Key Elements of the Strategic Plan - Coursework Example

Business Plan Students Name: Course Name: Course Number: Instructor’s Name: Date Submitted: Table of Contents Table of Contents 2 6.0 Strategic Plan 3 6.1 Marketing Plan 3 6.1.1 Product 3 6.1.2 Price 5 6.1.3 Promotion 6 6.1.4 Market Penetration 7 6.1.5 Market Development 7 6.2 Operations Plan 8 6.2.1 Production 8 6.2.2 Sourcing of Manufactured Parts 9 6.2.3 Service Delivery 10 6.2.4 Customer Management System 10 6.3 Organizational Plan 12 6.3.1 Research and Development 13 6.3.2 Intellectual Property Management 13 6.3.3 Development Manager 14 6.3.4 Company Structure 14 6.0 Strategic Plan The aim of the strategic plan is to ensure that the company is able to penetrate into the supercharger market, manufacture the corkscrew supercharger in the lowest costs possible maintaining high degrees of quality satisfy the needs of the customers and ultimately grow into a reputable corkscrew supercharger manufacturer. Generally, the aim of the strategic plan s to ensure that the company is sustainable, enabling it to compete effectively now and n the future. The following sections will discuss the key elements of the strategic plan. 6.1 Marketing Plan The marketing plan aims at ensuring that the company is able to venture into the market, sell a substantial amount of products to break even, retain customers and also reach out to more consumers in order to expand the market (Pulendran, Speed & Winding 2003, p.478) Basically, the marketing plan will contribute greatly to the success of the company since it will ensure that it’s able to sell its corkscrew supercharger kits, from which it will be able to make profits. Following are the key elements of the marketing plan. 6.1.1 Product The product which the company wishes to produce is the corkscrew supercharger. The aim of the supercharger is to do the following: (a) Increase the torque of an engine, hence enabling vehicle to navigate through steep gradients with more ease. (b) Increase the horsepower of an engine The corkscrew super charger will be able to do this by increasing the amount of air/ oxygen which enters the combustion chamber, hence allowing the engine to combust a larger amount of fuel. On this account, it is important to note that the power of an engine can be increased in two basic ways: one of them is by increasing the amount of fuel which undergoes oxidation in the combustion chamber and the second method is by increasing the amount of oxygen in the combustion chamber, hence ensuring that there is complete combustion. A larger amount of fuel in the cylinder translates to a higher explosion, which in turn translates to more engine power. However, pumping more fuel into the combustion chamber will not translate to more energy since there will be an incomplete combustion. The underlying factor is that a proper fuel top oxygen ratio must be maintained (1unit of fuel to 14 units of oxygen). This means that there will be a need to pump in more oxygen into the combustion chamber so that the ratio can be maintained in the addition of more fuel. The corkscrew supercharger kit will do this important task of ensuring that the engine is supplied with more, compressed oxygen hence translating to more horsepower in the engine. The corkscrew supercharger will compress the air without creating a vacuum, a process which will ensure that the compression of air/ pumping of additional air does not affect the reciprocating motion of the pistons, but instead influence the combustion of the fuel. The corkscrew supercharger kit will be designed and manufactures according to the following key aspects which will in turn give the product a greater bargaining power in the market. 1. Design for manufacture - the design of the corkscrew supercharger kit will be done with all the key aspects of manufacture in mind (Jon 2004, p.2). The aim of this aspect is to ensure that the corkscrew supercharger kit would be made in the most economical manufacturing methods without compromising on the quality of the products. In addition to this, a design for manufacture approach will enable the company to make use of the most efficient manufacturing methods possible. 2. Design for assembly – while designing the corkscrew supercharger kit for manufacture, key focus will be made to designing a product which can be easily assembled (Jon 2004, p.2). On this aspect, it can be acknowledged that a products which has been designed for assembly is much easier to maintain as compared to a product which is not. Design for assembly reduces the downtime required to fit and maintain a corkscrew supercharger kit, which is a very important element if the corkscrew supercharger kit will be used in a racing car whereby a millisecond loss during maintenance/ changes could mark a loss in race. 3. High Quality – for the corkscrew supercharger kit to have a high quality, it should be able to provide utility to the customers (Reid 2007, p.193). Utility will be achieved if the highest amount of engine power is achieved. Other marks of high quality associated with corkscrew supercharger kit are reliability, efficiency, reduced decibels of noise as compared to other screw superchargers, longer life cycle and precision. 