Business Model & Strategic Plan 111 al Affiliation) The key trends to be included in the business model should be for the purpose of making the product active and alive through constant communication and making the product visible to ensure that it is the top of mind brand for the consumers. This will be done through various media platforms including the social media where most customers can be found. In addition, the product will be sold online as most people today shop online. Therefore this will lead to the creation of website that will be used to market and sell products.
The assumption of the new division is that the product will be able to be used in the homes of the consumers within the first year. In addition, the other assumption is that the market share of the product will increase in the first year. Moreover, some of the risks involved in the new division is the financial risks that will be used in the development and marketing of the new product. Since this is a new product division in the market, then there has to be enough marketing campaigns that will enable the product penetrate the market (Annacchino, 2003).
The strategic objectives of the new division are important to both the current and future health of the organization. This is because during product development it is necessary to know the type of people to appeal to. In this case, the target market for this product is the mothers who practice hygiene at home and trains their family members on how to maintain cleanliness. The strategic objectives of the new product division will be based on the following four quadrants. The shareholder value or financial perspective and this includes the following; Market share The new product division plans to increase the market share of new product division by 10% at the end of each financial year.
This will be achieved through the loyalty programs and a combination of competitive pricing, sales promotion as well the use of various marketing projects that will make the product have a strong brand presence. Revenues, Costs, and profitability The new product division aims at increasing the revenue by 10% at the end of every financial year and to reduce the expenses and cutting down on costs by 15%.
The other objective is to increase the net profit by 10% annually. Competitive position This will be achieved through the establishment of brand loyalty by building strong relationships with customers as well as delivering a great customer experience and service. Moreover, the new product division plans to continuously innovate since customers demand change frequently and they like products that upgrade after some time. In addition, to beat competition, the new product division will expand sales to the global market place (Trott, 2008). Customer Value Perspective Customer retention or turnover The new product division will achieve this through providing and maintaining outstanding customer service, the expansion of sales to both the existing and new potential customers and introducing the product to new and existing markets.
In addition, the new product division plans to develop and maintain a customer database that will make it easier for the company to constantly communicate to the customers. Customer satisfaction The new product division aims at achieving this objective through the production of quality products and service to customers.
In addition, the new product division aims to provide products that will meet the needs of the customers by providing products that matches the value for their money. Customer value The new product division plan is to maintain the best customer value for their products and services. The plan is to provide products worth what the customer pays for. This will be achieved through the provision of the best cost as well as the provision of the best products and the best service. Process or Internal Operations Perspective Measure of process performance The objective is to have a product management program that will ensure that all the products the new division produces meet the standards of excellence guidelines.
In addition, there are plans to improve both internal and external communications to ensure that all processes are operating seamlessly and ensuring that the customers receive effective insights in regards to the products as well as develop and implement a promotional plan to drive increased business of the new product. Productivity or productivity improvement The aim here is to promote and maintain productivity by making all employees accountable for their roles.
Managers should be able to follow up on the various work streams assigned to the juniors. In addition, the management plans to encourage, motivate, reward and recognize employees who have outstanding performances (McElhaney, 2008). Operations metrics The new division plans to manage its operations through capitalizing on the physical facilities like location and capacity. In addition, there are plans to increase community outreach through various CSR projects. Impact of change on the organization The new product division plans to leverage on ensuring that all employees are aware of the changes that take place in the organization.
In addition, all employees should be able to adapt to the new changes that take place. Learning and Growth (Employees) perspective Employee satisfaction This will be achieved through proper remuneration and providing flexible and conducive working conditions where employees will be free to provide new ideas to take this new product to a higher niche. In addition, fair rewarding systems will take place based on performance. Employee turnover or retention The provision of a good working environment and the freedom of employees to perform their tasks as well as be accountable for their roles will ensure the employee turnover is low.
In addition, the new product division aims at retaining its employees through covering for medical expenses and has pension schemes. Level of organizational capability The new product division aims at making the organization become one of the best organizations that are capable of producing high quality products that meet the goals and objectives of the organization. Nature of organizational culture or climate Since culture is dynamic, the new product divisions’ objective is to understand and adapt to the various cultural practices in the countries in which the new division needs to operate in. Technological innovation The new product division plans to have continuous product innovation and the use of technology to market and sell their product to meet the organizational goals and objectives.
Communication plan The communication plan in this new division will be the use of technology. This will be achieved through the creation and use of the website as well as the social media platforms. The reason why this communication platform is effective communication tool is the fact that today people are attached to technology and get what they want through the internet.
The purpose for using this communication tool is that it is easier to advertise market as well as sell products online since it is the in thing and people prefer buying goods online. The target audience is the mothers who use social media platforms and buy goods online. Strategic Balance Scorecard Scorecard Four Balanced areas for measure Strategic Objectives Measure Metric Targets Year 1 Year 2 Year 3 Financial Objectives Increase market share of the new product division Increase profitability Margin 10% 10% 10% Increase the Return on Investment ROI 10% 10% 10% Decrease costs Margin 15% 15% 15% Customer Value Perspective Increase Customer Loyalty Increase revenues Customer 10% 10% 10% Increase the number of customers to increase sales Market share 10% 10% 10% Process or Internal Processes Promote and maintain productivity Ensure availability of the product Product development cycle time 10% 15% 10% Increase process performance Effective internal and external communication Work in progress In 4 Months N/A N/A Learning and Growth Employee satisfaction Recognize and reward the productive employees Retain best talent 98% 98% 98% Incorporate culture to the new product division Begin to understand and adopt culture Analyze and research on the target 100% 100% 100% References Annacchino, M.
(2003). New product development from initial idea to product management. Amsterdam: Butterworth-Heinemann. McElhaney, K. (2008). Just good business the strategic guide to aligning corporate responsibility and brand.
San Francisco: Berrett-Koehler. Trott, P. (2008). Innovation management and new product development (4th ed. ). Harlow, England: Financial Times/Prentice Hall.