Organizations' strategic management demands a thorough analysis of the enterprise and its environment.
This management strengthens a company's strategic planning. The preparation refers to the phase of guidance and resources allocated to the strategy (Riskope, 2014).
It is important to understand Galaxy Toys' business for the implementation of relevant strategic management.
This report provides an evaluation of the internal and external climate in order to provide managers guidance on the strategic management needed to improve their performance. It starts with a SWOT review and recommendations. It then categorizes the goals and objectives of the company and provides a summary of the report.
SWOT Analysis
Galaxy Incorporated has been in operation for a number of years. During this period, the company has established its presence in the market producing various results. An examination of the company’s strengths, weaknesses, opportunities, and threats will help to understand the enterprise’s positioning in the market. The table below gives the SWOT analysis of the business.
Business Element
Explanation
Strengths
Exclusive right to manufacture and sell all NASA toys
Strong Management
Innovative culture
Brand Reputation
Unique products
Value workers’ contribution
Weaknesses
Inadequate outsourcing practices
Technology
Opportunities
Further innovation
Outsource making toys or toy parts
Bring new technologies
Launching new products
Threats
Presence of Similar Products
Competition from other toy makers
Alterations in the tastes and preferences of consumers
Growing influence of video games
Strengths and Weaknesses
Various explanations exist for the categorization of the company’s business aspect as indicated in the table above. The exclusive right to manufacture and sell all the toys NASA commissions is a strength as it creates a competitive advantage for the business. A competitive advantage refers to a circumstance that makes a company superior to others in the market.
Because of the partnership with NASA, Galaxy Toys has a competitive advantage as it helps the enterprise reach consumers interested in such toys. Strong management is also a strength of the business as it allows employees to participate in creating ideas for innovation and increasing sales. Management performs environmental analysis and identifies needs to inform the management functions of controlling, organizing, and leading. It allows greater responsiveness to the requirements of the market.
Innovation is also a strong suit of the firm. The company has developed various toys including the two that it is considering launching the Payload Nine and MMTJE1. Innovativeness enhances responsiveness to market needs. The years of operation have seen the company establish a strong brand. Again, the reputation is a strength as it attracts consumers who are assured of quality and innovative products from the company.
It increases the possibility that customers will choose the company’s toys when making purchasing decisions. Additionally, no other company can produce the type of toys Galaxy makes primarily because of the rights it holds over NASA toys. It makes it easier to attract consumers interested in space-related toys, especially those that carry the NASA name. Seeking the information from their workers, such as the preparation of this report, points to an enterprise that values its personnel. Such appreciation increases their satisfaction and loyalty that enhances productivity at the workplace in effect raising the performance of the organization.
Inadequate outsourcing practices and technology are weaknesses for the business. Outsourcing the development of some toy components can help the business lower the cost of operations. It refers to moving the creation of some parts of the toys to another business. Mclvor (2005) observes that outsourcing is beneficial to businesses as it helps them move aspects of a business to regions where production is cheaper, for example, where labor costs are low.
Since Galaxy Toys produces all the components of the toys by itself without assuming this strategy as a cost-reduction approach, it has a weakness that affects the performance. Technology is also another element of weaknesses. Despite the application of 3D printing in making some toys, the company has maintained the old technique of making them. Reliance on old technologies affects aspects such as cost and time that hinders competitiveness in the market.
Although the enterprise faces these issues, it has several opportunities that it can use to grow its performance. Further innovation is possible. The company can continue to innovate the business operations and the toys themselves. For example, it can choose to outsource the building of certain elements of the toys as a way to cut expenses. Also, the enterprise may opt to develop new toys to appeal to customers in the market. New technologies are also opportunities for the companies. As new ways of making items such as toys continue to emerge, the firm can make greater use of them to grow the business.
For example, Galaxy Toys can employ 3D printing in creating more toys that enable it to improve its strategic positioning by reducing the cost of production. The approach applies the concept of tactical planning, which involves outlining the ways to realize strategies (Milokuk, 2013).
Finally, Galaxy Toys faces some threats that may affect its position in the market and financial performance. The presence of other toy makers and similar products threatens the business. Toy companies, such as Lego, Maple Landmark, and Mary Meyer, pose a challenge for the business. They compete for a market share, and the potential that they may innovate their operations and products for greater efficiency can affect the ability of Galaxy to compete.
Toys are meant mostly for entertainment. Children can get entertained by other things, for example, video games. The existence of such products lowers the number of sales the Galaxy can make. Changes in the tastes and preferences of customers are another threat to the business. It is possible that children, who are the primary market, will want different toys in future. That possibility can threaten the positioning of the company in case it fails to respond to the alteration by decreasing its sales due to the inability to attract buyers.
Recommendation
Galaxy’s vision is to develop toys that motivate children all over the world to dream of exploring space and give them a yearning to realize that dream. For the business to maintain this vision, it is vital that it continues to innovate its products. As a result, it is recommended that the company continues to explore opportunities for creating new toys. Various market factors contribute to this situation. First, the changing tastes and preferences of customers make it essential for the enterprise to consider and implement ways to remain relevant in the market. Innovation based on the requirements of customers is one of the ways to achieve that goal.
