Strategic Choice and Evaluation - Research Proposal Example

?Strategic Choice and Evaluation Even if the establishment of the daycare facility is done in the most systematic manner and the planning stage is faultless, there is still the possibility of it encountering certain unforeseen problems. The analysis of the external and internal environments may be accurate during the time when the daycare facility is still on paper. This is because this may be solidly based on real conditions at the time. However, such conditions may change during the implementation of the plan or when the facility is already in operation. With a well-founded strategic choice though, the demand for necessary adjustments could be made immediately with due consideration of the actual environmental factors as well as the over-all objective of the organization. In accordance to this, an evaluation would be made on the new objective conditions as well as the internal strengths and weaknesses of the organization. Value Discipline Every business organization must adhere to a certain value discipline in order to succeed. This is actually a principle that the organization must uphold always as it continues to operate. There are three types of basic value discipline from this business may choose from; namely, operational excellence, product leadership, and customer intimacy. While it does not necessarily disregard the both operational excellence and product leadership, this daycare facility puts heavy emphasis on customer intimacy. The organization managing this believes that it is through being in close contact always with the children and their parents could ideas arise regarding the continuous development of the services being provided. Customer intimacy is “a value discipline based on development and nurturing of customer relationships and the customized delivery of product and service solutions for those customers” (Marks 2002, p. 14). It is from the sentiments or opinions of the customers that this organization would be able to come up with ideas on how to improve its operations. At the beginning, it may have to rely on what is provided by theoretical guidance on child care and daycare facility management. However, as it continues to operate, it should be able to collate the suggestions and recommendations of the clients on how to make the services provided to them better. Apparently, by adhering to the value discipline of customer intimacy, this daycare business may also realize the operational excellence. It must be noted that in this particular kind of business, the best gauge for the effectiveness of its operation is through determining the level of satisfaction of the children and parents. Unlike other businesses that produce actual commodities, operational excellence here could not be measured by the quantity and quality of products produced at a short time and at the least cost. If the children learn and enjoy during their stay and if the parents appreciate the work that is being done then the operation of the facility may be considered as satisfactory or even outstanding. This organization does not believe that it should strive to be a leader in the daycare business. It possesses the perspective that daycare businesses should not put a premium on competition because this does not have a good effect on the training of the children in general. However, by striving to practice customer intimacy, it may also develop operational excellence, which should then result in leadership in this particular field of business. The point, however, is that is focus should be more on customer intimacy and the rest would inevitable follow. Generic Strategies Since the daycare facility to be established and operated is still a business, it must maintain its viability not just to generate the desired target profits but also to continue providing services to the community. As pointed out earlier in the mission and goal of this business, although profit is an important concern, the ability to provide service to the children and their working parents share is also a significant aspect. In order to survive and to continue providing service and generating revenues at the same time, there is also a need to compete, considering that competition also exists in the daycare business. It is in this context that it is imperative to take into consideration the application of generic strategies. There are three aspects in this matter; overall cost leadership, differentiation, and focus. Michael Porter explains that “the generic strategies are approaches to outperforming competitors in the industry; in some industries structure will mean that all firms can earn high returns, whereas in others, success with one of the generic strategies may be necessary just to obtain acceptable returns in an absolute sense” (1998, p. 35). The daycare facility must be operated at low costs not just to reduce the need for higher tuition but also to allow the business organization to derive higher net income resulting from the margin. This generic strategy definitely deals with competition but it does so by treating the internal concern of profit generation. Differentiation, on the other hand, means providing a unique or a better service compared to other daycare businesses in the area. It asserts the concept that by being different and superior, the daycare facility would naturally be more appealing to the targeted clientele. Of the three generic strategies, this business organization would rather establish its foothold on a certain niche or territory. As pointed out in the previous parts, the daycare facility that it is operating would cater to the children of urban working parents, especially those from the ranks of lower middle-class and the workers. Grand Strategy The daycare business requires a grand strategy in order to succeed not just in the short-term goals but also in the long-term objectives. Without this, the successes achieved through the formulation of tactical plans would basically become without direction. In the end, this may just turn out to be wasted efforts. Without grand strategy, “too much focus on lower-level strategy and tactics, a disproportional amount of effort and resources will be spent on short-term objectives” (Mard et al 2004, p. 122). In creating such grand strategy for the daycare business, the organization would have to consider three important aspects: 1. Focusing on the target client base of the low to average income earners. This means that the rates for the services offered should be affordable in order to attract more clients. Since the government daycare centers would be forced to decrease their enrollment because of subsidy reductions, more parents would be prompted to avail of this private institution’s services. 