STR 581 W5 Implementing Strategy- Strategic Plan - team B
STR 581 W5 Implementing Strategy- Strategic Plan - team B
Popular in Course
verified elite notetaker
Popular in Department
This 11 page Study Guide was uploaded by Experthelper Notetaker on Thursday November 12, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 16 views.
Reviews for STR 581 W5 Implementing Strategy- Strategic Plan - team B
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/12/15
Running Head: IMPLEMENTING STRATEGY 1 Implementing Strategy : Strategic Plan University of Phoenix International Strategic Planning and Implementation STR/GM581 Implementing Strategy 2 Abstract Implementing Strategy: Strategic Plan Implementing Strategy 3 WBS Chart Implementing Strategy 4 Gantt Chart Implementing Strategy 5 Analysis of Key Success Factors To understand the strategic path that Riordan management should decide upon, we will need to first understand what is to be considered success for this company. We task ourselves to expand and explain four questions that will help to give an analysis as to what is to be considered a strategic success for Riordan Manufacturing: Is success defined as protecting intellectual property rights (IPR)? Is success defined by reducing transportation costs? Is success defined by the level of employee satisfaction and morale? Is success defined by expanding the customer base? Intellectual Property Rights violations Although intellectual property rights are of a concern and will be expanded upon later, we can mention that IPR’s can be violated no matter where they are filed. Investing in the protection of these rights could be costly and time consuming. Litteral & Finkel is a large international law firm that practices in all areas of the law, including a customs regulation that is paid a monthly retainer fee by Riordan Manufacturing to assure prompt response to any legal inquiries. Success cannot be measured by the level of loss by IPR since Riordan has not faced any real quantifiable IPR infringements. Reducing Transportation Costs Implementing Strategy 6 Since Riordan has recently made the decision to move their production site from the Hangzhou location to the Shanghai location, they will reduce some fixed costs from the reduction of transportation costs because of reduced distance. Although this move will help to reduce some fixed costs, they will not bring in additional revenue. So this factor is probably not the best factor to use in measuring success. Employee Satisfaction Intangible resources and capabilities such as “close relationships with customers,” “close cooperation among managers,” “a sense of loyalty to the firm,” and “brand awareness” are difficult to measure yet are often important determinants of a firm’s success. (Barney, J. B. 1991) By using accounting measures, Riordan Manufacturing could over time, possibly gauge the level of production of it’s products that it is able to produce and distribute to it’s customers. Still, the customer base would need to be known. Customer Base Measuring the customer base that contributes to revenue source of Riordan Manufacturing is a quantifiable way to measure the success of the strategic plans that Riordan implements. It will show that they have people who are satisfied with their product and that if or when that base is expanded, then the longevity of the company will be stable enough to sustain any temporary setbacks that may be experienced by the company. Risk Management Plan The Riordan strategy must be able to address the longterm structural issues at hand as well as the immediate problems (Global Risks 2010, 2010). The first of many risks is the defense Implementing Strategy 7 of Riordan’s intellectual property rights (IPR) regarding our patented processes and products. China’s ineffective IPR regulations have cost companies more than $60 Billion for companies based in the United Stated, Japan and the European Union. The potential for even greater losses exists as companies move more of their missioncritical research and development functions to China, creating ever greater exposures. In addition to lost sales, a company’s reputation and brand image—which are harder to put a dollar figure on—are damaged by IP theft (global.marsh.com). Counterfeit goods apprehended by authorities upon entering the United States from China are significantly higher than from any other country. They account for 10 times the amount by other countries importing good into the United States. Another risk that we must be aware of is tariffs our company will face importing plastics into China. China's accession to the WTO has provided significant benefits to U.S. plastics and resins exporters. Specifically, the average rate has been reduced to a final average rate of 10%. In 2008, import tariffs on all polymer plastics will be lowered 1 percent from 7.6 to 6.5 percent. Most quotas will be abolished on many plastic products. China has also agreed that any supplier or manufacturer will be permitted to