In this case, the business executives should adopt the thinking of leaders rather than managers. Kerr (2015) observes that leadership demands that business heads articulate firms’ visions and motivate workers to achieve them. The managers of Galaxy should adopt the same approach as a way to boost creativity. Motivation requires comprehension of workers’ needs (Analytic Tech, n.d)
Another suggestion for the company to enhance its business performance is to analyze the production process of the toys to identify areas that it can outsource. As indicated, outsourcing is a way to reduce expenses by giving the production of non-essential parts of a product to companies that have low production costs. Galaxy Toys has faced problems increasing sales. In the case study, the company’s sales for January 2017 showed a three percent increase over the January 2016 sales raising concern among the managers about the sales. Outsourcing can help to boost performance by reducing the expenses the company incurs making its toys. Market conditions may take longer for the enterprise to respond adequately so that it can increase the revenues through sales. However, cutting costs is possible because it is an internal element of the company.
Lastly, Galaxy needs to continue investing in new technologies, particularly in the production process. Technology in business aids cost reduction and efficiency. Galaxy Toys may benefit by including the making of more toys in the 3D printing process. The SWOT analysis reveals that the company has made minimal use of the technology despite its value in controlling expenses. Managers should approach the problem in two ways. First, they should make use of 3D printing wherever possible. Second, they should adopt a culture that stresses technology. Interacting with the workers to learn where technology can be implemented and to encourage them to adopt it as part of the organizational culture is vital. Such communication also permits the managers to develop relationships and supervise progress (Lister, n.d).
Part Two
Appropriate Short-term Goals
Appropriate Objectives
Abandoned Goals and Objectives
Materials must be state of the art.
Production of quality MMTJE1 toys must start February 20th, 2018.
Completion dates for material purchase and delivery set for prototype
Establish timelines for starting production.
3D printers must be purchased and installed by November 1, 2018.
Personnel for all production functions must be organized by March 31, 2017.
Establish timelines for starting production.
Completion dates for QC standards will be determined by QC.
Materials must be purchased by and delivered by July 1, 2017.
MMTJE1 quality toys production.
Shipping should begin immediately upon final inspection from Quality Control.
Training on new equipment must be done by October 31, 2017.
Completion dates for material purchase and delivery set for production rollout
Shipping should begin July 1, 2018.
3D printers must be purchased by February 20th, 2018.
Maintenance for 3D printers must be done daily.
Production of quality MMTJE1 toys must start by July 1, 2018.
The first MMTJE1 toys should be produced by December 1, 2017.
QC should evaluate first prototype toys by December 31, 2017.
Safety standards should be determined by QC by May 1, 2017.
Shipping start dates should be determined.
New packages should be palletized by May 1, 2018.
IT must confirm programming for 3D printers is complete by June 1, 2017.
3D machine operators must be trained by October 31, 2017.
Establish timelines for completion of 3D programming, training, and installation.
Personnel must be cross-trained on the 3D printers.
Marketing will determine shipping start date.
Additional personnel must be hired by February 20th, 2018.
Goals and objectives differ significantly.
According to RDBAweekly (2013), goals are the more general intentions of a business while objectives have greater specificity. In the table above, the items listed as goals are placed in that category because they are general. Although some contain the dates, the certainty is less accurate since they commence on or before those dates. On the other hand, items in the objectives part are located there because they happen on a specific day. For example, “production of quality MMTJE1 toys must start February 20th, 2018” is an objective because they cannot start on any other day.
Summary
Galaxy Toy’s SWOT analysis reveals various strengths, weaknesses, opportunities, and threats. They may hinder or advance the ability of the company to remain competitive. It is critical that the managers understand the implications of these aspects to the business and apply the techniques recommended to reduce the effect of the weaknesses and threats while gaining from the strengths and opportunities. Further, the company should separate its objectives from the goals to help it drive business growth. Following the steps given in this report can benefit the company by growing its strategic management capability. Therefore, the contents of this report should be given emphasis to developing the business performance of Galaxy Toys.
References
RDBAweekly (2013, May 6). Goals, objectives, strategies & tactics: What’s the difference? Retrieved from https://www.youtube.com/watch?v=voZI75TyeHI
Riskope (2014). Let’s define strategic, tactical, and operational planning. Retrieved from https://www.riskope.com/2014/04/03/lets-define-strategic-tactical-and-operational-planning/
Mclvor, R. (2005). The outsourcing process: Strategies for evaluation and management. Cambridge University Press.
Mikoluk, K. (2013). Planning in management: Strategic, tactical, and operational plans. Retrieved from https://blog.udemy.com/planning-in-management/
Lister, J. (n.d). Organizational culture’s effects on a manager’s role. Retrieved from http://smallbusiness.chron.com/organizational-cultures-effects-managers-role-18426.html
Kerr, J. (2015) Leader or manager: These 10 important distinctions can help you out. Retrieved from https://www.inc.com/james-kerr/leading-v-managing-ten-important-distinctions-that-can-help-you-to-become-better.html
