BUS week 4 -- 850 words + reference

Identify key trends, assumptions, and risks in the context of your final business model.

Develop the strategic objectives for your new division of the existing business in a balanced scorecard format in the context of key trends, assumptions, and risks.The strategic objectives are measures of attaining your vision and mission. As you develop them, consider the vision, mission, and values for your business and the outcomes of your SWOTT analysis and supply chain analysis.

Consider the following four quadrants of the balanced scorecard when developing your strategic objectives:

· Shareholder Value or Financial Perspective, includes strategic objectives in areas such as:

·

· Market share

· Revenues and costs

· Profitability

· Competitive position

· Customer Value Perspective, includes strategic objectives in areas such as:

·

· Customer retention or turnover

· Customer satisfaction

· Customer value

· Process or Internal Operations Perspective, includes strategic objectives in areas such as:

·

· Measure of process performance

· Productivity or productivity improvement

· Operations metrics

· Impact of change on the organization

· Learning and Growth (Employee) Perspective, includes strategic objectives in areas such as:

·

· Employee satisfaction

· Employee turnover or retention

· Level of organizational capability

· Nature of organizational culture or climate

· Technological innovation

Develop at least three strategic objectives for each of the four balanced scorecard areas identified (Financial, Customer, Process, Learning and Growth). Your objectives should be selected, in part, based on an evaluation of a number of potential alternatives to the issues and/or opportunities identified in the SWOTT Analysis paper and table you completed in Week 3. I will be providing you with a balanced scorecard template (and an example) for you to use in this assignment.

Base your solutions on a ranking of alternative solutions that includes an identification of potential risks and mitigation plans, and a stakeholder analysis that includes mitigation and contingency strategies. You should also incorporate the ethical implications of your solutions into your selection.

· For each strategic objective, develop a metric and target using a balanced scorecard format. (For example, a strategic objective in the shareholder or Financial Perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, "The percentage of increase in market share." The target is the specific number to be achieved in a particular time period. The target for the metric of "Increase market share" could be "Increase market share by 2% for each of the next 3 years" of an increase of 2% per year for 3 years.)

Outline a brief communication plan discussing how you will communicate the company's strategic objectives that includes the following:

· Define the purpose.

· Define the audience.

· Identify the channel(s) of communication and why you selected that channel.

Write a 1,050- to 1,400-word strategic objectives summary.  Include your balanced scorecard and its impact on all stakeholders, and the communication plan.

Business Model and Strategic Plan Part III: Balanced Scorecard and Communication Plan

Roberts Communities is implementing its newest project, the development of a homeowner’s community in Del Valle, Texas that will provide manufactured homes for purchase to seniors age 55 and older. Unlike most senior communities, Roberts Communities is offering seniors the luxury of independent living with the specialized services found in nursing homes, all within the new Oak Ranch Community. However, prior to completion of the new business adventure, a balanced scorecard must be completed to focus on short-term and long-term goals of the business in its new venture. The balanced scorecard is simply “a set of measures that are directly linked to the company’s strategy,” allowing the company to evaluate the financial, customer, process, and learning and growth perspectives of the company (Pearce & Robinson, 2013, p. 194).

Balanced Scorecard

The following balanced scorecard depicts the short-term and long-term goals of Roberts Communities that are directly linked to the vision, mission, and values of the organization and the outcomes of the SWOTT analysis. The financial area of measures focuses on increasing profitability and revenue while also improving the organizations competitive advantage. The customer area of measures focuses on customer turnover, satisfaction, and safety with the goal of having complete customer satisfaction and low turnover and safety issues. The process area of measure focuses on the organizations internal processes of performance, communication, and reliability of the specialized services that the community offers homeowners. The final section of the balanced scorecard addresses the learning and growth areas of measurement, taking into consideration the employee turnover, employee satisfaction, and employee training.

