Strategic planning process - Essay Example

Mission ment of Jackie O energy drink: The following is the mission ment of company A: “We are dedicated and determined to develop sustained standards for Jackie O along with ensuring the market leadership in the category of energy drinks. We are determined to deliver superior customer services in a highly profitable and efficient manner. We take keen interest in developing an organizational culture that would encourage the employees to share their best practices to make the organization an employer of choice.

” Objectives of the company A: Company A uses the SMART acronym to set the objectives for their plans and strategies. The SMART objectives are: 1) Specific 2) Measureable 3) Achievable 4) Realistic 5) Time based Based on SMART, company A has developed the following objectives: 1) Profitability: The most important objective of the company is to manage the human resources and assets in the most efficient and effective manner. This is required to ensure and maintain adequate liquidity along with reasonable return on investment. 2) Growth: The company has a motive to achieve consistent and reasonable growth in the target market and potential market as well.

The company also aims to generate enough resources for the development of expertise and infrastructure. 3) Organizational environment: To maintain the kind of environment in organization to ensure fail deal for employees with humane approach. This will help develop innovation, initiative and productivity. 4) Development: Improve design capabilities and catalyst manufacturing. 5) Business development: To ensure the maximum utilization of current resources to generate long term profit. 6) Obligation to society: To conduct business in accordance with legal and ethical standards for good environment SWOT Analysis of Brazil: Brazil is the most powerful and largest country in South America.

It has become one of the major emerging markets of the world and is attracting a lot of investment due to different business prospects. Brazil is playing a key role in different industries at the moment due to its rapid economic diversification. Brazil made it strongly out of the recent recession which has made it less vulnerable to any business downfall. However every country has its own strengths, weaknesses, opportunities and threats. Here is a detailed account on Brazil’s SWOT analysis: Strengths: 1) Brazil has excellent consumer market and growth potential. 2) Brazil has a diversified economy due to broad infrastructure and industrial base. 3) Abundant energy, mineral and agricultural resources. 4) Fully established distribution and transportation networks in industrialized areas. 5) Inflation in control since 10 years. 6) Many fiscal incentives are given to foreign investors. 7) New rules and regulations have been launched favoring the minority shareholders. 8) Improved debt markets and local capital Weaknesses: 1) The continuous change in the business environment 2) Complex regulatory environment for employees with tax complexities.

There are high social charges and high taxes on sales, payroll and income. 3) The economic environment of Brazil is still considered vulnerable as compared to other stable economies. 4) Complex registration and transfer pricing rules for foreign capital 5) High investment required in infrastructure and distribution channels. 6) Many regulations and bureaucratic rules for certain industries and businesses. Opportunities: 1) Economic stability due to peak oil supply in years to come 2) More oil discoveries have been made which has increased the overall profitability of Brazil’s market 3) The hydroelectricity is abundant in Brazil which makes it very positive for industries to run.

Threats: Very high interest rates HIV threat which is declining gradually Strategy selection: For development and selection of strategy, research and development is required. The research and development will be carried out in three phases: Phase 1: Analyze: 1) Develop global R&D 2) Confirm the patent and IP details and issues 3) Assess the market potential in Brazil 4) Seek approvals based on multi-year business case Phase 2: Design: 1) Initial assessment of tasks to be done 2) Establishment of multi-year budgets 3) Develop research alternatives 4) Execute plans for HR issues and recruitment Phase 3: Implement: 1) Develop the processes as per the R&D report 2) Keep the operational team in place Based on the R&D findings, the company adopted the following two corporate strategies to follow: 1) Market penetration Many energy drinks are solely targeting the sports and athletes which somehow leave the major target market of students and professionals out of the sphere.

By being in the same market, the company will be able to differentiate among the others by targeting and providing different flavored energy drink, Jackie O which will attract a larger proportion of the market. 2) Product development After penetrating the market with adequate response, jump into different product development like energy drink specially for the sports people and athlete. This will be required as the characteristics and ingredients will be different for sports drink. This will expand the Jackie O energy drink product line and hence the consumers as well.

Mode to enter the market with Jackie O: To enter the energy drinks market in Brazil, brand development strategy will be followed that comprises of following steps: 1) Brand insight assessment: Identifies the gaps between vision and brand 2) ROI: Benchmark surveys of prospects, customers and employees 3) Brand Adoption: Externalizing and internalizing brand 4) Validation: Testing the energy drink among the prospects and customers 5) Creative development process: Includes billboards, ads, public relations, internet marketing, advertisement etc 6) Essence of brand: Development of taglines, brand statement, brand mood and rallying cry.

Control and evaluation: The company will use 3 control and evaluation systems: 1) Feed forward control This is the control which will regulate the inputs like material, human and financial resources in the organization to ensure that the benchmark standards are met in the transformation process. 2) Concurrent control It is the control which is related to activities in progress. This control regulated and evaluates the ongoing activities to ensure their conformity with the organizational standards. 3) Feedback control This is the control that focuses on the transformations after the completion.

The feedback will help the managers with useful information to evaluate the effectiveness and efficiency of the processes. Contingency plan: Following steps will be involved in the contingency plans: 1) Succession plan 2) Train backup employees for emergency tasks 3) Practice crisis communication and choose crisis meeting places 4) Invest in different communication means 5) Partnerships with local emergency response communities like police, firefighters etc. 6) Efforts towards continuous improvement by evaluating the performance at each task Outsourcing the contingency measures: The company will develop the offsite data storage, remote workstations, mobile phone units etc in case of company’s inability to manage the original contingency plan.

References: Baer, W. (2007) Brazilian Economy: Growth and Development. Lynne Reinner Publishers. Brainard, L. and Diaz, L. (2009) Brazil as an economic super power: Understanding Brazil’s changing role in the global economy. Brookings Institution Press.