Strategic Plan Part III: Balanced Scorecard and Communication Plan

Strategic Plan

Julie Aranda

BUS/475

5/13/2018

J. Risner

Strategic Plan

Proposal of a New Division

Creating a new division within an existing company, primarily based on a new service or product enables that particular company market different services and products. In essence, the core business of a company is the launching point for a new business opportunity. A company that bears a strong understanding and apprehension of its market can likewise identify service or product gaps it conceives it can fill in its market. In regard to these opportunities and demands, a business has to determine if compatible synergies exist between the proposed new services or products and its core business (Niyogi, 2016).

Consequently, starting a new division require careful planning and thought. It requires a significant commitment of the resources of a company, including capital expenditures, technology, and manpower. It is all the same essential to research thoroughly for an opportunity when devising a business case as well as formulate clear mission, vision, value and strategy statements. In addition, the new division ought to be counted as a long-term consignment to the customers as it will prescribe customer loyalty as well as build a brand image the company assays to establish respectively.

In this respect, the context focuses on Netflix and its inspiration of creating smart glasses, an optical wearable device made in the form of a pair of glasses that is mounted on the head. Smart glasses technology employs the android mechanism that directly displays information in the field of vision of the user. The smart glass brings a suitable technology alongside a computer display/screen in front of the eyes of the user so as to present real-time data from a background information system. The display as such can be either be projected on the lens of the glasses or can be in form of a separate component that is focused to the user’s eyesight. The user can swimmingly observe the environment free from any kind of distractions when he does not employ the information that is provided by the “smart glasses”.

The mission statement of the Netflix smart glass division states, “Innovation is the Future with Augmented Reality.” This device will be innovational as everyone has a cell phone apparently, most probably, a smartphone. Their relevant applications, as well as diverse portable terminals, are presently basic equipment for the mobile workers. But then wearable technology corresponds the next developmental stage, where devices seamlessly glide by and using these devices is eyes free and much easier with hands.

The Netflix innovational smart glass features a sleek design that is much lighter and informs real-time data with accurate visual perception to the users. Its aerodynamic design allows them to be either easily portable or otherwise integrated to clothing. With the smart glass technology, it poses no difficulty to provide variable additional and accurate information for a mobile user without agitating the actual work or rather the workflow.

The division will address the needs of the customers as well as enable the company achieve a competitive advantage. The eyewear technology Netflix assays at exploring layers information onto the user’s outlook in a much more effective manner. Being of different opinions from the virtual reality headsets, the smart glasses grant users a sense of digital and physical worlds conclusively, furnishing a much more innate experience. This is answers through either an Augmented Reality technology, (AR Technology), an Optical Head-Mounted Display (OHMD), or by HUD, (Heads Up Display Glasses). The smart glass technology also offers a competitive advantage through its differentiation mechanism in terms of design and adaptability across different platforms apart from the film industry as it caters for real-time video streams that can be applied across various domains.

The new division’s vision aims at “Edging out technology for prominent solutions”. Consequently, Netflix business model seeks at ascertaining high-value customers, delivering significant margins as well as offering substantial value to customers. In this regard, the division follows the subscription model or the recurring revenue model as mostly perceived. With this kind of model, the objective is to batten down the users on a long-term contract in order for them to continue using the product considerably into the future. In the subscription model, customer loyalty and retention are the primary goals for the company given that the customer acquisition costs can be high.

When correctly employed, the recurring revenue model bears many benefits, including measurable and predictable revenue, higher customer retention levels, increasing profit and sales margins and access to growth. In terms of predictable revenue streams, the recurring revenue model will cater for measurable and predictable monthly revenue as users will be paying for using the service or product probably on a long-term basis. This, therefore, allows the company predict its income on a monthly basis.

With regard to higher customer retention, the company will generally register a higher rate of customer retention compared to those that do not engage this kind of model. In the main, the model boosts company sales and with long-term subscriptions, sales are constantly made regularly on a monthly basis. Netflix therefore only needs to retain its customer pool by keeping them engaged and happy with the product it offers. Moreover, the model ensures growth as the model is scalable. At one time when a user is locked into the subscription over a certain period of time, the company can therefore grow and expand at a faster rate mainly by the fact that the company does not need to spend time on customer retention.

The vision, mission, and value of the new division consequently align with Netflix’s mission and vision of “becoming the best global entertainment distribution service, licensing entertainment content around the world, creating markets that are accessible to filmmakers and helping content creators around the world to find a global audience” according to the company’s listings. The new division vision, mission, and value ensure this by identifying the user image as well as meeting their needs while supporting the content vision and mission. From that fact, having a content vision and mission is key in aligning the new division to the overall mission, vision and values respectively. These values as such cater for further clarification pertaining the principles which guide the company in its daily activities and decisions.

Netflix values productivity, judgment, intelligence, honesty, creativity, reliability, selflessness, communication, and passion. In addition, vision, mission, and values guide the strategic direction of the division by defining the core strategic direction. Netflix cannot devise a strategic plan without necessarily identifying the vision, mission, and values statements. By formulating ethical and strong values that stand as the foundation, a mission can thence be stated. A mission, on the other hand, helps customers and employees understand what the company is all about.

A mission consequently assists the company move toward its ultimate objective or goal of what the end ought to look like when the company achieves its mission and by understanding and identifying how the vision, mission, and values, interact with one another, the division can, therefore, contrive a successful and well-designed strategic plan that engages a competitive advantage (Hagemann, Maketa & Vetter, 2017).

In the circumstances of social responsibility, culture, and ethics, the new division ensures technological interventions that facilitate decision making, deliberation, and formation of norms and knowledge for this emergent technology. Customers expect fair, courteous and professional treatment form the employees. Social responsibility and ethical treatment, therefore, is important to customers. Providing on-site assistance, education and training to customers bestow an additional value where competitors cannot be in a position provide. Through a diversity of perspectives, the division assays at engaging and seeking out a diverse set of experiences and perspectives for the employees as far as culture and ethics are concerned. The division also considers the crucial role of partnerships and collaboration among the employees which creates teamwork and social responsibility.

Furthermore, social responsibility starts at the leadership level. This prescribes responsible leadership which is maintaining focus and boldness and a pragmatic approach to both efforts and thoughts to ensure improvements. In this respect, the upper management will, therefore, need to ascertain if the division supports the overall corporate strategy. They need a firm business case that has a clear market analysis opportunity, consumer and market trends, the regulatory and legal environment, personnel, operational issues and financials so as to evaluate the opportunity effectively. Defining the required elements for success apparently will help the upper management team determine whether or not they are willing to invest in the division.

References

Niyogi, S. (2016). Lean customer engagement.

Hagemann, B., Maketa, J., & Vetter, S. (2017). Leading with vision: The leader's blueprint for creating a compelling vision and engaging the workforce.