Write a 700- to 1,050-word section for your business model and strategic plan in which you add your strategies and tactics to implement and realize your objectives, measures, and targets.Include marketing and information technology strategies and tactics.Develop at least three methods to monitor and control your proposed strategic plan, being sure to analyze how the measures will advance organizational goals financially and operationally.Determine the best possible options for evaluating the strategic plan. Explain the ethical issues faced by the organization, summarize the legal and regulatory issues faced by the organization, and then summarize the organization’s corporate social responsibility.Include in this section the possible implications of the triple bottom line (people, planet, profit) on the strategic plan and its implementation.Write a 350-word executive summary defining the new division of existing business. Share your Vision, Mission, final business model, and value proposition, and list your key assumptions, risks, and change management issues. Quantify the growth and profit opportunity and planned impact on various stakeholders.Note: Any investor should be eager to meet with you after reading your executive summary.Using the University of Phoenix Business Model and Strategic Planning Outline as a guide, combine Parts 1, 2, and 3 of your completed business model strategic plan with your Final Business Plan Model assignment and Executive Summary. This includes the Business Model, Vision, Mission, Values, SWOT Analysis, Supply Chain Analysis, Balanced Scorecard, and Communication Plan from prior weeks. Your consolidated final strategic plan should be 4,200 to 5,250 words in length.Format the paper consistent with APA guidelines.include references and no plagiarizing all papers you will need are attached ALL SWOT PAPERS HAVE BEEN DONE ABOUT HERBAL WORLDRunning head: SWOT PART 2
1
SWOT Part 2
Ashlei Caldeira
Bus 475
June 13 2016
Sarita Wesley
SWOT PART 2
2
SWOT Part 2
SWOT Analysis Table
Division: Herbal World
Factor
Strength
Weakness
Opportunity Threat
Trends
Legal and
regulatory
Less
restrictive
regulatory
laws
Poor quality
standardizatio
n laws
Changing
rules and
regulations
can be
favorable
Changes in
tax rates
increases the
costs of
operations
Increased
reforms on
rules and
laws
Global
Increased
presence of
herbal
products in
the global
market
Limited
flexibility in
global pricing
strategies
Renewed
global
interest in
herbal
products
No unified
system of
standardizatio
n in the global
market
increasing
global
demand for
herbal
products
Economical
Availability
of monetary
assistance
and reduced
labor costs
High loan
rates and debt
rating limits
capital
acquisition
Existence of
venture
capital
Fluctuating
prices in
international
market
Changing
economic
conditions
Technologica
l
Highly
visible
websites for
online sales
Little
technological
developments
in the herbal
world
Increased
automation
and
innovation
provides new
prospects
Rapid
technological
developments
increase
uncertainty
Increasing
shift towards
online
marketing,
buying and
selling
Innovation
Introduction
of new
products and
services
Poor quality
of new
products
Increasing
demand for
new herbal
and
improved
products
Stiff
competition
Emergence
of new
products and
distribution
networks
Strong social
belief on
Different
cultural
Increasing
population
High social
concern on
Social
reduces the
potential to
generate high
returns
Increased
awareness
SWOT PART 2
3
herbal
products
dimensions
inhibit
smooth
selling and
distribution
provides a
potential
market for
the company
the effects of
such products
inhibits full
exploitation
and use of
social
networks for
promotional
strategies
Environment
al
Biodiversity
richness and
vast agroclimatic
zones
increases the
availability
of raw
materials
Poor resource
utilization
depletes the
existing
sources of
raw materials
Increasing
environment
al awareness
on the
protection of
biodiversity
Drastic
changes in
climatic
conditions
and
encroachment
of human
beings
threatens the
survival of
raw materials
Rapid
changes in
environment
al factors and
laws
Competitive
analysis
High barriers
to entry
reduces stiff
competition
High
substitutabilit
y
High
prospects for
differentiatio
n
Many
products are
already being
sold by major
competitors
Increased
competition
towards
production of
effective
herbal
products
Strategy
The firm
uses a
differentiatio
n strategy
that provides
a good
competitive
edge
The strategy
does not align
well with the
organizational
goals
The ability to
combine
various
strategies
provides a
good
competitive
advantage
Many
companies are
pursuing the
same
strategies
Companies
are
combining
different
strategies to
get good
results
Structures
The division
uses a
flexible
structure
The structure
does not
match well
with strategy
Emergence
of matrix
structures
that are
efficient in
aligning well
Some
structures
inhibit full
exploitation
