ToolsCorp Corporation is a fictitious company that does not exist anywhere. For the purpose of this course, it is located in Tennessee. As members of the senior management team of ToolsCorp Corporation, your group has been asked to prepare a neat and organized report for the Strategic Officers Steering Committee (SOS-C) of ToolsCorp Corporation. The purpose of this paper is to obtain permission from them to go forward with the next step (developing a full-blown business plan) for ToolsCorp's strategic initiative to break into the global marketplace.
Discuss at a minimum the following;
A complete strengths, weaknesses, opportunities, and threats (SWOT) analysis (including at least 5 factors from each category and full explanations of why each factor is important and why it was placed in the category) of the environment that exists within ToolsCorp and the environment that ToolsCorp is proposing
An outline of the business plan to be developed for ToolsCorp's strategic initiative
A full mission statement containing the nine components and presented in a well written paragraph
Key operating principles as you will apply them
A preliminary market analysis of the market(s) into which ToolsCorp expands
The one-year, five-year, and ten-year strategic objectives of the strategic initiatives presented as one strategic proposal for each time frame (3 strategic proposals in all), complete with implementation plans, potential ramifications, and feedback mechanisms
The additional material you considers necessary to support the case for going forward with ToolsCorp's global strategic initiative (This is not optional, you must input additional material.)
ToolsCorp Corporation is a fictitious company that does not exist anywhere. For the purpose of this course, it is located it in Tennessee. It builds power tools, lawn mowers, lawn furniture, microwaves, and ranges. All products are manufactured locally and sold through large retailers that place sales papers inserted in every Wednesday and Sunday paper. Although they have a thriving business in the United States and Canada, ToolsCorp is trying to break into the global marketplace.
The deliverable length is at least 15 pages (cover page and reference page not included). As graduate business students, you are required to provide a well-researched and analyzed comprehensive response to every assignment question. Brief, vague, generic, or non definitive responses will not earn good grades© BrainMass Inc. brainmass.com December 15, 2020, 11:51 pm ad1c9bdddf
Guidance on ToolsCorp Strategic Plan
See the attached file for images/tables.
ToolsCorp Corporation is a company that builds power tools, lawn mowers, lawn furniture, microwaves, and ranges. All products are manufactured locally and sold through large retailers that place sales papers inserted in every Wednesday and Sunday paper. The company plans to go for forward integration in its supply chain through establishment of a large network of retail stores to provide more extensive customer service reaching different geographic regions across United States of America. Although ToolsCorp has a thriving business in the United States and Canada, the company will break into the global marketplace through its entry into Indian market in 2019. The company considers India and China with huge potential but since the political relations of United States of America are more favorable with India than China, the company plans to enter the former market in 2019 and wait till 2021 for the Chinese market. The company will also focus on extensive R&D and innovations and set up 30 R& D centers of excellence within five years to overcome its weakness in product mix and to deal with the challenge of rapid technological obsolescence and faster adoption of innovation. The potential customers for the company will be the burgeoning middle class who aspire for smart and beautiful place to live. The lawnmowers, lawn care, garden care and home improvement products of the company shall focus on builders in residential areas along with the retail strategy and shall cater to the home and lawn improvement needs of 1 billion middle class consumers worldwide through the use of latest futuristic technologies and evolving new technologies for the convenience of these consumers. The products shall be priced competitively and shall be affordable to the middle class consumers.
Mission Statement of ToolsCorp
Toolscorp Mission: "To create the futuristic Smart Houses and Smart Gardens in each and every corner of the world". ToolsCorp serves the complete construction and home improvement needs of the builders and American middle class so as to make their houses clean, beautiful and attractive providing all kinds of home improvement solutions and help in raising the living standards and status of these middle class consumers. We provide lawn mowers, lawn furniture, power tools including screw drivers, electric drilling machines, microwave, Chimneys and False ceilings. We serve the customers across United States of America and Canada but aim to be the global leaders in home improvements markets across Asia, Europe, Middle East, Latin America and Australia. We shall create the future of home and garden care improvements through continuous innovations and inventions and are committed to provide the best quality equipments to consumers worldwide and enable a world where each and every corner of home is connected with the internet and latest technologies. We will enhance our stakeholder value by converting the houses into smart homes providing best value proposition for consumers, empowering employees to innovate, focusing on continuous quality improvements. Our innovations and inventions shall ensure that the smart houses lead to cleaner environment and leads to conservation of energy. We shall invest in our employees who are the most trusted stakeholders to build an army of the most creative and productive employees. Creativity, quality and innovation shall be the hallmarks of ToolsCorp.
Key operating principles
The company's key operating principles are
- Focus on quality, continuous innovations and inventions
- Focus on promoting teamwork
- Investing in Employee Motivation and Productivity
- Establishing trust and credibility among all stakeholders maintaining high level of integrity and transparency.
1. Stronger Revenues and profitability - ToolsCorp is having a stronger revenues of $1 billion and EBITDA of $350 million in 2017-18. Therefore, the company has been profitable and revenues are growing strongly with its diversified portfolio of products.
2. Strong Inventory turnover- The company has an inventory turnover ratio of 8:1 which shows that the inventory of the company moves faster.
3. Better Working Capital Management and Liquidity - The liquidity with the company is enough as the liquidity ratio is 2:1 and the company has strong working capital management.
4. Strong Distribution Network - The company has a huge dealer network in United States of America with presence across 5,000 company owned stores, 12,000 dealers and 3000 service centers.
5. Good Customer Service - The company has established a network of 3000 service centers and the company has made investment in training its employees to provide good customer service.
6. Higher employee motivation and morale - A stronger appraisal system, good HR practices by the company including flexible work timings and a stronger recruitment and selection system at the company has led to a higher level of motivation among the employees who work with full commitment.
1. Lacks in Research and Development - Although the company has been focusing on Research and Development, the company lacks infrastructure as it has only one lab located in Tennessee which is not very well equipped as compared to its major competitors.
2. Low levels of brand recognition - Since the company has been focusing on precision marketing and not mass marketing, the brand has lower level of recognition and recall by the people in United States of America as compared to brands such as Deere & Company, Global Garden Products etc.
3. Lack of manufacturing facilities as compared to competitors - With globalization, the competitors have gained economies of scale and the company has limited manufacturing facilities with two plants in United States of America and one plant in Canada.
4. Lack of strong quality control systems ...
The solution provides a detailed guidance on Strategic Plan to be made for ToolsCorp,a fictitious company selling garden care and home improvement products which involves SWOT analysis leading to development of Strategic Proposals for the company.