Learning Team Project Selection
Strategic Plan 2
Strategic Plan
Trisha Eisele
August 18, 2014
Alfonso Rodriguez
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Table of Contents Executive Summary 3 Bright Horizon 3 Environmental Scan 4 Remote Environment 4 Industry Environment 5 Operating Environment 5 Internal Strengths & Weaknesses 6 Strategies 7 Innovation 7 Horizontal Integration 8 Product Differentiation 8 Implementation Plan 9 References 16
Executive Summary
Bright Horizons is a company that brings quality early childhood education to children. As Bright Horizons has grown, they have created their own curriculum. It involves math, science, technology, social studies, the arts, cooking, and physical education. They also provide different types of services. They have client-based centers, community centers, elementary schools, after school care programs, and summer camps.
Bright Horizons (2014), states that they “strive to nurture each child’s unique qualities and potential.” As a way to extended this mission statement, I propose to offer tutoring as a part of the after school care program. This way the company can extend its mission statement to older students or past students. It is a way for Bright Horizons to extend their services to past students. Strong partnerships are a key value of Bright Horizons. I recommend that the parents get to choose their child’s tutor through a database of tutors in their area. To match another of Bright Horizons values is the collaboration with employers to build family-friendly workplaces, I recommended that the tutors going to customer’s house. Bright Horizons already has its own University to help aid in the growth of its employees. I recommend that they had more classes to aid in the knowledge of the tutors on staff.
The environmental scan involves many different categories. Through remote environment, Bright Horizons can look at the economics, social, political, technologic, and ecological factors involved in their company. Through this analysis Bright Horizons can continue to be the competitive company that they are within the child-care industry. They are consistently working to bring quality child-care to their cliental. Adding in tutoring services would just expand their strong brand and international connections.
In looking at the implementation plan, it is vital to complete for any and all short-term and long-term successes. The tasks and task ownership are there to help keep everyone accountable to their portion of the plan. This is where directors, assistant directors, and current teachers can aid in the expansion of the service. Milestones are there to have a goal to strive for within the company. Having a beta center gives the company a unique perspective. In aligning resources with the strategic plan, it allows Bright Horizons to fulfill its mission statement in a new and innovated way.
Bright Horizon
My strategic plan will be to offer tutoring through the Bright Horizon Company. To ensure the organization’s vision, mission, and people strategies and value statements are aligned, I will refer to what Bright Horizon’s strives to do for each child. They strive to “nurture each child’s unique qualities and potential” (“Bright Horizon”, 2014). Therefore, in the tutor services, I propose to develop a curriculum that will be based of each child’s learning style. Other items Bright Horizons strives to do are to support families through strong partnerships, collaborate with employers to build family-friendly workplaces, create work environment that encourages professionalism, growth, and diversity, and grow a financial strong organization” (“Bright Horizon”, 2014). Helping the company grow is another alignment of values because tutoring is a $4 billion dollar industry (“Franchise Help”, 2014). Strong partnership is a key value of Bright Horizons. I will be recommending that the parents get to choose their child’s tutor through a database of tutors in their area. To match another of Bright Horizons values is the collaboration with employers to build family-friendly workplaces, by recommending that the tutors going to customer’s house. Bright Horizons already has its own University to help aid in the growth of its employees. I will recommend that they had more classes to aid in the knowledge of the tutors on staff.
Environmental Scan
Remote Environment
The remote environment includes factors that are a part of the company’s operating situation. There are five factors: (1) economic, (2) social, (3) political, (4) technological, and (5) ecological factors (Pearce & Robinson, 2013). A part of Bright Horizons is client-based centers. For example, Bright Horizons goes to a company and lets them know that they can provide quality child-care to their employees. Not sure you should start a sentence out with it. This allows the employees to drop their children off to onsite daycare. According to Bloomsburg Businessweek (2014), “Child care benefits the employers who sponsor it by improving employee morale, reducing turnover and absenteeism, and increasing productivity.”
