Development and Implementation of Strategic Plans - Case Study Example

Student’s Name: Lecturer’s Name: Course: Date: Development and implementation of strategic plans: Australian Dried Fruits Association (ADFA) Background The business deals with funding and management of strategies paramount in meeting the needs of dried fruits industry through implementation of various programs. Strategic planning is an approach that in involves the entire organization. Confirm your business or organizations vision and mission Vision The vision of ADFA is to remain profitable, internationally competitive, market driven and in line with the requirements of the processing, growing market sectors of the agricultural industry. Mission The mission of ADFA is to protect and develop the Australian dried grape industry both short-term and long-term positions in the global market with a view of maximizing returns to farmers by supporting them to produce the highest quality of dried grapes in order to meet the demands of the quality conscious market besides proper management of growers funds. Organizational values Collaboration with grape farmers: This value enables the association to support the farmers on issues and concerns that need to be addressed to enhance industry performance Courage of conviction: At all times, the association without fear or favor courageously fight for members rights by challenging policies that interfere with growth and development of the coffee sector. Accountability and transparency: The association acts in such ways that do not lead it to disputes. This is achieved by remaining accountable to members by ensuring it is open to criticism and dialogue at all times. Best practices and integrity: The association at all times engages in best practices that are both legal and ethical and endeavors to promote the same among its members. Accommodating diversity, teamwork and equality: The associations advocate for accord all members equal rights and are given equal opportunities to contribute to the affairs of the association to enable it achieve its goals. Environmental conservation The problem of environmental degradation remains a major problem for the organization. In this respect, the organization has embarked on serious activities aimed at improving and conserving the environment. The association is devising means and ways of improving the environment by engaging in environmentally friendly activities. As such, the association continues to partner with other associations actively involved in similar activities to improve and conserve the environment within the grapes growing areas. Strengths and weaknesses of existing and potential competitors and allies The main competitors of Australian Dried Foods Association include united fresh food association, South Australian Native Food Association and large multinational food associations such as United Fresh Food Association. The following are strengths and weaknesses of existing and potential competitors: Strengths of existing and potential competitors Works in collaboration on development of policies: Australian Dried Food Association works in collaboration with other local and multinational food associations to develop policies that govern the food industry. Such policies have been instrumental in ensuring national food security and also encouraging farmers to not only focus on modern types of foods, but also produce indigenous foods that are known to be highly nutritious. Facilitate the supply of fresh foods: The Australian Dried Food Association focuses on food conservation for the future use. However, other food associations such South Australian Native Food Association focuses on consumption of fresh native Australian food. These organizations are instrumental in production of fresh foods for market consumption hence putting in place measures to prevent fresh food shortage across the country. Backup Australian food market in the event of food shortage: United Fresh Food Association is a British food association that operates in a number of foreign countries including Australia. In this respect, United will ensure sufficient food supplies across Australia by importing from other countries where it operated in order to meet the increasing demand (Kargar and Robert 10). Collaboration in development of improved farming methods: It is undeniable that to have a bumper harvest, farmers need to employ the right farming methods. Ideally, traditional methods, which continue to be replaced by modern improved methods, led to reduced harvests. Therefore, both local and international farmers associations are working collaboratively in devising improved farming methods for farmers to leap handsomely from their farming activities. Weaknesses of existing and potential competitors Unhealthy competition: Associations earn their revenues from their members. As such, food association in Australia has continued engaging in unhealthy competition to win many members. However, such competition has been detrimental as many associations divert from their key objectives of advocating for members welfare. Lack of policies to combat environmental degradation: Food production involves interaction with the environment. However, most of the association do not incorporate safeguarding environment as one of their first priorities. In this vein, their members continue to engage in environmentally detrimental activities that contribute in degrading the very environment relied upon for food production. Focus on profit making at the expense of food security: According to Rothstein and Kiyosaki, the main objective of food associations is to enhance national food security (52). However, many associations are presently deviating from this goal to that of making profits. This, in turn, has led to reduced earnings by the farmers and ultimate collapse of some associations. SWOT analysis Strengths Strengths are factors within the control of the association and provide it with strategic competitive advantage. As an association dealing with dried fruits, it has the advantage of enjoying enduring image among consumers who believe dried fruits possess concentrated goodness of fresh fruits. Further, fruits are known as perishable foods, and therefore, a fruit known for its quality internationally can withstand the problem of being perishable and attract high premiums in foreign markets. According to Hahn and Powers, communication amongst stakeholders is enhanced by the nature of the industry due to frequent educational programs (30). Compared to fresh foods, dried foods industry has fewer processing facilities that facilitate investment in modern equipment. This has overtime led to restructuring of the sector hence reducing duplication of non-value adding activities in order to strengthen and enhance product quality. In addition, the decision of the association to invest in large scale vine yards and the idea of embarking of re-developing