Introduction (Mission Statement)
The company Able Corporation is considered to be an old American manufacturer of electric power tools; it specializes in professional quality of its goods and service making a significant part in industrial and consumer channels. Able Corporation has a high reputation on the market, though recently it has not got any investment for further development and widening. As a result, the company product lines appeared to be outdated and stale; the operations are costly and inefficient leading to significant losses in the business process running.
Business strategies development for market operations of Able Corporation is to become an important step for high competitiveness financial health of the company; the principle mission lies in the outline of strategic tools and direction leading Able Corporation to successful business operating environment.
The basic objective of a business plan is aimed at a clear understanding of current problems faced by the company in order to make sufficient steps and strategies turning the weaknesses into the strengths.
Key Elements of Market Analysis
The basic elements in market analysis for Able Corporation are considered to be the following:
Market Growth Rate – the company is to identify the size of the market and its growth rate on the basis of target customers’ identification. People interested in electric power tools are to demonstrate the determination of the market growth rate through the development of a selling strategy plan and buying decision.
Profitability – this aspect is to be reached through determination of minimal market area of operating activities. Able Corporation is to aim its strategies at calculation the balance between supply and demand taking into account the rate of competitiveness; it is necessary to consider the threats of entry barriers and substitute products.
Industry Cost Structure – the determination of business success increase depends on the analysis of industry cost structure. This aspect in the business plan will help to stress the opportunities for competitive advantage development and analyze the central stages of manufacturing, such as, processing, fabrication, assembly, marketing (Coulter, 2007).
Distribution Channels – Able Corporation is to identify the peculiarities of distribution system through channels analysis. This aspect will be helpful in identification of possible additional channels for distribution with direct access to the customers. Besides, it will influence the improvement of the competitive advantage of the company.
Market trends – Able Corporation is to focus on the principle market changes in order to be aware of all the threats and opportunities to be face in future. The analysis of the trends will give an opportunity to investigate the customers, its competitors and the functioning of the industry in general. This aspect will be helpful in the determination of basic needs of the target customers and identify the competitors’ basic strategies.
Key Success Factors – Able Corporation is to focus on reinvestment of resources, being the part of a long term marketing strategy. The basic aspect in business plan development is concentrated on the reputation maintenance which can lead to profits increase and high service promotion. It is necessary to underline the fact that long term strategy development will became a significant step in company’s financial health (Coulter, 2007).
SWOT Analysis
Strengths. One of the most important elements in a company’s functioning is its direct connection to industrial and consumer channels. It should be noted that able Corporation has a curricular saws market share of dominant 40%. Besides, the company gained the reputation of cordless innovator through having success in the segment of cordless business. An important strength in the company development is considered to be strong brand equity and consumers’ and professionals’ loyalty. Able Corporation is a significant manufacturer because of the high service quality and fixed reputation on the market.
Weaknesses. It is necessary to underline the fact that the number of weaknesses is greater than that of strength. Marketing is one of them; the company has weak position on the market despite its reputation. The problem is caused by insufficient market operations investigation. This aspect appeared to be a link to the problem of low sales rate of the company; the identification of marketing importance in business sphere allows understand the principle drawbacks in Able Corporation operations. One should underline the fact that the company makes little investments in the development of its managements; as a result, it lowers the productiveness of organization and decreased quality of performed service.
One more weakness of Able Corporation is connected with unionized placement of manufacturing plans causing costly and inefficient operations; it should be stressed that the company’s plants never perform to full potential. This factor as well as down equipment are the principle reasons for low productiveness and profitability of the company. Besides, the company has outdated product lines leading to low competitiveness and operating losses. Able Corporation has experienced lowering in its service quality, productiveness, as well as job performance by its employees.
Opportunities. Cordless power tools require construction workers; it is important for the company to meet the deadline in projects development, otherwise the company can suffer magnificent costs losses. Currently, Cordless segment reached 10% in its growth rate, though it is to be raised due to battery technology improvement. This aspect is closely connected with the opportunity of consumer channel growth increase.
Threats. The principal threat of company’s development is related to industrial channels by 5% annually. The problem is caused by cheap and inefficient quality tools introduction. It is necessary to underline the fact that future unsuccessful company’s functioning can lead to business destruction in Able Corporation; the threat of low quality measuring is the background for no competitiveness and low consumers’ rate. (Coulter, 2007)
Business strategies and Operating Principles
Corporate strategy. Able Corporation is on the way of losing market share, so, its basic strategy is to be directed at the improvement of marketing. The company is to provide high investment to the marketing department which is to be the first step to prosperity.
Success Metrics. The issue of success metrics is connected with compete control over inventory management, head count and inventory turnover. It is necessary to stress that the strategy will cover people’s reallocation, additional resources involvement and metrics flexibility.
Metrics Resolution. It is necessary to underline the fact that Able Corporation desired outcome is closely connected with metrics flexibility. It can be explained by company being forced for changes moderation within provided guidelines in case of non flexibility introduction.
Business strategy. This strategy is developed on the principles of the company’s micro interests. It is aimed at insurance of effectiveness of the organization functioning. Able Corporation is to follow this step in accordance with the following steps:
- Management Department investing;
- Human Resource Management Development;
- Business Trainings within company’s activities to increase the quality of the staff work;
- The improvement of competitive position of the organization;
- The growth opportunities are to be based on services and products development in order to exceed the expectations of the clients.
This strategic step is to take into account all the analyzed weaknesses of Able Corporation in order to see a clear picture of required changes and improvements.
Functional Strategy. The step is connected with support of Able Corporation service and product development. It is necessary to underline the fact that research center of the company is to develop the investigation of marketing and thorough study of its competitors. The company is to be customized for the purpose of strategy adoption within business team. Competitive advantages of the company completely depend on the introduction of this functional strategy. (Forsyth, 2002).
Operating Principles. Able Corporation functions in accordance with the following operating principles to be further developed in future:
- The outsource of specialized service allowing to obtain professionals and expertise within the industry;
- The raise of competitive level by means of building trust, risk sharing with the clients, practicing good judgment and communicating the vision to the customers;
- Provide the customers with responsiveness, predictability, business advocate, cost effective services, stable price programs and value for money. (US Housing Market Conditions. (2006)
Objectives of the Company
1 year. The period is to be aimed at the development of efficient business plan evaluating all weaknesses and possible consequences. Besides, objectives should be presented in the form of thorough market research a well as competitive level investigation.
5 year. A five years program is to be connected with the following long term strategies aimed at marketing improvement. The increase of market share will cause vivid positive changes in company’s position and reputation; it will influence the productiveness of the company.
10 year. Able Organization is on its way to stabilization and fixed operating, business and functional goals. It is necessary to underline the fact that this period will give an opportunity to widen the innovatory sector of the company and get the support on the part of new investing partners. (Butler, 2000)
Conclusion
The development of a business plan for able Corporation gave an opportunity to balance the chances for the company’s business prosperity. It is necessary to underline the fact that one of the most significant problems faced by the company is connected with market sharing and competitiveness; so, the strategies based on the developed; objectives, are to be formed in accordance with the possibility of their solving taking into account time and investment factors.
References
- US Housing Market Conditions. (2006). Business and Finance. Web.
- Coulter, M. (2007). Strategic Management in Action. Upper Saddle River, NJ: Pearson Prentice Hall.
- Forsyth, P. (2002). Business Planning. Capstone. 128 pp.
- Butler, D. (2000). Business Planning: a Guide to Business Start-up. Butterworth-Heinemann.