week five assignment final strategic plan paper patricia bernard
Post on 07-Apr-2015
84 Views
Preview:
TRANSCRIPT
Final Strategic Plan 1
Final Strategic Plan
CERTIFICATE OF ORIGINALITY: I certify that the attached paper, which was produced for the class identified
above, is my original work and has not previously been submitted by me or by anyone else for any class. I further
declare that I have cited all sources from which I used language, ideas and information, whether quoted verbatim or
paraphrased, and that any and all assistance of any kind, which I received while producing this paper, has been
acknowledged in the References section. This paper includes no trademarked material, logos, or images from the
Internet, which I do not have written permission to include. I further agree that my name typed on the line below is
intended to have, and shall have the same validity as my handwritten signature.
Student's signature (name typed here is equivalent to a signature): ____Patricia Bernard______________________
Final Strategic Plan 2
Final Strategic Plan
Organizations in today’s competitive business world must include a strong and effective
strategic plan. Southern Cab Service must implement such a plan that will carry the business to
new heights. This strategic plan must include a mission and vision statement that will describe
what the company stands for. By using a helpful tool such as the SWOTT analysis, Southern Cab
Services’ strengths, weaknesses, opportunities, threats, and trends will be identified. Another
successful tool that will be used will be the balance score sheet. This will be used to set
objectives, measures, and targets that can be used to help align the company’s mission and vision
statement. The final strategic plan for Southern Cab Service is now in place; next stop, success!
Southern Cab Service is a family owned cab company that was created in 2009 by James
and Patricia Bernard. The organization is located in Lafayette Louisiana, and will serve
customers in Lafayette Louisiana and surrounding areas. The company will employ 25 drivers
along with two dispatchers. Currently there are three competitive cab companies in the area who
have been operating for several years. Southern Cab Company vows to bring something to the
community that has never been offered by any of the competitors. The organization will offer
clean non-smoking vehicles, uniformed drivers, and the customer experience that will leave the
passenger wanting more of Southern Cab Service. Customers will feel like they are being
chauffeured to the destinations.
Southern Cab Service has an obligation to its customers and its employees. Providing an
ethical and fair work environment for all drivers is a goal that the organization wishes to always
achieve. By allowing employee and customer feedback, the company will have a chance to view
aspects of the company through the eyes of the employee and the customer, making changes and
improvements that will help the company grow.
Final Strategic Plan 3
Values
Ethics and values must play an important role in Southern Cab Service. The organization
is built on personal values such as integrity, team work, communication, performance, learning
and training. With the implementation of these values, Southern Cab Service will strive to be the
best.
Vision Statement
The vision statement is for Southern Cab Service to be Louisiana’s number one choice
for quality cab service.
Mission Statement
Southern Cab Service’s mission statement is to provide safe and quality service to all
customers in an effective and efficient manner while transporting customers to their desired
destinations.
Southern Cab Service vows to create a safe riding experience for all customers. The
company will reach this goal by making sure drivers have the proper training and are not
overworked. The company will monitor the demand of cab service annually to determine the
profit made by the company and determine whether or not to expand to a second location.
Customers and drivers will be able to feel safe knowing they are in good hands. The company’s
objective of quality service speaks in the company’s mission statement, allowing the
organization to maintain a suitable objective. The objective of offering quality service to all
customers is the law of Southern Cab Service.
Final Strategic Plan 4
Guiding Principles
Guiding principles are promises made by employees, customers, and society (Pearce &
Robinson, 2005). Southern Cab Service will adhere to these principles and operate and
demonstrate ethical behavior and responsibility. Southern Cab Service’s employees are a
necessity to the company’s success. Employees are encouraged to give feedback and suggestions
to help make the working environment better. Training and mentoring is also important for all
employees. Southern Cab Service is committed to providing employees with the necessary
knowledge and skills needed to perform these duties properly.
Southern Cab Service also understands the commitment to society, by providing a safe
environment for customers and drivers. Southern Cab Service will be committed to providing
employees with the necessary tools to encourage development. An ethical code of conduct will
be put in place for all employees to follow. Employees and customers will be encouraged to offer
feedback and suggestions. All cabs will be kept clean and properly maintained at all times. These
principles should be practiced daily and never should be compromised.
Southern Cab Service must provide a service to the customer that will offer the
customer’s best interest. Evaluating how successful the service will be in an existing market is
important. The company must create a successful business plan in order to compete with other
competitors in the market.