existing vineyards acts as a security in the event of adverse weather conditions. The association continues to partner with other organizations to source additional funds for financing their activities in order to ensure that farmers’ needs are fully met. More importantly, the association researchers continue to partner with other local and international agricultural researchers to facilitate cross-over technologies from one organization to the other. This collaboration is highly facilitated by prevailing excellent collaboration by all players within the industry. Lastly, introduction of supply contacts has enabled producers to plan their production with confidence which has also increasingly encouraged entrepreneurial element within the industry. Weaknesses As defined by McDermott and Stephen, weaknesses are factors that cause concerns hence impacting on progressiveness and viability of the industry (15). This definition was echoed by Elsom who argues that weaknesses are those problems in an industry that can be directly addressed with a view of improving the overall advantage (110). Following the fore mentioned definitions, the association suffers reliance on few food varieties whose productivity varies with weather conditions and are weak in resisting diseases. The recent scientific research showed that dried foods have high starch content, and high starch consumption is known to lead to health problems. In his researches, Heracleous established that membership to farmers’ associations’ leads to high food production (80). However, Australian Dried Food Association memberships continue to be low leading to declined number of growers. With involvement of international food association in foreign markets, the aspect of globalization is worth to consider. As such, the local associations are faced with stiff competition from international players whose cost of production remains substantial lower hence beating the local player on price aspect. This has had far reaching adverse effects as local association continues to lose skilled personnel trough downsizing. According to Brown, the fear of change has negatively impacted on the agricultural sector as witnessed association fail to embrace modern technologies that are crucial for enhanced production (220). Opportunities Opportunities are external factors that are beneficial to a firm or the industry. They are also termed as competition weaknesses that can be transformed into opportunities for new revenues or to elicit demand for new products. The association boasts of its technological capability, and therefore, teaches its members on the most modern farming and food preservation methods. In addition, through its expertise, the association continues to invent need types of seeds that can withstand adverse weather conditions. Interestingly, the global population continues to grow, and therefore, the association is guaranteed of a ready market for its products. According to Floyd and Bill, consumers are presently conscious of their health status, and therefore, insist on chemical free foods (27). As such, the association continues to encourage its members to desist from using harmful chemical for food production. This has placed the association products at high edge across the global market as the majority of other producers continue using a chemical that have been banned in some markets. Threats Threats are external influences over which an industry or a firm has no control although it can take some measures to minimize them. Threats presents in terms of competition activities, economic or global influences. For instance, the association deals in both local and global markets, and therefore, delayed release of similar global products can adversely affect the association. According to Rondinelli and Max, every industry is subject to change en food industry is no exception (247). As such, the association’s adoption to change has been found to be too low leading to reduced production, and therefore, inability to meet market demand. The association is also face with other challenges such as lack of product consistency, high storage, handling and transportation costs, increased marketing costs and reduced resources to finance the farmers. Regional integrations have also been a major hindrance to the association. This is because of increased tariffs to non-members and introduction of stringent food standards that must be complied with before non-members products are allowed to enter such regional blocs. Research and background for the strategic plan Over the years, the agricultural sector has undergone significant changes, which could be attributed to both internal and external environmental conditions. As such, farmers associations and other groups have developed mechanisms to enable them cope with the dynamic environment. Moreover, in order for the associations to cope with the future, majority of them are carrying out future projections to act as a roadmap for achieving the desired goals. This roadmap commonly known as the strategic plan covers a number of years, and it helps organizations to keep track of what has been achieved. In addition, the association is able to put in place mitigating factor where risks are prevalent. Strategic objectives and strategies for the future To improve supply sustainability and efficiency: Strategies: The association will achieve this objective by not only developing, but also evaluating improved plant material in order to enhance production consistency and efficiency (Leonard and Rodney 55). They also plan to improve crop and plant management systems with a view of maximizing productivity. In order to reduce capital and labor costs, food production and drying processes, the association will develop mechanization processes. To improve product value: Strategies: The association continues to comply with legislative requirements for dried grapes in order to meet the requirements of the export market. In addition, they are focusing of vigorous promotion of dried food products in both local and foreign markets. Exploiting emerging marketing opportunities: Strategies: In order to tap the emerging markets, the association is evaluating newly developed crop varieties in order to ensure quality and come up with crops that can withstand hard environmental conditions. As a requirement for global markets, the association continues to encourage their member to desist from the use of banned chemicals. Enhance adoption of new technologies: The association is focused on technology transfers as it continues to fund projects that can facilitate knowledge transfer. As such, the association is determined to promote the culture of innovation. In line with investing in new technologies, the association continues to dedicate much of its resources to funding innovation related researches. Enhance effective research environment: Strategies: In this regard, the association continues to fund