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Components of a Strategic Plan and Quality Improvement

1. Analyze the components of a strategic plan.
2. Explain the relationship between an organization's process improvement plan and its strategic plan.
3. Explain the value of quality in relationship to customer satisfaction.
4. Explain the importance of participatory management as it relates to quality.
5. Differentiate among benchmarking, reorganizing, and re-engineering.
6. Explain the impact of organizational change on quality.
7.Explain the importance of continuous improvement.

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1. Analyze the components of a strategic plan.

Strategic Planning: Organization-wide process to identify strategic direction, including vision, mission, values and overall goals. Direction is pursued by implementing associated action plans, including multi-level goals, objectives, time lines and responsibilities. Strategic planning is, of course, a form of planning. Strategic plans may not have exactly the same headings, but the overall content remains the same.

I have located a sample strategic plan for you to consider which helps to understand the relationship between the components (i.e., mission, vision, etc.). For example, the Mission statement is from what all else follows. The objectives, goals, etc. are formulated to meet the mission and the vision of the organization. A sound plan should:

· Serve as a framework for decisions or for securing support/approval.
· Provide a basis for more detailed planning.
· Explain the business to others in order to inform, motivate & involve.
· Assist benchmarking & performance monitoring.
· Stimulate change and become building block for next plan.


This strategic plan addresses the following key strengths, weaknesses, threats and opportunities for AnyBiz Inc:
Strengths: Weaknesses:
· R and D almost complete · Basis for strong management team · Key first major customer acquired · Initial product can evolve into range of offerings · Located near a major center of excellence · Very focused management/staff · Well-rounded and managed business · Overdependent on borrowings - Insufficient cash resources · Board of Directors is too narrow · Lack of awareness amongst prospective customers · Need to relocate to larger premises · Absence of strong sales/marketing expertise · Overdependence on few key staff · Emerging new technologies may move market in new directions
Threats: Opportunities:
· Major player may enter targeted market segment · New technology may make products obsolescent · Economic slowdown could reduce demand · Euro/Yen may move against $ · Market may become price sensitive · Market segment's growth could attract major competition · Market segment is poised for rapid growth · Export markets offer great potential · Distribution channels seeking new products · Scope to diversify into related market segments


The promoters' vision of AnyBiz Inc in 3-4 year's time is:

AnyBiz will be operating from a xxx sq. ft. unit near xxx Town. It will have annualized sales of $xxx and be profitable. It will employ xxx people mainly engaged in R and D, marketing, support and admin. AnyBiz will offer xxx core products and provide added-value services to a large customer base throughout the xxx market segments and in xxx countries overseas. AnyBiz's offerings will be technically advanced and offer many clear-cut advantages and improvements over competitors' possible offerings. AnyBiz will continue to expand through organic growth and acquisitions in related technology/market segments. It will have recently received mezzanine finance prior to a public offering.

Mission Statement

The central purpose and role of AnyBiz Inc is defined as:

AnyBiz designs, develops and markets advanced systems for specialist data capture and transaction processing management. These web-based systems work with specialist hardware supplied by major integrators. They are sold to small, medium and large-sized companies within the xxx industries for a range of specialist applications. AnyBiz's systems are distinguished from competition by their sophisticated interfaces, scalability and ease of modification and are extensively patented. Sales are made directly and through major distributors/OEMs in the home market and overseas.

Corporate Values

The corporate values governing AnyBiz Inc's development will include the following:
· AnyBiz operates in accordance with the highest standards in all relationships with customers, suppliers, environment and the community.
· AnyBiz fosters a climate which encourages innovation and diligence amongst staff and rewards accordingly.
Business Objectives
Longer-term business objectives of AnyBiz Inc are summarized as:
· To expand the business aggressively and offer above-average returns to shareholders.
· To become the leading, innovative systems company within the xx market segments.

Key Strategies

The following critical strategies will be pursued by AnyBiz Inc:
1. Accelerate product launches by strengthening R and D team
2. Extend links with key technology centres
3. Raise additional venture capital
4. Expand senior management team in sales/marketing
5. Recruit non-executive directors
6. Strengthen human resources function and introduce share options for staff
7. Appoint advisers for intellectual property and finance
8. Seek new market segments/applications for products

The following important strategies will also be followed:
1. Locate new premises adjacent to xxx
2. Commission assessments of key markets
3. Start participating in trade shows and missions
4. Develop overseas market entry plans
5. Pursue strategic alliances with complementary players
6. Strengthen web presence and promote
7. Seek new market segments/applications for products

Major Goals

The following key targets will be achieved by AnyBiz Inc over the next 3-4 years:
· Achieve sales of $xx million by 200X
· Report annualized profits of $xx million in 200X
· Secure xx% of the xx market segment by 200X
· Become largest supplier of xxx systems in xx countries within xx years
· Undertake an IPO by 200X
· Employ xxx people including xx% technically qualified by 200X
· Have sales offices or agents in xx key markets before 200X

Strategic Action Programs

The following strategic action programs will be implemented:

1. CEO: Prepare comprehensive business plan and develop contacts to raise VC within 6-9 months.
2. CFO: Recruit Marketing Director and other key staff for marketing/sales and HR Director within 3-4 months.
3. TechDir: Review R and D resources and scope for technical alliances - expand with arrival of VC.
4. Board: Expand BoD to include further independent financial, technical and industrial expertise prior to seeking VC.
5. All: Develop and implement accelerated market entry and development plans.
Source: Retrieved August 13, 2005

2. Explain the relationship between an organization's process improvement plan and its strategic plan.

Process improvement plan work in parallel with the overall strategic plan. To ensure successful implementation efforts, solutions must be aligned with your organization's mission and vision, the culture, the business processes, and the capital.
In fact, process improvement effort starts with understanding what a business process is and what the mission-critical business processes are in the organization. A business process is a collection of related, structured activities -- a chain of events -- that produces a specific service or product for a particular customer or customers. It has a start, an end, and a purpose. For example, Royal Mail says that the purpose of mission planning as a process is to ensure that plans are developed and effectively deployed to meet mission goals and allow all employees to understand their priority activities. Mission planning starts with understanding the current state of the organization in terms of its internal and external environment. It ends with setting group and individual objectives to deliver the plan.

A business process has clearly identified inputs and outputs. The process adds value from the input to the process to the output of the process. Sub-processes of activities and tasks within each process create smaller value chains and the output from one sub-process becomes input for the next part of the chain. For example, mission planning might have sub-processes such as understanding the current internal and external environment, identifying organization-wide goals and priorities, producing strategic plans, producing functional and group plans, and setting team and individual objectives. The process starts with either an internal or external customer need and is completed when the customer of the process is ...

Solution Summary

This solution analyzes the components of a strategic plan through illustrative example demonstrating the relationship between an organization's process improvement plan and its strategic plan. The value of quality in relationship to customer satisfaction is also detailed. It then explains the importance of participatory management as it relates to quality. The terms benchmarking, reorganizing, and reengineering are also explained and differentiated. Finally, the impact of organizational change on quality is explained in some detail, as is the importance of continuous improvement. Supplemented with an article that further details quality management.