Social factors are key within the daycare business, especially when dealing with an international company. Bright Horizons embraces diversity. A number of the centers are a part of accreditations like NAEYC (National Association for the Education of Young Children). Also, the company has some of the highest paid workers due to the client-based centers. They offer benefit packages even to part-time workers. Politically, Bright Horizons always has to deal with new laws and regulations. The company is an international company therefore; they have to maintain other countries’ laws and regulations.
Technological factors are faced every day with the day-care centers. From personal experience, the center I work at has just finished going completely paperless for our children’s portfolios. Prior to this, the company did some technological forecasting, as they wanted to protect and improve the communication between teachers and parents. Thusly, increasing the company’s probability by attracting more customers.
Industry Environment
According to Pearce & Robinson (2013), industry environment is “the general conditions for competition that influence all businesses that provide similar products and services.” Bright Horizons has many competitors including in home daycares. According to Lamiman (2007), “One relatively new entrant is Knowledge Learning Corporation, which acquired KinderCare Learning Centers, Inc., in January 2005. Knowledge Learning reports its network now includes more than 120 employer-partnerships centers. Another company in the field is La Petite Academy, with 29 corporate-sponsored early learning centers.” Therefore, there are a number of competitors throughout the industry. Bright Horizons strives to offer multiple services throughout the year to include back up care, summer camps, and vacation support (school age).
Operating Environment
An operating environment deals with the factors in the immediate competitive situation such as looking at factors that deal with a company’s success in acquiring needed resources. According to Pearce & Robinson (2013), “Among the most important of these factors are the firm’s competitive position, the composition of its customers, its reputation among suppliers and creditors, and its ability to attract capable employees.” Bright Horizons maintains many different types of centers around the world. They are consistent with training and attracting new customers by sharing their success stories with other companies. They are a part of many accreditations and follow a number of states and countries regulations and laws. They also maintain learning and professional growth opportunities for their employees. Their competitive position is high in the daycare industry. According to Lamiman (2007), “A company spokesman reports that most of Bright Horizons' competition comes from the small owner operated childcare businesses that represent most of the industry. However, in the most recent years, there has been a slight increase in the competition at the corporate end of the industry. (Bright Horizons appears to be the only publicly traded company.)” Thusly showing how their position within the child-care industry is competitive. Their structure is what they call a management (cost-plus) model. In other words the client (a major corporation) provides the space, pays start-up costs, buys capital equipment, handles facility maintenance and retains more control over operations (Lamiman, 2007). Bright Horizons has about 40 percent of their centers under this model. Others are modeled after community centers, where there is a director, managers, and teachers creating the organizational structure.
Internal Strengths & Weaknesses
Companies should complete analysis of its company’s strengths and weaknesses. SWOT is one that is most commonly used and stands for for strengths, weaknesses, opportunities, and threats. Bright Horizons strengths include a strong customer base, specialized services, and a strong brand. To expand on one of these strengths, a strong brand is a main portion of Bright Horizons. They have their own curriculum. They included state standards but they hold their day care centers to a company standard. Their daily letters, newsletters, and class documentation all reflect these standards, which are all under the Bright Horizon brand. Weaknesses of Bright Horizons include stringent regulations and reliance on future corporate acceptance. Through personal experience, I have seen the problem with reliance on future corporate acceptance. Our contract with our company is reviewed yearly, Bright Horizons and the company negotiation on a yearly bases to keep the two centers that we have onsite. Through utilization of a SWOT Analysis, Bright Horizons can work at improving their weakness and growing their strengths.
Strategies
Innovation
According to Pearce & Robinson (2013), “Innovation is a grand strategy that seeks to reap the premium margins associated with creation and customer acceptance of a new product or service.” Bright Horizon Family Solutions is a leader in innovation among early childhood education. It needs be consistent in its innovation. “Corporations that embrace innovation and, as importantly, manage innovation well, are able to remain buoyant even in the choppy waters of today's uncertain global economics” (“Innovation”, 2012). This can be done through the improvement of their existing services. Bright Horizon would need to development and testing of the new services. It would be recommended that they have customer surveys after they have introduced new or improved services. This would allow them to respond accordingly to the wants and needs of their customers. Therefore, it is recommended that they spend time in the improvement of existing services or the development of new services.