Potential Risks

Roberts Communities is relying on the success of the Oak Ranch Community and faces risks from the new venture failing or the company placing too great of a focus on one project venture. The concentration on the Oak Ranch Community places the company at great risk if the environment changes. Slow growth in senior living can result from changes to social security rates that most seniors rely on for their only source of income. Seniors income is also impacted from a risk in Medicaid costs which would result in a lower monthly income for the seniors. Aside from political changes, the project is also at risk from external changes within the housing market. Any changes to the real estate market would also put the company at risk as home prices or interest rates rise and seniors are unable to afford the higher costs to purchase.

Mitigation Plan and Stakeholder Analysis

A risk mitigation plan is one method to plan for risks through the development of options and actions that increase opportunities and lowers threats for the project. Once a risk is identified, the impact of the risk is analyzed. Critical risks are further analyzed and ranked. All risks are then tracked over time and a mitigation plan is developed to implement when needed. The stakeholders of the project must also be analyzed to determine how the stakeholder impacts the risk of the project and how the mitigation plan can analyze the stakeholder and their importance and influence on mitigating the risks. The main risk for the company is a financial downfall from the community not attracting enough home sales. Currently, the political risk of changes to social security and Medicare are not of high concern since the cost of living has remained the same or provided small increases to senior’s income. In addition, the housing market, although still at a low, is only seeing small increases with interest rates remaining low. Not to mention, the purchase of a manufactured home is also much lower than a traditional home purchase and low interest rates can lead to a mortgage that is less than renting. The company must only focus on ensuring that Roberts Communities is prepared to assume some costs involved in the Oak Ranch Community as customers may be slow to purchase the properties while they weigh the advantages and accept the new idea of independent living with specialized services. Until word of mouth spreads, Roberts Communities must be financially prepared to accept costs and expenses prior to seeing profit.

Ethical Implications

One area of ethical implications that must be taken into consideration is customer confidentiality. Roberts Communities is providing an on-site nurse for residents which means that the company must also plan for following all laws, rules, and regulations associated with medical services, such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA) that regulates the sharing of medical information. Roberts Communities must also take caution in their collection of information from surveys and customer feedback, ensuring that the surveys and feedback are done so anonymously to protect the customer and his or her opinions.

Communication Plan

A communication plan is a form of organizing actions to fulfill a goal (University of Kansas, 2014). For Roberts Communities, the communication details how information will be produced, stored, accessed, distributed, and updated. The communication plan will be used throughout the communication of the business model and strategic plan. Gathered information comes from multiple sources but always links to the mission, vision, and values of the company. Any information, especially confidential information from customers, will be stored in an encrypted file on a secure computer. Distribution of information throughout the business will be shared through electronic mail and face-to-face communication while distribution of information to customers will consist of written communications and face-to-face communication. The communication plan will require annual review and updates. However, any changes to the business environment or its business model or strategic plan will result in more frequent updates as needed.

Conclusion

The new venture to open the Oak Ridge Community with specialized services for elderly home owners is one that Roberts Communities is currently planning for. The balanced scorecard addresses the goals of the organization that align with the mission, vision, and values while also considering the SWOTT analysis. Each goal has a measurement for target years and includes the measuring areas of financial, customer, process, and learning and growth. The potential risks associated with the project have been identified and a stakeholder analysis has been completed to ensure a mitigation plan that is appropriate for addressing the risk. Ethical implications have been identified and measures have been put in place to protect the organization. Finally, a communication plan that defines communication measures for within the business and customer communications has established the use of technology to communicate, direct written communications, and oral communications as channels to collect and distribute information.

References

Pearce, J. A., & Robinson, R. B. (2013). Strategic Management. Planning for Domestic and Global Competition (13th ed.). Retrieved from The University of Phoenix eBook Collection database.

University of Kansas. (2014). Developing a Plan for Communication. Retrieved from http://ctb.ku.edu/en/table-of-contents/participation/promoting-interest/communication-plan/main