of the
company’s
potential
Companies
are changing
their
business
structures to
adopt to
changing
SWOT PART 2
4
with different
strategies
market
conditions
Processes and Updated
Systems
processes
and systems
Some
processes and
systems are
costly to
implement
and maintain
Emergence
of new
processes
and systems
that support
production of
herbal
products
Technological
problems that
come with
new processes
and systems
Adoption of
more
efficient and
lean
processes
and systems
Resources
Poor
cultivation
practices
There is an
increasing
demand for
herbal
products all
over the
world
Over 60% of
plant
collection
comes from
wild sources
Increasing
attention
towards
proper
utilization of
Availability
of raw
materials
natural
resources at
personal
level
Goals
Clear and
measurable
goals that
align with
strategy
Lack of
SMART
objectives
that relate
well with the
goals
Increasing
emphasis for
firms to
develop clear
goals and
objectives
Unrealistic
goals
Management
by objectives
is a strategy
being
adopted to
ensure that
goals and
objectives
are aligned
Strategic
Capabilities
High
strategic
capabilities
Lack of well
experienced
personnel to
carry the
strategy
Increasing
need for
strategic
planning
Lack of
enough
resources to
support the
strategy
Increasing
use of
strategic
management
as a business
tool
Culture
Innovative
culture
Reluctance by Increasing
employees to workplace
adapt to new
diversity
Rapid
Globalization
changes in the is increasing
business
the need for
SWOT PART 2
5
cultures with
ease
encourages
innovative
culture
environment
destabilizes
the existing
culture
companies to
adapt to
different
organizationa
l cultures
Intellectual
property
Possession
of patent
rights
Lack of strict
rules to
protect
intellectual
property
Increased
campaigns
and
awareness on
protection of
intellectual
property
Increased
piracy,
counterfeiting
and violation
of copyright
laws
growth in
patent
application
fillings
Leadership
Visionary
leadership
Little
resources to
invest in
leadership
Expansion of
business
operations to
global
markets
provides
opportunities
for
employees to
display their
leadership
capabilities
Lack of
proper
training and
development
on the
leadership
Increased
trends
towards
seminars and
conferences
for training
employees
on how to
become
effective
leaders
SWOT PART 2
6
There are various forces and trends that are impacting on the way the new division will
operate. The most relevant are the economic forces which include changing market prices both
locally and globally which greatly affects the sales of the new division. Fluctuating foreign
exchange rates reduces the firm’s potential of earning maximum returns on foreign sales. High
interest rates and cost of borrowing capital hinders the ease with which the company obtains
additional capital to finance its operations. There is increasing changes in legal and regulatory
requirements that are increasing the compliance costs for the company which greatly impacts its
overall performance. Increased imposition of excise duties and taxes especially sales taxes and
licenses increases the costs of operations which in turn eat into the company’s profits (Nair &
World Congress of Agroforestry, 2004).
The company has managed to adapt well to economic forces and changes by adopting
flexible pricing strategies to take care of changing market prices. The company has also
expanded its operations in foreign markets to avoid the costs of fluctuating foreign exchange
rates. In addition, the company is utilizing other economical sources of capital to finance its
operations such use of retained earnings and issuing of equity to obtain additional capital rather
than obtaining a loan. However, the company has not been able to adapt well in relation to
changes in legal and regulatory environment as some laws have to adhere to strictly which has
been very costly to the business (Paul, 2010).
Being an herbal world, the supply chain of the new division is analyzed right from the
production, distribution and marketing perspective. In the production phase, herbal world
division obtains its raw materials from wild sources and cultivated material which are then
harvested, processed and traded. However, one concern in this supply chain stage is the
SWOT PART 2
7
sustainability of the wild sources due to the fact that many of the raw materials are always
harvested from the roots and this are the most difficult parts to harvest in a sustained manner.
Wild harvesting is also associated with high labor costs. Availability of labor is another critical
factor affecting the supply chain process of the division during the production stage. The division
will mostly utilize the cultivated material since production is on a large scale and this requires
standardization of the products in terms of quality and content. Collection of raw material from
wild sources leads to a lot of inconsistencies which affects the ultimate quality of the outputs.