2. The location of the facility itself should be convenient for the working parents. It should not be too far or out of the way so that dropping off and picking the children before and after work would also not be a problem to them. 3. Despite the low cost of the service, the personnel should still be able to provide good quality basic education and training for the children. By doing this, the parents would appreciate more the benefits of enrolling their children to this private daycare center. A good reputation could be established which would become very important for expansion plans in the future. Some Recommendations As described in the earlier chapters, the daycare facility would clearly have a territorial nature in order to serve its goals. If it has to be convenient always to urban working class and lower middle-class parents and children then it has to be where there is a concentration of such sector in the population. Its being territorial could actually have a beneficial effect as well. It is obvious that in urban societies, the sense of community has eroded so much, prompting the need for child care facilities where young children of the same neighborhood or community can get together and play (Rosenstock & Rosenstock, pp. 2-3). However, this could be a factor that could limit its growth as a business and as a service provider. The recommendation, therefore, would be to identify the communities in which the target clients work and reside and to plan the establishment of daycare facilities in these locations in the near future. This concern should be included in the grand strategy also. In order to enhance further the value discipline of customer intimacy, it is also necessary to include in the grand strategy the policy of hiring daycare staff from the community in which the facility is located. It is through this that the staff members are more likely to be friends of the parents and the children as well. This could result in the strengthening of trust, which is a positive factor that could contribute to a more admirable image of the business. Customer intimacy, demands a relatively high morale on the part of the staff members. If the staff has low morale they become unstable. According to Allison Clarke-Stewart, wages are the best determinants of instability (1993, p. 102). If the staff members are paid very little, they may not be very motivated to work well. Hence, it is necessary for the business organization to emphasize this. Conclusion With the strategic choices presented here, there is a greater possibility for the daycare business to succeed. This is because these are based on concrete objective and subjective conditions that have been discussed in the earlier chapters. However, if such conditions change during the implementation phases, the business organization should not hesitate to adapt its strategic choices. One of the key assets that this entity already has developed is its adaptability. It is quick to identify the changes in the external and internal environmental factors and it is also prompt in applying the necessary changes or adjustments in the strategic choices that it had previously done. This organization believes that evaluation of both concrete conditions and its strategic choices should not be constrained by timeframes or other fixed frameworks. The management sees the necessity of constantly monitoring changes on the factors that shaped the strategies. It is only through this that it could decide on transforming its methods in operating the daycare business. It must be made clear though that it is only in the generic strategies that the changes would be made if necessary. The grand strategy would remain the same as well as the values discipline that the company has already stood for. Therefore, there should be no anxieties over the possibility of the business management being too volatile or unstable. Even if this organization maintains that stability is relative to the correctness of the strategy being employed in relation to actual conditions, it would still strive to avoid being in a state of constant flux. As much as possible, it would adhere to a fixed general plan. However, if it is really necessary to introduce changes, then it would not hesitate doing so, especially since it is for the good of the clients and the business. The strategic choices already mentioned in this section, however, are solidly based on the current readings of the external and internal conditions. Because of this, these are expected to be accurate and workable. References Clarke-Stewart, A. (1993). Daycare. Cambridge, MA: Harvard University Press. Mard, M. et al. (2004). Driving Your Company’s Value: Strategic Benchmarking for Value. Hoboken, NJ: John Wiley & Sons. Marks, E. (2002). Business Darwinism: Evolve or Dissolve. New York, NY: Wiley. Porter, M. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York, NY: The Free Press. Rosenstock, J. and Rosenstock, E. (1985). Child Care: Options for Working Parents. New York, NY: Methuen. Read More