A strategic plan must be developedto achieve a successful business. The strategic plan should not have to be a difficult task.It does require patience, imagination, and an attentive approach.
The strategic plan should be able to guide the company in achieving its mission, vision, and goals. "Understandably, firms with multiple products, markets, or technologies tend to use more complex strategic management systems.
However, despite differences in detail and the degree of formalization, the basic components of the models used to analyze strategic management operations are very similar." (PEARCE II & ROBINSON, 2013, p.10)
. There are different strategic planning process that companies can consider.
This strategy will be based on the launching of a new product/service.
The company will construct a new division that will have its purpose, mission, vision, structure and culture. The construction of the new division's details will also relate to the organization'spurpose, mission, vision, structure, and culture.
Strategic Management and Business Model Plan
The mission of the company is a key component of the strategic management plan.
The values and priorities of the strategic management plan decision maker are reflected in the company's mission. The mission will describe the product, market, and technological capacities that identify the rangeof the operations.
This key component will set the company apart from others of its kind. Keeping in mind that social responsibility will have to be considered when expressing the mission statement.
The company division is sometimes referred to as being the business division.
It is a discrete company, and it usually operates using the same legal responsibility and name of the separate corporate as well as being under a certain business name. Most times, corporations come up with separate divisions along the service or product lines (Burgelman & Christensen, 2008). The chosen product for this new company division will be a new LED television that uses the green technology as well as having many key features.
The company division has branched out from the parent company since it wants to have its own unique and innovative products. The new product is quite different from the other products that the parent company usually deals in such as computers and mobile phones.
The new division seeks to ensure that it prioritizes the needs of the customer since they are the ones that will be of benefit to the business. The innovative mission statement will be At Evetech, we seek to follow an innovative business philosophy: "We will ensure that all the employees devote their exceptional talent. We will use technology to create some superior televisions that will ensure that the global society benefits".
It is evident that based on the mission statement, Evetech wants to ensure that the global citizens benefit from the television sets that they will sell. The mission has successfully shown the values and aims of the company, and how they will benefit mostly the customers (Burgelman & Christensen, 2008). Therefore, any successful mission statement has to be focused on addressing how it will meet the needs of the customers while also taking into consideration their social responsibility.
it is also vital to note that the product being offered, which, in this case, is the LED television is differentiated from other products in the market mostly because it has gone green. This marketing strategy will ensure that customers can distinguish the various products that are in the market. When a product is differentiated value is created, and especially if the focus is on the product (Burgelman & Christensen, 2008).
It means that the potential customers will have a perceived value of the product such as its durability and cost savings. In this case, the television by Evetech will be lower priced as compared to that of its competitors such as Sony and Samsung. At the same time, the product will be durable and of the highest quality.
Differentiation also ensures that there is non-price competition, and it means that the Evetech LED televisions will have a unique design and quality. It should also be known that differentiation also leads to brand loyalty in that since it is affordable and of high quality, customers will be loyal to it. Lastly, it is vital to ensure that differentiation will make the customers believe that there is no substitute (Burgelman & Christensen, 2008). It means that the LED televisions should be extremely different from those that prevail in the market so that they are not influenced to purchase another brand.
The division can address the needs of the customer as well as achieve the desired competitive advantage. First, when it comes to the issue of customer needs, the division will ensure that it comes up with a product that will satisfy the needs of the customer. Most times, when customers want to buy televisions' they are in search of certain features. These include the quality, price, the technology it uses and even the size, among others. The division ensures that it provides products that have the highest standards as compared to that being offered by the competitors to achieve a competitive advantage. . The division is well-informed that competitive advantage will ensure that it can have a large market share and have large profits (Burgelman & Christensen, 2008).
he division needs to have a vision that will ensure that all the involved stakeholders are informed about the future as well as what it intends to do in the future (Burgelman & Christensen, 2008). In this new division, the vision is ‘We shall always intend on ensuring that our customers have the best products from the time they purchase them until when they use them. We have made use of the green technology so that the customers can contribute towards the well-being of the environment using the green products'. The vision has clearly portrayed that the division will ensure that its customers can purchase high-quality products even in the future.
The business model of the new division will be one that is cautious, and it is a strategy focusing on vertical integration. It means that the business model seeks to create value by focusing on issues such as sales, promotion, and marketing channel and capital and expenditures, among others (Burgelman & Christensen, 2008). Furthermore, the division seeks to have an extremely market share, and especially since the competitors do not have the same competitive advantage. Also, it will ensure that the LED televisions have components that other companies cannot achieve.
The new division's value, mission, and vision are all aligned with the vision and mission of the company. The main company has a mission, which seeks to ensure that all the customers that purchase the Evetech products benefit in many ways. The mission is thus related to that of the new division in that they give high regards to the customers. Furthermore, they both give information about what the company is about as well as the other businesses that are associated with the company. Also, the new division's mission is aligned with that of the main company in that they all seek to create value in the various innovative products that they come up with (Amason, 2010).
The vision of the company is also aligned with the vision of the new division. The company's vision is to ensure that it will be providing the customers with high-quality products for a long time. At the same time, it will make sure that the products it comes up with are innovative, and will meet the ever-changing needs of the customer.
It is also vital to note that the vision of both the new division and the company always have to be aligned in that they should have the same outcomes. If this does not occur, the gaps created will bring about problems, and it can even mean that there is a loss of customers. Also, both of them have to create the same value as this is what the vision and mission demand that they do. The result is that many customers will recognize the importance of associating the products that are produced.
Therefore, the value, mission, and vision are extremely important strategic plans that give the company a sense of direction (Amason, 2010).
The values, mission, and vision also handle guiding the strategic direction of the division. They ensure that the new division knows what it wants to achieve and how it will achieve it. Furthermore, the division will know the specific target market and it can reach them and provide them with products that will be of benefit to them. They also play a role in that customers are informed about the plans of the company and if they will be part of it. Also, when it comes to issues concerning value, they assist in making sure that the company will follow the ethical conducts present in any business. The strategic direction of the company can come about in many ways, and this situation; the new division will ensure that the strategic plans work out accordingly (Amason, 2010). For example, the new division was introduced so that it could fulfill some of the company's strategic plans through providing the customers with innovative products that will satisfy their needs even in the future.
It is also important to note that values and guiding principles are important for the success of the new division with regards to ethics, social responsibility, and culture. First, the guiding principles will apply to all the employees, and they have to strive to abide by them. In this new division, the guiding principles are trust, innovation, taking risks and accountability. They ensure that the company will be able to make profits while focusing on the customers. In addition, the values of the new division will be useful in making decisions, plan its strategies and influence the interaction with the stakeholders. In turn, the values and the guiding principles will ensure that all the employees act in an ethical manner, practice social responsibility, and have a positive culture (Amason, 2010). It means that the values and guiding principles should bring about benefits to the company.
The strategic management model should aid in the shaping, incorporating and understanding of the major phases of strategy design and operation. The organization's mission will be best realized by the organized and wide-rangingvaluation of its internal proficiencies and external surroundings.