Executive Summary
Strategic objectives play an important role in defining business goals and implementation initiatives. The strategic plans outline Toolcorp’s strategic goals and the primary strategies as indicators of reaching the goals. The plan will be executed through a three-cycle plan. The first plan is based on a year-year strategy. Secondly, a five-year and a ten-year plan will be set to identify how the company achieves its goals in the new market. The strategy will be developed in collaboration with Toolscorp’s stakeholders. Consultations will be conducted to address the key trends in international markets. Toolcorp aims to introduce its business in Japan. Therefore the strategic plan will focus on the opportunities and challenges facing the power-driven markets in Japan. Long term strategic goals will focus on the economic and social sustainability of the business.
Introduction
Going global requires Toolscorp to set goals from a broader perspective. The nature of the global market can have variations in terms of its ability to sustain a business. Identifying a strategic initiative is one of the means through which an organization will translate its goals into vision and practice. Thus, to stay ahead of the competition in the global market, Toolscorp needs to build strategic initiates with a relevant systematic portfolio.
Mission
To become a world leader in creating solutions to power-driven machines.
Vision
To become an expert and a center for medium-sized power-driven machines.
Strategic Proposals
Identifying the strategic objective is one of the most challenging steps in creating a bridge between an organizational vision and actual goals. Toolscorp objectives will focus on the one-year, five-year, and ten-year strategic objectives. Strategic proposals linked to these time frames will be determined by business-related tasks required to achieve the set goals (Waltz et al., 2019). Toolscorp will consider feasibility and suitability as the key components defining its strategic proposals. Business should be conducted based on organizational goals, consumer’s needs, objectives, and resource allocation will be employed as the key components defining strategic proposals.
One-year Strategic Proposals
Aims
- The one-year strategic proposal aims to familiarize with the new global market.
- The primary aim is to increase revenue by selling its products.
- The first-year strategic plan aims to analyze customers’ environments and conduct aggressive promotion of the brand.
Goals
- The first-year goals aim at increasing the promotion of the brand to the customers.
- Market research and survey of Japanese machinery consumption behaviours will be analyzed during the first year.
Implementation Plan
Launching the power tools in the market will act as part of the initial steps. The strategy aims to analyze further the market test ad response of the customers to a specific product. The marketing team will select microwaves and lawnmowers as the primary products to promote and update their sales.
Gross revenue growth and operations margins of more than 10% will indicate commendable progress. Perception of the quality of the products will be analyzed to address concerns raised by the customers (Cacciolatti, L., & Lee, S. H. (2016). Ratings of more than 30% will indicate a negative product perception among the customers.
The second goal aims to improve brand recognition by using different marketing tools. The objective of the goal is to ensure that brand awareness is created through the use of promotions advertising and direct marketing. Revenue growth of more than 5% will indicate the success of this strategy.
The action plan considered for the proposal is to ensure that the brand marketing team achieves recognition and awareness in the global market. A brand recognition rate of more than 80% would indicate positive progress. Secondly, more than 20% brand awareness would indicate that the products category is underrepresented in the market.
Potential Ramification
Utilization of financial resources is exposed to many risks in the global market. The economic crisis is one factor that contributes to financial risks. Investment can be at risk in countries faced with the economic crisis. However, this will not have a significant impact on the first year.
Toolscorp’s one-year plan will be assessed and rated based on the feedback from both employees and clients. It is always key to consider internal and external feedback in defining input into your business. Management of employees should further consider feedback as a primary component of designing various policies.
Five-Year Plan Strategic Proposal
Aims
- Toolscorp five-year plan aims to explore leadership in promoting its brand in the new markets. Market research is also considered a vital component of targeting the right clients and improving the outcomes of organizational sales.
- The five-year plan further aims to analyze performance in the new market.
- The strategy further aims to promote new thinking regarding marketing. After the first year’s analysis, the team will develop new strategies to promote new thinking in innovation. The strategy will initiate sustainable measures for needs-driven essentials.
Objectives
- Assessment market performance.
- Assessment of financial performance.
- Assessment of efficiency of its supply chain models.
Implementation Plan
Strategic implementation for the five-year plan will focus on organizational development and utilization of financial resources. Organizational development will focus on training employees to respond to service and product demands from the new market (Morton et al., 2017). The step will also allow the entity to ensure its employees have the right skills to analyze the strengths and weaknesses of the new market. Employees’ skills in a new global market are vital in effectively responding to dynamics and crises associated with the new market. Therefore, the professional development of employees will ensure that strategic objectives are achieved.
Potential Ramification
A sharp decline in the rates of imports and exports could significantly affect the business. The effect resulting from such events will be accounted for as part of the risks linked to the new business environment. Delayed impacts can also affect equipment that requires extensive assemblage.
Feedback Mechanism
A feedback loop is a vital component required in analyzing. Surveying is one of the primary methods of utilizing feedback to boost organizational performance. Moreover, social media platforms have created an opportunity for global entities to get direct feedback from their clients. Therefore, social media surveying and market research will act as the primary feedback mechanism employed for the one-year plan.
Implementation plans will focus on the outcomes of market analysis, marketing strategies and performance analysis. Innovation is one of the steps of addressing market dynamics. The first step toward innovation is incorporating technology as a primary tool in achieving a competitive advantage. Toolscorp specialization has significant competition in Japan. As a result, the plan aims to position it as the most competitive entity in manufacturing the tools. Market and customer analysis will determine the nature of input required in the invention of new products. Innovation will focus on the invention of the new product and improve the existing tools based on the customers’ demands.
Improving the operation of the existing tools would focus on microwaves, lawnmowers, and other products with a high risk of imitation. The aim of this step is to protect the uniqueness of the brand and identify with the changing needs of the customers. The efficiency, cost, and quality of the power operation tools will be taken into account as a core implementation strategy of this program.
