|Essay type:||Process essays|
|Categories:||Planning Company Strategic marketing Marketing plan|
Strategic planning is an essential process in an organization to provide for a sustainable and profitable operation. The strategic plans enable the firm to create a blue ocean and competitive advantages that make it to dominate other firms when it goes global. The strategic plan also entails risk mitigation strategies and contingency plans for uncertainties in promoting flexibility and sustainability. Without a strategic plan, firms are in a position to make mistakes that will be costly and can reduce profits.
The cooling towel-producing company is the best seller in the USA, and since it is the only sole-producing firm, it has a more competitive advantage that promotes it to go global. The product is affordable and can maintain its coolness for 45 minutes when water is added. The product is made of fabric materials and only needs water to function and ensure customer satisfaction. Therefore, it is essential for management to develop profitable and sustainable strategies that can be used to increase the firm operations and expansion to the international markets.
The mission of the organization is to maximize customer experience and satisfaction when using the towels, particularly in hot weather seasons or during vacation trips and picnics (Campbell, 2015). Likewise, the firm aims at becoming the best cooling towel company worldwide with unparalleled competition from any substitute firm.
The organization has several objectives that align with the mission statement. It aims at creating value to its customers by delivering quality towels that can maintain a cool temperature for more extended periods. It also aims at making large profits from the sales and maintaining control of the USA cooling towel market since it is the only firm in the business countrywide. Being that all firms are rational and risk-averse, the firm targets at operating at a cost-effective rate to maximize its profitability.
Customer satisfaction and retention are at the core of the firm's priority. Therefore, it ensures that any claims or dissatisfaction related to its products are handled amicably to maintain a positive public image. The firm's targets are innovating and developing more quality towels that can sustain the cool temperatures for longer duration surpassing the 45 minutes. In time, extensivity is done to differentiate the products in terms of quality and strong position in the customer's list of preferences (Campbell, 2015). With economic stability and global opportunities, the firm also aims to become a multinational corporation with a blue ocean strategy that will overtake other cooling towels firms in subsidiary countries. Likewise, corporate social responsibility and ethical performance are a goal that the firm perceives as the driving force for sustainable and profitable performance.
The firm also values its employees and stakeholders and aims at maintaining a positive and long-lasting relationship for steady operations. Maximizing shareholder wealth is also a goal that the firm has to meet to maintain its capital structure while at the same time minimizing debts and liabilities. Generally, the organization's goals are to become a successful, sustainable, and profitable multinational corporation with more robust market control in all the subsidiaries and parent companies.
There are enough employees in the organization to produce enough towels for regional and international sales. The employees are taken through the training and development process to improve their skills, and therefore the firm has enough expertise in delivering quality and non-defective products. The employees also have strong teamwork that enhances the production rate. There are departmental managers in all sections who oversee the production process. Their assistants can be used in the new subsidiaries since they have the same skills as the managers.
The organization has enough capital and assets to go global and for profitable and sustainable performance. The firm also records high sales and is rated to be among the best-performing firms in the US stock market. Therefore, it can get funds from financial institutions to expand their operations in the global business environment. It also has loyal and prospective investors who are willing to increase their stakes in ensuring that the firms become a multinational corporations and for higher better returns. It has an efficient and reliable information system that can monitor, coordinate, record, and update information on performance in subsidiary and parent companies.
The firm solely operates in the US and therefore has higher chances of going global since it has a strong base in market base US. Other competitive firms in the international market produce towels that cannot sustain the cool temperatures for a longer duration, giving it a competitive advantage and business opportunity to get into the international business (Sarsby, 2016). Hot weather countries such as the middle east countries have a broader market for cooling towels, and by going global, the organization will be able to enjoy the profits from such countries. Alternatively, most of the USA nationals who go for tours in the hot weather countries also need the products. By opening subsidiary firms, the organization will meet its demands and make more income in such countries.