Plans have been put underway to ensure production of high quality products using low input
cultivation methods to ensure success on the international market. The division will also utilize
contractors for cultivation purposes in order to utilized their high skills and reduce the costs of
cultivation (Thompson, Gamble & Strickland, 2006).
The distribution stage of the supply chain involves the producers, primary collectors,
contractors, wholesalers and suppliers. Collectors are overly dependent on the contractors and
due to involvement of many stakeholders, post-harvest handling cannot be controlled adequately.
In order to develop core competencies and resources within the supply chain, several
practices will have to be adopted by the new division in order to bring about positive impact on
the business model and various stakeholders. For instance, the division is looking forward to
organize cultivation of material according to the accepted standards, assurance of quality control
through recognized quality labs, increase control of post-harvest handling, selection of
commercially desirable product traits and establishment of product standards that are flexible to
enough to adapt to changing consumer demands and legal requirements (Pearce & Robinson,
2009).
SWOT PART 2
8
Hypothesis: There is no renewed global interest on herbal products
Research question: What is the impact of renewed global interest on herbal products?
The circumstance surrounding this issue is revived global interest by consumers all over
the world on the effectiveness of herbal products. The circumstance can be classified as an
external trend because it is an outside force the impacts on the success of the business. Renewed
global interest is an opportunity to the business increased interest in herbal products means that
consumers are now considering it as better alternative to non-herbal products.
Hypothesis: There is no significant consumer demand for herbal products
Research question: Is there an increase in demand for herbal products by consumers?
The circumstance surrounding this issue is that there has been an increasing trend
towards demand for herbal products by consumers in the market. This can be classified as an
opportunity for the business because with increasing demand for herbal products, Herbal world
division will have a potential market to sell its products and this is an advantage to the business.
Hypothesis: There is lack of innovation for new herbal products and processing machines
Research question: Are new herbal products and processing machines being innovated?
The circumstance surrounding this issue is the recent innovations that have been
experienced in the herbal industry in terms of new products and the machines to process such
products. This is circumstance can be classified as an opportunity because it introduction of new
products and machines provides and avenue for the division to diversify its product offerings
with the help of the new and efficient machines.
SWOT PART 2
9
Hypothesis: There is no unified standardization system in the global market
Research question: Is there a unified system of standardization in the global market?
The circumstance surrounding this issue is inconsistencies in the acceptable quality
standards for herbal products due to variations in the local standards. This circumstance can be
classified as a threat because lack of a unified standardized system means that some products
will not be able to meet to the required quality standards and this threatens the credibility of the
herbal products in the market.
SWOT PART 2
10
References
Nair, P. K. R., & World Congress of Agroforestry. (2004). New vistas in agroforestry: A
compendium for the 1st World Congress of Agroforestry, 2004. Dordrecht [u.a.: Kluwer.
Paul, J. (2010). Business environment: Text and cases. New Delhi: Tata McGraw-Hill.
Pearce, J. A. II, & Robinson, R. B. (2009). Strategic management: Formulation, implementation,
and control (11th ed.). New York, NY: McGraw-Hill.
Thompson, A. A., Gamble, J. E., & Strickland, A. J. (2006). Strategy: Winning in the
marketplace: Core concepts, analytical tools, cases (2nd ed.). New York, NY: McGrawHill.
Running head: STRATEGIC PLAN PART 3
1
Strategic Plan Part 3
Ashlei Caldeira
Bus 475
June 20 2016
Sarita Wesley
STRATEGIC PLAN PART 3
2
Strategic Plan Part 3
BALANCED SCORECARD AND COMMUNICATION PLAN
Key Trends, Assumptions and Risks
A balanced scorecard is a performance management tool that is used to analyze the
strategic initiatives of a company by outlining the various strategic goals and objectives of a
company as well as their measurement metrics and targets in order to optimize the performance
of critical areas of a company. Since the proposed new division operates in competitive
environment that is experiencing rapid technological innovations, increasing online marketing,
buying and selling, increasing global interest as well as consumer demand, the final business
model is assumed to be an innovative one which means that the company will have to spend a
considerable amount of money to set up the new division by installing new machines, increasing
the number of employees and training costs for the employees who will work in the new division
and many other set up costs. Another assumption is that the company will have to compete in
new market segments and has to look for ways of maintaining a competitive advantage in the
industry as it looks to serve even in the global markets. The new division will have to be
innovative enough to gain a global appeal. However, the main risks that may face the business
include fluctuating prices in the international market, stiff competition that can reduce the
company’s profitability, increased uncertainty due to rapid technological developments, lack of
enough resources to support the business strategy, technological problems and lack of proper
training and development that can greatly impact on the success of the business (Paul, 2010).