The customer’s response to the changes introduced at the implementation phase will determine the potential ramification of innovation. A customer return rate exceeding 50% will show a positive performance of the product. Moreover, the introduction of new products will have a different impact on the existing sales and clients. An improvement and invention would mean that Toolscorps has to strategize in launching products doing promotion and offering discounted rates for the product.
The strategic initiatives will comprise financial projections and market research. It attempts to get a clear performance of a business in the new market. The plan will also aim to analyze the internal and external environment regarding the new market dynamics. The plan will also set out strategies for incorporating partnership as part of its plan to further expand to other global markets.
Breaking into a new marketplace has significant outcomes in terms of financial and product performance. Consumer’s behaviours can determine the outcomes of the new markets. Therefore, the five-year plan will further focus on identifying the right skills ad competencies in promoting its business to a new level. Continuous improvement risks mitigation strategies and evaluation of the existing business models will play a significant role in facilitating a successful business performance in the new market.
Financial problems can significantly affect Toolcorp’s strategic plans. One of the challenges with a new market is that it takes different times to achieve projected financial goals. Resources allocated for long-term goals depend on the proper management of a business. Therefore, employees and management outcomes determine how to set goals regarding these investments would be achieved.
Operational performance is considered to be a primary component responsible for capital budgeting. It is one of the fields that involve forecasting sales and other expenses. For example, making financial estimates determine the outcomes of the entity’s financial performance. However, estimations can pose a potential risk to financial performance. For example, reduce from previous years. As a result, the cost of operating a business can drastically increase without notice. Consequently, the sales cycle can take longer than expected and affect market demand.
Potential Ramification
Market demand can also take longer than expected. Such outcome often results from overestimated capital regarding the actual sales and financial achievements in the markets (Wolf & Floyd, 2017). The problem contributes to immediate financial problems that negatively affect strategic planning,
Culture is one of the primary components that determine business performance in new markets. Introducing a new product can be challenging, especially when the entity has not gained adequate trust from the consumers. Hofstede’s 5D model highlights factors that 8influences people’s perception of specific products in the market (Bryson et al., 2018). Therefore, low trust in the quality of the products can pose a major challenge to the performance of the business.
Feedback Mechanism
Potential reactions from the clients play a key role in setting new standards for conducting a business. To meet customers’ expectations in the market, the Toolscorp feedback mechanism should act as part of the strategy program. A feedback mechanism ensures that decisions and actions are taken when a specific strategy fails to work as planned (Wolf & Floyd, 2017). One of the feedback mechanisms considered for the five-year plan involved collecting data analysis of information and willingness to take appropriate action.
Targets set for the five-year plan will help in collecting information required for marketing analysis. Feedback from customers, actions taken by the competitors, and employees’ concerns are highly required to result from the five-year plan initiative. Therefore, creating awareness of events impacting the business is an input that aims to facilitate the success of the planning process.
Data collected is important in analyzing initiatives of the next year’s Analyst on social media content, Sources from artificial intelligence and data science plays a significant role in delivering a vital feedback mechanism.
Ten-year Strategic Plan
Aims
Toolscorp ten-year timeframe is one of the longest forecasting subjects in any business environment. The primary focus of the plan is on the competitors, market analysis. It is one of the strategic goals that will enable Toolscorp to stay ahead in the marketplace.
Objective
The primary objective for the the10-year plan is to create a baseline and define a market based on financial achievements.
Implementation Plan
The financial strategy will focus on revenue growth which is estimated to be 40% per year. Secondly, productivity improvements will also be prioritized as a core element defining organizational performance. The strategy will be achieved by maintaining profitability with a budget allocation of more than 60% for the business investment.
The strategic customer objectives will focus on improving professional services. To implement the strategy, the program will focus on identifying competent skills among its employees (Ahmad, I. & Ahmad, S. B., 2019). Training and hiring of experienced personnel will facilitate the achievement of this goal. Moreover, the plan will focus on maintaining contracts through the licensing and maintenance of contracts.
Training will help the team to grow professionally. It aims to support a flexible work life and provide intellectual work. Moreover, community involvement will be considered as part of customer communication models. Community plays an important role in determining the performance of the business (Moorman & Day, 2016). Therefore, Toolcorp management will focus on improving its relationship with the community.
To be a professional partner of choice, the entity will develop software programs to track clients. Moreover, maintenance of contracts will focus on targeting new customers. The strategy will be achieved by implementing marketing campaigns. One of the steps to achieve the goal is to create new web pages for campaign promotions. Increasing the sales cost rate will also facilitate efficient marketing models.
The 10-years plan will also focus on maintaining to utilize technology as a guiding tool for innovation. To implement the goal, Toolscorp will encourage staff and talented individuals to explore and test new ideas. It will create a platform for experimentation and support promising talents. Overall operations aim to maintain the infrastructure of the business operation.
Potential Ramifications
The potential ramification for the ten-year plan includes competition. Competitors will aim to imitate divergent products developed by the entity. Therefore, responding to these challenges require collective initiatives that focus on remaining competitive.
Feedback Mechanism
The feedback mechanism will rely on information from big data, big data science and social media platforms. 10-years communication strategy will focus on instant messaging instant chat and prompt response to calls from the customers. The strategic initiative of communication is to conduct monthly analysis of customer’s feedback through social media.
Conclusion
Breaking into international markets is associated with dynamic challenges. Strategic objectives reduce detrimental outcomes associated with global expansion. Toolscorp corporation is one of the entities that aim to break into the international market. It, therefore, has to identify the right approach in entering into the new marketplace. One-year, five-year and ten-year plan cycle has been considered to facilitate achievement of Toolscorp’s goals.
References
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