1. Write a mission statement that defines why your company exists. To provide world-class products and excellent customer service. The cornerstones of the organization are value, customer relationships, and integrity, which are expected to contribute to the long-standing reputation of the business.
2. Write a vision statement. To be the market leader in the industry and provide a portfolio of quality products that exceed the needs and desires of the market. We also strive to be a better place to work and influence individuals to be the best they are able to be.
3. Write a values statement. We shall constantly endeavor to expand beyond the obvious, comprehending the needs of the customers and surprising them with unique products. The company shall strive to be always a step ahead of the competitors expecting and accepting change and always employing innovation in the design of products and services.
4. Analyze the external environment that includes various aspects, such as political and economic trends.
Political: Some political factors have impacted the U.S food industry. Just like other industries, the ice-cream market is also being regulated strictly by the government. Regulatory changes are frequently being made by the government, which impacts production and consumption patterns.
Economic: The demand for premium ice-cream products has increased in the recent past. This is because the economy has improved in the recent past with the purchasing power of households also increasing.
Socio-Cultural: The overall demand for ice-cream products are being impacted by the increasing health concerns among the consumers. Some consumers are worried about becoming obese and suffering from other health complications related to the consumption of ice-cream.
Technology: Technological advancements have improved efficiency in production and allowed the ice cream manufacturers to make better packages for the product.
Environmental: The ice cream store takes measures for the sustainability of the environment. The manufacturing processes employed by the business are environmentally-friendly
Legal: All the companies in the industry are required to get a sanitary approval, which outlines the necessary approvals for storage and packaging.
5. Perform a SWOT analysis.
Strengths: The unique flavors served by the ice cream store is one of the sources of its strengths. Secondly, the shop produces high-quality products that have good taste. Also, the directors of the business are better experienced in the industry and have a lot of creditability.
Weaknesses: It is newly established firms with less market share. It also finds some difficulties in penetrating the already competitive market. Besides, the sales of the product are seasonal, which impacts the revenue flow into the organization.
Opportunities: The demand for ice cream has increased tremendously in restaurants, hotels, and parties in the recent past. The store is offering tasty and high-quality product at cheaper prices. The high demand means that the business has better opportunities for future growth.
Threats: Threat of intense competition from both the national and the international established brands such as Cream Bell, Frosty, etc. Winter weather may also decrease the sale volumes of the product as it is extremely cold during these seasons.
6. Document potential immediate and long-term issues. One of the issues facing the ice cream shop is an uncertain future. The ability to forecast the customer trends is critical to a varying economic climate. The issue that the business faces is hiring competent staff. Attracting and recruiting the top talent could be challenging, more so if the options are limited to the smaller geographic area. The third issue facing the store is technological advancement. Technology has been changing at the speed of light, thus requiring organizations to be innovative. Nonetheless, a lot of resources may be required to upgrade the current infrastructure used by the organization to the latest ones.
7. Determine strategic goals. Innovation is the cornerstone of the ice cream store. The organization plans to think of some of the most advanced ways to promote the existing business and continue developing advanced products. In the near and long-term future, the business plans to continue launching variety and different flavors of ice creams that exceed the needs of the customers. Currently, it only has a small share of the market. However, it plans to be the market leader in the near future. For example, in the next 5 years, the company plans to have at least 40% of the local ice cream market. The shop also plans to grow its revenue by double-digit. Alternative products will also be introduced to act as substitutes during the period of low sales.
8. Establish approaches to reaching strategic goals. To double the revenue in the next few years, the sales force will be increased by 50% by the end of the next few years. To continue being innovative and produce high-quality products, the store will invest in state of the art equipment and latest technology that will increase the efficiency of the production process. The company will also invest heavily in research and development to be able to produce new flavors of the product.
9. Determine staffing requirements. Staff plays a vital role in any organization. Without staff, any business may not be able to adequately meet its strategic objectives. The shop will have approximately 10 staff who will be working on a part-time basis. Other than the management, the store will not have any full-time workers. Majority of the staff will be high school leavers who will be trained on how to prepare and sell the ice cream to the potential customers. The management has developed a training and orientation program that will see all workers trained in customer service, quality control, sanitation procedures, and cleanliness.
10. Develop an action plan to support the strategic plan. First of all, the management will formulate the mission, vision, and values for the organization. This is expected to take approximately one week. Secondly, the company will employ more temporary sales staff to ensure that the sales target are realized by the projected date. Also, additional marketing channels, such as Facebook, Twitter, and Instagram will also be utilized to market the company products to the potential consumers. Thirdly, the business development manager will create a research and development (R"D) department to design and come up with new flavors of the product and to explore alternative products that can increase the shop’s revenue during the winter season.
11. Develop an operating budget to fund the strategic plan. The table below indicates the budget by resources. The percentage of funding across various resources and goals is anticipated to remain the same throughout the year. From the table below, the largest proportion of the budget will go to research and development. The hiring of the new sales team to increase revenues will cost $4,000, New Marketing channels will cost $4,000, and Research and Development will cost $5,000. In total, the ice cream store will spend approximately $13,000 to meet its strategic objectives.
Resources/Activity
Annual Cost
Hiring a New Sales Team
$4000
Marketing
$4000
Research and Development
$5000
Total
$13,000
12. Indicate how the plan will be monitored and evaluated. One of the ways that the strategic plan will be monitored and evaluated is through the development of measurable objectives. To determine the effectiveness of the strategy, it is imperative to measure the performance and determine if it will be able to attain the company’s goals. For instance, for the organization’s strategy of developing new flavors of ice cream, the organization will measure if the new flavors of the product have been accepted in the market. For the strategy of increasing the market share, the business will perform a market survey to determine if its market share has improved in the recent past (Pearce, Robinson, and Subramanian). Revenue will also be used to evaluate the performance of the strategic plan. For instance, if there are significant increases in revenue, then the plan can be said to be successful. However, if the revenues remain constant, then the plan may be said to be ineffective.
13. Determine how the plan will be communicated to internal and external parties: One of the ways that the strategic plan will be communicated to the stakeholders is through face to face communication. Although the organization may use online models a lot, sometimes it is imperative to use face to face communications. The second method of communicating the strategic plan is projected reports (Freeman). This model provides a lot of good things and enables the management to share an array of narrative and hard statistics. The third method of communicating the plan to the stakeholders is through slides and presentations.
Works Cited
Freeman, R. Edward. Strategic management: A stakeholder approach. Cambridge university press, 2010.
Pearce, John A., Richard Braden Robinson, and Ram Subramanian. Strategic management: Formulation, implementation, and control. Columbus, OH: Irwin/McGraw-Hill, 2000.
