Strategic plan project phase 1

Strategic plan project phase 1 (ABX PVT Ltd)

Farhad, Simran pal, Kapil, Yu chang, Baljit

Business Strategy

Yorkville University

2020-05-23

Submitting to Professor Amit Kohli

Introduction

Strategic process is vital for the enabling the objective of the organization to be met in accordance with its mission and the vision. In fact, even the development of the mission and vision of the organization need a well formulated strategic process. In any case, a strategic process can be applied for any specific domain of operations in the organization. Right from formulating vision, operations management and even the performance appraisals etc. need a very detailed emphasis on the strategic planning and strategic planning efficiency will decide the final organizational effectiveness. Strategic planning will be three divisions, the strategy formulation, the strategy implementation and finally the strategy evaluation. Each of these processes does have relevance to the overall organizational effectiveness and final outcomes (Steiner, 2010).

Context of the organization

The current scenario is an online marketing organization, ABX Pvt Ltd. which works on to take up the customers’ orders and will fulfil their marketing needs by digital advertisement and Search Engine optimization. It is a 5-year-old organization and is working with about 24 employees in three shifts. The Organization had done well in the first two –three years and now the revenues are falling down, mainly it is due to the lack of the customer orders. This is failure of the marketing division of the organization. As a member of the marketing team for the organization, the following comprehensive strategic planning is provided to the board (Rothermal,2016).

Vision and Mission:

The current vision of the organization is to become the leader in online marketing and SEO operations in the local region.

Mission of the organization is to sustain the current revenues and to increase the same by 10% from SEO as well as from online marketing domains for this financial year 2020-21.

Modified vision and mission – Proposed:

The vision of the organization is to become the leader in online marketing services in the global arena with high quality services at affordable prices.

Vision of the organization is to enhance the total revenues of the organization from all the online marketing services by about 15% for this financial year.

[The big leap will be in the form of extension of the operations. As of now the organization is only working to get orders from the local regions and in the coming future as per the changed strategic plan the organization is looking for expanding the services to the national and global scenarios and also will be looking to expand its domain of operations as well. Typical marketing in the SEO, targeting ads and other possible services will be included in the portfolio. The focus of hike is also changed from the specific domain to overall operations; this will result in definite possible achievement.]

External factor evaluation

External factor evaluation

Opportunities		weight
1	Industry demand	12		4		48
2	Approach to customers	11		3		33
3	Internationalization	10		3		30
4	Spreading to other states	8		4		32
5	Spreading the services	16		3		48
						0
Threats						0
1	Expenses	10		1		10
2	Quality competition	5		2		10
3	staff competency	8		2		16
4	New taxation	5		1		5
5	Corona crisis	15		2		30
		100				262

The total weighted score for the current case is 2.62

The above EFE is based on the current scenario and included with some of the most important and vital factors necessary for the organization strategy at present. However still they can extend to include relatively less weighted factors as well.

The current weighted score is 2.72, which mean that the capacity of the organization to respond to the external factors is slightly above average rate.

Porter 5 forces

Power of supplier is moderate to higher

Power of buyer is moderate

Threat of new entrants moderate to higher

Threat of substitute products moderate to higher

Existing industry rivalry moderate to higher

Internal factor matrix

Internal strengths		weight
1	Best team	10		4		40
2	Relatively established	14		3		42
3	access to financial funding	11		3		33
4	Proactive managers	12		4		48
5	Flexible team	13		3		39
Internal weaknesses
1	Expert staff are limited in total	8		2		16
2	Expansion needs more staff	9		2		18
3	Strategic experience is limited	8		2		16
4	Core team is totally youngsters	9		2		18
5	Marketing team need strengthening	6		2		12
	Total	100				282

Based on these findings it can be that the internal factor matrix of the organization is about 2.82 which is higher than the average and hence the organization is reasonably stronger and it can sustain further.

SWOT

Strengths

Capacity

Team

Proactiveness

Finance back up

Weaknesses

Limited staff

Takes time to expand

No experience in this direction

Opportunities

Prospects for growth

Opportunities for hike further to take in marketing services#

Threats

Competitors

Quality challenges

BCG Matrix

Star/SEO	Question marks Digitalization services [Conglomerate of services- fast moving] (target ads on social media etc.)
Cash cows/ Low growth and high market Email marketing	Dogs Online personal advertising

Strategic direction

The immediate choice for the organization is to spread the business both in the geographical region as well to enhance the market of services which the organization is sticking to at present.

Conclusion

This phase of the presentation is contained in prior evaluation of the total process of the organization. Strategic evaluation of what makes it SWOT, what makes it BCG and porter 5 forces are some of the aspects discussed about and a detailed overview of the analysis of these issues done. This makes up the basis for further strategy formation and evaluation.

References

Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.

Steiner, G. A. (2010). Strategic planning. Simon and Schuster.