STR 581 - Final Strategic Plan- FOR SMARTWRITER ONLY
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implementation_strategic_controls_and_contingency.docxIMPLEMENTATION, STRATEGIC CONTROLS, & CONTINGENCY 2
IMPLEMENTATION, STRATEGIC CONTROLS, & CONTINGENCY 3
Implementation, Strategic Controls, and Contingency
Running head: IMPLEMENTATION, STRATEGIC CONTROLS, & CONTINGENCY 1
Weight Loss Singles Dating Agency is an online dating service tailored to provide companionship services to individuals over the age of 18 who have undergone any form of weight loss surgery. For effective strategic formulation of implementing this new business, there is need for the implementation of an effective strategic plan to ensure the company maintains competitive advantage in the industry. The company’s strategic plan will comprise of various elements including:
· An implementation plan
· Objectives
· Functional tactics
· Action items
· Milestones and deadlines
· Tasks and task ownership
· Resource allocation
· Organizational change management strategies
· Key success factors
· Financial data including: budget, forecasted financials
· Risk management plan
Each of these elements of the strategic plan is discussed in enclosed detail.
Implementation Plan
The strategic plan intends to provide a road map for the company to benefit through both monetary and non-monetary strategies. The plan is also tailored around the corporate social responsibility business operations that in turn envision various benefits including increased sales and market share as well as establishment of brand positioning.
The strategic plan for Weight Loss Singles Dating Company also includes the SWOT analysis that will in turn play a critical role in the realization of implementation of the action plans and programs. There are also the specific activities that will be assumed to ensure advantageous positioning in this niche market.
The following chart exhibits analysis of implementation activities and when these action items will occur in the process:
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Activities |
Months |
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|
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1st Mo |
2ndMo |
3rdmo |
4thMo |
Expected outcome/Comments |
|
|
|
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1 |
Personalized training: Development of a concept paper, TORs (online anonymity software), Report |
|
X |
X |
|
Increased stakeholders and partnerships |
|
2 |
Develop content for website, social media, advertising outlets |
X |
X |
X |
|
Capacity Building on Information Communications Technology (ICT) and its relevance |
|
3 |
Form two online communities of practice on information mgmt on our blog |
X |
X |
X |
X |
Increased number of stakeholders recruited and participating in the discussions
|
|
4 |
Development of marketing plans for each of our services · Data collection, Data Research Data Analysis · Peer review of report Launch of the marketing plan with staff & management |
|
X |
X |
|
Comprehensive marketing plans and concept paper
Peer review marketing plans
|
|
5 |
Created documentary on client success story – includes photography |
|
X |
X |
|
Documentary to be shared with public when completed |
|
6 |
Identify networks / stakeholders |
X |
X |
X |
|
Increased clientele base |
|
7 |
Contributions and maintenance of the company Website, networks: blog, face-book, twitter |
X |
X |
X |
X |
Actively engage networks and use feedback for advocacy |
|
8 |
Daily monitoring of news and consultancy aspects relating to company services |
X |
X |
X |
X |
|
|
9 |
Development of proposals to potential clients and responding to requests |
X |
X |
|
|
|
|
10 |
Identify short and long term opportunities to expand/promote awareness of company, in particular service initiatives. |
X |
X |
X |
X |
|
|
11 |
Weekly research on competitor activity. Report to Executives |
X |
X |
X |
X |
|
|
12 |
Identify/establish connections with 5 organizations to promote Corporate Social Responsibility partnerships |
X |
X |
X |
X |
Improved rapport with like-minded Information center/ community libraries/document centers for Improved dissemination and acquisition of Information Education & Communication (IEC) – aka copy writing materials
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|
13 |
Assist in the population of client database |
X |
X |
X |
X |
Daily increase in number of clients reached |
|
14 |
Acquisition of new information materials, |
X |
X |
X |
X |
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Plan Objectives
Analysis of the strategic plan reveals that it aims at addressing the threat perceptions in the SWOT as well as aligning the objectives of the company. The objectives of the strategic plan for the company include the following:
a) To expand and enhance the company’s service offered and its reach to consumers
b) To ensure the company stays ahead of competition by maintaining its leadership stature
c) To meet on the company’s fundraising targets for the purpose of personalizing services to target market.