Competitive advantage is gained through organizations positioning itself through superior
values. If an organization positions itself on that superior quality of service, they look to achieve
that promise (Sekerka, Bagozzi & Charnigo, 2009). Southern Cab Service will position itself on
a high quality standard based on services that will be provided to the customers and the excellent
customer service that will be provided.
Final Strategic Plan 5
Southern Cab Services will offer state of the art GPS technology to monitor driver’s
locations and to act as a safety guard for both drivers and customers. All vehicles will be
equipped with a video monitoring system that will capture photos and recordings of all occupants
in all vehicles.
This technology will be an expensive investment in the initial phase, but as Southern Cab
Service begins to establish a reliable customer base, it is believed that customers will be satisfied
and will feel safer riding in a cab with a friendly driver, video monitored cab, and a company that
looks out for its customers like family.
Southern Cab Service believes customers need to feel safe when trusting another driver
with their safety. Drivers will be training in defensive driver, and will remain up to date on all
learning and training modules that the company will require. All drivers will have to maintain a
clean driving record and will have to take random drug and alcohol tests. Drivers will also have
the state of the art communication system inside every vehicle to stay in constant contact with
the dispatcher. Other cab companies in the area have these but with the incorporated GPS and
video system, Southern Cab Service will meet the company’s mission statement and will provide
excellent service to all customers who decide to ride with us.
Effective communication is also important to the success of an organization. Southern
Cab Service must effectively communicate the company’s vision and mission statement to
employees and customers. To do this, a communication plan was developed to create a visual of
how the strategic plan will be implemented.
Communication Plan Outline-Southern Cab Service
Final Strategic Plan 6
Value Audience Method Frequency Responsible Party
Vision& Mission
All customers in Lafayette, and surrounding areas in need of cab service
TV commercials, radio, billboards, flyers
Quarterly monitoring, President/Vice President. All employees will be encourage to uphold the company’s mission and vision statement
Training All employees of Southern Cab Service
Defensive Driving, modules, hands on activities
Quarterly monitoring/performance based, customer surveys
President/Vice President (managers)
Strategic Objectives
Employees, management staff
Morning meetings, safety meetings, email, memos,
Weekly. Every Monday Morning, objectives for the week will be visited. Then Monthly monitoring of the objectives will be revisited.
President/Vice President
External Forces and Trends Considerations
The external analysis of Southern Cab Service is executed with the consideration of
Final Strategic Plan 7
organizational forces such as social, economic, legal and regulatory, and global forces.
Identifying these forces, and understanding them in a business plan is important to the life of a
business (Rajeev & Vani, 2009).
Social Forces
Southern Cab Service like many other cab companies have contracts with social service
agencies to transport the elderly and disabled in non-emergency circumstances. Requirements
include for all drivers to receive training on operating wheelchair lifts and other devices that may
be appropriate. All drivers will be trained in appropriate customer service. Ongoing training will
be given to make sure all employees have a full and clear understanding of the importance of
customer satisfaction.
A SWOTT analysis of Southern Cab Service was also conducted to gain a solid view of
the businesses strengths, weaknesses, opportunities, threats, and trends. This analysis will help
identify some negative issues that the business may face.
Strength
Showing customers that Southern Cab Service can be trusted with their safety can make
the social interaction strong for the company.
Weakness
In case of an accident or malpractice, Southern Cab Service will lose the trust of society.
Losing the trust of customers can hurt the organization to the point of no return.
Opportunity
If Southern Cab Service follows all laws and regulations, it stands a good chance in
Final Strategic Plan 8
gaining customer support.
Threat
Because social norms are always changing, this doesn’t mean that society will change. If
some individuals do not want that friendly atmosphere in cab service, and would choose to stay
with the competitor this could have a negative impact on Southern Cab Service.
Trends
Social changes and norms provide new ideas for the company to advance to innovative
actions.
Adaptation to Change
Society can make or break a business. An organization has to be prepared to make
diversified decisions and strategies for the diverse culture of social groups to reach every social
level.
Economic Forces
Cab Service must pay a pre-tax to the government. The rate of the pre-tax will depend on
the growth of the business (Rajeev & Vani, 2009). Some economic considerations would be taxi
rates. An analysis would have to be made to determine when the busiest time for many cab
services would be.