Horizontal Integration
According to Pearce & Robinson (2013), “Among the most important of these factors are the firm’s competitive position, the composition of its customers, its reputation among suppliers and creditors, and its ability to attract capable employees.” Therefore the merging of services or organizations that operate on a similar level could help with the financial growth of the company. According to Horizontal Integration (2009), “Horizontal integration involves the union of companies producing the same kinds of goods or operating at the same stage of the supply chain. It may also describe the merging of departments within an organization that perform similar tasks.” Bright Horizon Family Solutions has already done this with the acquisition of different items and companies to aid in their growth. Bright Horizon (2014) stated, “Bright Horizons Family Solutions is a trusted leader in child care and early education. We have completed a wide variety of acquisitions, and our custom-tailored approach ensures that the transition of ownership is successful for children, families and teachers.” This is strategy that as worked well in the past and can continue to work in the future.
Product Differentiation
Although, Bright Horizon Family Solution has used the product differentiation strategy, they should continue to use it within their company. This will guarantee their mission of “providing quality childcare” (Bright Horizons, 2014). According “Product Differentiation” (2006), it is “the means by which suppliers attempt to distinguish their own products from those offered by competitors.” This would be through the promotion of the World Curriculum, which offers a variety of subjects like Art Smart (art classes), Movement Matters Zone (P.E. program), Math Counts (learning math through play), and Cooking Club (cooking lessons). They need to create and sustain a demand for their brand loyalty. This would then give them a competitive advantage over rival centers. This strategy may even serve to act as a barrier to entry to other childcare centers that may want to open within the area.
Implementation Plan
Bright Horizon Family Solutions is a company that is dealing with constant threats. These threats are in the economy, business, and competition. An implementation plan will be able to show them how to diversify their company and the services it provides. It will show that innovation is still alive within the company. This will help maintain brand loyalty and employee satisfaction. According to Business Dictionary (2014), Implementation plan is defined as a “detailed listing of activities, costs, expected difficulties, and schedules that are required to achieve the objectives of the strategic plans.” The following points will explain the implementation plan.
Objectives
· To expand services to previous customers to bring them back
· To expand employee growth through online classes
· To become a leader in the tutoring market
Functional Tactics
Functional tactics according to Pearce & Robinson (2013) are “detailed statements of the means or activities that will be used by a company to achieve short-term objectives and establish competitive advantage.” In bringing tutoring into the umbrella of Bright Horizon Family Solutions, the management team in each center would need to be involved in implementing this new service. Therefore, the functional areas of marketing, finance, human resources, and staff all need to be included within the change. The marketing team will be crucial to contacting customers that know the Bright Horizons Family Solution brand and capitalizing on this. The staff at the centers will be crucial in building a cliental in bringing their school age children back to the early education centers for tutoring. The operations team will need to grow the Bright Horizons University (the company’s online school for staff) to included multiple subject review for tutors to access at anytime. The finance and accounting departments are going to work together to make sure the company stays within its projected costs.
Action Items
Action items for creating a service of tutoring within the Bright Horizon Family Solutions Company are key to the success of the company. Increasing the growth and profit of the company by diversifying the product over the next 3 years. One of the goals was to expand services to previous customers to bring them back and to become a leader in the tutoring market. The operational, marketing and center staffs are responsible for aiding the company in achieving growth in the tutoring market. In adding this new services, there needs to be solid market research to make sure that the service will be viable in the different company’s locations. These items need to be completed before the rollout of this service.
Milestones and a deadline
Milestones are key to the completion of an implementation plan. According to Gaines (2014), “Milestones are the events that occur on the way toward achieving the desired end results of business goals. They can be short- or long-term goals and can be easily achievable or challenging” (How to Develop Milestones for Your Business). The first milestones are introducing and development of the service. The introduction of the services will take about 3 to 6 months. This service will be introduced through a beta center. This will help get the bugs out of the system. The development of the service should be obtained within the first year of the services being introduced to a center. The second phase of the milestones will be to develop curriculum based on the World Curriculum that Bright Horizon has already implemented in the centers. This would need to be completed within the first 3 years of the service being introduced to the company.
