Strategic planning

Con Edison is a utility-based venture that has been on the verge of bankruptcy for quite some time, as the company has been steadily losing market share due to slow operation and rising prices.
Con Edison's key goal is to make energy-related facilities more affordable and accessible to all. Fundamentally, Con Edison as a company has met its goal by consistently upholding its central mission of transferring and expanding energy-related resources across the world. The company, as a reputable and influential institution in the world, employs over 14,800 people spread throughout the state. Due to its expansion and extensive plans, Con Edison accounts for over a third of the energy services that are supplied within the nation. The capacity of the firm is accrued to its diverse source of energy and electricity generating structures that range from geothermal, hydro (main source), thermal and wind powered alternatives as well as the provision of gas and steam.

Con Edison is aiming to develop a strategy that will seek to counteract the strategic uncertainties that may arise. Con Edison relies on a corporate Strategy to design how inter-divisional synergies are captured and how an organization identifies and manages strategic uncertainty. Supporters of Con Edison’s strategy argue that industry structure drives corporate strategy, while critics, on the other hand, disagreed by stating that the efficiency of an organization is the driver of corporate strategy. To achieve this, Con Edison utilizes a mix match style in a bid to craft the perfect turnaround strategy. For instance, the institution has invoked new money-saving strategies as an approach of boosting the firm’s cost efficiency.

With the aim of ensuring the retention of employees, Con Edison accepts the focus on cost efficiencies via reduction of cost comes with risks on the side of employee such as the reduction of morale and motivation of employees, which commonly results in high employee turnover rates. As such, Con Edison utilizes a supportive turnaround strategy that focuses on the organization’s core business and activities. This strategy enables Con Edison as organizations in turnaround mode to better define the markets they operate in, as well as clients and products that are most profitable, and to refocus the organization’s core competencies in these areas. This is where clients tend to be more committed to the organization and is where the organization has clear competitive advantage and/or strengths.

Additionally, Con Edison also utilizes the blue ocean strategy as an ideology that was conceived by its transitional department managers. As a platform, the approach perceives market constraints and industry structures as mere constructs of the player present. Thus, blue ocean strategy cherishes the ideology of reconstructing the actions and beliefs of numerous players in the market provoked by the need to establish Con Edison’s products as the systematic target. Under the proposed parameters, the newly created markets will be defined by uncontested spaces (Kim and Mauborgne, 2005). One objective by the Con Edison is to make competition irrelevant, therefore, strategies are set up to capture new demands, thus tapping into an infinite market. Secondly, under the integrated strategy, the firm aligns new systems of implementing a feature that will break value and cost trade-off. Cumulatively, the platform will eventually transform the market in search of low-cost alternatives and differentiation.

Another significant objective by the Con Edison is to do away with the unhealthy competition that may threaten the existence of robust platforms in the future. Con Edison’s strategy is a platform that desires to terminate the event by reconstructing the modern day markets into a coexisting and non-competing nature (Kim and Mauborgne, 2005). By adopting the firm’s strategy, competing companies can realize new and creative approaches to accomplishing revenue growth. As an approach, it is a sustainable marketing approach that cherishes a futuristic perspective. If companies desired to become the next revolutionary players in the industry they should integrate Con Edison’s mission and objective strategy. Con Edison strategy is hoped to offer its implementers handsome revenue and perpetual brand equity; an aspect ventures strive to achieve. Cumulatively incorporating Con Edison’s strategy into an enterprise is simple, since it begins by restructuring the organisation's Implementations from within.