Strength
Well developed countries like the United States has a good level of economy, despite the
recent recession. The United States is still better prepared than other countries if a country has a
good level of economy, this would cause less of a tax burden, which would improve the
profitability of Southern Cab Service.
Final Strategic Plan 9
Weakness
Economic falls such as a longer recession, would cause the business to fail.
Opportunity
Southern Cab Service has a chance to flourish. The economic status in the United States
shows the recession may be nearing its end which could be a huge opportunity for Southern Cab
Service to grow.
Threat
The recession may have caused customers to think twice about paying for a cab and may
chose to carpool, or take a cheaper route to their destinations.
Trends
Economic fluctuations have a regular pressure on the organization.
Adaptation to Change
To operate Southern Cab Service successfully, additional funds must be kept in case
business gets slow. A successful company must be able to still operate smoothly even though
economic hiccups may arise (Rajeev & Vani, 2009).
Legal & Regulatory
Any organization must adhere to laws and regulations set forth by the state and federal
government (Skok, 2000). Some regulations that Southern Cab Service will have to adhere to in
the state of Louisiana are requiring all drivers to obtain a Common Carrier Certificate. Louisiana
Law states that cab services would provide services 10 miles beyond their parish of domicile in
their vehicles and have a seating capacity of less than 10 passengers must obtain their certificate
(Skok, 2000). Southern Cab Service must meet all legal regulations according to the law of
Louisiana.
Final Strategic Plan 10
Strengths
Adhering to all legal and regulatory aspects would work in favor of the business. This
shows that the company is following all regulations required.
Weakness
Changes in regulations can make the business amend its own business policies.
Opportunity
By adhering to all legal regulations looks good to customers who may be considering
using Southern Cab Service.
Threat
If the company does not follow legal laws, the organization could be shut down, and gain
a negative reputation.
Trends
Legal rules are constantly changing. As regulations update, Southern Cab Service will
adhere to these updates and will create a growing trend for other competitors.
Adaptation to Change
Southern Cab Service should frame its services and policies according to the related legal
regulations, and make changes accordingly.
Global Forces
There are no plans for globalization at the moment. If Southern Cab Service were to go
global, extreme market research would need to be done to determine the demand of the cab
service.
Strengths
The demand for cab services has grown over the years. With unsteady gas prices,
Final Strategic Plan 11
consumers find it easier to pay for cab services.
Weakness
When operating at a global level competition will also increase.
Opportunity
The opportunities of global cab services will be an advantage for Southern Cab Service.
The cab companies in the Louisiana area are currently not global.
Threat
Running a cab service globally may be a challenge due to already existing markets in the
global arena.
Trends
With the increased level of globalization the growth chances will increase.
Adaptation for Change
Running a business at a global level will provide diversified services to customers.
Internal forces that would affect Southern Cab Service would not have an impounding impact as
external forces. Internal forces can be controlled by the company, while with external forces, the
company has no control.
Strategy
Business strategies are the fundamentals of an organization on which its business resides.
Business strategies can help make a business successful and can also destroy one (Skok, 2000).
Strength
Fully developed strategies can be a positive accomplishment for Southern Cab Service.
Final Strategic Plan 12
Weakness
The company would have to use a large amount of its capital share which could decrease
the company’s profitability.
Opportunity
Southern Cab Service can be the first cab company in Louisiana to offer innovative
services that no other cab service has to offer.
Threat
If the strategy does not work the company will have to change its strategy.
Trend
If the company would develop a new strategy this would help the organization attain a
competitive position.
Adaptation for Change
For a new and innovative business strategy, the company would have to hire skilled
professionals to do the job.
Processes and Systems
The business process and its systems are required to be handled in a proper manner for
the industrial success.
Strengths
Business processes can make Southern Cab Service’s business plan effective. The
company will work on a system that will allow customers to request a cab online for assurance of
a cab at a later time. The database will keep track of drivers’ logs, and vehicle information and
maintenance as well as customer information and destination, rates and regulations.
Weakness
Final Strategic Plan 13
If carelessness is shown in the business, this could create a negative reputation for the
business.
Opportunity
Effective business processes can create popularity for the company. Potential customers
will have an opportunity to explore what Southern Cab Service has to offer.
Threat
If Southern Cab Service wants to adopt a new business process. It would be wise to get
the customers consent. If customers do not accept the new strategies this could be a threat for the
organization.
