Final Strategic Plan

BUS/475

April 27, 2017

Strategic Plan Part 1: New Product or Service

Executive Summary

The coordination between the company’s vision, mission, and core values is very crucial in influencing growth and success of an organization. Strategic business planning tools should be employed in this dynamic contemporary business environment since they are the most fundamental mechanism through which competitive edge can be created and sustained for the organization to reach its goals and objectives over time. The company’s mission, vision and value proposition have been known to contribute significantly to the strategic direction of the company and thus should always be taken into consideration during the planning process by Mars Hospitality Groups (McNamara 2013). In essence, the top management official of the Mars Hospitality Groups should analyze the needs and expectation of the customers, needs of its shareholders and the employees to ensure it uses the efficacy of the strategic decisions that they make. In order for any company to achieve its strategic objectives and goals, there is a need to come up with the appropriate mission and vision statements and this will form the basis of all the subsequent decisions that the management of Mars hospitality Group will make at any point in time. Comment by RCORDERO: Indeed. Strategic planning is crucial to define a company’s direction, market position, and projection. Comment by RCORDERO: comma here

In this paper, the focus is on a new product/service to be introduced in a new division in Mars Hospitality groups. This company mainly specializes in the management of hotels and clubs on contract basis and thus provides guests with the best available hospitality care they deserve.

Existing Business

Vision Statement

The vision statement is one of the major tools that form the crucial component of the strategic planning in an organization. It explains to the world the image of the company and what it is aspiring to be or achieve in the near future (Armstrong 1986). The vision statement is actually the idealistic version of how the company will appear in the event that all objectives are achieved in the company.

Mars Hospitality Groups Division v ision Comment by RCORDERO: Capital V

The vision statement of Mars Hospitality Groups Division is: To be the world’s leading Hospitality Company in provision of imaginable hospitality care in places where nobody would be willing to deliver and create a brand that will be globally recognized.

Mission

The company’s mission statement is the second most important element of the strategic planning process in any organization. According to Newth (2012), company’s mission statement acts as the reference point when making crucial decisions for the company. The mission is always reflected in the general sentiments displayed by the consumers of the company’s service or products. In this case, the consumers should be at ease in identifying the ethics and values which are promoted by the company in the external environment.

Mars Hospitality Groups Division mission

The Mars Hospitality Groups Division’s mission statement is: With total commitment to quality service to its customers, Mars Hospitality Group will seek to provide customers with very affordable honeymoon hospitality services to any destination around world. To explore new markets for an adventure by providing world-class outdoor hospitality experience to our clients while still putting the interest of shareholders ahead.

According to the company's website, the actual mission of the main company is to deliver quality hospitality services to their customers and work hard to build loyalty. According to the formulated mission for the division, these two missions have a correlation in the sense that the division is trying to promote a fresh idea that has never been done before which will attract new sales and build a lasting brand. Comment by RCORDERO: its Comment by RCORDERO: statements

Core values/guiding principles

The company’s core values are basically the guiding principles that are directs the actions and behaviors of shareholders and employees of the division. The communication of these guiding principles to the shareholders is likely to give the division an opportunity to request for more funds in order to facilitate their capital-intensive activities. The successful interaction and mix of the company’s operational decisions and guiding principles will clearly enable the customers to identify the major elements in the division's business model that is employed.

The division ought to provide exceptional service to its customers especially in situations where customers demand the unique service. The company will ensure that there is a well-established corporate social responsibility aspect that will form part of the company’s culture. The company’s guiding principles will enable it to take part in solving the socioeconomic problems of the communities in which it operates in. Coexisting harmoniously with the community and acting ethically will enable the company to gain a competitive edge since it will attract and retain more customers by creating a good image and this will translate to increased revenues for the division and the company. Comment by RCORDERO: This is an excellent point. It is the principle of Corporate Social Responsibility.

New product proposed

The Mars Hospitality Groups new division aims to provide a gateway hospitality package to clients on vacation or those enticed by the adventure to a destination that no other company would be willing to set a shop. A good example is making newlywed couples to enjoy a good moment on top of Mount Everest at a pocket friendly cost. This is the new product that is proposed in the division. The essence of this is to deliver what the current tastes and preference of some of the customers are shifting to. This unique service will serve a special group of customers and attract and retain more customers than what was anticipated. Based on the vision of the division; this will new service is expected to create a brand that will be globally competitive.