Impact of Stakeholders in strategic planning by Mendelow Matrix

Con Edison is a publicly traded firm on Wall Street, an aspect that implies that the firm is governed by a body of shareholders. In order to perform stakeholder mapping, Mendelow Matrix is applied (Gledhill and Harris, 2010). The firm acknowledges the importance of the role played by the shareholders within the company whether if any resistance by the stakeholder will going to have a negative impact in the realization of the strategic plan. As such Stakeholders are empowered to utilize various platforms to influence Con Edison’s financial performance and revenue realization. For instance, an advertisement is the first alternative, independent stakeholders can place adverts and commercials that display positive and noble actions of the firm, Con Edison products description, and upcoming product bargains. By doing so, the stakeholders contribute in the firms optimistic future by building its brand. Secondly, the use of customized online media platforms and services can enhance the firm’s image. A section of Con Edison’s stakeholder’s involvement success is attributed to its proficiency in the energy market. Stakeholders can opt to introduce more cost-friendly online purchase platforms that are interlinked to Con Edison’s original service. The new platforms established in different regions or market niches will promote Con Edison’s supremacy in the energy industry.

Task 2: Strategic Options

Alternative Strategic Options

Initiating worker recognition

Ali and Ahmed (2008), found that worker recognition isn't simply a pleasant factor to try to fondle with for folks. Worker recognition may be the tool of communication whose purpose is for reinforcing and rewarding the foremost necessary result folks produce in the business organization. The efficient system of recognition of workers is effective and straightforward. This is a big advantage for the business organisation. One potentially good thing about a regular interaction by the outcome rating and payment rewards will improve motivation worth of rewards. The success is achieved by the existence of a link that is more clear that includes the pay and the result (Anderfuhren-biget Simon et al., 2010).

There's doubtless of bigger misunderstanding concerning links existing amongst results and payment. The argumentation presupposes the system of performance appraisal differentiates amongest that performance appraisal system differentiates between completely varied phases of the performance makers (Ali and Ahmed, 2008). Jamil and Raja (2011), bring forth credibleness practiced by the overseer as the sign of motivation. Moreover, the amount of the feedback result on an effective worker’s performance in the future.

Additionally, sufficient proof is available that workers will not accept any form of feedback that is not in line with their working beliefs and practises. Several institutions, define the annual performance appraisal on the basis of rewards diversity received by workers. Sufficient proof additionally brings into perspective the organization of learning leaders must be the role models that are sensible to champion learning that is proactive, in and of itself character will tend to promote the event of culture of learning that is powerful (Hakala, 2008; Jamil and Raja, 2011).

Leaders ought to empower structure members in information inquiring and sharing (Finkle, 2011; Hakala, 2008) and also the follow of generative learning (Axelsson and Boked et al., 2009). Excluding those expressed behaviours with the function, flexibility of gathering appropriate feedback. The feedback can be solicited from the members structure receptive to critics. These are considered as the essential leadership qualities in organization of learning (Finkle, 2011). In line with how the structure performance affects leadership, many students say that institutions can bring home the superior bacon performance that leader in leadership capacity demonstrates by adopting proactive learning behaviors (Jamil and Raja, 2011).

Fostering the organisation of learning

An organisation of learning may be the method such that a corporation has to provide a setting scientifically such that workers are triggered to produce results. It can be an additional task for the top management to come up with ways designated to enable the implementation by the workers. A strategy as such could be worked to form positive measures workers power-enabled to succeed in best performance level (Axelsson and Bokedal, s 2009). In learning to set, it's the organisation’s role to supply the needed methods to make each worker realise their full potential at work for the betterment of the entire business organisation. It can be turning into the property of the establishment and also the establishment obtaining loyalty to the workers.

It's upon the organization to speculate within the workers therefore on manufacture such that workers that are senior lead the junior workers. The result is the negative gap of missing skills will be done with. Within an organisation of learning the following are important ingredients of learning; 1) democracy with involvement for decisions 2) developmental coaching 3) teamwork 4) awards with compensation 5) effective communication that is confusion free. This creates a setting of trust (Jamil and Raja, 2011). Axelsson and Bokedal, s (2009) assert that levels of worker performance believe not solely on the employees’ actual skills, however additionally on the extent of motivation they exhibit. As such, the productivity and workers retention are thought of as functions of worker motivation (lord, 2002). Sources of motivation additionally put a strong bearing like the rate of turnover, also contentment and commitment in the job is upheld.

