Strategic Controls and Contingency Plans - Research Paper Example

Implementation, Strategic Controls, and Contingency Plans of Implementation Plan Once the employers of B&G Foodsdesign the strategies, the next step is to provide the pathway of executing the strategies. This is also known as the Implementation of the strategies. The “Strategic plan” is of no use unless there is a proper mean of implementation available with in the B&G Foods. The Implementation process may vary from organization to organization and is independent to the essentials and details related to the strategic plan. A well-organized and properly monitored implementation plan can help the organization achieve its primary objectives. The plan (implementation) can be monitored effectively if it is categorized and sub divided into steps. The steps can be listed as follows. Evaluation of the Strategic Plan B&G Foods must work on knowing all the details related to the “Strategic Plan” i.e. the strategies developed or proposed previously. Each of the strategy including promotion and marketing, Expansion of the product line and technological advancement must be known to the employers. The outcome of analyzing the strategic plan will illustrate the objectives and goals that are needed to be fulfilled. This step will help in setting the priorities and also to recognize the most difficult tasks. The tasks will be studied and the employees of B&G Foods will work for their solution in the best possible ways (functional tactics). All the aspects related to the time and costs are to be evaluated, to identify the least effective to the most useful and cost effective tasks. Creating a Vision Once the evaluation of the strategy is done the employers of B&G Foods need to make a vision of “What they want to do?” This vision may include the goals identified and the priorities that are set in the Evaluation step. This is a step-by-step plan to achieving the goals; every employee must be informed of his/her duties. Selection of the team The development of a team is the next step of the Implementation Plan. The employers of the B&G Foods have to make sure that the teams that are formed are well organized and have the skills required. The communication channel must be strong among the team members so that they can interact easily and work together in a more effective and efficient manner. The introduction of a team member in the team will help the team focused in a certain direction. The scheduling (deadlines and milestones) is explained to the team members and they are asked to work according to the plan. Monitoring through progress reports and meetings The weekly or monthly meetings must be scheduled in order to get the information about the work of the team and discuss the progress. The team(s) must be guided about the accomplishments and the strategic planning. The work must be categorized in three parts: done before the schedule (effectively and efficiently), on schedule (within the specified time) and done ahead of schedule (late). These categorize will allow the employers to gain the knowledge about the project progress and also in assigning new tasks to the team members. To make the Monitoring process more effective B&G Foods must ensure that the team members must be awarded for their excellent work. Informing the Management about the progress of implementation The upper management must be involved in the implementation process so that they are aware of the way the team is working on the assigned objectives and goals. The upper management must be presented with the progress reports; this will be helpful in a way that B&G Food’s upper management will become a part of the project. It is also beneficial also in allocation of the resources if required. The plan of the team and the activities of the team members must be approved by the B&G Food’s upper management and the execution process must start after the formal approval. Base year 2012 2013 13% Percentage Increase Forecasted Values 2010 2011 2012 2013 2014 Revenue 513 544 634 725 932 Cost of revenue 346 366 410 482 639 Gross profit 168 178 223 243 293 Operating expenses Sales, General and administrative 56 58 66 79 90 Other operating expenses 6 7 8 10 11 Total operating expenses 63 64 74 89 101 Total operating expenses 105 113 149 154 192 Interest Expense 40 37 48 42 Other income (expense) -15 -10 -31 -35 Income before taxes 49 77 91 81 156 Provision for income taxes 17 27 32 29 33 Net income from continuing operations 32 50 59 52 124 Net income 32 50 59 52 75 Net income available to common shareholders 32 50 59 52 75 Earnings per share Basic 0.68 1.05 1.2 0.99 1 Diluted 0.67 1.04 1.2 0.98 1 Weighted average shares outstanding Basic 48 48 49 53 60 Diluted 48 49 50 53 60 EBITDA 105 130 157 147 167 If the company is managed properly and the strategies are implemented effectively, B&G Foods can earn above average returns (profits). Risk Management Risk Management is the identification and analysis of the risk in the investment decision-making. There is always a risk involved while making a new business plans as the plans cannot be perfect and free of errors. Even if the plans are perfectly designed, the market forces can cause uncertainty in the plans. If the risks are identified before implementing the new investment plan then it is easy for the company to make changes in the plan. By identifying risks and making necessary changes can reduce the intensity of the risk (Frenkel, Dufey, Hommel, & Rudolf, 2005). B&G Foods have proposed some strategies for the expansion of their business which also have some risks involved in it. The recommended strategies included promotional and marketing strategies, expansion of the product line and the technological advancements. Few risks are involved in these strategies, which will be discussed briefly (Frenkel, Dufey, Hommel, & Rudolf, 2005). The risk involved in promotional and marketing strategies of B&G Foods is that it will require an additional cost. While implementing this strategy, the company must not do excessive marketing, which can increase the cost of the products. Increase in the cost will either increase the price of the product or lower the profit margin of the company. Many mediums and channels of marketing have been identified in the strategy but the company must only focus on few mediums as marketing and advertising through all the channels can cost a lot to the company. The company must identify its target audience and market their products accordingly (Frenkel, Dufey, Hommel, & Rudolf, 2005). Similarly, B&G Foods must also be careful while implementing the proposed strategy of the expansion of the product line. The products of B&G Foods are made by special ingredients because of which the customers prefer them. While increasing the product line, the company must maintain their standards. If the company introduces new products without surveying the market it can be a loss for the company as the new product might not be the preference of the consumers. If the consumers will not by the new product then the company has to face loss because of the product (Frenkel, Dufey, Hommel, & Rudolf, 2005). Contingency Plans Contingency plans are made by the organizations in order to prevent themselves from such economic events that have negative impacts. All the companies must have some alternative plans so that at the time of a negative outcome, they can implement other strategies to avoid risk or loss (Allin, 2012). B&G Foods must have a contingency plan for the promotional and marketing strategy. The company must focus on a few channels to promote their products. For example, if they are focusing to advertise through billboards they must have a plan to advertise their product through TV commercials as well. Similarly, if the company plans to increase their product line they must introduce two or more products. By introducing two or more products the company will have less chances of risk because if one of the products fails in the market the other product may replace it (Allin, 2012). Reference List Allin, L. (2012). Contingency Plan. Victoria: Orca Book Publishers. Frenkel, M., Dufey, G., Hommel, U., & Rudolf, M. (2005). Risk Management: Challenge and Opportunity. New York: Springer Science & Business Media. Read More