4. Warranty – the corkscrew supercharger kit has a 3 year or 30,000 running time warranty, whichever comes first provided that the operating conditions are not changed. 5. After sale service – installation of the corkscrew supercharger kit will be made at the point of sale or the nearest corkscrew supercharger kit customer care center. 6.1.2 Price The bottom up and top down pricing strategy will be used to identify the best price for the corkscrew supercharger kit. The bottom up approach ensures that the product’s quality is not compromised with while the top down approach ensures that the price of the corkscrew supercharger kit takes into consideration the current prices of other superchargers kits, including its greatest competitors the centrifugal and turbo superchargers. The manufacturing cost per unit is $250. The recommended retail-selling price is $ 480. Over time, improvements in the manufacturing processes and strategies would see the price reduced much further. The aim of the pricing category in the marketing plan is to ensure that the corkscrew supercharger kit gives customers the highest value for money in the market in addition to providing customers with the most competitive prices in the market. 6.1.3 Promotion The promotion programs that will be rolled out by the company will be aimed at ensuring that the corkscrew supercharger kit sells in the market. Owing to the fact that the product is being manufactures by a new company in the market, the product promotion strategies will be rigorous enough so as to bring about brand recognition in the market. The product promotion techniques which will be used include the following: 6.1.3.1 Advertising The company will roll out rigorous advertising campaigns in the mass media. There advertisements will be targeted to the general public. These will be included in the local radio and television channels. The company will also make use of personalized/ purposeful advertising. This will be targeted to individual customers (whom the company knows are interested in superchargers). 6.1.3.2 Personalized Selling Personalized selling will be targeted at individual customers. The contact data of the various customers will be gotten from various platforms for instance motor shows, the internet, corkscrew supercharger kit customer care centers and customer referral programs which will be initiated by the company. 6.1.3.3 The internet The company will maintain a strong web presence by the use of the company’s website and an active involvement in the social media. The company will maintain use its social media pages to interact and reach out to the market. The website will be used to disseminate detailed information to the market in addition to being used for ecommerce purposes. 6.1.3.4 Distribution The distribution network of the corkscrew supercharger kit will comprise of the company’s warehouse, wholesalers and retailers. In order to ensure that the market demands are fully met, appropriate supply strategies will be put in place which include lean supply systems and the broader Just in Time manufacturing policy 6.1.4 Market Penetration The company will blend differentiation and focus strategies in order to come up with the most appropriate competitive strategy which will enable it to compete effectively in the market. 6.1.5 Market Development In order to build a strong brand in the market, the company will make use of appropriate market development and brand positioning tools (Cooper, L., 2000). This will ultimately enable the company to attract and retain customers. 6.2 Operations Plan An operations plan gives detailed information about the production process. In order to ensure that the manufacture of corkscrew supercharger kit is done according the most appropriate manufacturing standards, the following aspects will be given substantial focus. 6.2.1 Production The production process is one of the most important processes n the manufacture of the corkscrew supercharger kit since it is the process which ensures that the final product of the company is achieved. The company will have to weigh the options of manufacturing all the components of the corkscrew supercharger kit in the company or outsourcing the production of some of the components to other companies which have the ability to manufacture them at a lower cost without compromising on the product quality. One of the most important elements that must be given a lot of focus in the production of the corkscrew supercharger kit is the precision. The corkscrew needs to be manufactured considering the highest degrees of precision so as to ensure that the pitch and the tapering of the groove are done according to the recommended specification so as to achieve the desired compression ratio. In addition to this, the company should adopt the use of a product factory layout. A product layout calls for the systematic arrangement of equipment and machinery according to the chronological order in which the product is being manufactured/ processed. A product layout will ensure that the company achieves its full production potential, increased efficiency and the upholding of the product quality. The product layout will also ensure that