Strategies to drive employee’s remuneration

Rewards that are non-pecuniary shouldn't be restricted physically or socially. However, the progress of each and every individual in the work place is what should determine renumeration. Greatest motivations for a few workers are resulted from the proper of choice to perform difficult activities and activities that add worth in a very scope on the far side formal verbal description (Axelsson and Bokedal, s 2009).

Performance rating and pay rewards is potentially good as it strengthens the motivation amongst the workforce and gives out a clear path for the performance that deserves a particular pay. Doubtless misunderstanding still exists between performance and payment, in the determination of worker performance and the corresponding legal pay. This case assumes that performance recognition system distinguishes amid completely different levels of performance (Ali and Ahmed, 2008).

Reward structures and worker commitment

A prime variable that is receiving increased attention as a significant factor of performance is worker engagement (Jamil and Raja, 2011) as an example, Hakala, (2008) counsel that coming up with the performance management method to foster worker engagement can result in higher levels of performance. Performance management method can so be increased by that specialize in worker engagement as a proximal outcome and elementary determinant of job performance. Worker engagement may be a comparatively new construct (Finkle, 2011) and also the factors that manufacture engagement is also completely different from people who manufacture additional ancient worker outcomes like job satisfaction and structure commitment (Finkle, 2011).

Concerns of the way to promote engagement as a fascinating outcome of the performance management method so represent a big, however untested, development within the performance management literature (Ali and Ahmed, 2008). Also, building on the positive science movement (Finkle, 2011; Axelsson and Bokedal, s 2009), a lot of up to date structure analysis adopts a positive approach to understanding structure phenomena.glorification and appreciation from workers aboard of complementation. Encompassed within the method of information management is one in every of the most psychological feature factors in the position of holding of formal ceremonies and appreciation from workers' role. even employees in the agency have an {appropriate and acceptable} regular payment and receive appropriate reward are inspired towards productivity improvement and analysis of the organization and, as a result, show an additional try (Buchner et al., 2007). Appreciation is completed in numerous ways that. Providing of presents is one in every of these ways that. The methodology of providing of presents might manifold the result of presents. Asserting of the management appreciation to people through written letter, playing of meeting in their presence, email and are alternative ways that of appreciation (Finkle, 2011).

Assessing the feasibility of the alternative strategic options

The task of developing a calculated rewards framework for the institutions is sometimes difficult however it is necessary to survive in the competitive and dynamical marketplace. The method can't be derived from the organizations, however, the platform must be designed, developed and fully grown at intervals the distinctive setting of organization (Ali and Ahmed, 2008). A simple strategy rewards system measures changes in behaviour that contribute to obviously outlined goals. The hindrance of developing such efficient program lies in selecting what rewards are effective agents of modification, what behaviours will be modified and also the value and edges of eliciting change (Axelsson and Bokedal, s 2009)

Employees ought to bear in mind of the link between how they perform and also the rewards they get. Organizations ought to apply performance management programs that assist in coming up with worker performance, monitoring strategies by effecting correct measurement tools (Purkayastha and Chaudhari, 2011). Rewards ought to be used as a measure of strengthening sensible behaviour among workers also as productivity. Therefore, reward systems ought to specialize in reinforcing positive behaviour. Sarvadi, (2010) posits workers might be rewarded for operating overtime, taking initiative, teamwork, liableness, exceptional attending, outstanding client feedback, meeting deadlines or timeliness, productivity, etc.

Employers and managers ought to then style or return up to a system to live or quantify these aspects so that rewards are then given consequently. An honest reward system that focuses on rewarding workers and their groups can function as a drive for workers to achieve greater performance, therefore finding oneself accomplishing the institution's goals and objectives (Kamalian et al., 2010).

