Corporate Strategic Planning for NutriMillinium - Case Study Example

A Corporate Strategic Plan Name Institution Date Introduction Environment and sustainability Environment and sustainability are vital for the survival of a business. Sustainability is the ability to endure. Sustainability interfaces with economics by means of ecological and social consequences of economic activity. According to Gottschalk (2007), moving towards sustainability requires a lot of planning. The business has to support its activities in the dynamic environment. Corporate strategic planning is the process of devising a plan defensive and offensive actions intended to build and maintain competition over the competitors. For strategy to be successfully implemented it should be aligned and linked to all aspects of operations through a means that addresses risks, deals with financial constraints and adheres to ever increasingly complex legal and regulatory requirement. Sustainability can be achieved if there is vision and commitment to the course of action and well defined control measures in case of a problem (Finlay, 2000). Leadership &Management Style According to Das (2005), leadership and management style will dictate how well the business will perform. A leadership that is transformational and consultative is very important to give the business the rapport and the momentum that it requires in its management. The employees should get involved in decision making and evaluating the development of the business. In this particular case NutriMillinium has to work closely with the employees to ensure that the business pick up well in China. An effective management style will enhance the achievement of the objectives and goals of the business. This report explores the various risk management strategies that can be undertaken to ensure that NutriMillinium stays oncourse in the goal of being a leader in the health product industry. Risk management Global intelligence Enterprise risk management is a top most approach to optimizing and managing risks, ensuring that a company how much uncertainty and risk are acceptable to an organization. In its corporate strategic plan NutriMillinium should undertake from time to time global assessment to determine the amount of risk posed in this area. Changing social trends and buying behaviour will be dealt with if there will be a competent team to warn the management of the possible changing trends and challenges and therefore be able to adjust accordingly. Longevity and emergence of chronic diseases pose an opportunity for NutriMillinium to come up with products that will deal with these kinds of situations in China. Any changing trends in the health of the Chinese people poses an opportunity or a threat to NutriMillinium. Global Law & finance Breaches in global and financial laws present a risk to the business. China is a turbulent political economy that needs to be monitored with top most keenness and agility. NutriMillinium could think of strategic alliance to enter markets that are restricted in China or establish franchise in emerging markets. NutriMillinium could form a cooperative relationship to enable it to trade successfully in the global market. To monitor the changing trends in the global and finance laws it is essential that the company liaise with the local players in the same field in order to avoid risk in the same area (Gottschalk, 2007). Humans Resources Risk in human risk comes with incompetence of the employed personnel or early exit of employees from the company. NutriMillinium has to devise a long term strategy of retaining the workers making them more satisfied and productive. The employees can sabotage the operation of the company if they are not well taken care of. Finlay (2000) argues that acquisition of basic application technologies to make work easier and training the employees effectively will not only increase production but also lead to job satisfaction. Job flexibility through position switching and promotion will help to make the employees enjoy their work and be reluctant to leave. Performance appraisal should be used to determine the inefficiencies in the company and recommend appropriate remedy through training. A salary package that is attractive and work conditions that are excellent is a source of motivation to the workers. Recognition and incentives are to be used to encourage innovation. Evolving Entrepreneurship Evolving entrepreneurship poses a risk to NutriMillinium. There many emerging and changing trends in the way entrepreneurships are being conducted and it is up to the management of the business venture that they are well versed with what is happening around them. To be safe it is better to be aware of the changes and adjust according rather than being caught unawares. Product development should go hand in hand with the trends in the global market and particularly the health products. A system of keeping in touch with the development in entrepreneurship is necessary to make NutriMillinium adapts at a fast pace (Das, 2005). Global corruption The strategic alliance could also be used to deal with global corruption. The local entities are well verse with the China form of corruption known as Guanxi. It is easier for NutriMillinium to operate in an environment in the environment that is not very strange and it is good to take advantage and franchise. To bypass the barriers that come with protection of local market it is better to be aware of the opportunities that come with conversance of the local market. The issues regarding import licenses, rental property and foreign exchange can be dealt with easily if the business liaises with the local operators. Exit