In accomplishing these objectives, Weight Loss Singles and Dating Agency is going to rely on a concrete marketing strategy in place. The company harnesses a prominent social cause marketing framework comprising of the following elements:
· Direct giving
· Cause-marketing, and
· Affinity marketing
Under the direct giving strategy, the company advocates the continued use of the direct giving model to assist in the case there are limitations in funds received from potential investors. These include one-time or recurrent cash transactions as well as for use by both the corporate and individual sectors. Upon the making of a transaction, there will be an end to the donor’s involvement in the company as a way of avoiding interference.
Under cause-marketing, the company is relying on the corporate social responsibility (CSR) practices in a bid to benefit from the stakeholders, which include both the consumers and contributors.
Specifically, this will be attained by the company recognizing that consumers are looking for value the service offers that he/she is paying for, as well as those businesses that encompass organizational values and ethics.
Weight Loss Singles and Dating Agency is reaching out to companies with a good CSR report card for a strategic partnership where by the partner will be allowed to align its CSR goals with the activities of Weight Loss Singles Dating Agency through advocacy advertising. Through the affinity marketing, the company will have strategic partnerships for services with the non-profit organizations. This could include launching partnership programs as well as pooling resources for these programs. In addition, the strategic plan encompasses different initiatives in a variety of media platforms to enhance its services offered, as well as making it easier for the customers to access services online.
Action Items
Helpline Promotion: The Company will pitch sponsored banner advertising of all types of online dating including the websites for major companies in the vicinity of Weight Loss Singles Dating Agency. That will also include banner advertising for all single persons above the age of 18 and have had weight loss surgery by calling on them to seek professional assistance with their online dating endeavors.
Developing merchandise section: Weight Loss Singles Dating Agency will develop a new venture (research facility) that will comprise of different products associated with the industry including: health foods, vitamins, specialized clothing focused on personal enhancement after surgery. Direct marketing will also include vans doing rounds in various social gigs.
Organizing events: The company intends to organize various events which could include a Boys’ or Girls’ night out or even a singles party to increase visibility. This in promotes expansion of merchandising sales as well as fundraising among other activities.
Financial Analysis
Weight Loss Singles Dating Agency’s financial overview includes a break even analysis, budget, and forecasted financial statements.
Break-even Analysis
The break-even calculation for the company is determined at a point whereby total expenses equal total revenues, therefore facilitating zero profits from the sale of the service. In this case, the required level of units (subscriptions) required is 13,797 in which total sales equal $137,970/month (Bplans.Com Financial Calculator). This includes a unit income of $9.99 per person (20,000 users), unit cost of 20% at $1.99, and fixed monthly costs of $110,375.
Revenues
400,000
300,000
200,000
100,000
0
-100,000 100,000 200,000 300,000 400,000 Expenses
Monthly Break-even Point
Monthly Operating Budget
Year 1 Year 2 Year 3
Sales 199,800 219,780 241,758 (Increase of 10% per year)
Cost of sales 39,960 43,956 48,352
Gross Profit/Loss: 159,840 175,824 193,406
% Gross Margin 80% 80% 80%
Expenses
Marketing 19,980 26,373 33,846 (Increase of 2% per year )
Personnel 83,333 86,250 90,562 (Increase YR 2 & 3 to account
for raises and additional personnel)
Operating 27,041 28,000 29,000 (Increase of 2%/year)
Total 130,354 140,623 153,408
% of Sales 65.24% 63.98% 63.46%
Net Income/Loss: $29,486 $35,201 $39,998
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Projected Operating Income Statement
|
Year 1 |
|
Revenues |
$2,397,600 (20,000 users @ $9.99/month membership fee) |
|
Cost of sales |
$479,520 (Computer Equipment rental, data storage, website development/hosting/maintenance, sales commissions, etc. |
|
Gross profit |
1,918,080 |
|
Sales/Marketing |
$191,080 |
|
Wages/Salaries |
1,000,000 (25 Employees including Management/Owners) |
|
Loan Payments |
89,496 (Original Loan Amount = $450,000, Interest Rate = 6%, Loan Term = 72 months) |
|
Payroll Taxes |
150,000 |
|
Rent |
$36,000 (2,000 sq ft - $1.50/sq ft) |
|
Utilities |
$24,000 |
|
Other Office Expenses |
$25,000 |
|
Net Income Before Taxes |
$402,504 |
|
Income Taxes (30% Tax Bracket) |
$120,751 |
|
Net Income |
$281,753 |
Projected Balance Sheet
Year 1 Year 2
Assets:
Current Assets
Cash 249,496 290,000
Other Current Assets 23,000 50,000
Total Current Assets 272,496 340,000
Long-term Assets
Furniture & Equipment 194,000 241,000
Total Long-term Assets 194,000 241,000
Total Assets
$466,496 $581,000
Liabilities and Capital/Stockholders Equity:
Current Liabilities 10,000 10,000
Accounts Payable 7,000 0
Current Borrowing 89,496 150,000
Other Current Liabilities 10,000 31,000
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities 116,496 191,000
Capital 350,000 390,000
Total Capital 350,000 390,000
Total Liabilities and Capital $466,496 $581,000
Risk Management Plan
The strategic plan represents the company’s best estimate of the future of online dating by recognizing that not all major risks can be predicted or avoided and few business plans are free of errors of omission or commission.
