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Business Model and Strategic Plan Part I: Conceptualizing a New Product or Service Division of

an Existing Business

Kimberly Bennett

BUS/475

March 2, 2015

Michael Portillo

BUSINESS MODEL AND STRATEGIC PLAN 2

Executive Summary

Swift Transportation is a well-established American multinational company with their

primary interest in the transportation and logistics industry. The company also commands a

presence in both Canada and Mexico. It is the company’s well-known history of providing the

largest and best-in-class range of options to meet consumers’ transportation needs as well as

best-in-class service that the new division intends to ride on. The new division of the business is

My Swift Transport (MST). The new division is aimed at further exploiting the best-in-class

reputation of Swift, increasing acceptance and further deepening our connection with the

significant component of our existing customer base.

It is the mission of the new division to develop and deliver a proprietary Web-based

supply chain management system (WBSPM) that has so much more to offer. MST will be used

both internally and externally. MST will offer a customized shipment platform for management,

employees, customers, suppliers and carriers through a secure, Web-based application and

deliver innovative tracking, monitoring, consumer products making Swift Transportation the

carrier of choice while further contributing to the overall growth of the company.

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Business Model and Strategic Plan

A meticulous business model and a strategic plan are essential when developing a new

business, a new division within a business, a new product, etc. The development of a new

division must come with a mission and a vision to which those responsible can identify with,

have a passion for, and believe in. A detailed business model and strategic plan will clearly spell

out what this new division intends to accomplish as well as how it will be achieved; all the while

painting a clear picture of what the new division aims to be and what its goals are for the future.

We have created a business model and strategic plan in support of our new business division.

We believe with this business model and strategic plan the new division will easily achieve our

goals and objectives, thus transforming Swift Transportation into the best freight carrier in the

industry. Consumer satisfaction, growth, and innovation since 1966 have been some of the traits

Swift Transportation has been known to possess; the design of our business model will reinforce

those traits.

The New Division: My Swift Transport (MST)

We recognize there are many factors to consider when choosing a transportation partner

like Swift, that is why we propose the creation of a new company division; My Swift Transport

(MST). MST is an internally developed proprietary Web-based supply chain management

system (WBSPM) with so much more to offer. MS is both an internal and external system

offering a customized shipment platform for management, employees, customers, suppliers and

carriers through a secure, Web-based application.

With intelligence, collaboration, and global visibility, MST will operate four main

categories: software enabled services, software as a service, supply chain management (SCM)

4.0, and MST. The first three categories being for internal use, providing our access to our yard

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management system (YMS), port and cargo, transportation management system (TMS),

equipment management (EM), freight forwarding (FF), mobile SCM Solutions, warehouse

management system (WMS), returns and warranty, ICD and train operations, and accounting,

billing, and costing services. The fourth, MST, being a secure and interactive system available to

consumers’ day or night, providing access to their account details in all facets such as tracking,

billing, placing a transportation order, and immediate online access to customer service. With

MST, consumers can also elect various options such as text notifications, bill payment,

automatic payment options, paperless billing, and our Swift Transportation Newsletter.

The implementation of MST also has select key attributes and features. MST’s radio

frequency identification (RFID), workforce management, and corporate performance

management, attributes will enable us to improve in the areas of productivity and management

and the ability to reduce costs.

Key Attributes Radio Frequency Identification (RFID): Integrate RFID into particular organizational

processes, it will pin point track and trace critical movements of our inventory application.

Workforce Management: Measure and manage the efficiency of our workforce as an integrated process. Set criteria and gauge real time productivity, down to the task level, against those criteria.

Corporate Performance Management: Results created by monitoring the Key Performance Indicators (KPI) of our organization across the enterprise. Key Features

Utilizing rules-based configurations and rapid implementation, MST would be the ideal match for our operations, which require wide scale functionality and the structure for easy implementation.

Multi- site, multi-client support allowing easier to manage inventories in multiple locations.

