I need to put together a Business Plan for Able Corporation outlining the Key Elements that should be a part of the Market Analysis. I will need to formulate Corporate,Business,Functional and Operating Strategies. In addition, one year, five year and 10 year objectives will need to be forcasted. I will need to provide as many strategic objectives pertaining to these various levels as possible. Additionally, alternate strategies will need to be included.
"A business plan is a summary of how a business owner, manager, or entrepreneur intends to organize an entrepreneurial endeavor and implement activities necessary and sufficient for the venture to succeed. It is a written explanation of the company's business model."
Hence Sound Planning is the first step of the success of the business. It will act as a guidance and road map for the organization. Our business plan is based on two important attributes:
1. Impeccable management that has a knack of choosing the correct product and the premium service at the right time with a finesse of knowing what its total market is and how to acquire and maintain a greater share of that market.
2. Providing an excellent product or service that is not only well accepted now but also whose acceptance and use will continue to grow at an accelerated rate into the future.
Formulation of Strategy
Able must engage in strategic planning that plainly defines objectives and evaluates both the internal and external state of affairs to devise strategy, execute the strategy, assess the advancement, and fine-tune as necessary to stay on track. Based on the information from the environmental scan, the organization should match its strengths to the opportunities identified, while dealing with its weaknesses and external threats. The company seeks to foster a competitive advantage over its competitors to earn superior profits. A competitive advantage can be based on cost or differentiation. Michael Porter identified three industry-independent generic strategies from which the firm can choose?cost leadership, differentiation, and focus.
I feel that setting objectives ahead of time for the Able will allow the employees, management and the directors' a sense of what needs to be done in the coming year. This will help it to perform in a much more proficient manner because employees will know what to obtain in the coming year.
Mission of Able Corporation
"Our Mission is to become the global leader in the power tools industry by displaying extraordinary leadership in terms of innovation, quality and customer service in various segments of the power tools industry"
Corporate Level Strategy
We will have both organic and inorganic growth strategy to become the global leader in the power tool industry. This will lead to the following benefits:
BENEFITS OF LARGE SIZE
Organization will reap benefits of economies of scale and size by this takeover. A merger can also improve a company's standing in the investment community: bigger firms often have an easier time raising capital than smaller ones.
Staff reductions and other cost reductions
It will also lead to sharing of overheads, common distribution and marketing channels. All these will lead to reduction in cost and increase in profits
The McKinsey study concludes that companies often focus too intently on cutting costs following mergers, while revenues and, ultimately, profits suffer. Merging companies can focus on integration and cost-cutting so much that they neglect day-to-day business, thereby prompting nervous customers to flee. This loss of revenue momentum is one reason so many mergers fail to create value for shareholders.
ERODE SHAREHOLDER'S WEALTH
Overlapping subsidiaries or redundant staff may be allowed to continue, creating inefficiency, and conversely the new management may cut too many operations or ...
2000+ words outline a nusiness plan including market analysis, functional and operating strategies, alternative strategies and a 10-year objective forecast.