strategies Corporate strategic plan for exit strategies need to be in place so that NutriMillinium can take advantage of other opportunities elsewhere. Understanding the market trend is essential to determine the future of the business. A corporate management team that is well versed with the changes in market environment is vital to keep abreast with the turbulent market factors that have a toll of the operations of the business. Market intelligence research team that is flexible and well constituted with efficient work force. The entrepreneur has to focus on when getting into the deal so that entrepreneur can successfully exit the deal relating to rights acquisitions. Exiting successfully comes with entering successfully (Dempster, 2002). Successful entrepreneur has to go through agreement drafted to make certain contract protect the backend which is the exit strategy. Intellectual property realm that includes trademarks, copyrights, and patents together with rights in contracts; they include acquisition agreement of all sorts. When a business is set up it is essential to think about how the business will ultimately end. An exit that is well though-out can help in maximizing the value that is obtained from the business. Involvements have to be terminated with minimum disruptions to NutriMillinium as much as possible. When entering the new market it is important for the business to comprehend how it will exit the same market when the right time comes. The exit option can include family succession, selling the business, or else close the business. The risks that can be avoided through quick exit will save the business from losing insurmountable amount of its capital. The essence of having an corporate exit strategy is to optimise the activities of the business for maximise profitability when the business is still the in the market. Being aware of the competitors’ strategies and change of plan should be at the fore agenda of the intelligence unit to chart new way for the business. NutriMillinium is dealing with health products and all efforts should be ensured to make sure that the business remains relevant in the market. NutriMillinium should take advantage of new and emerging markets in current environment and any other opportunities in the neighbouring environment (Dempster, 2002). A mastery of the events through monitoring the local dailies and news entities is very important to tell the direction of the business. Educative forums, workshop, trade fairs and seminars are very essential in providing the necessary knowledge so that NutriMillinium knows the next step to be undertaken in order to successfully and ultimately pursue the goals and the objectives of the business. Global entrepreneurship has a trend of being dynamic and flexibility and therefore the management team should be aggressive in the gathering of information and initiating change in the business. Entrepreneurs have to be conversant with the kind of leverage that is vital in ensuring the success of the business. The vision of the business should be understood from the beginning and how it develops down the line is very important. It is crucial to groom successors if they are coming within the business. When the business is doing well and the market conditions are advantageous will help the business to jump start in the next new environment. The manner in which the business exit determines the value shareholders get from the business, the form of payment to be received, future success of the business and its services or products, whether to retain involvement and the tax liabilities (Gottschalk, 2007). Conclusion Development in China poses the greatest environmental challenge for the modern world in terms of size, speed and scarcity. The business environment is no less challenging to deal with and require the entrepreneurs to have the zeal and the passion to overcome these challenges. A well outlined leadership and management and elaborate sustainability policy is very important to any business venture. Strategy formation and implementation of the corporate strategic plan in all aspects of the business is very important. Management of risk through well defined organization policies is very important. Such areas like global intelligence, global and finance, human resources, evolving entrepreneurship, and global corruption requires good policies of risk management. International legal and financial laws understanding are important in getting the business to function and operate well in the new environment. China being a dynamic business environment calls for keenness in developing the risk management plans. Strategic management process is continuous and dynamic. To deal with the changing environment the business has to have a well prepared exit strategy. In adapting to the diversity of the environment it is crucial to involve every part of the business. This report looks at the risk management strategies that can be used in dealing with a turbulent environment. Any entrepreneurship has to acknowledge the threat and risks that exist in the environment that it operates it. The threats and risks can be turned into strengths and opportunities to maximize the operations of the business. References Gottschalk, P. (2007). CIO and corporate strategic management: changing role of CIO to CEO. Idea Group Inc (IGI). Finlay, P.N.(2000). Strategic management: an introduction to business and corporate strategy. New Jersey: Pearson Education. Dempster, M.A.H. (2002). Risk management: value at risk and beyond. Cambridge: Cambridge University Press. Das, S. (2005). Risk Management: The Swaps & Financial Derivatives Library. New York: John Wiley and Sons. Read More