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When a company engages in a planning process, the first step is to identify what
is the reason to provide a service or product then where the company stands in the
industry type which the company will do business. Performing such a task can be
difficult when a company has no vision of what they want to accomplish hence no
foundation upon which strategies can be built
Ineffective initial analysis can affect the companys strategy plan and reduce its
chances of success. The assessment process has to answer some key questions like:
What strategies the company will implement to achieve the objectives and
goals?
Environment
Informal
Organization
Industry
History
Strategy
Planning
Critical
Formal
Tasks
Organization
Resources
People
Company
Performance
Mission and vision statements are the blueprints that describe in detail aspirations,
objectives and the philosophy that will dictate the companys pathway to success. The
nature of a business vision and mission can represent either a competitive advantage or
disadvantage for the firm. An organization achieves a heightened sense of purpose when
managers and employees develop and communicate a clear business vision and mission.
a) Mission Statement
A mission statement describes an organizations purpose, customers, products or
services, market niche, area of operations, business philosophy and basic operative
mechanisms. A mission statement should be the most visible and widely publicized part
of a strategic management process. (Toftoy, Chatterjee, 2002) This statement also
shows the companys commitment to engage in a responsible action and its main purpose is
to protect the companys values. Management usually implements the mission statement.
Mission:
Provide professional, innovative beauty services and products based on personality and
particular needs to enhance individual uniqueness.
b) Vision Statement
A vision usually describes the companys ideal position in the future. The only
way to achieve that vision is with the successful implementation of a business or strategic
II. Services
-
Getting the attention of consumers is the first step in promoting personalized services but
the main factor in building successful and positive results is to provide the right tone for a
unique buying experience for the client. Management goal is to give the beauty salon an
edge in the highly competitive beauty area by creating high-value planning process to
capitalize sales through every aspect of hair service delivery and focusing on service
excellence to meet every customers beauty needs. Competitive edge can be achieved by
-
Offer unique personalized consultations that will differentiate our services against
competition.
Provide the same quality hair styling to female segment at affordable prices.
One important aspect to be considered is the correct personal selection. Employees are
the most important element within the service industry particularly the case in the hair
and beauty sectors. The company success depends on the skills and knowledge of
hairdressers, colorists and supporting staff and represents the strength of the beauty salon
business.
III. Beauty Salon Goals
Create expertise in every single aspect of the salon services (colorist will do only
color and hair stylist will work on haircuts)
Provide services to people of different background will expand the market segment
and to promote social acceptance and reduce discrimination
Expand marketing reach with excellent customer service that will ensure brand
recognition.
Since any organization has some effect in the lives of those who
use their services, social and ethical elements should be addressed in
the mission statement. Depending on the type of services provided,
organizations have tremendous social obligations but several issues
can arise when the companys mission or vision has no social value
and feels no obligation to do any more for society than is legally
required. To stay competitive and make a positive impact in society,
any company must be able to make enough profit to exist, if this is not
achieved, the company will stop and no other social benefit will be
achieved. Strategic planning process needs to analyze social problems
to prevent any potential costs related issue. Create strategies to
engage in social issues that will work with the companys values to
enhance the salon image. The companys social awareness and values
will provide a guideline of how every member should conduct
themselves inside and outside the beauty salon as well.
Take responsibility
Commit to self-improvement
Strengths
Research and Development
Deere's efforts to provide cutting edge technology for their products has helped them to
develop their technical competence into a strategic strength. By improving their products
and ensuring that they are environmentally sound, the company attracts positive attention
from public newsgroups, which further enhance its image in the market.
Product Diversification
With a broad spectrum of product offerings, Deere is able to compete in numerous
market divisions and can thus offset slower periods in one division with another.
Furthermore, their diversified operations also present them with a number of
opportunities to enter new markets.
70
Employee Benefits
Deere is comprised of not only their manufacturing divisions but also their health care
and credit divisions, which in addition to helping out customers, also cater to the needs of
Deere's own employees. By servicing the needs of their employees effectively, Deere
continues to be an excellent firm to work for and is able to keep their employees highly
motivated and keep employee turnover low.
Weaknesses
International
Expansion
While concentrating on international emerging markets can be an opportunity, it can also
be a weakness because it involves substantial capital investment in each new market with
the setting up of new assembly lines and plants.
Information
Technology
As Deere continues to expand the requirements of their IT infrastructure and network
become more complex and with expansion into other countries the need for an efficient
and high-speed network grows. The implementation of a complex enterprise-wide
information system will be one of the large expenses that Deere will have to incur.