Trends
The adoption of a new process could become a fruitful achievement for Southern Cab
Service.
Adaptation for Change
Southern Cab Service business process should be changed only if effective profitable
change can come about.
Culture
Southern Cab Service is based in Louisiana which is known for its Southern hospitality.
Southern Cab Service looks to express its culture to customers by offering them friendly and
hospitable service.
Strengths
Business culture can be an effective competitive advantage for Southern Cab Service.
Weakness
The absence of favorable culture could have a negative impact on the business, causing
Final Strategic Plan 14
customers to go elsewhere.
Opportunity
The encouraging business culture can allow Southern Cab Service to have an opportunity
for new and innovative ideas.
Threats
If cultural values are not found favorable among customers this could lead to a decreasing
customer base and decrease in profits for the company.
Trends
Proper management could lead to a successful business.
Adaptation for change
Southern Cab Service can take customer feedback and work toward ways to make the
business successful.
Issues and Opportunities
The main issue for Southern Cab Service is culture. Culture in society is constantly
changing. The business process must be molded in accordance to required cultural values.
Strategy formulation should be favorable to all stakeholders of the company.
SWOTT Analysis Table
Final Strategic Plan 15
Ø Strategy- Strong business plan already set in
placeØ Structures- Business knowledge and
experience from James Bernard and Patricia Bernard
Ø Goals- Long and short term goals are realistic and achievable
Ø Culture- Southern HospitalityØ Innovations- State of the art GPS, and video
monitoring systemsØ Intellectual Property- Patent brand nameØ Leadership- Skilled leadership skills from both
Patricia and James. Effective communication skills and management skills.
Ø Processes and Systems - New to the market and
the area.Ø Resources - the company will use all resources
such as the internet for some directions. If the internet is down, this may cause a problem
Ø Technologies- Because the company is just starting, and the company will have state of the art technology, it may be hard to maintain state of the art technology as technology is always changing.
Ø Strategic Capabilities- Our management skills must be effective and solid. This may become hard for 2 people. As the company grows, more people will have to be hired.
Opportunities Threats
Ø Legal and Regulatory- Licensed drivers,
Common Carrier Certificates are needed for any cab service who operates ten miles beyond their parish of domicile in their vehicles, and have a seating capacity of less than 10 passengers.
Ø Social- Because of the effective customer service, drivers will become like family to the customers
Ø Environmental- Small channels of distribution are needed for this particular business.
Ø Competitive Analysis - Have researched the current cab companies in the area, and have also been a customer. We researched how the company operates, and how customers are treated.
Ø Global- Unfamiliar market, the foreign market
may not be ready for Southern Cab Company’s style
Ø Economic - The recession may still have a ways to go before people can feel at ease.
Ø Goals- If my company does not meet the goals set forth, we could lose customers, or go out of business.
Trends
Ø Culture- A friendly atmosphere could lead to customers telling their friends about our services
Final Strategic Plan 16
A balance scorecard provides stakeholders with valuable information of how an
organization is developing towards their strategic goals. In a balance scorecard, four perspectives
are examined. The financial perspective involves strategic objectives such as market share,
revenues and costs, profitability and competitive position. The second perspective to be
examined is the customer perspective which involves customer retention, customer satisfaction,
and customer values are examined. The third perspective is the internal perspective which
includes measuring the process of performance, productivity improvement, and operations
metrics. The fourth perspective is the learning and growth perspective. The perspective includes
employee satisfaction, employee turnover, level of organization, nature of organization culture,
and technological innovation (Pearce & Robinson, 2005). The balance scorecard for Southern
Cab Service consists of the four perspectives which will create a solid picture of long-term goals
of the company.
Financial
The financial perspective is the ultimate goal of a company. This perspective is driven by
revenue growth and cost efficiency. Within the financial objectives, Southern Cab Service is
committed to cost efficiency by improving cost structure, and increasing asset utilization. The
company can focus on revenue growth by expanding revenue opportunities, and enhancing
customer value. The financial goal of Southern Cab Service is to become profitable and expand
into a second location in three years. With financial plans to expand, the company must be
prepared to employ more employees and invest in more equipment for the business. Southern
Cab Service must also consider competitive position. Determining where the company will be
compared to other cab services in Louisiana, is an important factor to consider. New innovative
ideas can increase the company’s financial profits and have the company soaring to new heights.