Purkayastha and Chaudhari, (2011) acknowledges efficient reward program might have three components: immediate, short and future. This means immediate recognition of honest performance, short-term rewards for performance might be offered on a monthly or quarterly basis, and long-term rewards are given to cherish loyalty over the years (Hakala, 2008). Immediate rewards are given to workers repetitively so that they will bear in mind of their outstanding performance. Immediate rewards embrace being praised by an on the spot supervisor or it might be a tangible reward. Short-term rewards are created monthly or quarterly basis is counting on performance. Samples of such rewards embrace money edges or special gifts for exceptional performance (Buchner et al., 2007).

Risk assessment

Risk Identification; Vroom’s expectancy theory

Howl recommended that people can select behaviors they believe can lead to the action of specific outcomes they price. When making a decision what proportion effort to place into work behavior, individual are probably to think about three things; valence, instrumentality, and expectancy.

Anderfuhren-biget Simon et al., (2010) suppose that all these factors are usually stated as ‘vie’ and that they are thought of to influence motivation in a combined manner. Managers ought to so commit to guarantee their workers that inflated effort can cause higher performance which can, therefore, cause valued rewards (Buchner et al., 2007). The relevance of this theory to the study is that CON EDISON has a place up rewards (cash bonuses) that are presupposed to be enticing therefore on reach the desired outcome that is worker performance. So workers got to exert effort in their work that may cause a particular level of performance that's fascinating by management, which can then result to a bequest (Prasetya and Kato, 2009).

Performance-reward relationship

A variable that is receiving increased attention as a key determinant of performance is worker engagement (Purkayastha and Chaudhari, 2011). Sarvadi, (2010) recommends that coming up with the performance management method that can foster worker engagement causes a higher level of performance. Performance management method can so be increased by that specialize in worker engagement as a proximal outcome and elementary determinant of job performance. Worker engagement may be a comparatively new construct (Anderfuhren-biget Simon et al., 2010) and therefore, the factors that manufacture engagement is also completely different from people who manufacture a lot of ancient worker outcomes like job satisfaction and structure commitment (Kamalian et al., 2010). Concerns about a way to promote engagement as a fascinating outcome of the performance management method so represent a big, however untested, development within the performance management literature (Purkayastha and Chaudhari, 2011).Additionally, building on the positive psychological science movement (Jamil and Raja, 2011).

Risk Analysis; Empirical research

Ahmed and Ali (2008) dispensed a research on the “impact of reward and recognition programs on worker motivation and satisfaction”. Analysis style used was explorative. The sample chosen for the study was eighty workers of CON EDISON firms, and assortment knowledge instrument used a form. Pearson’s correlation was used to analyse knowledge to work out the degree of relationship between reward and satisfaction and motivation. Buchner et al., (2007) asserts major findings indicated a positive relationship between rewards and work satisfaction also as motivation. Factors touching satisfaction were identified in percentage; payment eighty-sixes, promotion seventy-four, work conditions sixty-one, personal thirty-seventh (Prasetya and Kato, 2009). Analysis proves support for a beneficial relationship between reward and worker satisfaction. The researchers counselled that more studies may be done on ‘impact of reward and recognition on motivation and satisfaction for various teams of people’ example gender, race and incapacity.

The preferred strategic direction

The alternative strategic direction to be undertaken is the employee reward system. This is supported by a study conducted by Buchner et al., (2007) the systems of reward inside the sectors responsible for health with geriatric care. In essence, matter under study, however, rewarded health care systems. Statement of thesis had the aim of increasing data of the systems of reward particularly in health care. The approach undertaken by the methodology was particularly qualitative. This approach conducted interviews on six in each of both public and non-public organisation. From the results, it was shown that two had the experience of work in geriatric care whereas four in the sector of health. The scientific work did support the theoretical framework approach regarding the systems of motivation and rewarding. Cumulatively the results shared a similar construct as that of Con Edison’s strategic plan.