research projects within the industry. For instance, the association is funding final year students’ field research projects. Further, the association highly skilled researchers are used to provide leadership in research and other developmental projects. Details of each strategy Evaluate and enhance production consistency and efficiency Assigned priority: high Time frame: continuous Responsible parties: researchers and farmers Measurable performance indicators: ability to meet market demand To improve crop and plant management systems Assigned priority: high Time frame: continuous Responsible parties: researchers and farmers Measurable performance indicators: bumper and quality harvests Develop mechanization processes Assigned priority: High Time frame: continuous Responsible parties: Researchers and farmers Measurable performance indicators: bumper harvests Comply with legislative requirements Assigned priority: High Time frame: Continuous Responsible parties: Farmers and the association Measurable performance indicators: Increased accessibility to both local and international markets Vigorous promotion of dried food products Assigned priority: High Time frame: Continuous Responsible parties: Association Measurable performance indicators: Increased markets Evaluating newly developed crop varieties Assigned priority: High Time frame: Continuous Responsible parties: Researchers Measurable performance indicators: Quality crops that can withstand diseases and adverse weather conditions. Encourage their member to desist from the use of banned chemicals Assigned priority: High Time frame: Continuous Responsible parties: Association and members Measurable performance indicators: Increased accessibility to international markets Fund research projects Assigned priority: High Time frame: Continuous Responsible parties: Association Measurable performance indicators: Improved product quality Due diligence Due diligence serves to confirm all material facts. Therefore, the management needs to determine what the association wants to achieve within a given period of time. They should then develop both short term plans to fast track the strategic plan. Such short term plans should be closely reviewed to ensure they are in line with the overall strategic plan and management should from time to time evaluate the progress towards achievement of association strategic plan. Benefits of strategic planning Provides a clear focus for an entity Brings together board of directors and the staff Builds a strong team for an entity Acts as a unifying factor by keeping the board together Enhances organization productivity through increased effectiveness and efficiency Difference between mission and vision statement Mission statement focus on how an organization will reach where it wants to go whereas vision statement outlines where an organization wants to be. Mission statement focus on how an organization moves from present to future whereas vision statement talks about the future. Features of effective vision statement Future casting: Vision provides a picture of how a business wants to be in future Inspiring: An organization vision has an inspiring language. As such, it should create a vivid image in consumers’ heads to promote excitement and emotions. Audacious: An effective vision should represent what a common person thinks is possible. Motivating: An effective vision clarifies the direction an organization ought to move and re-directs the efforts of every employee towards that direction. Specialist services necessary for developing a strategic plan Focused: People charged with responsibility of developing a strategic plan should remain focused on the strategic plan. Articulate: Developers of strategic plans must have the capacity to articulate both short term and long term business plans. Critical: For people to develop a strategic plan, they should have a critical mind that can help assess the viability of the plans. Forecasting: individual formulating strategic plans should have the capacity to forecast the future of an organization upon implementation of strategic plans. Pest Analysis: Pest analysis includes scanning the external environment to determine factor that may affect the business. Examples of PEST factors Price: Commodity prices keeps on changing depending on market forces of demand and supply Economic conditions: Economic conditions include factors such as inflation which are beyond the control of business. Social factors: social factors are societal conditions, which affects businesses. Technology: Businesses are prone to technological changes and should; therefore, transform to adapt to new technologies. Definition of principles Describe the following principles Equal Opportunity: Refers to a situation where equal chances are given Ethical principles: These are practices that are socially acceptable Codes of practice: These are laws that govern business activities Privacy laws: These are laws that guarantee the element of privacy. They negate making information public. Occupational health and safety: These are rights to employees to health and safety at the workplace. Employer rights and responsibilities: These are rights and duties accorded to an employer over the employees. Anti-discrimination: These are codes that prevents against discrimination. Works cited Brown, Paul. "The Evolving Role of Strategic Management Development." The Journal of Management Development 24.3 (2005): 209-22. Elsom, Derek M. "Development and Implementation of Strategic Frameworks for Air Quality Management in the UK and the European Community." Journal of Environmental Planning and Management 42.1 (1999): 103-21. Floyd, Steven W., and Bill Wooldridge. "Managing Strategic Consensus: The Foundation of Effective Implementation." The Executive 6.4 (1992): 27. Hahn, William, and Thomas Powers. "The Impact of Strategic Planning Sophistication and Implementation on Firm Performance." The Journal of Business and Economic Studies 5.2 (1999): 19-35. Heracleous, Loizos. "The Role of Strategy Implementation in Organization Development." Organization Development Journal 18.3 (2000): 75-86. Kargar, Javad, and Robert A. Blumenthal. "Successful Implementation of Strategic Decisions in Small Community Banks." Journal of Small Business Management 32.2 (1994): 10. Leonard, Denis, and Rodney McAdam. "The Strategic Impact and Implementation of TQM." The TQM Magazine 14.1 (2002): 51-60. McDermott, Richard E., and Stephen L. Walston. DEVELOPMENT OF A STRATEGIC PLAN FOR HEALTHTRUST UTAH. Arden: Jordan Whitney Enterprises, Inc, 2012. Rondinelli, Dennis A., and Max Iacono. "Strategic Management of Privatization: A Framework for Planning and Implementation." Public Administration & Development (1986-1998) 16.3 (1996): 247. Rothstein, Eric, and Donna Kiyosaki. "Development of a Strategic Plan: Portfolio Management for Public Utilities." American Water Works Association.Journal 95.1 (2003): 52. Read More