Can manage inventory across our network of distribution facilities. ("7 Hills", 2011)

Mission Statement

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A mission statement identifies what service a company provides, how it provides it, and

what market it serves; it also embodies the beliefs of a company (Pearce II & Robinson JR,

2013). Since our earliest days, Swift has established and commanded a strong presence in the

transportation industry ("Swift", 2015). Our award-winning services have earned us a reputation

for quality and excellence that few competitors can rival. Utilization of MS will only reinforce

that presence while allowing us to continue our mission to attract and retain customers by

providing Best-in-Class transportation solutions and fostering a profitable, disciplined culture of

safety, service, and trust ("Swift", 2015).

Delivery of quality service that will command respect in the industry is still our focus. It

is crucial to our continued operation that we reduce operating costs, generate considerable

returns that will contribute to the company’s overall growth significantly, while generating

meaningful returns for investors, and providing the company with the vital resources needed for

increased innovation which translates to further growth; MST will aid us in achieving these

goals and objectives. Quality, innovation and safety are always main focuses in our everyday

business operations, thus this shall continue within our new division. Business shall also be

conducted with the highest ethical standard and respect for the environment.

Vision Statement

At Swift Transportation our vision of becoming leader of our industry will finally be

within reach one as our new division has been created. Our new division will ensure our

leadership by enabling us to achieve both our short and long-term objectives, better provide key

elements of Best-in-Class service to consumers, and not just needing but exceeding consumer

needs. Through achieving our goal of Best-in-Class Service we will gain an even larger market

share than what we currently dominate. MST will go on to provide us with a more efficient,

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cost reducing, and user friendly WBSCM than we currently utilize; which will allow us

increased productivity and a savings that we may pass along to our consumers.

To achieve our aim of major growth both in the short-term and long term, we have come

up with clear vision statement: To maximize returns to the company and to the shareholders, and

ensuring that we have a well-motivated workforce with a great environment to work in, while

building brand loyalty among our consumers by paying close attention to consumer feedback

and insisting on delivering quality service at all times.

Values

Values are crucial to a company, without values a business would not be able to operate

for long. A clear set of values will provide the business with a way to regularly assess how well

we are meeting those values. A value is a core component of a business unit, it is vital because it

functions as a guideline to the decisions being made in everyday transactions and agreements.

MST, and MST support, will consistently strive to reflect the same values as the rest of Swift;

Safety Ethics Respect Balance Winning Attitude Communication Development Teamwork Change Initiative Accountability Trust Charity

("Swift", 2015).

Mission and Vision Alignment

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The need for vision, mission, and values in an organization to align is imperative, as it

ensures that all aspects of the business are in tune with the goals of the organization. This

alignment not only strengthens the connection with the public, it also aids to guide the decisions

made in all facets of the business. In this regard, decisions made in the new division will not

cause deviation from the overall goals of the company, instead it will help us stick to it, and

drive the company towards its achievement of its stated goals and objectives. The mission

statement of the new division clearly aligns with that of Swift Transportation.

The vision statement of the new business division clearly aligns with that of the Swift

Transportation; which is vital if the new division plans to build upon the successes of the

company. The focus on consumer satisfaction clearly resonates in the new business division as

costs are driven down and the savings passed along to the consumer. It is clear that Swift

Transportation’s drive to ensure its motivated employees are part of a global team is vital to the

attainment of profit and overall growth, which clearly identifies with the new business division

through its determination to provide its employees with the motivation needed to attain our set

goals, as well as that of the overall organization.

How our Mission, Vision and Values Guide our Strategic Direction

Our strategic direction will be shown by our vision, mission, and values, as these guides

have been vigilantly developed to assist us in achieving of our growth objectives. The vision,

mission and values all point to our dedication to our consumers and ourselves. It is through our

dedication that we can, and will, deliver Best-in-Class Service; allowing us to continue to

command the industry and provide a savings for consumers that will only reinforce that

command of the market and achieve the growth we desire as an organization.

References

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7 Hills. (2011). Retrieved from http://7hglobal.com/solutions.html

Pearce II, J., & Robinson JR, R.B. (2013). Strategic Management: Planning for domestic global

competition. Retrieved from The University of Phoenix eBook Collection database.

Swift. (2015). Retrieved from http://www.swifttrans.com/