Final Strategic Plan
MSTINA
NewYORK11.docxRunning Head: ORGANIZATIONAL STRATEGIC PLANNING 1
ORGANIZATIONAL STRATEGIC PLANNING 7
Organizational Strategic Planning
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Institution
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New York & Company Strategic Planning
New York & Company (NY&C) is my favourite shop, and I am so much familiar with it. It deals with dresses, jackets, pants, jeans, skirts, tops, bags, shoes and jewellery. It was founded in 1918 in New York City. It was initially known as Lerner Shops. The name Lerner Shops was used since its founder was Samuel Lerner and Harold Lane. The name was later changed to Lerner New York in 1992, and then in 1995, it was named New York & Company. Its headquarter is in New York City, and it operates in more than 530 locations. In 2018, the company changed its name to RTW Retailwinds. The company assets are estimated at US$ 301.1 million, with more than 5, 880 employees (Carrillo-Hidalgo & Pulido-Fernández, 2019). The rapid growth of the company depends on the strategic plans that it undertakes. In that case, significant components of the strategic management process that create value to this company will be discussed. Besides, this paper will also focus on the mission, vision, motivation strategy, innovation and people strategy of this company. Finally, this paper will conclude by looking into the roles of ethics in corporate social responsibility in strategic planning.
Significant components of the strategic management process
Nearly all companies have unique ways of management regardless of the size. The business chance of success of a company depends on its approach to strategic management. Strategic management is the process of using large scale approach, which is objective oriented in identification, implementation and evaluation of strategic plans. Three main components of strategic management are environment scanning, formulation and implementation and assessment strategy (Arend, Zhao, Song & Im, 2017).
Environmental scanning
An excellent strategic management process begins with thorough environmental scanning as the initial step. At this stage, anything that can have impacts on the business and how it operates is quickly reviewed and processed. The companies are usually influenced by internal and external factors, and managers are always aware of what is going on inside their companies. Some of the internal factors that managers are familiar with is when the company is experiencing a high level of turnover rates, productivity rates, sales numbers and profit margin. The manager should, therefore, be in a position to address such issues. External factors that managers should also be in a position to scan are the overall economic data, the company’s competitors and the target market. These factors form part of through SWOT analysis. SWOT analysis is the strategic review of the company’s strengths, weaknesses, opportunities and threats. Another critical aspect of SWOT analysis is that it gives the company an overview of how the company fits into the economy and industry under which it operates through outlining the steps required to be undertaken for continous growth.
Strategy formulation and implementation
Strategic evaluation
After formulation and implementation, companies should periodically monitor the results of those actions. Assessment and monitoring of the activities help the company to check if it is on track to meet its intended goals. Both managers and team leaders measure the progress of the company following the implemented actions in this phase. The evaluation process is a crucial stage because it shows the managers what is working and what needs to be improved to reach the company set objectives.
How strategic components work together to create value in NY&C
In NY&C, all three elements of the strategic management process are combined for high-quality products, customer satisfaction, and higher returns. The company uses the scanning process to review its activities and operations. For instance, in NY&C, cases of turnover rates have declined since the company began to adopt this approach. The company has managed to address issues that affect their employees as well as those that affect their customers by ensuring safety and hygiene through the provision of clean and healthy working conditions. Another area that the company have managed to improve on is the productivity rates and sales number. Through the implementation of the e-commerce system, the company has succeeded in expanding its market area. Many people can now access the company products online and even purchase them online. When the NY&C realized that it is facing too much competition from other firms, the company lowered its prices and started to produce more diversified products. Production of diversified products made the company attract many customers with different interests. The company sales margin increased, and its market also expanded. Product differentiation also made the company compete effectively.
The company’s mission, vision, innovation strategy, motivation strategy and people strategy
The company vision is to deliver world-class services through the provision of high-quality products to all women across the world. The mission of NY&C is to make women beautiful and feel good by making them feel confident by putting together the fashion. The company motivates its employees through a reward system. The company rewards employees who perform extraordinarily well. NY&C uses many forms of incentives to drive its workers and increase its productivity. NY&C give bonuses, travel parks, paid time off or vouchers as a form of employee motivation. Rewarding employees usually give employees something to strive for and at the same time, makes them compete among themselves. NY&C uses online campaign to sell its merchandise. The company has managed to convert all its assets to an online mobile environment. The company created a platform known as “Creator” which has consistently helped it access online customers. The use of online technology in selling and making advertisements is one of the innovation strategies that the company have adopted. Besides, the company usually administer equal opportunities during the recruitment process. Through human resource, the company has managed to source workers from both outside and inside. Workers with different talents have also been motivated as well as giving employees good salaries. Encouragement of skills and adequate recruitment process are some of the people strategies that the company uses.
Role of ethics and corporate social responsibility in strategic planning
Ethics and corporate social responsibility play a fundamental role in developing a strategic plan for an organization. The strategic plan is a pan to achieve the long term objective of a company. For any company to achieve its intended goals, it has to incorporate business ethics in its plan (McLean, 2019). The integration of business ethics in the development of a strategic plan also contributes to the company’s long term success. Business or firms should adopt strategic policies that incorporate the organizational culture with ethics and social responsibility. Another purpose of the corporate social responsibility of a company is to exceed the boundaries of societal benefits. In recognition of stakeholders needs, ethics and social responsibility are vital in creating a strategic plan. Ethics significantly take a decision which affects the company operations. In that case, ethics and responsibilities help the organization to implement the program with ethics, moral values and principles of the society. Organizations should not make unethical decisions that affect their reputation. Ethics and social responsibilities enhance social benefits by informing shareholders about changes and trend. The cost incurred in the adoption of any strategic plan depends on the demands of society.
The mission and vision of NY&C align with my values and vision in several ways. Given that most of my desired wears are fashion-oriented, I find it enjoyable shopping in this company. The company deals with high-quality products that suit my desires and choice for clothes. Besides, I desire to buy quality products at an affordable cost; the company usually offer its products at lower prices which any working-class woman can easily afford. Availability of differentiated products has also enabled me to have a variety of choices when I go shopping.
References
Arend, R. J., Zhao, Y. L., Song, M., & Im, S. (2017). Strategic planning as a complex and enabling managerial tool. Strategic Management Journal, 38(8), 1741-1752.
Carrillo-Hidalgo, I., & Pulido-Fernández, J. I. (2019). Examining the Organizational-Financial Structure of Public-Private Destination Management Organizations. In Smart Tourism as a Driver for Culture and Sustainability (pp. 543-562). Springer, Cham.
McLean, M. (2019). Understanding your economy: Using analysis to guide local strategic planning. Routledge.
Steiss, A. W. (2019). Strategic management for public and nonprofit organizations. Routledge.
