Introduction
Tiffany Company is a renowned corporation that started its operations in the year 1837. The company’s core mission is to provide quality rings and luxury brand items that are associated with romance, quality and style. Since its inception, the company has recorded a remarkable growth financially and structurally. The growth in performance is attributable to its effective operating plans, strategic control measures, innovation and creativity.
However, the witnessed economic recession and diminishing prioritization of jewelry items by customers is threatening to impede the company’s performance. As such, the company has identified key strategic issues that it seeks to pursue with an aim of countering the effects of the diminishing factors. The strategic issues are set to facilitate its growth both in the established and emerging markets.
Firstly, the company strategizes on expanding its market by venturing into new market such as India. This is to stop over saturating US markets. The company also strategizes on how to mitigate the possible risks that the economic complications may present.
The objectives
- To identify potential change management strategies that would enhance successful implementation of contingency plans
- To identifies key success factors for implementation and functional tactics
- To provide credible information relating to budget, action items and forecasted financials
- To provide reliable information pertaining to risk management plan and key success factors in the implementation process
Functional tactics for change management
Functional tactics are operating guidelines and production systems that aid performance in institutions. They are also strategic measures and plan of activities that facilitate execution of duties (Barney, 2007). Imperatively, Tiffany Corporation should adopt new tactical approaches to production, sales, marketing, and distribution of products.
The tactics that include the adoption of lean administration concept and proper market segmentation will to steer the realization of its contingency plans. This is because they are instrumental in ensuring effective management of resources, designing of products and development of new business units.
Action items, milestones and a deadline
As noted, the company has an obligation to implement key action items that hold the capacity of sustaining its performance capacity. The action items would ensure that the company is operated under conventional management techniques (Barney, 2007). They will also facilitate the implementation of the strategic plans.
The items include, integration of democratic management system, designing of quality and affordable products and proper market segmentation. Other action items include improvement of brand recognition, infrastructure, distribution network and favorable pricing. Consequently, the company has made tremendous milestones in the management of its expansion and contingency plans since its inception.
Its major plans and strategic missions are being executed within specified timelines (Pearce & Robinson, 2011). This shows that the current tasks will receive appropriate Implementation. That is the strategic plans will be executed within the set timelines and the company’s capacity in terms of resources.
Tasks and task ownership
The management of Tiffany Company must design key tasks and operating guidelines promptly to facilitate the implementing of the strategic controls and contingency plans (Mintzberg, Ghoshal, Lampel & Quinn, 2003). This is essential in ensuring elimination of wastages that will enable the company to maximize on its resources. The main tasks that are vital in ensuring complete actualization of the strategic plans include.
Resource allocation
Managers in any institution must adopt effective techniques of resource management and allocation. This is vital since resources such as money and infrastructure are key drivers of any strategic plan. Therefore, managers in Tiffany Corporation are under obligation to develop a viable work plan and a budget on how the expansion process including other strategic plans will be executed (Pearce & Robinson, 2011). The work plan should be arranged in order of priority to ensure that essential tasks or activities receive adequate funding.
Change management strategies that would enhance successful implementation
Indeed, Tiffani Corporation must adopt conventional techniques of change management (Pearce & Robinson, 2011). This is crucial in facilitating holistic implementation of its strategic and contingency plans. Particularly, the company should advance its technological set ups, execute online sales, marketing, embrace innovation and develop favorable guidelines to aid resource allocation.
Development of effective communication systems, acquisition of quality raw materials, research and development of effective pricing strategies are also essential elements that facilitate change management. These elements hold the capacity of ensuring that Tiffany Company that has a strategic plan of expanding its network and eradication of pricing risks achieve its targets.
Key success factors for implementation
Success factors for implementation are essential elements that aid execution of tasks. They ensure that key activities within the implementation process are executed with limited complications. Barney (2007) noted that, key successful factors that managers should adopt include effective performance of feasibility study on the tasks, favorable allocation of resources and designing of activities in the order of priority.
Innovation, acquisition of quality raw materials, development of strong brands and effective marketing also form key success factors. The factors would enable Tiffany Company to effectively implement its strategic plans and achieve best results in turn.
Budget and forecasted financials, including a break-even chart
Tiffany company’s budget that covers cost of implementing its strategic plans and projected return on investment is provided below. As noted, the cost of implementation of the plans is lower than the projected revenue by $ 600,000. This shows that the company would break even effectively.
Break even figure = 2310/1710= 1.35%
Risk management plan, including contingency plans for identified risks
Superior risk management is one of the main strategic plans that Tiffany Company seeks to implement. This is because the company is facing severe risks that are caused by hostile environmental conditions (Mintzberg et al, 2003). The risks that seek to impede its profitability, expansion plans include diminishing of raw materials that threatens to affect the quality of its products, and price variations that seek to dampen customer loyalty.
These risk factors have forced the company’s top management to embark on high-powered deliberations. The deliberations are to institute proper contingency plans to counter the risks as they occur. These contingency measures include identification of new sources of raw materials, alternative materials, and adoption of low switching costs for consumers.
Other contingency measures include introduction of new brands, saving money in a reserve account and continuous innovation. These plans would help in cushioning the company from recording dismal performance in both worst-case and best-case scenarios if implemented appropriately.
References
Barney, J. B. (2007). Gaining and Sustaining Competitive Advantage. Upper Saddle River, NJ: Pearson: Prentice Hall.
Mintzberg, H., Ghoshal, S., Lampel, J., & Quinn, J. B. (2003). The Strategy Process: Concepts, Contexts, Cases. Upper Saddle River, NJ: Prentice Hall.
Pearce, J. A., II, & Robinson, R. B. (2011). Strategic Management: Formulation, Implementation, and Control. Boston, MA: McGraw-Hill/Irwin.