Task Three: Implementation Plan

Factors to consider

The Con Edison organizational policy of achieving clean and reliable source of energy will play a significant role in achieving the venture set target goal; it will incorporate various actions that the organization will implement to support strategic objectives of the managerial team. It is fundamentally important that the plan covers day to day Implementations in order to schedule business Implementation procedures, another important aspect that seems mundane but is vital for the organization to realize its success is tracking of inventory. This will enable it determine the net inflow from sales while still determine the stock: liquidity ratio.

CON EDISON’s Implementation Plan

Strategic Intent

Objective

Strategy

Performance Indicator

Timeline

Responsibility

Stock Taking

To assess the stock: liquidity ratio

Encourage and reward frequent stock takers

In-house campaigns, memos, and notes

At onset of the high season

Stocktaking clerks

Evaluation of key developments

To determine the success rate of the project

Conduct interviews and surveys on employee satisfaction

Results tabled from the study

Before the high season commences

Junior employees across the department

Developing a Layout manual

To provide guidelines for various requirements within the organization

Compare adherence with rejection

Managerial

Meeting, supportive

brochures

Before the high season commences

Junior Managerial

staff



Supply Chain Management

Planning process

There are numerous benefits that a venture such as Con Edison can realise when it adopts an improved supply chain system. An efficient supply chain is impactful within the business niche because it saves the particular business money associated with various operational costs as well as promote faster client delivery (Gilling, and Ulmer, 2016). There are numerous strategies that a company based service such as Con Edison can implement to improve its distribution network. First, the venture should focus on improving its distribution network since the platform improves output efficiency. Delivery plays a crucial role in every business, and within Con Edison, the approach impacts all the variables from raw materials to the sales strategy (Lederer and Mendelow, 1989). If a venture focuses on improving its distribution channels, it reduces the individual stock holding capacity and ultimately eradicates time wastage associated with the entire process. From a consumer’s perspective, an improvement in the distribution channel improves customer service since the approach cuts down the time spent by consumers while waiting for their products.

Supply chain improvement strategy

When implementing a supply chain improvement plan, limitations are bound to occur due to the complexities associated with the transformation process. Nonetheless, the following aspects can be deployed to curb the restrictions expected to manifest. First, when focusing on distribution networks, complexities are bound to occur based on to the incompatible structures utilised in the transformation process (Seuring and Goldbach, 2013). Con Edison as the venture under spotlight can set off the complexities by offering tradeoffs in various logistics activities that are intertwined with the supply chain structure. For instance, the investment can provide bulk service delivery programs to clients, while at the same time request volume shipments of supplies since the approach will reduce the hidden transportation costs that are associated with inventory holding. Secondly, poor inventory management and cash flow problems are bound to arise due to the rigidity of change experienced by the venture under transition. In such a case, various departments concerned with inventory and financial flow should be readily prepared to integrate effective processes such as preparation of rainy day kitties and stock banks since the approach will curb the shortages that are expected to manifest during the transition process.

Cumulatively, Competition as a factor is present across all sectors except monopolistic markets, hence for a venture such as Con Edison to gain a competitive advantage over other service players, the institution should focus on establishing an efficient strategy management structure.

Monitoring and review of the strategic plan

Assessing each step is an essential follow-up step that enhances the success of the organization's overall Implementations procedures. It is important to develop a manual that will elaborate the layout of company’s functions and supportive role. Planning is paramount, and a successful strategy for the entire process. Though it should be clearly spelled in the plan, it is recommended the planning community integrate this into the company’s Implementation plan to facilitate compliance among the workforce.



The overall IMPACT of CON EDISON’s Business Plan

CON EDISON’s plan will be a crucial element responsible for elaborating the outline of the business functions, as well as the market in which the organization will operate. It will provide insights on how the company aims at making money. Generally, the business plan will elaborate the competitive edge over the rest of the companies.

A business financial plan lays insights on the current financial standpoint of most organizations. By analysing various financial documents integrated a finance plan can assess the financial budget and standpoint of a company. It’s a suitable factor that a company should plan before initializing any project or activity. By utilizing a business plan a company is able to assess the net revenue it earns during various seasons and cut off on the increased budget expenses.









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