Deeres extensive network will also necessitate a loss of flexibility, which smaller, local
competitors might enjoy.
Consolidations
One of the greatest threats to Deere is the current trend of consolidation. While Deere
tries to concentrate on penetrating new markets, some of its competitors are focusing on
mergers and acquisitions to reposition themselves in the industry and prove more of a
threat to Deere. A point in case is the recent merger of Case and New Holland. While
each firm individually was sizably smaller than Deere, the result of the merger is a firm
that matches Deere in most respects and in fact has an asset base that is larger than
Deere's.
Distribution
One of Deere's weaknesses as of now is its inferior distribution network. Caterpillar, one
of Deere's closest competitors in the construction industry has a superior setup and can
guarantee that any replacement part will be delivered to the customer within 48 hours.
With assertions like that to compete against, Deere will have to invest considerable
resources into their own distribution channels.
Strengths
Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
reach, distribution,
awareness?
Innovative aspects?
Location and geographical?
Individual staff
Specialist offering complementary
services
Unique products (Product
Diversification)
Unique haircutting techniques
Location
Spacious parking lot
Beauty Products Support
Business Hours
Employee Benefits
Opportunities
Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and
innovation?
Global influences?
New markets, vertical,
horizontal?
Niche target markets?
Geographical, export, import?
Expansion
Good Reputation
Introduction of innovate services and
products
Community changes
Weaknesses
Individual personalities
Lack of experience
Non-licensed employees
Un skilled employees
Bad quality products
Bad location
No sufficient staff
Threats
Competitors
Employees relocation
Recession
Vandalism
Lack of competitive
strength?
Reputation, presence and
reach?
Financials?
Own known vulnerabilities?
Timescales deadlines and
pressures?
Reliability of data, plan
predictability?
Moral, commitment,
leadership?
Environmental effects?
IT developments?
Competitor intentions various?
Market demand?
New technologies, services,
ideas?
Strategic Options
Option #1
John Deere should be able to use their brand recognition to enter new international
markets with less difficulty than their competitors. The reason for this is that they have
been in this business for a long period and their name is associated with quality, value
and reliability.
Option # 2
John Deere should acquire other similar companies to increase their relative size to the
competition in order to achieve greater leverage in their marketing efforts and gain
economies of scale.
Option # 3
John Deere needs to take extra care in regards to its international labor policies and its
human rights monitoring. By doing this the company can reduce the chances of consumer
and media backlash, which could lead to loss of sales and hurt their reputation.
Option # 4
John Deere needs to decrease their dependence on the agricultural equipment segment of
their business. They should shift their focus from the agricultural sector to other parts of
their business, thereby diversifying their overall risk.
Option # 5
John Deere needs to maintain their level of environmental awareness on a worldwide
basis. Because of the globalization phenomenon and increased perception of a global
community, society expresses its concerns over any adverse environmental affects of
companys actions in any part of the globe. Pertaining to John Deere it can hurt their
reputation, sales and consequently, lose their grip on the consumer base.
Option # 6
John Deere should follow the trend of consolidation in the capital goods industry to
diversify their product line. By taking advantage from the lessons learnt from pervious
consolidations in the industry, John Deere should be able to consolidate more efficiently.
Therefore, through learning from other companies past experiences John Deere does not
have to go through the entire learning curve.
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Option # 7
John Deere has a vast scope of operations all over the world; therefore, they need a
highly efficient intranet. So they can communicate and exchange files easily across
international lines in no time. This can in turn increase John Deeres response time to
customer complaints and quicker solutions to worldwide offices. They should also
develop user- friendly GUI (Graphical User Interface) software to minimize training
expenses of their employees.
Option # 8
The possibilities the Internet offers can also be exploited and used by John Deere. The
options range from ordering replacement parts through the Internet and used for customer
service and monitoring such as having a customer suggestions for product improvements.
Another area, which can be improved upon with the use of the Internet, is the quality of
service rendered by John Deere. The customer, through online questionnaires, can receive
added service and product value.
Option #9
John Deere should work to improve their distribution channels domestically and
internationally in order to meet the potential future demand. They can achieve this by
focusing on customer needs and applying Six-Sigma precepts when analyzing the
distribution chain.
Option #10
The capital goods industry is very cyclical. The agriculture equipment sector is a heavily
capital intensive industry that usually lags the general level of the economy. The ability
to which John Deere is able to react to sudden changes in the economic outlook will
determine the level of success the company will have in the future. Accurately adjusting
employment levels within the company and controlling overhead costs will give John
Deere a competitive edge in the international arena.
