organizations which will keep The business Company” one step ahead form other rivals in market.
• This advance technologies sand changes in the business of organization will help company to grasp more clients in market.
Cause and effect relation of implemented strategies and business changes with the stipulated objectives of company
It is observed that the new balance score card prepared by The business Company” focuses on the financial perspective, internal business perspectives stakeholders analysis and implemented learning and growth of the organization. The financial perspective of The business Company” has shown that in order to achieve its objective of selling more than 5 billion products in units will result to injecting more than AUD 10 billion investment in the business of company. However, The business Company” could arrange finance by using borrowing, owner’s funding and issues of shares and debentures in market. This has shown that if company could use proper financial source then it will not only reduce the overall cost of production but also increase the overall return on capital employed.
Another cause and effect relation of company is related to identifying the customer perspective. By using the customers perspective of balance score card of The business Company”, management department could easily customize its products and services as per the client’s needs and demand in market. These changes in value chain activities will increase the overall sales and turnover of company. This will also eventually increase the overall market share of The business Company” in determined approach. This level of strategic planning and effective management system will help organization to achieve its set objectives and goals in determined approach.
The third phase of balance score card of The business Company” is related to internal perspective of organization which focuses on the changes in the value chain activities of organization. It is considered that The business Company” needs to re-engineering of its existing business functioning to increase its overall turnover. This re-engineering of business process includes installing new cyber system, hiring more employees and implementing new training and development department in organization for the better efficiency of the business.
Now in the end of the balance score card approach, learning and growth factors have also been taken into consideration. This learning and growth phase of The business Company” has to implement proper training and development department. In addition to this, company also needs to hire more employees who will help in increasing the overall output of the organization.
The business Company” should implement strategic management planning to beat the competition in market and increase its overall turnover such as advancement in technologies system, changes in business structure and reducing the cost of the overall business. Currently, company has 23 stores which it needs to enhance to 40 stores to achieve 5 billion units sales in market. Key financials of company has also been taken into considerations while preparing the balance score card of company which reflects that company has less variable cost and high fixed cost. The business Company” could easily create synergy in its business by increasing the production of number of units in the business.
Balanced scorecard will promote goal congruence for ‘The Business
With the ramified changes and economical business factors, it is observed that “The business Company” needs to focus on the goal congruence to promote the business of The business Company. This strategic planning of company should be implemented from the starting to establish harmonization in the individual goals and objectives with the organizational goals. It is considered that the targets and goals of The business Company is very high and if management department wants to achieve this goals and objectives then it needs to focus on the aligning the interest of employees with the specific objective of organization. However, with the ramified business functioning of “The business Company” it is hard to implement this process for the better outcomes of organization. : The business Company” could easily implement this goal congruence by using various strategic plans such as issue of employees stock options scheme, offering incentives and points to employees. These strategic plans will help company to achieve its set objectives and goals in effective manner and it will also align all interest and goals of employees with the company in determined approach. In addition to this, goal congruence could also be achieved by segregating the specific goals of company in general objectives. This would be done by setting targets and goals for particular teams of the company.
The balance score cared designed by “The business Company” to promote goal congruence focus on the team work and re-design of its existing working process so that company could achieve its set objective and targets in determined approach. For instance, issue of employee’s stock options scheme, implementing incentive plans and dip allowance are the best options to achieve objectives set in balance score card of company. In addition to this, it is also observed that goal congruence is the best strategic plans which company would adopt to create synergy in its business. This re-structured business functioning of company would increase the overall return on capital employed. It is observed that this balance score card approach of “The business Company” should make changes in its existing business functioning.
goal congruence is utmost required intent in business to create synergy in business and keeping company’s business ahead from the rivals in market. However, it requires re-engineering of its business activities and installing new system in the business functioning.
To,
John Clarkson
“The business Company”
After evaluating all the details of company, it is considered that newly adopted balance score card approach will help company to achieve set objectives and goals in determined approach. This balance score card approach will help company to make changes in is existing business functioning. The main strength of company is related to implementing advanced business functioning and clients oriented products in market. it is evaluated that if company could make changes in its value chain activities of the company then it will have to install cyber computing system and experts hiring to make changes in its existing business functioning. The issues which “The business Company” could face is related to installing new system in the business functioning.
The business Company” could establish automation in the business process and increase the overall quality of the business by adopting cyber computing system and changes in its existing business policies. These three business steps of company will improve the existing business performance of company and increase the overall production of company. After that, another implementation of the balance score card of The business Company” is related to learning and growth segment of company. This will help company to arrange proper learning process for its employees so that company could easily make its products and services more client oriented in determined approach.
If John Clarkson want to achieve company’s determined goals and objectives then ERP system and hiring of new experts will required to be done in organization. Nonetheless, achievement of the set targets may be hard but use of right resources and optimum utilisation of its resources may result to achievement of set objectives in easy and efficient manner.
Conclusion
After evaluating, all the detail and marketing factors of business, it is inferred that achieving set targets may become hard for the organization but optimum utilisation of resources and effective strategic planning may allow company to achieve its objective efficient manner. There are several problems such as marketing factors, internal deficiency, less advanced business structure and rivals offering in market which may pose high amount of threats to organization. if management department of “The business company ” could manage it through effective strategic planning then it may increase the overall sales turnover and overall return of company. Now in the end, it could be inferred that use of effective strategic planning, balance score card and strategic map provides road map to organization to achieve its certain objective and goals in efficient manner. Nonetheless, there are several hurdles and obstacles which could be mitigated by company by installing cyber computing system and re-engineering of business structure in determined approach.
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