Strategic Planning for Myers - Case Study Example

MANAGEMENT REPORT By Name Course Instructor Institution City/State Date Table of Contents References 10 Executive Summary Basically, strategic business framework for organisation’s success and planning success together with action plans, goals, and strategies interconnect and build upon one another so as to generate suitable steps in order to accomplish the company’s vision and mission as well as to live its values. Organizations require action plans, strategies, and goals so as to cascade the mission and engage every employee’s talent, and as evidenced in the report, organizations are developed with the profitability goal by means of mind processes. In essence, organisational strategies as well as tactical actions are formulated with the prudence of certain operational goals, like return on investments, market share, incomes, as well as cash flow. In consequence, organizational control mainly involves evaluating as well as reviewing the general performance as compared to the operations, strategies, tactical actions utilised in defining the organization itself. The Myers tactical actions should be developed based on current strategies and goals so as to establish certain strategic goals in the general strategic plan context. Without a doubt, organizational control attributed to strategic planning is fundamentally a benchmark, steering the company toward optimum operation levels. For Myers, strategic planning offers a general strategic direction to the organization’s management and offers a particular direction to areas such as marketing strategy, financial strategy, HR strategy, and organizational development strategy in order to become successful. Introduction Strategic planning as evidenced by Myers case is beneficial to the whole company, and not for specific departments. The report highlights why strategic goals and plan should guide what the company should produce and how to become successful in the marketplace. Basically, strategic planning is a process intended for yielding a corporate strategic plan, which according to Bryson (2011, p.362) is strategies statement created to impact the organisation’s long term performance. The report gives details why business needs a roadmap (strategic plan) so as to become successful. In this case, the strategic plan is crucial because it assists in providing focus and direction for every worker, and it points to particular outcomes that can be realised and create actions to achieve them. The purpose of the report is to offer a critical analysis of Myers Company, which is the largest department store group in Australia in terms of strategic goal, strategic plan, as well as tactical actions. The report briefly identifies Myers’ current situation, which will entail the company’s Mission Statement. Planning as it will be evidenced in the report is crucial to ensuring success, and is also valuable to different work units in the organization in aligning themselves with the strategic goals. Current Situation Myers is undoubtedly a successful company in Australia with over 60 stores across Australia, which are supplemented by the company’s reputable brand as well as reinforced by the lately enriched digital, online, as well as mobile platforms. The company has over 54,000 shareholders, 12,500 team members, as well as more than 1,200 suppliers internationally in addition to scores of communities that the company engages with daily (Myer, 2015). Being a reputable employer and with long history of local community engagement as well as philanthropy, Myers is without a doubt an established business that value success and its brand. Its success has been attributed to its main unceasing strategic planning, and incorporation of new technology to enhance product delivery (Myer, 2015). The company mission statement states that the company key objective is to offer the customer the highest product and service standard and make certain that it constantly meet and surpass your customers shopping expectations. Strategic Goal The key strategic plan of Myers is the forthcoming general iPad integration into the company’s retailing. The technology was initially brought to Australia by Woolworths and Myer is embracing it in order to expand its customer base. In this case, the customer selects what he/she intends to buy, and in case the sough-after item is not available in the nearby Myers store, the customer makes an online order through the iPad. Since introduction of iPad selling, the company Myer's sales have increase, but stocks have reduced by 7% due to the online shopping (Gottliebsen, 2013). Besides that, Myers plans to invest more in the shop floor staff so as to increase the rates of customers’ satisfaction. Evidently, staff investment signifies an important change in the way the management thinks, since thus far the way to increase profits has been through cost cutting. Another strategic goal is to source directly the company’s goods from producers in Hong Kong and China instead of utilizing agents. In consequence, transportation of goods will be faster; thus offering the company the ability to effectively compete with online competitors’ prices. Another strategic goal is shifting to contemporary retailing that focuses in bases of customers, in that, marketing will concentrate much on promotions, which are tailored towards latest purchase pattern of the customers. Myers will be among the few retailing companies such as Coles and Woolworths in Australia that have espoused this new approach. For Myer it will be less advertising and more concentration on customers. Strategic Plan Myers present strategic plan is anchored on numerous strategic priorities such as extending leadership in Australian retailing industry, implementing enablers for a new growth era, maintaining its reputation for incorporating technology for business growth, and acting on its portfolio so as to maximize shareholder value. Currently, Myers should make some changes in the product it sells considering that retailing never stagnate. Currently, Myers is undergoing significant change as its customers continue seeking greater value and spoilt with choices due to existence of other retailing companies such as Coles and Woolworths. Basically, the company should shift its focus to customers, by allowing them to drive the business and so their shopping behavior as well as decisions will change the manner in which Myers operate. Myers should act in response to this new era by instituting measure for a new level of opportunity as well as growth. Presently, customers can shop anywhere and anytime thanks to the integration of mobile technology into the company processes, which consequently, is swiftly altering how customers see the world and offers them access to prices as well as products from different Myers’ stores. The company should know that customers desire to move