74
Recommendations
Short-term
John Deere should start reducing its short-term debt so that the company will have more
capital in order to stay competitive in the markets of the future. The uses of this capital
can be used to maintain its hold on the agriculture market by increased spending in
product development and process innovations. The ways that John Deere can decrease
their short-term debt is by issuing more stocks and using the proceeds. This plan will not
be easy to accomplish because it will undertake a lot of financial reorganization. Though
the positives of this plan are John Deere can improve the financial stability of the
company and increase their cash flows in the near future.
John Deere should also concentrate its efforts on the Internet market, in order to
precedent in the industry and offer increased availability to its customers, where Deeres
competitors are not equally established.
Long-term
John Deere should try to establish a strong base in the Asian markets; so it can benefit the
company in the coming years. The reason for this is that Asian markets are modernizing,
expanding their infrastructure and production capacities. To accommodate these tasks,
the Asian economies will require modern and efficient products. This will in turn increase
demand for agriculture equipment and increase the presence of John Deere in these
developing markets.
Balanced Scorecard
The process of developing the scorecard can help management to take a closer
look at the companys mission, vision and values. After all every company is expected to
operate under some philosophy that will produce a social image of the products or
services they offer. In the strategic planning process, management needs to develop some
strategies to achieve expected goal and it can be done using a balanced scorecard. The
idea behind the use of scorecards was to use a measurement method that can be linked to
the company's strategic plan. The strategic plan will provide the information that will be
used by management in the creation of the strategies. The information needs to be
relevant to the internal process so managers can agree on the measures to watch.
Finance
How to appear to
Stockholders to
Obtain the
Successful Finance?
Internal Process
Customers
How We Should
Appear to Our
customers?
Vision
&
Strategy
Learning and
Growing
How to keep the
ability of changing
and improving?
Satisfy
customers and
stockholders.
Which process
should be
remarkable?
Strategies formulated for the beauty salon business will be to create objective
strategies based on the SWOT analysis. The beauty salon mission, vision and values are
an essential part of this process and will be included in the creation of the balanced
scorecard (Table 1), but it will not dictate the companys direction of strategy. The
balanced scorecard will only provide the information required to formulate most effective
strategy based on the measures
I. Financial
Increase Hair Color Services, Retail and Reduce Cost
Strategies
-
Increase the quality of the services offered and the quality the customer feels they
received.
Retail marketing should be in alignment with the quality of the products and
services
Update seminars and continuous education will motivate employees and will
provide a strong desire to succeed.
Accommodate styling stations and hair dryers in a strategic place to avoid any
uncomfortable situation
Develop an image of quality that can effectively differentiate the products and
services to improve clients perspective.
Strategic Maps
(Goal and Projects)
Perspective
Finance
Strategy goal
Goals
Projects
Increase quality in hair services
Increasing Hair
Color Services
Increase Retail
Cost Reduction
Customers values
High Quality
Customers
Customers
relationship
Strategic alliance with other
local business
Perspective
Strategy goal
Goals
Projects
Promote the months best sellers
Learning and
Growing
Employee continue
education and knowledge
Hire Licensed Hairdressers (issued state board)
gaining
Promote Scholarships
Perspective
Strategic Goal
Goals
Projects
Operations
management
processes
Internal
process
Social processes
Community service
Mission
Strategy
Finance
Increasing profit
Increasing Hair Color
Services
Marketing
Customers
Values to Customers
Competitive Prices
Quality
Product diversity
Excellent Service
Increase Retail
Reducing Cost
Customer Relations
Increase quality in services
Strategic alliance with other
company to cross promotion
Customer Appreciation
Increase customer satisfaction.
Enhance hair condition by
recommending products
according to personal needs
Birthday Special day
Internal process
Operation
management process
Timing of selling new
products
Positioning and
differentiation
Learning and
growing
Increasing R&D
R&D of new
products
Provide the latest on
hair products
Customer management
process
Increase loyalty
from old customers
and acquire new
ones
Innovation process
Invite manufactures to
promote their new
products provide the
latest hair techniques
to staff
License require
Follow state board
rules
Environment
Clean facilities
Communication
There are three purposes of communication :
i) Ensuring that the message conveyed has been fully understood;
ii) Ensuring that the conveyed message has been accepted by the receiver;
and
iii) Ensuring that the receiver of the message has got motivated to act for
doing what he has accepted to do.
