Running head: ORGANIZATIONAL STRATEGIC PLAN 1. Organizational Strategic Plan. Kari Andrews, Sally Choponis, Stephanie McCarthy & Chelsea VanDyke

Transcription

1 Running head: ORGANIZATIONAL STRATEGIC PLAN 1 Organizational Strategic Plan Kari Andrews, Sally Choponis, Stephanie McCarthy & Chelsea VanDyke Ferris State University NURS 440

2 ORGANIZATIONAL STRATEGIC PLAN 2 Organizational Strategic Plan Organization Name All Wrapped Up, Inc. located in Traverse City, Michigan, manufactures and retails first aid kits. Due to first aid care being used in nearly every environment, there is a considerable need for kits for work, at home, and play. There are many varieties on the market; however, some of these can be very expensive and may contain limited items. An up-and-coming trend is the call for specialty first aid kits designed for specific environments and activities (Research and Markets, 2016). The sports industry is quickly developing a large demand for first aid specialty kits (Research and Markets, 2016). This industry has already claimed nearly 50% of the worldwide market (Research and Markets, 2016). The other 50% of the market embraces various lifestyles and vocations. Top Michigan occupations include commercial truck driving, computer technicians, nurses, and welders (Bomey, 2015). Leading industries in Michigan include automotive manufacturing, food and agriculture, freshwater technology and services, and Christmas tree farming (Katzowitz, 2015). Many of these job sectors and industries like commercial truck drivers and farms would support manufacturing a specialty first aid kit. Furthermore, hunting is a popular recreational sport in Michigan that necessitates specific kits. While there are a few first aid kit suppliers located in the state, there is not a first aid kit manufacturer in Michigan. Traverse City, Michigan, offers a medical center, large area of schools, and several work environments, along with many hunters and sportsmen that surround the city that present excellent target markets. This is a growing area with a number of shipping opportunities to sustain a manufacturing plant. All Wrapped Up, Inc. realizes promising opportunity to be the lead manufacture of first aid kits in Michigan.

3 ORGANIZATIONAL STRATEGIC PLAN 3 Vision Our vision at All Wrapped Up, Inc. is to manufacture a premium first aid kit for basic treatment of common medical emergencies and have our product in every home, vehicle, classroom, and work environment. Manufacturing of these kits can be tailored to fit the needs of the environment in which it will be utilized. Mission We, at All Wrapped Up Inc., constantly strive to provide a high quality product for basic treatments of common emergencies. By providing access to our products, we will empower people to have a better life. Our products will be used in the community to promote personal safety and wellness. We will reduce the stress of medical emergencies through the use of our superior quality first aid kits, all while keeping the consumer experience in mind. Our goal is to work together to serve others in a thoughtful, handy, cost-effective and accessible manner. Philosophy All Wrapped Up, Inc. values our employees that build, sell, and support a great product. Our outstanding team offers a loyalty to our customers providing the best possible service, choice, quality, and value. Organizational Goals Organizational goals are typically broad in nature (Yoder-Wise, 2015). Goals of an organization are plans meant to direct business endeavors and employee efforts (Yoder-Wise, 2015). What follows are organizational goals for All Wrapped Up, Inc.: Establish brand awareness; Ensure consumer satisfaction by producing high quality products; Promote personal safety and wellness for all consumers;

4 ORGANIZATIONAL STRATEGIC PLAN 4 Provide every customer with affordable and reliable first aid care products; Establish a reliable customer support service system; Empower consumers to improve their lives and reduce medical emergency stress with versatile first aid kits; Have our product in every home, vehicle, classroom, and work environment; and Maintain a 90% satisfaction rate amongst employees along with a 75% retention rate for current employees. Organizational Objectives Short- and system objectives must contribute directly to business goals (Success Factors, 2017). Proponents of this method suggest that this practice helps all employees of the organization to make connections between what they are each contributing to what the company desires to accomplish (Success Factors, 2017). All Wrapped Up, Inc. has developed the following organizational objectives: Marketing o To understand customer buying trends and anticipate distributions needs through researching target marks, consumer input, and product offerings before product; o To develop and implement a flexible promotional plan to drive increased business through advertising before, during, and after product launch; Competitor analysis o To evaluate activities of industry competitors, monitor where our product ranks in the market to improve revenue and customer satisfaction in 6 months; o To have all our first aid kits in the two major drug store chains nationally by 2021;

5 ORGANIZATIONAL STRATEGIC PLAN 5 Profitability o To stay ahead of costs by controlling production and operations overhead to maintain profit margins on products sold, increasing revenue in 12 months; o To earn $10,000 more per month by 2021; Productivity o To have 10 employees within six months; o To provide employee training, equipment upkeep, and resources needed to boost productivity every two years; o To yield 80% or higher in productivity within 3 months; Growth o To research historical statistics to predict future demands by 2020; o To expand distribution centers beyond Traverse City, Michigan by 2020; o To expand product sales to the international level by 2022; Customer satisfaction o To provide product specific education to consumers in the form of personal demonstration, online resources and product information pamphlets within 3 months and ongoing; o To educate consumers about personal safety and wellness habits immediately and ongoing; o To improve consumer s quality of life through reducing the stress of medical emergencies immediately and ongoing; o To have a user friendly questionnaire available to consumers for suggestions on improvement of product by 2018;

