Mr. Wilford,
Upon review of your proposed business strategy the following recommendations were made:
A. A successful business strategy outlines a set of complex tactics to sustain its success (Kirenz
Analytics, 2015). Building an effective strategic plan should highlight obtainable goals to strengthen
organizational identity and create competitive uniqueness (Kirenz Analytics, 2015). Instead, Paul’s
Discount Tires & Repairs’ strategic plan calls for continuity in business with no clear direction. The
proposed business strategy is vague and underdeveloped; incorporating measurable, time-dependent
goals will provide direction and clarity. The strategic plan should also focus more on transformation
and differentiating itself from competitors to become more resilient and less reactive to unforeseen
disruptions such as the pandemic. There is also a distinction between cutting costs across the board
and cutting costs to redistribute resources into strategically integral areas of the company that are
vital to its identity and growth (Leinwand & Mainardi, 2016, paras. 23–24). Focusing on the latter
means that Paul’s Tire and Repairs reinvest its revenue back into its strategic priorities and cuts
costs everywhere else (Leinwand & Mainardi, 2016, paras. 23–24).
B. The proposal provides a firm foundation for a strategic plan. The company has loosely
acknowledged its vision and mission, which is to continue serving its customers and provide quality
customer service and work. The strategic plan also shrewdly highlights the importance of its culture
and its place in reinforcing these goals. This point will only make the strategic plan more effective
when it is fully fleshed out as culture buy-in is vital to help businesses get from the strategy to
execution stage of their plan (Leinwand & Mainardi, 2016, paras. 20–21). The strategy’s use of its
21-year long history and loyal consumer base as assets is also key in separating itself from
competitors as long as the past does not lead to an inability to change.
C. Paul’s Discount Tires & Repairs has the potential to sustain its competitive advantage with a
comprehensive strategic business plan. The organization has a loyal consumer base, competitive
advantage, vision, and mission statement. However, the plan does not protect itself against the
possibility of industry and economic volatility that will inevitably occur. Insulating against this, the
strategic plan should show that the business is malleable and able to withstand the harshness of such
downturns (TED Institute, 2014). Creating a true competitive advantage is one way to accomplish
this and creating more specific statements within the plan, such as with those regarding customer
service, will yield greater results (Goldsmith, 2013, p. 16).
D. Incorporating a plan of execution would improve the proposed strategy. This can be done by
addressing the key elements of a comprehensive strategic plan which are identifying the
organization’s target sector, competitive advantage, means of delivery for tangible and intangible
goods and services, and sustainment of comparative strength (Kryscynski). Rooting the company’s
vision and mission statement in each response will assist in developing an articulated plan which not
only details current strengths but will answer critical questions such as where the business is going
and why (virtualstrategist, 2017).
References:
Goldsmith, D. (2013). Rethinking the Company’s Competitive Advantage. Financial
Executive. Retrieved March 22, 2022, from
https://learn.umgc.edu/content/enforced/625295-001153-01-2222-OL3-
7389/Rethinking%20the%20Company's%20Competitive%20Advantage.pdf?_&d2lSessionVal=HN
pi19ThmLcSCOoKjwaBP3Bhl
Kirenz Analytics. (2015, November 5). What is Strategy? Michael Porter explains common
misunderstandings. [Video]. YouTube. https://www.youtube.com/watch?v=3Hd88eBgkw0
Leinwand, P. & Mainardi, C. (2016, February 3). Creating a strategy that works.
Strategy+Business. https://www.strategy-business.com/feature/Creating-a-Strategy-That-Works
TED Institute. (2014, December 22). Martin Reeves: Your strategy needs a strategy. [Video].
YouTube. https://www.youtube.com/watch?v=YE_ETgaFVo8
virtualstrategist. (2017, September 7). What is Strategic Planning? How to Develop a
Process. [Video]. YouTube. https://www.youtube.com/watch?v=-gcNK-1IaiQ