Communication includes grasping, processing and articulating thoughts and ideas
to convey and use information in a meaningful manner. These skills also can be
understood and interpreted at different levels. A few of the important
communication skills are :
Speaking;
Writing;
Asserting;
Listening;
Questioning;
Paraphrasing;
Giving feedback;
Receiving feedback; and
Empathising.
Planning for the Change
The objective of this stage is to plan for effecting the desired changes for
achieving the vision. An action plan is prepared indicating the activities,
responsibilities, time frame, counting huge measures and required resources.
Implementation
This is the most crucial stage. The action plan has to be implemented. The
involved persons are to be educated and convinced about the gains. Extensive
communication is required and high orders of leadership skills especially
persuading skills are required. A number of presentations, meetings, workshops
are to be held. The success depends on the internal resource persons or
facilitates who would work in tandem with the change agent / consultant. It is
difficult to get successful implementation without Project Management skills.
3) Action Research
A change process based on systematic collection and analysis of data is called
action research. In this approach, data is collected to diagnose the problem and
action steps are identified on the basis of the analysis of the data. It is a fivestep
process. These steps have been enumerated as follows.
Diagnosis
Under the guidance of a change agent / consultant, data is gathered about the
problems, perceptions, concerns and the expected changes from the employees
of the organization. Questions, interviews, secondary records and a variety of
techniques are used for collection of data.
Analysis
At this stage, analysis of the data collected in the previous step is carried out
to identify the problems, patterns of behaviours etc. The change agent or
consultant draws inferences and identify the primary concerns, problem areas
and expectations.
Feedback
Action research is a collaborative process and therefore emphasises deep
involvement of the employees likely to be involved. Therefore, the highlights of
the analysis in terms of concerns and problem areas are shared with the
employees specially those cross sections from where data had been collected.
Create action plan
Our experience is that there are four high level questions that need to be addressed under this aspect.
campaign. Salon and day spa newsletters are a wonderful way to educate your clients and
your community on all of your special salon and spa services. They are also great at promoting
your staff s technical abilities and creative skills.
They help you increase sales of professional services, gift certificates and products to your
existing clientele, while also introducing you to many new people in your area.
Its whats inside that counts. Your salon newsletter should take an educationally oriented
approach with an assortment of articles covering your various salon and spa service
departments. Tell what makes your hair, skin, nail and spa services unique, while sharing the
benefits of each of your various specialty services. Explain your special hair care and beauty
care services, especially anything that hidden behind the closed doors of your salon.
This list of potential newsletter article topics may help you get started:
Promotions.
Massage Therapies.
Laser Treatments,
Mesotherapy,
Makeup Artistry.
Service Programs.
Honors.
Packages.
Clarity
Concern
Communication
Marketing
Communication
Internal
Communication
Position of products
and services
Consistency
Responsiveness
Effectiveness and
Efficiency
Adapted from
Shackleton, C (2007)
Marketing mix,
research and
development
Human Resources
Organizational
Communication
Assets company's
image and cost
efficient method
Audits
Conclusion:
The beauty salon belongs to an industry were services and products are closely related to
the image and treatment that hairstylist give to the customers. Individuals who act and are
perceived as a professional with ethical values develop the trust of their customers. The
best way to develop a successful beauty salon is to careful selection of staff that will be
motivated to get a continuous education to improve hair cutting techniques and customer
service positioning and improving the salon reputation as a result of high level of
customers satisfaction. Customers enjoy high quality services that only a highly trained
and disciplined employee can provide. The balance card will provide the information to
produce strategies to obtain high customer satisfactions will increase revenue and give
the company in the ideal position that was created by the companys mission and vision
statements.
Balanced Scorecard 26
Audience:
Sub Audience(s):
Communication Goal(s):
Environment: What are the environmental factors affecting your organization?
1.
2.
Requirements: What are the communication requirements for your organization?
1.
2.
Priorities: What are the top issues your organization is currently facing?
1.
2.
Current vehicle: What are your organizations current communication vehicles?
1.
2.
Suggested vehicles: What alternative communication vehicles would you suggest?
1.
2.
Timeline: What are the major calendar milestones for the year?
1.
2.
Current method of feedback: What methods do you currently use to provide feedback to ASA(ALT) headquarters?
1.
2.
3.
Suggested method of feedback: What alternative methods of feedback would you suggest?
1.
2.