Tasks and Task Ownership
The task of this implementation plan will encompass many parts of the company. It will start with the operations team. They will need to start the process by rolling out the service to the center. There will be a beta center to try out the service. The center administration and staff will need to be in constant communication with corporate to ensure the completion of these tasks. The marketing team will have to take ownership of the websites and pitch speeches for showing customers why they should come back or start with Bright Horizon’s for their children. It is critical for the marketing company to showcase their promotion ideas to attract more and old customers.
Resource Allocation
It is to be determined the company resources should be allocated on an as-needed basis to ensure the rollout of the services is complete. Employees cannot complete their jobs with the tools necessary are not available due to resources being withheld. All the departments will have contact to materials, information, technology, and staff within the set budget. This budget will be determined by the finance and accounting departments on how best to use the resources. There will need to be strategic controls that will allow the company to analyze any and all success and failures. This will allow the company to make adjustments for any unpredicted circumstances that may arise.
Required Organization Changed
In looking at Bright Horizon Family Solution’s company mission, they state “We strive to: Nurture each child’s unique qualities and potential, Support families through strong partnerships, Collaborate with employers to build family-friendly workplaces, Create a work environment that encourages professionalism, growth, and diversity, Grow a financially strong organization” (Bright Horizons, 2014). It was stated before the operational excellence and customer intimacy are Bright Horizon’s best value strategies. With these strategies, Bright Horizon will need to continue using them. They will help the company gain a competitive advantage. If the company has operational excellence in every department, it will help make the new service a success for the company. If there is operational excellence in every department, everyone is on the same page and they can move forward as a company not has individual units. They also provide training for their staff to reduce brining in other companies to teach certain extras like art or physical education. For customer intimacy, they have open door policies. This will be key during the implementation of the tutoring services in the beta center. Parents need to feel comfortable coming to the center and talking with the staff and administrators about the success of their child. Communication with the teachers will need to be the biggest change. When dealing with children, teachers and parents are in the trenches and know what is best. Administrators and other departments need to listen and gather information from them.
Key Success
Key success factors are a major part of the Bright Horizon’s success. These factors are brand loyalty, education, and accreditations. Bright Horizon’s has created a brand within the competitive market of early childhood education. The customers are parents that want to know the center they are leaving their child in is bring education into everything and has professionally trained employees. This will show in their accreditations that the center is apart of with in their state or country. Unfortunately, due to all of this the parents are paying immensely for the quality childcare. This can cause hard times for centers.
Financial forecasting is crucial for predicting how Bright Horizon will perform in the future. This is where Appendix A and B come into play. The budget shows where Bright Horizon is placing their resources. The break-even analysis shows at what point the revenue coming in equals the costs. It calculates the margin of safety. This is the amount that revenues exceed the break-even point. According to Krantz (2012),“It's critical for investors to understand how much debt companies have and how that debt compares with a company's ability to pay. This requires examining a company's balance sheet and income statement.” This is completely true hence why Bright Horizon needs to know where their money is and where it is going. This will help them know what to do with the resources allocated to them for the new service.
Risk Management Plan
Risk management is an ongoing process. Pearce & Robinsons (2013) state, “Risk Management is the process during which an organization identifies and prioritizes risks and subsequently employs measures to lessen the probability of harmful events and maximize opportunities.” Bright Horizon needs to provide continuous improvement for their staff and other departments. This will help alleviate undesirable influence of the new service. Some risks that Bright Horizon’s may come across is are as followed:
1. Customer Hesitation-This could result in a slow start or complete destruction of the new service.
2. No communication with departments-Due to the level of interactions and conversations between customers, teachers, administrations, and departments, there could arise miscommunication issues.
Bright Horizon’s would need to work with the marketing department to target past customers to draw them back to parts they loved at the center. Show them how the new service is an extension of the mission of the center. The second risk shows that communication among the entire company needs to be there from the start and maintained throughout the entire rollout process.
References
Bright Horizons (2014). Retrieved from http://www.brighthorizons.com/about-us
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Gaines, M. (2014). Chron. Retrieved from http://smallbusiness.chron.com/develop-milestones-business-25635.html
Hahn, C. (2014). Businessweek. Retrieved from http://www.businessweek.com/debateroom/archives/2007/04/day_care_an_office_affair.html
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