Final Strategic Plan 17
Customer
Southern Cab Service acknowledges the customer is what makes our company
successful. The organization believes in customer satisfaction and safety. By helping our
customers to feel safe while traveling with us will lead to a satisfying experience and will create
customer loyalty in the future. Southern Cab Service will provide customer satisfaction and
quality service to create a safe and reliable experience for all customers. The customer
perspective will include measuring the level of customer satisfaction, and customer retention.
The balance scorecard will create a visual image of how successful Southern Cab Service can be.
The customer perspective can be viewed as how the customer sees our company. By stepping
into the customer’s shoes will help draw a picture of the customer’s perspective. The balance
scorecard will determine a clear picture of the customer’s perspective of Southern Cab Service.
Internal Process
This process will determine how Southern Cab Service will rank in the transportation
market. Although Southern Cab Service will be new to the transportation market, this process
will help the business structure to form a solid foundation. This process examines and focuses on
the most critical aspects that would make the company successful. Southern Cab Service must
determine what the company will excel at the most. This critical piece of information will
separate the company from the competition. The balance scorecard will help determine the
unique factors that the company possesses compared to the other cab services in Louisiana.
Learning and Growth
After Southern Cab Service is considered an established entity, the company will need to
make sure all employees have the proper training and ongoing training available. Employees
must remain certified in all areas of the business in order to maintain a safe operating facility.
Final Strategic Plan 18
Managers will be trained on effective leadership skills and management skills. All employees
will be trained on proper communication skills and customer satisfaction. Training requirements
will be updated annually for employees to remain in compliance with company policy.
The balanced scorecard is an added tool in creating successful short and long-term goals.
This scorecard will provide direction for Southern Cab Service and will lead to a successful
organization.
Final Strategic Plan 19
Southern Cab Service Balance Scorecard
Areas for Measures
Objectives Measure Metrics Target Year 1
Target Year 2
Target Year 3
Financial Increase profitability
Market value % in market share
2% 3% 5%
Increase revenue
Price of vehicles % of vehicles 1% 2% 3%
Lowest costs Cab fares % of fares collected
80% 92% 100%
Customer On-time cabs Arrive rating Customer surveys
80% 85% 100%
Lowest prices Customer ranking Customer surveys
80% 85% 100%
Safety Number of customers
Rank all customers
satisfied and dissatisfied
80% 90% 100%
Internal Improve turn around
On time pickup and arrive
% of on time arrival and
pickups
85% 90% 100%
Communication Effective communication
Feedback from customers and
employees regarding
communication
75% 80% 95%
Reliable services
Skills with employees/customer
monitor reliable service through
surveys
% of satisfied customers who
think our services are
reliable
80% 90% 95%
Learning & Growth
All employees receive proper
training
Provide clear understandable
instruction
Employee training program
80% 85% 90%
Evaluations Customer and employee feedback
Performance surveys
(excellent =5 to poor =1
85% 90% 95%
Ensure effective customer
service skills
Encourage communication
both internal and external
Monitor employee
feedback and involvement
85% 90% 95%
Final Strategic Plan 20
This strategic plan will help ensure success for Southern Cab Service. Now that the final
strategic plan has been developed, it must be communicated and implemented throughout the
organization. With every employee on the same page, the company can work towards creating a
new breed of cab service for Louisiana.
Final Strategic Plan 21
References
Pearce, J. and Robinson, R, 2005). Strategic Management (9th ed) McGraw Hill, 2005 Boston,
MA
Rajeev, M., & Vani, B. (2009). UNDERSTANDING STRENGTHS, WEAKNESSES AND
COMPETITORS. Journal of Services Research, 9(1), 51-67. Retrieved July 31, 2010
from ABI/INFORM Global.
Sekerka, L., Bagozzi, R., & Charnigo, R.. (2009). Facing Ethical Challenges in the Workplace:
Conceptualizing and Measuring Professional Moral Courage. Journal of Business
Ethics, 89(4), 565-579. Retrieved July 31, 2010 from ABI/INFORM Global.
Skok, W (2000). Managing knowledge within the London taxi cab service. Knowledge and
Process Management, 7(4), 224. Retrieved July 31, 2010 from ABI/INFORM Global.
Final Strategic Plan 22
top related