Balanced Scorecard 27
Date
Spokesperson
Activity
Objective
Content
Audience
Accountability
Monthly
Functional
Management
Customer service
standards
Customer service
excellence
Services and
expectations
Customers
Functional
Management
Employees
Policies and
practices
Monthly
Quarterly
PR/Functional
Management
Business
growth/customer
loyalty
Customer retention
HR
Director/Divisiona
l Heads
Human capital
development
Employee training
Customer loyalty
program
Customers
Encourage
stakeholders to be
enthusiastic about
change, improved
customer service,
innovative
products, new
processes, and
technology
Employees
HR
Employees
Functional
Management/
Employees
PR/Functional
Management
Industry product
and service
innovations
Processes and
procedures
Quarterly
HR Director
Collaborative
environment
Employee teamwork
HR
Pending
CEO
Online services
Customer website
Key customer
services available
Customer mail
out
IT
Manager/Custo
Balanced Scorecard 28
online
Private and
secure
Print ads
mer Service
Manager
Annually
CEO
Goals and
objectives
The steps of
development for
the future
Staff
CEO/Divisional
Heads
Annually
CEO
Clarify
responsibilities of
each function
Build responsibility
matrix
Clear function
specific tasks
Staff
CEO
Bi-Annually
CEO
SWOTT Analysis
Risk planning
Identify current
and potential
issues
Staff
CEO/Divisional
Heads
Bi-Annually
HR Director
Business
Potential/Compet
itive Advantage
Human capital
retention
Develop, grow,
and optimize
potential
Employees
Functional
Management/
HR
Benefits
Recognition and
Awards
Monthly
Divisional Heads
Project focus
meeting
Focus employee
actions
Ensure uniformity
Build awareness
and understanding
of project
Employees
Divisional
Heads
Employees
Divisional
Heads
Encourage
stakeholders to
get involved
Clientele
management
New business
Monthly
Divisional Heads
Meetings with
workgroups
Activity awareness
Upcoming projects
Balanced Scorecard 29
Potential issues
Leadership
directives
Monthly
Quarterly
HR/PR
CEO
Newsletter
Management
meeting
Information
dissemination
Upcoming events
Customers
HR/PR
New staff/staff
recognition
Employees
Table overview
Upcoming
activities
Divisional
Heads
CEO/Divisional
Heads
Divisional
Heads
CEO/Project
management
Staff
HR
Explain rationale
and benefits
Reinforce
managements
role
Brief financial
review
Bi-Annually
CEO/Project
management
To show local
stakeholders how the
plan the plan direction
and how the different
strategies will work.
Contracted
service provider
Ethics Workshop
Increase and
enhance personal
ethics engagement &
involvement
Strategic planning
design
Operational and
safety practices
Strategy
implementation
and action plan
alignment
Corruption in
management
Awareness of
consequences
Balanced Scorecard 30
Ethics and
customer service
Firms Code of
Ethics and ethics
guidelines
Bi-Annually
CEO/Divisional
Heads
Presentation to
outline
deployment
processes
To inform, practice
implementation
process, and timing
Plans and
strategies to align
operational
actions with
mission, vision,
and values
Staff
Divisional
Heads/Function
al Management
As needed
PR Director
Media release to
announce when
the planning
implementation
process is
started/complete.
To inform customers
about the new service
or products provided
to improve and meet
their needs
Position the
agency as an
efficient, effective
world class form
with the general
public
Customers
PR
Promotions
New products and
services
Customer loyalty
rewards
Newsletter
Open house
Community
activities
Senior citizen
outreach program
Strategic cross
promotion
partnerships
Divisional
Heads
Balanced Scorecard 31
References:
Robert S. Kaplan & David P. Norton, 1999, The balanced scorecard: translating strategy into action
Balanced Scorecard 32
Albrecht, K. (2006) Systematic Program for Achieving Organizational Focus and Alignment, Retrieved on July 13, 2009 at
http://www.karlalbrecht.com/downloads/J2E-WhitePaper-Albrecht.pdf
Industry Scan. (2008) Hairdressing and Beauty Report, Retrieved on July 8, 2009 at
http://www.serviceskills.com.au/
OASA Strategic Plan (2007) Office of the Assistant Secretary of the Army for Acquisitions, Logistics and Technology
Retrieved on July 25, 2009 at https://www.alt.army.mil/portal/page/.../Strategic_Comm_Plan.doc
Shackleton, C. (2007) Corporate Communication Measurement Tools, retrieved on July 25, 2009 at
http://upetd.up.ac.za/thesis/available/etd-05162007-140318/unrestricted/03chapter3.pdf
Toftoy, C., Chatterjee, J (2002) The Value of Mission Statements for Small Businesses.
School of Business and Public Management, Washington, D.C. Retrieved on July 14,
2009 at http://www.sbpm.gwu.edu/casb/casb/Mission_Statement.pdf