there is a substantial reduction in the work in progress, lower the unit cost of manufacture, allow for easier supervision and lower the costs associated with material handling. The company will also use lean manufacturing and Just in Time (JIT) manufacturing practices in the production of the corkscrew supercharger kit. Lean manufacturing will ensure that the company makes maximum use of all the resources which are available to it in order to reap maximum benefits (Sanchez & Perez 2001, p.1434). Just in Time policy will ensure that the company has a market driven approach in its manufacturing; an approach which enable it to eliminate the processes which do not add value to the final product for instance warehousing. A just in time policy will ensure that the company is able to make maximum use of the resources available to it. Key to the production process is the process design. The corkscrew supercharger kit manufacturing process will be maintained in the rigid product layout. One of the important elements to consider in the production process will be the ergonomic design of processes. This will ensure that the process will be done in the simplest method possible which maintains the comfort of the employees at an allowable degree and also ensuring that the corkscrew supercharger kit is produced according to the precision degrees desired. The material handling equipment and processes such as forklifts, monorails, conveyor and pneumatic drives will also ensure that the flow in the production floor is smooth; hence increasing the efficiency of the plant. 6.2.2 Sourcing of Manufactured Parts As indicated earlier, components of the corkscrew supercharger kit which cannot be manufactured in the company or which can be manufactured by other companies at a lower cost will be outsourced. The underlying factor in outsourcing is that key processes should not be outsourced since this would put the company at a high operational risk. In addition to this, the company will ensure that the quality of the finished product will not be compromised by outsourcing. This is in accordance with the high manufacturing precision degrees desired in the manufacture of the various components of the corkscrew supercharger kit. On this note, the company will identify appropriate companies which can be able to supply it with specific components which are required in the production of the corkscrew supercharger kit. The most important factors which will be considered in the identification of the company to outsource services to are; the economic cost of production and the quality of the products manufactured. The company will then source for a good supply of raw materials which includes cast iron, hardened steel and fasteners amongst others. The design for manufacture and design for assembly approaches that were identified previously will come in handy in enabling the company fabricate/ assemble a high quality corkscrew supercharger kit. 6.2.3 Service Delivery Customer service delivery will be made via physical, telephone and internet forums. The company will set up customer care service centers around its major markets. The centers will be used to give technical support and information about corkscrew supercharger kit to the customers. The internet forums will comprise of social media platforms which will be used to give support to the clients in addition to interaction with the market. The website will be used to give detailed information and e commerce services to the users. 6.2.4 Customer Management System The company is dedicated towards providing the customers with the best customer service in the industry. The company is a strong believer in fulfilling the needs of the customers. This enables it to retain its customers and also attract new customers. In addition to this, the company desires to give customers value for their money; a move which will lead to the creation of experiences in the customers. The company seeks to deviate from the commercialized approach that has been taken by supercharger manufactures and instead focus on a strategy which makes clients feel part of the company and also own the corkscrew supercharger kit. The company will make use of the following customer management system. At the sale inquiry stage, customer care representatives will receive the customers to the company. Their sale inquiries will be documented and processed. The sale will then be monitored to ensure that the customer gets the exact product which he/she ordered at the monitoring of sale stage. The close of sale stage will mark the end of the sale which will be marked by the printing of invoices and the sale confirmation documents. If the customer needs a customized product, it will be manufactured at the ‘manufacture of product’ stage. If the order is normal, the requested product will be fetched from the store/ warehouse. This will be followed by product delivery. Customer service that includes follow-up, installation and other after sale services will follow suit. 6.3 Organizational Plan An organization plan indicates how an organization will coordinate it activities in an aim of achieving its objectives. An organizational plan comprises of all elements which are geared