Final Business Plan
Final Business Plan
Strategic planning is one of the key roles of any management. It relates to the procedures and processes that define the future direction of the business in line with its vision and mission. All organizations therefore have a duty to come up with the best plans that reflects their capabilities. Strategic planning also helps businesses realize sustained competitiveness in the market. Burgers and pizza is one of the leading franchises of foods and puts a lot of emphasis on health matters in its foods. To that effect the company has developed a vision of becoming the choice of the community when it comes to healthy foods. This is also clearly stated in its mission statement which seeks to promote a healthy community (Goold & Quinn, 1990).This company therefore intends to differentiate its products through the health component which resonates with the societal expectations. The company targets schools and colleges and hence its businesses will be concentrated near these institutions as they mainly target young adults. This paper therefore develops the understanding of the company strategic plan with emphasis on tactics and technological developments, controls measures and ethical issues in the strategy (Muhumed, 2008).
Just like any other business burgers and pizza intends to remain profitable in the market by providing quality pizzas and burgers. The company must therefore develop strategies that will ensure that the business is sustained for a long period of time but at the same time needs to meet its short term obligations.
The company has been able to sue the balanced score card to provide insights on the key deliverables that needs to be achieved. They include the customers, financial, internal business processes as well as learning and growth. The firm has therefore set itself clear targets on these key areas. Internal business processes refers to all factors within the control of the business that can be manipulated to make a change the business from one level to another. The business has mainly targeted the young adults which constitute the largest population in any country and hence the firm intends to use the numbers to achieve its financial goals. The firm therefore seeks to reach at least 50% of the young adults attending school. The firm will use the customer base to achieve high revenues which will translate to a 10% increase in shareholder value.The customers will be a vital component of the company strategy and hence it recognizes the importance of their satisfaction. the company intends to achieve an increase in customer satisfaction rate s by 20%.The firm projects that the eating habits of the population would change significantly with many people adopting ready made foods from restaurants. This is an opportunity for growth and the firm is keen using these trends to grow the business which will need high level of staff retention as well as opening opportunities for more staff. The company intends to achieve a retention rate of 20%.These are the key strategic alignment as per the balanced score card (Olsen, 2007).
Strategic planning also borrows a lot from the SWOT analysis and the information will be important as they will determine the strategic directions the organization will take. The company has developed a long term philosophy of providing quality foods that promotes healthy living. This is one of its strengths. The firm however suffers from intense competition especially from new entrants and already established outlets. Its however worth noting that the business environments offer the company an opportunity to diversify its products and bring variety of foods. It could also cover a large age group and customer target.
Based on the above SWOT analysis and the balanced score card the firm will pursue the following strategies.
strategy objective Target measures
Financial To ensure that the company remains financially sound and meet its long term and short term financial obligations Profits should increase by 30% in the next three years.
The company will lower prices by 10% to achieve higher customer base. The shareholder value is expected to increase by 20%.
To provide high quality services that promotes healthy living among the customers.
To attract large number of customers and maintain high level of customer base The firm will seek to expand to other schools and colleges not covered at the moment.
The company will also develop products that target the elderly and the children. Customer retention levels are expected to increase by 20% annually.
The company intends to achieve a market share of 60% in the next six years.
Technological The firm intends to operate using modern technology that reduces costs and maximizes revenues. The market penetration is expected to increase by 30% annually following the adoption of modern technology is supply chain and logistics.
The number of customers will go up by 20% from technology driven activities. The costs are expected to reduce by 40% in the next 4 years.
Business efficiency will be enhanced.
Customer satisfaction levels will also be enhanced.
The above table shows the key strategic areas that the firm will seek to achieve in the long run. They will ensure that the company meets cost leadership and product differentiation objectives in the long run.
Financial stability will be key in the operations of the business hence the firm has developed an elaborate financial strategy. In this regard the firm will seek to expand the business using modern technology in its operations and this will lead to a profitability of 30% with subsequent price reduction by 10%.The company has also set itself as a pioneer of quality products which specifically promotes healthy living. This will definitively differenciate its products from the competitors and enhances brand equity.
Control measures in the strategies:
These are the measures that evaluate the success of the strategic plans and guide the implementation process.
These are measures the guide the achievement of the financial targets. In this regard the firm will employ sales targets and cost control measures to ensure that the firm achieves its desired profitability. This will be clearly inline with the company of achieving 30% profitability. The sales targets will mobile revenues while the costs will maximize the profits(Stevens &Loudons,2005).
The company believes that the customers play a critical role in the success of the business hence there will be quarterly consumer survey to determine the level of satisfaction with the products.
The firm will also seek to utilize the international standards in its business operations. This will be done through the application of modern technology in its supply chain and all other business processes.
Ethical, legal and regulatory issues:
These are very important factors to be considered when implementing strategies. As a law abiding organization burgers and pizza will strive to comply with the laws relating to the kind of business they are engaged. This may limit their expansion program as they will have to ascertain that all legal aspects of the business are met (Phillips and Gully, 2011).The company clearly understands the costs that are associated with non compliance with the law in business and will therefore strive to fully meet the laws set to ensure the continuity of the business and successful implementation of the strategic plan. The company will also ensure that it plays its role in meeting the social and economic needs of its employees that forms an important asset in the implementation of the plan. Ethical issues also affect the business and the company will seek to ensure that its operations promote the ethical standards of the communities in this case it will ensure that its production process is transparent and earns the confidence of the members of the public. As mentioned earlier the company key area of concern is healthy living hence its products will strictly adhere to this philosophy. The firm also seek to work closely with its target customers and communities to gain corporate citizenship. This will mainly be done through social responsibility by responding to the needs of the members of the society.
Based on the above strategies and control measures the firm will definitely make a big step in realizing its long term sustainability in the marketing using cost leadership and differentiation objectives.
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Philips, J. & Gully, M., S. (2011). Organizational Behavior: Tools for Success. Stamford, CT: Cengage Learning.
Stevens,E.R. & Loudon,D.(2005). Marketing planning guide.Routledge.