On the other hand, the organization is faced with stiff competition in countries that already have cooling towel firms. Therefore, it has to research the culture, beliefs, and demographic factors in countries to come up with a concrete strategic plan for market penetration and dominance. Different states have different government policies that protect their economies, which may be favorable or unfavorable (Sarsby, 2016). For instance, in a country where taxes are high, the firm will be forced to sell the products at a relatively higher price or forgo the business to avoid losses. The US government also supports international businesses. It, therefore, offers incentives to the firm for motivation to go global and bring back foreign income that will add up to the country's foreign revenue.
Currently, the global pandemic of COVID-19 has a negative and positive impact on the firm plans for going global. The pandemic has paralyzed intentional travel and business in most countries, although some of the states are in the process of regaining normal performance. Among the signs of infection are high temperatures, which necessitate the need for cooling towels for patient relief.
The growth in technology and production globally also threatens the firm's global strategy since it will face stiff competition from other existing and emerging firms. The continuous political wars in the middle east countries also threaten business performance as it drives away customers and employees, reducing performance and profitability.
The firm has several competitive advantages that enable it to become a multinational corporation. Its products have a longer duration of coolness compared to substitute products in the international business market, and this helps in increasing the demand. The firm is backed up by the US government through incentives, and this makes it to set affordable prices that attract more customers. Customers are conservative and attracted to products that deliver the best quality at an affordable rate. In the USA, it is the only cooling towel producing company; hence, it has more time to focus on developing strategies in overriding other substitute firms.
The firm has a reliable customer management and support system that looks upon to ensure that all customer complaints and consultations are handled effectively. Being the only cooling towel firm in the USA, the firm has a positive public image that enables it to attract more customers and make more profits (David & David, 2013). It also offers higher rates for return on investments. Therefore, it can attract many investors into having a strong capital structure for running the businesses. It has a reliable and more developed information system that can run operations in parent and subsidiary companies hence minimizing the management costs. The firm offers free delivery services to customers globally and price discounts for more than two pairs of purchases of its products.
The future-oriented and collaborative workforce also enable the firm to achieve its strategic goals collectively. The employees are highly skilled in delivering quality and are well remuneration to keep them motivated towards achieving the firm's mission and vision. Employee motivation enables the firm to attract and retain more customers since the employees treat them with respect and care while urging them to come for more purchases. The firm has more technical machines and equipment that produce the towels at higher rates and based on customer definitions. It offers unique packaging bags for the cooling towels that are sizeable so customers can easily carry the towels along during travels.
It has a strong marketing team that can entice customers into purchasing its products. Likewise, it has a connection to some of the football companies like Chelsea and Manchester united. It can use the players to advertise the towels through international social sites like Facebook, Instagram, and even via Tv programs. Customers are also included in strategic planning so that the new and improved products can meet their needs and expectations, unlike other firms
Entering the international business.
The international business market is highly competitive and full of uncertainties; therefore, the firm has to conduct risk analysis in coming up with the best strategy for market penetration and dominance. Through mergers and acquisitions, the firm can take over other profitable firms in the subsidiary countries that are under financial duress and use its resources to revive the firms to back to operation (Bena & Li, 2014). The mergers are strategic since the firm will be able to carry on with the existing customers and employees.
The mergers enable the firm to access assets, information, and resources for the production process. Likewise, the acquired firm will also have more intel on the countries culture and practices, which will help the firm develop strategies for maintaining market dominance. The firm will also be able to have extensive capital since it will combine forces with the acquired firms' investors. Mergers are cost-effective in terms of setting up new structures and recruiting employees. The firm will be able to make more profits, improve its economies of scale and competitive advantage in the international market.
Alternatively, in countries where the cooling towel firm does not exist, the firm can use licenses to enter the market by opening a new business. The license will enable the firm to operate freely and avoid the issues related to the alliance with other firms, for example, conflict of interest among shareholders. Setting up new businesses will help the firm maintain its secrecy for product development processes and procedures while sustaining healthy operations.
The strategic plan will be put in action and takes two months for the firm for a total adaptation to the new environment and business atmosphere. The firm, therefore, conducts thorough risk analysis in the proposed firm for the acquisition. Afterward, the risk analysis and market reports are prepared and delivered to the quality assurance and planning departments to plan for the strategic implementation process and allocation of resources.
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