Strategic Management for Tools Corporation - Assignment Example

Strategic management for Tools Corp Corporation This planning is for Tools Corp Corporation situated in Tennessee. This PLANNING consists ofa brief introduction, SWOT analysis, Market research, Business plan, Operating principles, Strategic objectives and conclusions. Introduction Tools Corp Corporation is a musical instrument making company. The company manufactures and sale different musical instruments like Guitar, Drams, and Sacs phone etc. It known to all of us that modern day business is full of competitions. Sustainability is the main thing in this world. This study would give a fair guideline to company for the business. A business is as good as its planning, controlling and implementation. During this study different strategic discussions will be there which would help the company to keep its footsteps in the Tennessee market. SWOT analysis This analysis would give a clear picture about the different strengths and weaknesses of the company. It will also guide what are the opportunities and possible threat of the company. Strengths: - It is a very well known company throughout the USA. As it is very well known people can easily recall its name. Management of the company would not find any problem regarding their recognition of their products. Company makes good quality of musical instruments. Products are of very high quality. Customers are very stratified with the products made by company. Quality assurance is a real strength for the company. Price ranges of their products are also well within the reach of normal customers. Company is having a great pool of experienced work force. Tools Corp Corporation is having great after sales services facilities for their customers. After sales service is also a great strength for the company. Weakness: - Modern day musical instruments companies are coming up with different kinds of innovative products. Company is having certain set of products. Company is lacking in innovative products. Company has lesser stocks of products for sudden demand in the market. Company’s total working model is not that much technically advanced like other companies in the industry. Company is over dependent on one or two vendors. Every other player in the industry are giving importance to promotion and branding. Company is lacking in this aspect also. Opportunities: - Tennessee is a music loving state. People here are very fond of their music. As a musical instrument company it would create lots of opportunity for the company. Opportunities are very high as cost-effective musical instrument companies are in few numbers in this market. Whole lot of middle income people of Tennessee can be opportunity for the company. New and young people are making new bands. These types of new budding members of the state can be opportunity for the company. Lots of musical contest or reality shows are taking place in the state which would create lots of opportunities for the company. The state of Tennessee is very well known for its music throughout the world. It would create a global exposure for the company. Threats: - Threat is very high from new entrants in the market. Different cost effective companies are eyeing this market. Company is facing recent problems with its vendors. Company’s products variations are limited which causes great threat for the company. Branding and product promotion is almost negligible. It is a great threat for the company. Company doesn’t have good storage capacity which can satisfy sudden market demands causing valuable sale loss. Technically company is not that much advanced. It is a huge threat for the company to keep pace with the modern technology driven world. Market Analysis This research is going to give a clear picture to the company about the market they are going to keep their foot for the first time. The state of Tennessee is located in southeastern part of the USA. It is a state with lots of tourist destinations like Great Smoky Mountains national park, Ocoee river etc. Bristol, TN is very famous city for country music. Tennessee Birthplace of legendary artist Elvis Presley. The state has great love for music and culture. Different musical instrument making companies are eyeing this state. As it is the 17th highest population state among all state in the USA, population is also on the higher side. Different company of this industry are eyeing for this market. This research shows that although different companies are going for this market but cost effective companies are missing. Most of the company’s are from higher premium ranges. People of middle income class segment are looking for products suitable for their range. This market research shows that Tools Corp Corporation can open their account in Tennessee (Fitzroy and Herbert, 2007). Business Plan This section would suggest an appropriate business plan for the company. Business plan would suggest following things. Management: - Management is very important part for any business. It is the management which is going to take all the key decisions related to the business. Management has to be very much vigilant about the different developments in the market (Lussier, 2008). Management backed up with good capable workforce is very much important. Management plays very important role in planning, implementation and controlling the whole process. Management must be experienced and expert. Marketing: - In the modern world of competition marketing is very important for any company. Marketing can be a decisive factor for any business. In this industry different companies are coming up with different ideas of product promotions and branding. Tools Corp Corporation must go for different innovative ways of marketing (George, 1996). Marketing would create top of the mind influence among customers. Proper marketing would help their products to earn revenue. Financial aspects: - In any business financial aspects are the most important matter. It shows investments related with the projects and revenue generated out of that project (Reuvid, 2012). Company should invest according to the need of the market. Company can track others players investment for getting an idea about the investment. It should design its pricing model very carefully to suit both the customers and its profitability. It should include all its set up costs, cost related to workforce and marketing. It may go for very marginal profitability at its initial stages of Tennessee business. Company must design its debt equity ratio very carefully. It can go for bank loans. Operating Principles Company is quality oriented. It doesn’t compromise with its product qualities. Company keeps monitoring its quality of the products. Customers are the king to organization. Customer satisfaction and service are considered to be first priority for the company. Company wants to grow big and wants inclusive growth for every stakeholder. Continuous improvement must be the main mantra for success. Company must believe in team work. Company must create a good atmosphere in its work place in Tennessee. Company must be very much transparent about it’s all the dealings related to the business. Company must abide by all the legalities. Company must not disturb any socio economical balance. Company must be a learning organization always learning different new thing related to their business (Chaston, 1999). Strategic objectives This section of the study would give a clear picture about objectives of the company after different time frame. The below Gantt chart will show different strategic objectives. It shows that in the first year company would go for the proper identification, research about the market. Business set will take place. Business needs profitability (Navarro, 2006). Company will go for marginal profitability. Company would take priority about the marketing also in the first year. After the five years company must go for innovation in their products. Company should continue with their different marketing strategies. Company must go for profitability. After ten years profitability’s, marketing, innovation and expanding are going to be the main strategic objectives. years 1 5 10 Identification of the new market       Market research       Set Up of the business       Profitability       Innovation       Marketing       Expanding       Conclusion This study shows that proper planning is very much important for setting up any new business. A business calls for lots of calculations and market research. Proper market research is very important for any new business. In this highly competitive business world coming up with new ideas is very important. A proper business planning cover various different aspects like products, price, place, promotion, investment, financial returns and suitable work forces. It is very important to plan properly. Decision making is also very important for setting up a business in new place. Implementation and controlling of plan is also very much needed. Management around the world always plan very well before setting up any new business. This study also shows that time frame strategic objectives are also very important to maintain sustainability of the business. This business plan would give a guiding structure to the Tools Crop Corporation wanting to open its business in the state of Tennessee. References Chaston, I. (1999). New Marketing Strategies: Evolving Flexible Processes To Fit Market Circumstance. SAGE: London. Fitzro, P. and Herbert, J. M. (2007). Strategic Management: Creating Value in a Turbulent World. John Wiley & Sons: USA. George, P. M. (1996). Gerontographics: Life-stage Segmentation for Marketing Strategy Development. Greenwood Publishing Group: London: Lussier, R. (2008). Management Fundamentals: Concepts, Applications, Skill Development. Cengage Learning: America. Navarro, P. (2006). The Well-Timed Strategy: Managing the Business Cycle for Competitive Advantage. Pearson Prentice Hall: USA. Reuvid, J. (2012). Managing Business Risk: A Practical Guide to Protecting Your Business. Kogan Page Publishers: USA. Read More