Strategic Plan Part 3
Write a 1,050- to 1,400-word strategic objectives summary. Include your balanced scorecard and its impact on all stakeholders, and the communication plan.
Identify key trends, assumptions, and risks in the context of your final business model.
Develop the strategic objectives for your new division of the existing business in a balanced scorecard format in the context of key trends, assumptions, and risks. The strategic objectives are measures of attaining your vision and mission. As you develop them, consider the vision, mission, and values for your business and the outcomes of your SWOT analysis and supply chain analysis.
Consider the following four quadrants of the balanced scorecard when developing your strategic objectives:
Shareholder Value or Financial Perspective, which includes strategic objectives in areas such as:
Revenues and costs
Customer Value Perspective, which includes strategic objectives in areas such as:
Customer retention or turnover
Process or Internal Operations Perspective, which includes strategic objectives in areas such as:
Measure of process performance
Productivity or productivity improvement
Impact of change on the organization
Learning and Growth (Employee) Perspective, which includes strategic objectives in areas such as:
Employee turnover or retention
Level of organizational capability
Nature of organizational culture or climate
Evaluate potential alternatives to the issues and/or opportunities identified in the SWOT Analysis paper and table you completed in Week 3.
Create at least three strategic objectives for each of the four balanced scorecard areas. Base your solutions on a ranking of alternative solutions that includes the following:
Identify potential risks and mitigation plans
Analyze a stakeholder and include mitigation and contingency strategies.
Incorporate ethical implications
Develop a metric and target for each strategic objective using a balanced scorecard format.
Example: a strategic objective in the shareholder or financial perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, “The percentage of increase in market share.” The target is the specific number to be achieved in a particular time period. The target for the metric of “Increase market share” could be “Increase market share by 2% for each of the next 3 years” of an increase of 2% per year for 3 years.)
Outline a brief communication plan discussing how you will communicate the company’s strategic objectives that includes the following:
Define the purpose.
Define the audience.
Identify the channel(s) of communication and why you selected that channel.
Format paper consistent with APA guidelines
Strategic Plan Part 3
Through implementing traditional financial performance metrics, a company is able to achieve its past operational information. When it comes to prediction of the future operation of the company and achieving the strategic objectives of the company, the traditional financial performance metrics is not well suited (Sadler, 2003). Through analyzing the different perspectives of a business, a company is can comfortably transform the strategies into productive objectives and efficient way to measure the execution of the strategic plans.
As a management system, the Balanced Scorecard reflects the strategic objectives of a company in metrics of performance (Malathi, 2014). The four perspectives of a Balanced Scorecard includes; First, the financial perspective; second, internal processes perspective; third, customers perspective; and fourth, learning and growth perspective. Under this perspectives, required feedback is provided that determines how effective the strategic plan of the business is executing so that the required alterations can be made.
Under the financial perspective of the business, the company will focus on the financial goals that will lead to maximizing of profits and a positive view of the company by the perspective of shareholders. Different goals are implemented depending on the business cycle. The main strategic objectives that Amur Company will consider will include the following;In the first place the company will consider expanding its market share into new markets by the end of the year. The share in the market determines how the company will perform in terms of its how much it serve in the market geographically. By increasing the number of locations that the company will operate will in a great way improve the operation of the business. In the second place, the company will introduce new and unique services in the gym within few months so that profits can be maximized. Increasing the services offered at the gym will require improvement of the existing equipment and employee skills. Third, increase profitability after implementing new services in the market.
|By the end of the year
|After few months.
Under the customer perspective, focus is on how customers view the company. Also, it addresses the ability of the business to serve its target customers so that the financial objectives can be achieved. Through introduction of new services and technology in the gym, the company will increase its level of customer satisfaction and retention of existing customers. Also, expanding on the market share will improve the retention of customers and introducing others by increasing accessibility. As a result of introducing new features and improvement of existing services in the company, the customer value will be achieved.
|Improving customer satisfaction
|Introducing new services
|End of the year
|Increase services and customer relationship
|Throughout the operation of the business
|Improve on customer relationship
|Throughout the business operation
Internal Process Perspective
Under the perspective of internal process, the objectives focus on the most important processes that satisfy the requirements of the customers and shareholders. Through this processes the success of the company is determined. The process of performance in the company in the company will be measured in terms of the number of customer turnover in the gym. Through marketing of the business using different marketing tools, the process of performance in the gym will be improved. Marketing will be implemented throughout the operation of the business. The company will consider improving the structure of the gyms when improving the market share of the business. In operational metrics, monitoring of the entire perspective system and data of the company is achieved. The business aims at improving the entire technology that will ensure that proper reports are developed and necessary actions taken in the right time. This will include training employees with required to assess operational metrics.
|Marketing of the business
|Improvement of structures
|Improve on the market share
|In six months
Learning and Growth Perspective
Under learning and growth perspective, focus is on how the business intents to learn, expand and transform so that the strategic objectives of the business can be achieved. Much emphasis is on the employees of the business. The company will focus on ensuring that employee satisfaction is achieved. Through motivational techniques such as rewards, employees in all areas of the company will be rewarded adequately in order to encourage them and ensure that they deliver the best in their work. This will be done on monthly and yearly basis in form of contests and prizing. In achieving satisfaction of employees in the company, retention of the best performing employees will be achieved. Besides this, the turnover of employees will be increased after the company introduces new business locations. This may be achieved after equipping new services and expanding the business. Through the corporate culture that the company has that is based on innovation, the company will have a competitive advantage in the industry. The culture of the company encourages strong relationship between the employees and the customers. Through improving the corporate culture company, customers will be attracted to the business thus increasing the profitability margins of the company. The corporate culture will focus more on quality and customer satisfaction and will be reviewed annually.
|Reward and motivation
|Employee turnover and retention
|Improve on motivation and expansion
|At the begging of every financial year.
|Nature of organizational culture
|Improving the corporate culture.
In the development of the strategic objectives of Amur Company, the Balance Score Card has been used in the analysis. Through the perspective of financial performance, customer perspective, internal processes perspective, and learning and growth perspective, the strategic objectives of the company has been developed and analyzed. Providing enough information and equipment that will ensure growth of the business. In the objectives of the business, the aim is to support and encourage the business environment of the company and its customers regardless of location and cultural background.
Under the strategic objectives, explanation have been provided over what the strategy will achieve in each perspective. Also, the specific measure of each of the objective has been analyzed with respect to different perspectives of the balanced score card and how it will measured. Lastly, the target that each measure is required to achieve has been highlighted.
Malathi, E. (2014). Balance Score Card. Saarbrücken: LAP LAMBERT Academic Publishing.
Sadler, P. (2003). Strategic management. Sterling, VA: Kogan Page.