The table below shows the types of risks posed by stakeholders and mitigation to be implemented:
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Risk |
Mitigation |
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Posed by customers
|
· Analysis of major customers through long-term service contracts, regularly visiting them, continuously asking customers for views/opinions about the business’s products and services · Spreading the risk by promoting development of smaller, existing, customers so they become larger customers · Seeking new, profitable customers · Finding lower- cost ways of servicing the less profitable customers
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Posed by staff
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· Implementing selection procedures that increase the probability of locating most qualified staff · Creation of confidentiality agreements and/or reasonable restraint of trade agreements signed by key staff · Implementing a performance development system for communication of performance and establishing compensation · Providing on-going training for staff that is consistent with the requirements of the business · Cross-training employees through various functions to familiarize him/her with other business areas · Implementing health and safety policies to minimize risks · Utilizing incentives to help retain key personnel and promoting profit sharing to encourage distribution of organizational financial profitability |
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Posed by location
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· Identifying a number of suitable alternative premises which would suit customers, suppliers and staff · Consider securing a long-term lease or right of first option when lease expires · Proactively managing the business to predict future space requirements |
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Posed by Information Technology
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· Protecting laptops and desktops with high end security software · Protecting networks with purchase of high end security software · Ensuring appropriate IT support is available within an acceptable timeframe · Having an uninterrupted power supply unit · Conducting appropriate IT training for necessary staff |
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Financial risk
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· Managing cash flow on a daily, weekly, and monthly basis · Forecasting cash flow to identify any periods of non-liquidity · Seeking a committed line of credit from a financial institution · Maintaining a strong relationship with a financial institution to ensure business requirements are up-to-date and efficient · Monitoring market conditions to anticipate seasonal fluctuations in cash flows
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Posed by competitors
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· Continuing to build on relationships with clients and local community · Researching industry trends and implementing new products and services · Investment in developing new products and services · Protecting intellectual property assets by filing appropriate registration/licenses · Continually monitoring competitors in the industry
|
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Posed by the Market or economy
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· Researching consumer trends and preferences so the business can respond to fluctuations · Continually performing market testing to identify products and services preferred by consumers · Promoting services/products that promote sales and profitability
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References
BP Plans (2015). Break Even Calculator. Retrieved from http://www.bplans.com/business_calculators/break_even_calculator/
Eldring, J. (2009). Porter's (1980) generic strategies, performance and risk: An empirical investigation with German data. Hamburg: Diplomica-Verl.
Henry, A. (2011). Understanding strategic management. Oxford: Oxford University Press.
Kozami, A. (2005). Business policy and strategic management. New-Delhi: McGraw-Hill Published.
Pearce, J. A., & Robinson, R. B. (Eds.). (2013). Strategic management: Planning for domestic and global competition (13th ed.). New York, NY: McGraw Hill.
Porter, M.E. (2008), On Competition: Updated and Expanded Version, Harvard Business School Publishing: Boston, US.
Romm-Livermore, C., & Setzekorn, K. (2009). Social networking communities and e-dating services: Concepts and implications. Hershey: Information Science Reference.
Wit, B. ., & Meyer, R. (2010). Strategy: Process, content, context ; an international perspective. Andover, Hampshire: Cengage Learning.