effortlessly and seamlessly between virtual and physical stores so as to shop the way they desire. To complement its stores, Myers should endeavor to use virtual stores, mobile apps, websites, as well as new delivery options in order to become a multi-option business. As mentioned by Heskett (2010), strategic plan offers a framework for flawless communication and roadmap for success, and is crucial in deciding what the company should do so as to become successful. Most outstandingly, strategic plan offers implementation direction of tactical and operational planning. Myers should become a customer-centric business by knowing its customers and what they desire, so as to offer quality products. Akin to its competitor Woolworths, Myers should become a brand-driven business so as to make certain its brands as well as values are well comprehended by all its customers (Dunn & Davis, 2004, p.243). Besides that, Myers should develop customers’ relation that is strong and profitable through loyalty programme that enables customers save money. Tactical Actions Set customer expectations: this is the first step in developing an improved customer relationship. Basically, setting expectations early can assist Myers reduce uncertainty and improve the satisfaction levels of the customers. Such a clear vision will enable Myers to build Key Performance Indicator (KPIs) around certain expectations as well as in making sure the company is delivering continuously. Recognize and reward: This relates to the utilization of the loyalty program that is currently ubiquitous.  Obviously, a company can spend lots of money and be unsuccessful in rewarding its customer’s loyalty. In this case, Myers must make certain that its loyalty program is providing a net value improvement to the customer. Enhance customer experience: Normally, customers shift to the competitors due to their experience with the company (Porter & Heppelmann, 2014). In this regard, Myers should unceasingly improve its customer experience, which is the main driver of lasting customer loyalty, and it begins with implementing a system that continually collects customers; feedback. Stop advertising to low-value customers: Myers should make certain it is not marketing to customers who are not willing or ready to purchase the company’s products and services. Rather the company should move its customers to cheaper channels so as to add significant value to the business. Build trust by means of relationships: Undoubtedly, trust is vital in business, therefore, Myers should build trust with its customers through shared values. Conclusion In conclusion, it has been argued that a strategic plan is crucial since its assists in building competitive advantage, prioritising the financial needs of the company, communicating strategy to both employees and customers, and offering direction and focus so as to move from plan to action. Basically, as indicated in the report, envisaging goals and afterwards defining strategies that the company will embrace so as to realise its goals and objectives is the core principle of strategic planning. Myers SWOT Analysis Strengths Weaknesses 1. Strong financial performance 2. Use of mobile technology 3. Wide range of products 4. Trusted brand name and reputation 5. Better relationship with customers and suppliers 1. Limited geographical market share 2. High employee turnover 3. Research and development Opportunities Threats 1. Increase in emerging markets 2. Expanding online retailing 3. Increase in online shopping 4. Globalization 1. Increasing competition from online competitors 2. Volatility in commodity prices 3. Cost inflation Porter Five Forces Analysis Bargaining power of suppliers Currently, Myers relies heavily on the suppliers; thus, indicating a strong bargaining power of suppliers. This has been attributed to its considerable market share in Australian retailing industry. Bargaining power of customers Most of Myers customers are individual buyers having strong bargaining power, and this has occasionally forced the company to reduce the price as the purchasing attribution at the store. The key strategic of Myers is to meet the needs of the customers and delivering products that are reasonably priced. Threat of new retailers New entrants’ threat is not considerably taken into account due to reasons such as the company has numerous stores across Australia that offer excellent quality similar to that of its competitors such as Coles. Besides that, Myers is a dominant player and has numerous accesses to channels of distribution and reliable brands. So, new entrants can experience high completion and risk losing their investment. Threat of substitute products and services The threat of substitute products and services is exceedingly high, given that supermarkets such as Woolworths and Cole offer similar products and services that Myers offers. Essentially, substitute products are provided by all Australian major supermarkets, therefore, Myers needs competitive and innovative strategies so as to attract new and retain old customers as well as build its brand reputation. So, the threat of substitute’s products and services is exceedingly high for Myers. Rivalry among competitors The existence of several strong competitors such as Coles and Woolworths in Australia retail industry can limit Myers market share as well as result in high concentration level. The strength of abovementioned competitors is compelling Myers to unceasingly generate effective and competitive strategies so as to be unique. References Bryson, J.M., 2011. Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement. New York: John Wiley & Sons. Dunn, M. & Davis, S., 2004. Creating the brand‐driven business: it’s the CEO who must lead the way. Handbook of Business Strategy, vol. 5, no. 1, pp.243 - 248. Gottliebsen, R., 2013. New Myer strategies revolutionise retailing. [Online] Available at: HYPERLINK "http://www.theaustralian.com.au/business/business-spectator/new-myer-strategies-revolutionise-retailing/story-fng7vg0p-1226600131239" http://www.theaustralian.com.au/business/business-spectator/new-myer-strategies-revolutionise-retailing/story-fng7vg0p-1226600131239 [Accessed 26 April 2015]. Heskett, J., 2010. ow Do You Weigh Strategy, Execution, and Culture in an Organization’s Success? [Online] Available at: HYPERLINK "http://hbswk.hbs.edu/item/6433.html" http://hbswk.hbs.edu/item/6433.html [Accessed 26 April 2015]. Myer, 2015. Company Profile. [Online] Available at: HYPERLINK "http://investor.myer.com.au/Investor-Centre/" http://investor.myer.com.au/Investor-Centre/ [Accessed 26 April 2015]. Porter, M.E. & Heppelmann, J.E., 2014. How Smart, Connected Products Are Transforming Competition. [Online] Available at: HYPERLINK "https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition" https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition [Accessed 26 April 2015]. Read More