Strategic management assignment Essay
Strategic management assignment
Develop an argument supporting the importance of a strategic plan for the success of the defined business. 2. Create a mission statement for the company explaining how the mission will be essential to the company’s success. 3. Create a vision statement for the company explaining how the vision statement supports the company’s mission. 4. Establish five (5) key objectives for the company encompassing operational, financial, and human resource aspects of the business and justify why each of these objectives is essential to the success of the business.
5. Justify how the five (5) key objectives established support the mission and vision statements of the company as defined in the assignment. The business I am going to profile is called Rental Ready. I actually tried to open this business as my own in the late 1990’s and the name is registered to me. The premise of the business is to work with realtors, landlords, property owners, and city inspectors on rental properties.
We would get the properties ready to rent when a tenant moves out, work actively with landlords to fix broken items, work with real estate management companies to also get rentals ready they manage and own, and lastly work with owners who section 8 their properties and receive hit lists from yearly inspections. I have extensive experience in all repairs pertaining to rental properties from owning 20 units myself in the 1990’s and early 2000’s. Strategic planning is an activity that give focus to the business.
It is used to focus energy, allocate resources, give direction, and ensure all employed for the company are all working toward the same goal (Balance Scorecard Institute). I believe the reason I failed in this business is that I didn’t have a plan. I was just winging it as I went. I didn’t understand the importance at the time of having a written document which I could read over, modify, fall back on, and use to keep me pointed in the right direction. I also was all over the place. I took on projects outside my scope of business, my expertize, and my financial capability.
These factors caused me to go a little crazy and I finally cut the phone cord and closed the business. Now I understand how important a strategic plan is. Here are some reasons why it is so important to have a strategic plan: 1. A strategic plan clearly defines the purpose of the organization. It establishs realistic goals and objectives consistent with that mission in a defined time frame. 2. A strategic plan gives everyone a sense of ownership in the company. 3. The plan establishes key priorities and makes sure the limited resources are focused on those priorities. 4.
The goals and objectives provide a base measurement which progress can be measured against. 5. A strategic plan lets everyone know where the company is going. It lets everyone know what the goals of the organization are (NAMAC). 6. When goals are hit often great satisfaction is felt by all members of the company. 7. Increases productivity The importance of a mission statement cannot be over stated. It gives, in a few sentences, everyone an idea what your company does, is about, values, and how you can serve them. The mission statement should reflect the niche you propose to fill for society (Entrepreneur).
One example of a good mission statement is Starbucks Coffee. “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks. com). This mission statement conveys the true mission of the company. They do want to sell coffee but they are also selling conversation, laughter, connections, and trying to lift the spirit of their customers. Our mission statement will be: Rental Ready will give you the ability to provide your customers with the highest quality, most comfortable, relaxing, and functional home available.
We will take your fixer upper and use our highly skilled team members to transform it into a palace. Rental Ready will work with you from the design process to the finished product. Let us get your rental ready for you. What does the above mission statement convey? I believe that it tells the customer (landlords, rental agents, and real estates) what we do. It gives them confidence in our ability to do quality work, work with them on their own terms regarding design, and give them piece of mind in our ability to get them back in the black with their property.
After the mission statement the vision statement is also an important addition to the whole business plan. Some attributes of the vision statement are: 1. Identifies the business in human terms. 2. Identifies the values of the business. 3. Energizes and motivates people (Mindtools. com). Our vision statement will be: Rental ready provides quality housing to real people. What does this tell our customers. It says it all. We provide quality housing on their behalf. We do quality work at reasonable prices for real people who can afford it.
The 5 key objectives of my company will be: 1. Exceed Financial Target. Since this is primarily an all cash business and my primary goal is to increase sales and increase cash flow. This business doesn’t have shares, stock, or any of the targets of the large corporations. The way to increase cash flow is to sell more jobs, finish them faster and with higher quality, and build a better network of people whom I do business with on a regular basis. This will keep advertising costs down and improve cash flow on the back end. 2. Grow / Develop the Company.
To grow this company I plan to work with contractors who specialize in areas of home remodel which I don’t do. For a percentage I would take on projects which my clients need such as roofing, fencing, HVAC, demolition, and heavy construction and subcontract them out to my contacts. This would allow me to do two things. First, it would allow me to service my customers better “one stop shopping” for them, and second it would allow me to earn more revenue through areas which I would not be able to do on my own. 3. Increase Productivity & Quality.
As the business grows I would plan to hire a QC manager who would visit all of the job sites and do quality control. He/she could also jump in on projects where we are falling behind, need extra hands, and where complicated issues arise. I believe having someone who can consistently check quality will improve our relationship with the customers, give our employees a better sense of what needs to be done for our customers, and give productivity a boost when our employees learn how to perform quality work more quickly and don’t have to go back to do something
over. 4. Improve Customer Satisfaction. Customer satisfaction is one of our main priorities. In the construction business “word of mouth” advertising is the most important form of advertising you can have. With satisfied customers comes more work and referrals to new potential clients. I would end every job with a customer satisfaction survey which would encompass everything from the professionalism of the workers, cleanliness, work quality, manors, and price. With this survey I would improve the way my people deal with the customers and improve the business.
I would also include to the customer literature for them to give to anyone who may need service and offer them something in return for the referral. 5. Improve Employee Satisfaction. As the business grows I would offer some items which larger business’s offer. My employees would have access to benefits including medical, 401k, dental, paid time off, sick days, and yearly employee reviews with potential pay increase. So how do the 5 key objectives support our mission and vision?
Starting backwards I believe the most important aspect is the employees. They are the front men and women of the company. They have more contact with the customer than anyone including salesmen, the owner, and others. If they are happy with their jobs, have the belief that there is a future in it and it is not a dead end for them then they will want to fulfill the mission of the company. They will work happy and perform better which will satisfy the customer. Along with this is the customer satisfaction key objective.
Call backs, unhappy customers, and failed inspections because we missed or did a shingad job could cause us to lose work, lose customers, and most importantly gain a bad reputation in the industry. Key number 3 is important to the mission because we must continue to strive to provide the highest quality product available for our customers. People are going to be living in these homes we provide and they must be comfortable so they pay their rent to the landlords. If we don’t provide a quality product then the landlords will have issues and again we will lose potential customers.
We also must provide a safe living environment because it is the right thing to do. Growth is key to our success. I believe that to keep competitive in such a tight industry we must offer the largest range of products to our customers. We must make it convenient for them to call us and not worry about something we can’t do. I was a landlord and dealing with multiple contractors is not easy. I want to take this worry away from the customer by giving them everything they need. This will give them peace of mind and give Rental Ready the chance to keep growing and offering more products and services.
My ultimate goal is not to have to advertise. I want to build a network of contacts so large that repeat business, referrals, and current customers use us over and over again as rentals come up for rent. This will keep cash flowing in, our employees working, and make the business profitable without a lot of expended energy on activates which are not productive. Balance scorecard institute. No Author. “What is strategic planning”. (n. d. ). Retrieved 10/12/13 From https://balancedscorecard. org/Resources/StrategicPlanningBasics/tabid/459/Default. aspx
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