STRATEGIC PLAN PART 3
3
In light of the above trends, assumptions and risks, the following strategic objectives will be
utilized as measures of attaining the vision and mission of the new division of the existing
business.
Balanced Scorecard
Quadrant
Strategic Objective
Measure
Target for Year 1
Financial Perspective
To increase the
market share
Percentage increase
in market share
10%
Be profitable within
the first year
Profit margin
Break even
Control 50% of the
total sales in the
herbal industry
Increase total sales by
15% per quarter
Market share
5% per year
Improve the
competitive position
in the herbal industry
Customer Perspective
Improve customer
service in the market
To ensure excellent
quality for products
offered
To focus on
customers and
increase their loyalty
Customer satisfaction
Customer retention
and loyalty
Increase the rate of
customer satisfaction
by 3% every quarter
STRATEGIC PLAN PART 3
4
Retain more than
60% of customer
base annually
Process or Internal
Operations
To increase the
efficiency of the
supply chain
Improve the
recognition of the
company’s name
Improve the
productivity of the
new division
Learning and Growth
Increase the
employees’
knowledge about the
business strategy
Enhance the
capability of creating
innovative
technology
Improve the job
satisfaction of
employees
Risk Mitigation and Ethical Implications
Average unit cost and
cycle time
Intensity of the
marketing and
advertising campaign
put in place
Productivity rate of
the new division
Reduce the average
unit cost and cycle
time by 2% every
quarter.
Increase the
company’s presence
in 3 months
Increase the average
output of the new
division by 5%
annually for the next
3 years
Number of training
hours used
Improve the training
program to 20 hours
per week
Introduce new
emerging herbal
products
Launch one
innovative product
per year
Employee turnover
rate
Reduce the turnover
rate by 5% every year
STRATEGIC PLAN PART 3
5
Utilizing the balanced scorecard in the strategic initiatives of the company is a very
imperative approach for the success of the new division. In order to mitigate the risks identified
above, the division should assess all their areas of potential risks since all the strategic objectives
are associated with some degree of risk. In order to mitigate these risks, the division should
assess all the potential areas of risks inn its strategic initiatives so as to come up with a
comprehensive risk management plan that will enable the company deal with unforeseen
outcomes of its strategy. For instance, the division should have to keep itself continuously
updated with current developments in the herbal industry, differentiate itself from other
competitors as well as adopt flexible pricing strategies to take care of fluctuating market prices
and to stay above the competition. The division should also comply with all the ethical standards
of producing and selling herbal products. Poor quality coupled by dishonest and unfair marketing
activities could have ethical implications for the company and can lead to penalties and loss of
shareholder value (Pearce & Robinson, 2009).
Communication Plan
The company’s strategic objectives must be communicated to all the stakeholders in a
clear manner so that they can be understood and embraced by everyone to facilitate successful
implementation towards realization of the company’s goals. Since the new division aims at
achieving several strategic objectives that will improve the performance of the company in terms
of financial or shareholder value, customer value, internal operations as well as learning and
growth aspects of the company, the following communication plan will be used to communicate
those strategic objectives to the relevant stakeholders to achieve acceptance and commitment
(Quirke, 2008).
STRATEGIC PLAN PART 3
6
Purpose
The purpose of this communication plan is to increase awareness by creating,
strengthening and preserving the support of the key division audiences by showing the
commitment of the division to performance and organizational success. The performance
excellence must manifest itself in terms of positive financial results, increased customer value
and retention, improved efficiency of internal operations and learning and growth of the overall
organization (Quirke, 2008).