towards ensuring that a company is able to compete effectively in the market now and in the future. Specifically put, an organizational plan is meant to ensure that an organization is able to stabilize in the market. In the context of the corkscrew supercharger kit manufacturing company which is a new company which aims at venturing in the market, it is important that the organization integrates in practices which will enable it to be simple enough so as to reach out to individual customers and sophisticated enough so as to maintain a robust look in the market. Following are some key elements which will be part of the organizational plan. 6.3.1 Research and Development In order to ensure that that the company will be able to deliver high quality products in the market, it is important that it embark on an exhaustive research and development process which ensures that the company will be able to continuously develop its products in line with the technological changes in the market. The research and development process should be aimed ensuring that the company is able to take care of the emerging trends in the market, a move which will be geared towards sustainability. This will ensure that the company will be able to compete effectively in the market with other alternative products such as centrifugal supercharger which are currently providing stiff competition to other types of superchargers. 6.3.2 Intellectual Property Management Intellectual property management will ensure that the company will be able to benefit from the intellectual knowledge and designs which it has developed from in its research and development processes (Smensky & Osterberg 2007, p.225). Intellectual property management will ensure that the company has full rights over its corkscrew supercharger kit designs. In order to manufacture the product, the company needs to come up with a unique product which does not have aspects of products which currently exist in the market. If the company does not have the capacity to develop a new design, it should purchase rights to manufacture a corkscrew supercharger kit which has already acquired intellectual property rights. The design of the product which the company develops must meet all the requirements. 6.3.2.1 Technical Development In the wake of the development of such polices such as the ‘develop your own technology’ polices which are currently being implemented in the technology manufacturing industry, it is important that the company has a robust technical development department. The technical development process should aim at coming up with new designs of the corkscrew supercharger kits which will bring about product proliferation which in turn enables the company to satisfy the individual needs of specific customers. Technical developments should be matched with an effective intellectual property management program. 6.3.3 Development Manager In order to ensure that the company is able to make advancements in the supercharger manufacturing industry and also the competitive automobile industry, the company needs to appoint/ employ a development manager who will oversee all the developmental issues of the company. The development manager should have vast knowledge in manufacturing engineering, management and the automobile industry. This will ensure that the company undergoes through strategic development; one which will ensure that the company does not fall in its processes due to unplanned development. The development manager is involved in managing the developmental strategy of the company (Altinay & Roper 2001, p. 340) 6.3.4 Company Structure The company structure enables the leadership to manage the organization’s resources effectively. This will also ensure that the flow of information and command in the company is smooth, which brings about harmony and coordination (White 2005, p. 195). The following figure shows the desired organizational structure. References Altinay, L., & Roper, A., 2001. The Role and Importance of Development Directors in Initiating and implementing Developmental Strategy, International Journal of Contemporary Hospitality Management, Vol. 13, no. 7, pp. 339- 346 Cooper, L., 2000. Strategic Marketing Planning for Radically New Products, The Journal of Marketing, Vol. 64, No. 1, pp. 1-16 Jon, R., 2004.Product Design for Manufacture and Assembly 2/e", Assembly Automation, Vol. 24 Iss: 2, pp. 1-12 Pulendran, S., Speed, R., & Winding, R., 2003. Marketing Planning, Market Orientation And Business Performance, European Journal of Marketing, Vol. 37, No. ¾, pp. 476-497 Reid, D., 2007. Evaluation of the Marketing Mix – Its Application to Strategic Marketing, European Journal of Marketing, Vol. 14, no. 4, pp. 192 - 206 Sanchez, A., & Perez M., 2001.Lean Indicators and Manufacturing Strategies, International Journal of Operations & Production Management, Vol. 21, no. 11, pp. 1433 – 1451 Smensky, M., & Osterberg, E., 2007. The Management of Intellectual Property Risks, Handbook of Business Strategy, pp. 225- 239 White, R., 2005. Co-Ordination And Delegation: The Core Development Competencies To Create A Competitive Edge (Part 2), Industrial and Commercial Training, Vol. 37, no. 4, pp. 193 -198 \ Read More