import most products, including plastics and resins, into China after a threeyear phasein period. U.S. companies operating in China will also be able to freely distribute plastic goods in China (www.buyusa.gov) this risk will be an overall low risk due to the long term free distribution of plastics in China and potential long term profit that will be realized. Ongoing Evaluation Plan Evaluating and maintaining control of the implemented strategies can be achieved by several metrics method. Pearce & Robins, 2009, discusses premise control, which is “designed to Implementing Strategy 8 check systematically and continuously whether the premises on which strategy is based are still valid (p. 140). Scanning several factors, including environmental and industry factors can provide ongoing evaluations for Riordan Manufacturing. Comparing the current and foreseeing future environmental factors, such as economic, political, social, or technological changes, can provide information to Riordan to evaluate their current strategies and modify accordingly. Further, evaluating industry factors, such as competitors and product substitutes, can also aid in company evaluation to stay on the right track to meeting the ultimate goal of gaining competitive advantage and product differentiation. Strategic surveillance can also assist in ongoing evaluations for Riordan. Strategic surveillance is “monitoring a wide range of events inside and outside the firm” (Pearce & Robinson, 2009). Routine and nontargetspecific scanning of the implemented strategy can bring to light any deviations from the intended strategy. Such information can provide Riordan with the current status of Riordan as well as intended and unintended matters regarding the strategic plan at hand. This control strategy can be an excellent tool for ongoing evaluations of Riordan’s strategic implementation. Recommendations Innovation, teamwork, increase revenues and profits, employee satisfaction, are some of the most important factors for the company. Riordan Manufacturing is facing declining sales and profits, low morale, lack of challenging work, lack of career progression and more. Riordan Manufacturing has the ability to increase sales, better customer service and employee satisfaction. Changes must be implemented quickly to improve sales and profitability this is why Implementing Strategy 9 Riordan is ready to find the best way to make changes and solve problems. Due to falling sales and profits, Riordan made several strategic changes in how the organization develops and sells its products. To help increase sales and profits, Riordan Manufacturing has adopted a strategic business support. A key part of Riordan’s marketing strategies and prices include investments in product differentiation in different markets to create a competitive advantage. The purpose of this activity is to diversify the company’s products to ensure the initial demand for products and the cultivation of brand loyalty to ensure that sales are increasing, or at least maintained. Product differentiation can be achieved by various methods, quality and efficiency, innovation and new features, design, layout and packaging. In addition, diversification can be created with the adoption of branded products through advertising and product development. To support the marketing strategies and prices, it is recommended that Riordan focuses on creating a differentiation strategy that determines the quality, reliability and long life of their products. To support this type of situation, Riordan has to designate funds for research, development and testing of their products against competing brands. The redesign of packaging and developing an advertising campaign is key for product differentiation construction. The packaging should be attractive to the consumer and backed by the visual communication of product quality through advertising and the media, consumers are more likely to choose products from Riordan ensuring the company has no competition. Conclusion Implementing Strategy 10 . References: Global Risks 2010 (2010) A World Economic Forum Report, Retrieved 2010 from http://www.weforum.org/pdf/globalrisk/globalrisks2010.pdf Marsh, (2010) Risk Alert: Understanding China’s Business Risk Environment Retrieved 2 Oct 2010 from http://global.marsh.com/risk/china/chinarisk/Marsh_Risk_Alert_China_ Final.pdf Mintzberg, H., Lampel, J., Quinn, J. B., & Ghoshal, S. (2003). The strategy process: Concepts, contexts, cases (4th ed.). NJ: PearsonPrentice Hall. Pearce, J. A., II, & Robinson, R. B., Jr. (2009). Strategic management: Formulation, implementation, and control (11th ed.). NY: McGrawHill. Implementing Strategy 11 United States Department of Commerce (2010), U.S. Commercial Service, Retrieved 1 Oct 2010 from http://www.buyusa.gov/china/en/chemicals.html#_section3 University of Phoenix (2009). “Riordan Manufacturing Virtual Organization” Retrieved from STR/GM 581 Materials Page
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'