Audience
There are various target audiences that the company might contact, serve and influence to
drive the organization’s strategic objectives and lead to their realization. The relevant audiences
will include the staff, board members, consumers, government, current employees, the division’s
community and the media (Quirke, 2008).
Communication Channel
Several communication channels will be used to communicate the company’s strategic
objectives. The first channel that will be utilized be face to face through an open forum with the
employees and other organizational stakeholders. This channel is effective as it will help the
management to understand exactly how the employees feel about the objectives and how well
they are prepared to act on them and helps them to engage in an open and genuine dialogue as
they help the stakeholders to understand the goals of the new division. The second channel will
be through print magazine as this will help the management to reach all the stakeholders and
STRATEGIC PLAN PART 3
7
communicate the objectives in a consistent manner and be able to reinforce the importance of the
new division. Another channel that will be used will be through broadcast media as this channel
will help the company to address a mass audience through the use of radio and television to
clarify to the audience the relevant of the company’s objectives (Quirke, 2008).
STRATEGIC PLAN PART 3
8
References
Paul, J. (2010). Business environment: Text and cases. New Delhi: Tata McGraw-Hill.
Pearce, J. A. II, & Robinson, R. B. (2009). Strategic management: Formulation, implementation,
and control (11th ed.). New York, NY: McGraw-Hill.
Quirke, B. (2008). Making the connection : using internal communication to turn strategy into
action (2nd ed.). UK: Gower.
Running head: STRATEGIC PLAN
1
Strategic Plan
Ashlei Caldeira
Bus 475
June 6 2016
Sarita Wesley
STRATEGIC PLAN
2
Strategic Plan
HERBAL WORLD BUSINESS STRATEGIC PLAN.
The business herbal world is a corporate enterprise started by a group of investors as a provider of
health services using natural alternatives and cures. It is managed under a board of directors comprising
of the investors, a couple of selected individual and a representative of the non-governmental
organisation. The enterprise has a managerial staff with tow secretaries who together with a team of 40
health employees facilitate provision of services in the firm.
Business model and strategic plan.
Conceptualizing another item or administration division of a current business.
Herbal world is an herbal product enterprise that deals with endless supply of herbal products
that aid in healthy living. Herbal world offers a variety of products, services, and procedures
for their clients to use at home or under hospitalized consideration. These items includes body
and characteristic cures, regular exercise remedy, herbal therapy, herbal treatment, and
different items e.g natural made candles. The accomplishment of stable wellbeing and
longevity and less danger in bodies is herbal world’s principle focus.
Herbal world is dedicated to benefit an wide range of customer including differing
cultural backgrounds, ethnicities, and religions all with the main objective of accomplishing
unwinding and stretch alleviation.
The mission statement of the enterprise is “to provide the highest standards of quality in
service provision and best quality products with the use of the modern technology and modern
techniques to achieve maximum health of clients and prolonged life through the use of naturally
available cures and natural methods.
“A vision statement displays the enterprise’s vital purpose that revolves around the
energies and assets of the organization on accomplishing attractive future benefits” (Robinson;
2009). The vision of herbal world’s vision is to give the best products, medical alternatives, and
accessible services trying to fulfil the client’s needs and desires in a comfortable,
uncompromising, and efficient. The future vision the initiators has for the organization is a
dream that workers will be pleased. This will be accomplished by the organization supporting
and offering back to the community at large. By doing all the above Herbal world’s endeavours
will help the organization to accomplish what is expressed in the mission and vision articulation.
Much the same as the statement of purpose depicts the sort of items and administrations it does it
in a way that will have an immediate accentuation on the organization’s qualities in the key
procedure.
STRATEGIC PLAN
3
Herbal world will have a quality-orientated culture that will put direct accentuation on a
wide range of societies of its potential clients, bringing together the social encounters and needs
into the enterprise. The stores will have multi-cultural practise and style, offering clients an
extensive variety of natural alternative cures to a variety of body complications and special
handles that grasp and speak of the diverse societies in the public arena. For example, the
organization will offer an extensive variety of a wide range of herbal mad products and flavours
that are broadly used all over the world to stabilize good health and advance life span. Herbal
word will likewise put their estimations of trustworthiness and genuineness above everything
else when managing their clients. The enterprise must at all times remain socially mindful while
satisfying client’s needs. As part of being socially mindful, they will keep on bringing back to the
society through a series of charity practises in a way that will keep on sustaining it. Herbal word
must guarantee that they are at all clocks socially and ecologically mindful. One way that
Healthy Place can show that they are a socially capable organization is to treat clients, workers,
and speculators decently and sincerely at all times. Solid Place will execute and start projects to
help the group based upon society’s needs. Solid Place will actualize and start projects to help the
group based upon society’s needs. By furnishing society with projects that give back herbal
world will make a special organization with the society which will show an outflow of the
organization’s qualities and appreciation for their clients and their stake.
