Factors To Consider In Able Corporation’s Business Plan
Able Corporation is manufacturing company located in United States which offers a wide range of power tools to the consumer and industrial channels. The company focuses mainly on provision of professional and consumer quality. The company is looking forward to improve its operations in the region and ensure it controls a large market share. Able hopes to meet the growing demand of its products thus ensuring that its customers are fully satisfied. In five years, the market for Able’s products is expected to grow by a large margin hence the company needs to put in place measures aimed at tapping this market. Referral networks coupled with strong marketing tools are expected to enhance Able’s market share and profits.
Mission statement
Able Corporation needs to develop a mission statement that takes into consideration its current financial position and future aspirations. Hence, Able’s mission statement should be to focus on providing quality products to its consumers at a competitive price with respect to other premium quality companies which share the same market. Currently, there is a large untapped market as most of the existing companies are too diversified thus unable to serve the increasing specialized needs in this commercial segment. This provides Able with a good chance of increasing its market share tremendously.
Strategic objectives
Objectives play an important role in ensuring the company focuses on improving its profit margins and services. One year strategic objective needs to focus on improving the quality of its products. To achieve this, Able needs to invest more finances in ensuring that manufacturing plants are adequately renovated and maintained. The five year strategic objective for Able needs to involve marketing. The company should therefore formulate sufficient market analysis that would provide the company with a better understanding of market dynamics and demographics. This will enable the company to develop and utilize a wide range of marketing tools that generates new and repetitive sales. The ten year strategic objective should involve growing and commanding a large market share in the electric power tools industry.
Operating principles
Able Corporation should conduct its operations and activities responsibly and ethically. This will ensure that all products and manufacturing plants are compliant with the set laws. In addition to that, occupational health and safety should constitute an integral part of its operations thereby ensuring provision of suitable working conditions for employees and safe products to consumers.
All employees need to be provided regular training and education concerning their job position to ensure high performance. In addition, all employees should read and understand the company’s goals and objectives and adhere to the company policies. Understanding employees’ rights is essential thus the company should respect and recognize the rights of each employee to associate with sanctioned organizations that are legal. Employees have the freedom of association thus can join labor unions. The company also needs to comply with all employment laws concerning working hours and payment of wages.
Company strengths and weaknesses analysis
Considering the performance of Able Corporation for the past four years, it is clear that its strengths are significantly few with respect to its weaknesses. The company serves two channels which include consumer and industrial channels thus implying a large market for its products. Currently, the company controls about forty percent of the circular saws’ market thereby providing it with a sustainable business potential (Les, 2008). The strong brand equity of Able’s circular saws, together with loyalty from consumers and professionals ensures that the company maintains a large and impregnable market share. In addition to that, the company’s cordless business segment has been successful and profitable. Able Corporation has been successfully in building a good reputation through its cordless innovations and other products (Les, 2008). A good reputation plays a central role in ensuring that a company thrives in a competitive business environment.
The main weakness of Able is on marketing its products. Marketing is essential for any business that plans to grow and remain competitive in the market. Through marketing tools such as internet, radio and television among others, customers are provided with knowledge concerning a particular product and the most suitable company to purchase it from. As a result of Able not understanding its market, most of its products are not performing well (Les, 2008). The company needs to identify and understand its customers in order to fulfill their needs. By understanding market dynamics, Able will have a competitive edge over its competitors.
In addition to marketing flaws, Able Corporation does not know its competitors thereby making it difficult to plan strategically on how to outdo the rivals in the market platform. A competitive analysis will provide Able’s management with an understanding of the company’s competitive advantages and disadvantages with respect to their rivals. Through such analysis, the company will be provided with the capability to develop strategies that would enable it to gain an upper hand over its competitors. The key to having a competitive edge in business is by knowing and understanding the competitors; their objectives, identity and threats posed by them (Les, 2008).
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