Customer needs and Competitive Advantage Comment by RCORDERO: With the exception of prepositions and conjunctions, all first letters in the first and second-level headings are capitalized.

Mars Hospitality new division can be able to gain a competitive edge by solving the needs of customers in the hospitality industry if the management, the shareholders and employees can act in tandem with the core values of the company. In order to achieve this, the executive should also budget sufficient financial resources in order to facilitate the first few world trips at a slightly lower price and this will enable the customers to gain interest and subscribe to the packages for the unique product.

The division values the customers and their ideas and thus the decision to choose the destination is left for the customers to choose. The ideas and suggestions from the customers form the basis of decision making for the division. This enables the customers to feel valued and greatly acknowledged by the company and in this way; the company will have a competitive advantage over its competitors who might be selecting the destination for their clients.

Business model for New Division

The vision of the division is to be the world’s leading Hospitality Company in provision of imaginable hospitality care in places where nobody would be willing to deliver and create a brand that will be globally recognized. The business model that will be most appropriate for this kind of business would be generating services in which the division will standardize a predetermined bundle of the services that it will offer to various destinations and entice the consumers to purchase them together at a certain fixed price or cost that will be equivalent to the price of a certain products. The business model usually incorporates the aspect of flat fee pricing. Another business model that might be applicable would be offering of products or services where whatever the division deals in is made to be part of the larger offering (Osterwalder, A., & Pigneur, Y. (2010). Comment by RCORDERO: Exclude the authors’ first initials.

Strategic Direction

Kefer (2014) argued that for strategic plans to be implemented in the division; there should be a clear communication and interpretation of company's mission, vision, and the core values. The managers and employees should also have a clearly defined goals and objectives which for the major pillars of organization business model. The top management officials at Mars hospitality Groups are supposed to come up with goods decisions and company strategic directions that will be fundamental in facilitating the growth of company's core values. Continuous employee training should be established in order to ensure that employees remain competent and offer the best quality services to consumers and at the same time grow the company's brand through the innovation of unique products and high level of differentiation.

Conclusion

In conclusion, Mars Hospitality groups can better communicate the core values that the company holds through ensuring that the values are embedded in the vision and mission statements of the company. This will form the driving force and the guidelines by which good decisions are to be made by the division’s managers. Mars Hospitality groups should be able to identify and define the objectives and goals of every stakeholder and this will offer directions on how to carry out activities and business operations within the company. In addition, a good strategy plan will enable the company to attract new markets and a good number of business prospects which might be good and will guarantee success to the firm in both short run and the long-run. The strategy has the capacity and ability to improve the values of the company’s shareholders and also provide the company with a competitive advantage over its competitors in the hospitality industry.

References

Armstrong J (1986) The value of formal planning for strategic decisions

Kefer, S. (2014). A guide to developing mission, vision, and value statements.

McNamara, P., Peck, S. I., & Sasson, A. (2013). Competing business models, value creation, and appropriation in English football. Long Range Planning, 46(6), 475-487.

Newth, F. (2012). Business Models and Strategic Management: A Modular Approach. New York: Business Expert Press.

Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,

game changers, and challengers. John Wiley & Sons.

MAX POINTS

YOUR

8.0

SCORE

Content and Conceptualization:

1. Propose a new product or service for the

new company division.

0.720.72

2. Describe how the division addresses

customer needs and achieves competitive

advantage.

0.720.72

3. Create a vision and a business model for

this new division.

0.640.64

4. Explain how the vision, mission, and value

of the new division align with the company's

mission and vision.

0.640.64

5. Summarize how the vision, mission, and

values guide the division's strategic

direction.

0.640.64

6. Define your guiding principles and values

for your division in the context of culture,

social responsibility, and ethics.

0.640.64

20%1.601.60

5%0.400.40

Spelling, Grammar, Proper use of words

5%0.400.40

APA format

20%1.601.55

See notes for corrections

-0.0

TOTAL POINTS

100%8.0

8.0

Writing Clarity

Late Submission (deduction)

WRITTEN ASSIGNMENT - GRADING RUBRIC

Description

%REMARKS

Logical organization of thoughts, ideas, and

structure

50%