Final Strategic Plan
Running head: STRATEGIC IMPLEMENTATION PLAN 1
STRATEGIC IMPLEMENTATION PLAN 7
Strategic Implementation Plan
Name
Institution
Strategic Implementation Plan
Strategy implementation is the process of ensuring that strategic plans are executed. It involves putting into action what the planners had said they would do. The strategic plan provides organizations with the roadmap that they need to follow and a set of goals that will enable them to deliver value to customers and achieve success. However, this is just a plan. It doesn’t guarantee that the company will achieve the desired objectives; just the way a roadmap doesn’t guarantee that a traveler will arrive at their desired destination. Critical actions have to be taken to move a strategic plan from a document on the shelf to actions that will help an organization achieve growth and success.
By drawing a strategic implementation plan, NY&C will have to outline the objectives of the plan. The strategic objectives of the company should be quantifiable and clearly defined. They serve as benchmarks that the firm will use to evaluate its progress (Kartal, 2019). The implementation of strategic objectives does not commence when the company starts when towards achieving the objectives. Instead, it starts the moment a company defines its goals and sets up a process of gauging its success.
To implement strategic objectives, NY&C will have to carry out its operations with a strong focus on benchmarks and goals that have been set. Further, the company should be willing to change its strategies and targets if situations change. Gauging the accomplishment of goals should be done by evaluating whether the organization has effectively implemented the steps that had been outlined and the actions carried out produced the desired results (Teixeira & Junior, 2019). In addition to this, the objectives of NY&C’s strategic plan should be realistic and the steps and actions outlined therein should be the best ways of achieving organizational goals. The objectives of NY&C’s strategic implementation plan will be; to increase global sales, and improve product innovation and design.
Functional tactics are the main activities that the company will have to execute in each department so that the products of the organization can be produced and marketed (Kartal, 2019). Functional tactics are vital for the implementation of main strategies. Below are the functional tactics for NY&C:
|
Department |
Increase Global Sales |
Improve Product Innovation and Design |
|
Marketing |
· Increased ads by 3% every month · Provide coupons for product purchases
|
· Identify new markets and design ads to target these markets · Advertise new products · Offer discounts and coupons
|
|
Finance |
· Monitor budgets · create sales forecast · create written monthly reports to the management
|
· draft production budgets · monitor spending · avail funds for production and design
|
|
R&D |
· Carry out monthly R&D to determine the needs of customers
|
· perform monthly research to identify customer demands · Modify and design products within three months
|
|
Human Resources |
· Perform quarterly evaluations of employees to ascertain ways of improving their morale. · Give bonuses to the best performing employees
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· Award bonuses to workers to suggest new ways of product innovation-
|
The above chart also summarizes the action plans of the strategic implementation plan and the tasks that need to be performed. Further, the chart shows which department will be responsible for each specific task.
Organizational change is vital if NY&C is to remain competitive. However, this change can be extremely disruptive when it occurs without an appropriate strategy to guide it. The most efficient change management strategies are those that focus on changing human behavior (Steiss, 2019). This is because employees are the most affected stakeholders in any organizational change and their decision on whether to adopt or reject change determines the success of the organization both in the short-term and long-term.
One of the most appropriate change management strategies is proposing incentives for employees who embrace the new changes and are willing to move in the same direction with the company. The second strategy that NY&C will apply is redefining the cultural values of the company. This is because, as social beings, human beings will always strive to fit in with established cultural values and norms (Kartal, 2019). Finally, the management will have to exercise authority to counter opposition from employees. Exercising authority will also make employees adhere to the new processes, standards, and cultural values within the shortest time possible.
Some key success factors that will help NY&C to remain a market leader in the apparel industry are; maintaining high product quality, having competitive prices, research and development advantages, and retaining a positive brand reputation. A budget will help the company allocate resources to support the implementation of the plan (Teixeira & Junior, 2019). The company plans to $10,461 on marketing, $1,980 on research and development, $5,231 on the training of personnel and giving them bonuses, and $523 on the purchase of supplies (Steiss, 2019).
To break even, NY&C must first determine the average selling price of each unit. NY&C will mark-up its products by 25% of the cost incurred in producing them. To calculate the average selling price, the total cost of producing each unit, which is $2.95 is multiplied by 125%. This gives the selling price at $3.59. To find out the point of breaking even, the fixed cost of the company will be divided by the figure arrived at after subtracting variable cost from the selling price as shown in the calculation below:
495/(3.69-2.95).
The point of breaking even will be 669 units. This means that the company will have to sell 669 before they start earning profits.
This is illustrated in the chart below;
Due to the company’s low-cost leadership, product creations, and product improvements, NY&C is projecting a 6% growth in sales revenues. In 2019, sales revenue amounted to $893 million. To find out the estimated sales revenue for NY&C in 2020, the partial Pro-forma formula is used. Under this formula, the sales will be calculated as below:
$893,000,000(1+.06) = $946.58 million
Risk management involves the identification of risks, quantifying the risks, risk control, and risk response. NY&C will identify potential risks during product design, renovation, and the risks incurred while trying to grow organically without losing the privilege of being a market leader (Kartal, 2019). Some potential risks that the company faces are changes in the price of raw materials, changes in consumer demand, entry of more powerful competitors, insufficient funds, and failure to meet the milestones outlined in the action plan.
References
Kartal, M. T. (2019). The Role and Importance of the Strategic Plans as an Innovative Tool in Determining the Direction of Companies from the Financial Success Perspectives. In Handbook of Research on Managerial Thinking in Global Business Economics (pp. 447- 461). IGI Global.
Steiss, A. W. (2019). Strategic management for public and nonprofit organizations. Routledge.
Teixeira, G. F. G., & Junior, O. C. (2019). How to make strategic planning for corporate sustainability? Journal of Cleaner Production, 230, 1421-1431.