There a variety of other business ventures that offer the same products and services and
will act as competitors to the business. Many clients have the decision between heading off to a
commercial hospice and paying gigantic dollars or come into a place with an uncompromised
agreeable service provision that will help those lead healthy and prolonged lives. This is the
means by which herbal word will make a specialty for itself in the business showcase and turn
into an immense contender for health services provision. The enterprise will have and show an
arrangement of Guided adverts, which is a strategy utilized by numerous firms for publicizing
and adapting. These adverts will be accessible for clients through the mass media and other
platforms. Outdoor services is another stronghold that the enterprise will utilize to maintain it
fully meets their client’s desires at the comfort of their home.
Strategic direction can be characterized as the arrangements made or the moves made by
the organization in the attempt to help the organization satisfy its planned mission, reason and
vision. When an organization outlines its vision, objectives, set of beliefs and values mission, it
get oriented into a defined course to move and develop. This course will permit everybody
including the representatives and proprietor to comprehend what is normal from the organization
and how to accomplish those objectives. From the point when herbal word outlined its main
goal, vision, and qualities the organization has at last come up with an activity plan that it will
hold fast to the qualities while endeavouring to accomplish its objectives and vision.
Herbal world as an enterprise is an efficient cure or not just the health problem that is
affecting the world today but a sure cure to the problem of unemployment. Having offered job
opportunities to mere then a hundred people both directly and indirectly, herbal health plays a
major impact on the lives of many of its stake holders who would otherwise have been
STRATEGIC PLAN
4
unemployed. In addition, herbal world brings a solution to what the world is worried about
today, the question of short life span and impact of artificial cures on health of individuals.
Herbal health uses a hierarchical model of communication with directives coming from
the top most departments down to the bottom departments. The art of communication is
encouraged and upheld to maintain that different departments work in harmony with each other
and that information is conveyed at the right time and in the correct manner.
Herbal world’s vision shape the organization. Its mandate is to give a casual, conducive
climate where clients will feel at home while getting services and using the products. The general
mission of the organization is to give their services in an enticing environment that is interested
in all clients in general without disregard to race, sex, or religion. Herbal world will put
respectability and genuinely above everything else with regards to clients.. Part of the strategic
plans laid in place to facilitate this process includes the review of the organization’s vision and
statement from time to time with the purpose of figuring out if the organization has met its
objectives or not. The organization will use a mile stone which is based upon the vision, mission,
and standard codes to quantify and decide the proceeds made or that should be made. These
conclusions will decide the general trend and reason for the organization and its vital course.
Herbal world’s main goal is to give the best quality items and services in a way that will
permit them to serve the entire societies. In line with this obligation, the organisation strives to
stick to its laid down strategic plans and standards. The organization has a strict set of standards
of qualities which upholds client respect and trustworthiness to be the highly valued and trusts
that each client who interacts with them will have a feeling of pride. It holds that workers and
suppliers too must also stick to these codes of conducts. Herbal world qualities standards are
critical to the organization and workers need to uphold and support the organization’s vision,
mission, and qualities when they interact with clients. The organization’s vital focus will be
based upon accomplishments and the objectives that are obviously characterized in the mission
and vision articulations. These are the principle considerations that businesses should consider
before conducting their operations.
STRATEGIC PLAN
5
References.
Fawcett, S. & Paine, A.(2002). Action planning guide for Community based initiatives. KS; work
group on health promotion and community development, university of Kansas.
Lord, R. (1998).The non-profit problem solver; a management guide. New york, NY; Praegar
publishers.
Robinson, M. (2009) management journal. Constituents of a viable mission and vision statement.
Stonich, P. (1982). Implementing strategy; making strategy happen. Cambridge : Ballinger
Publishing company.
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