6 ORGANIZATIONAL STRATEGIC PLAN 6 Employee retention o To maintain a positive work environment immediately and ongoing; o To provide employee incentive programs for all eligible employees within 6 months; o To research current cost of living wage trends to maintain competitive compensation immediately and yearly; o To provide a safe, clean work environment that meets or exceeds OSHA standards within 3 months; o To survey current employees to evaluate satisfaction immediately and every 6 months; and o To provide day care services, medical treatment office, and exercise rooms for all employees and their families by Organizational Chart PRESIDENT Develop organization MARKETING DIRECTOR Build Brand Awareness Forecasting Sales Customers QUALITY ASSURANCE DIRECTOR Customer Service Customer Satisfaction On Time Delivery OPERATIONS DIRECTOR Manufacturing Purchasing FINANCE DIRECTOR Accounting HR Budget TECHNOLOGY DIRECTOR IT Network Troubleshooting Website Management Forecasting Mgr Sales Associates Customer Service Associates Manufacturing Mgr Purchasers Accountants Information Technologists

7 ORGANIZATIONAL STRATEGIC PLAN 7 Organizational Job Descriptions With expectations of a new job being so high from many perspectives, it is important for leaders to provide clarity about roles and responsibilities (Cohen, 2014). Clear and distinct job descriptions provide the elements of expectation, but also set forth positive influences when it comes to accountability and how the employee elects to encompass and execute the details of the position (Cohen, 2014). All Wrapped Up, Inc. has developed the following job descriptions: Position Title: President Reporting to this Position: Marketing Director, Operations Director, Quality Assurance Director, Finance Director, and Technology Director Qualifications and Education Requirements: Masters in Business Administration Salary: $80,000 Job Summary: The President of All Wrapped Up, Inc. is responsible to oversee all company operations to ensure the use of quality, service-oriented and cost-effective resources. The President will develop and maintain a strategic company plan to meet organizational mission, vision, and philosophy. Primary Responsibilities: Budgeting: plan, develop and implement strategies for generating revenue, Approve operational policies and procedures, Review financial reports/statements to determine progress and appropriate goal revisions, Encourage organizational development and employee growth, and Commission transparency throughout all departments.

8 ORGANIZATIONAL STRATEGIC PLAN 8 Position Title: Marketing Director Reporting to this Position: Forecasting Manager, Sales Associate Qualifications and Education Requirements: Bachelor s degree in Marketing Salary: $50,000 Job Summary: Marketing Director s aim is to maximize profits by fostering sales strategies that compliment customer s needs, as well as promote products and services. Primary Responsibilities: Flexibility with changing customer demographics and ability to forecast customer needs, Ability to analyze efficiency of the department, Initiate and encourage marketing campaigns that promote products, Product development and research to build brand awareness, and Lead and directs the work of others. Position Title: Operations Director Reporting to this Position: Manufacturing Manager, Purchaser Qualifications and Education Requirements: Bachelor s degree in Business Salary: $60,000 Job Summary: Operations Director s purpose is to improve productivity at All Wrapped Up, Inc. Primary Responsibilities: Analysis of risk management,

9 ORGANIZATIONAL STRATEGIC PLAN 9 Keep operations running smoothly and proactively addressing any issues, Management of manufacturing operations, Management of purchasing operations, Lead and implement OSHA requirements within the facility, and Lead and directs the work of others. Position Title: Quality Assurance Director Reporting to this Position: Customer Service Associates Qualifications and Education Requirements: Bachelor s degree in Business Salary: $50,000 Job Summary: Primary duties of the Quality Assurance Director generally includes creating, governing, and disseminating company quality procedures, standards, and plans while assessing that customer expectations are met. Primary Responsibilities: Quality and risk management related to customer service/satisfaction, Ensure that products meet quality standards, Identify necessary production improvements, Maintain HIPAA compliance standards, Safeguard on time product and service delivery, and Lead and directs the work of others. Position Title: Finance Director Reporting to this Position: Accountants

10 ORGANIZATIONAL STRATEGIC PLAN 10 Qualifications and Education Requirements: Bachelor s or Master s degree in Finance & Accounting Salary: $50,000 Job Summary: Primary duties of the Finance Director is the health and well-being of the organization, All Wrapped Up, Inc. Primary Responsibilities: Prepare quarterly budget and set profitability goals, Review statistics and analyze markets for growth opportunities, Prepare activity reports to provide financial forecasts, Monitor and translate company cash flow and accounting functions, and Lead and directs the work of others. Position Title: Technology Director Reporting to this Position: Information Technologists Qualifications and Education Requirements: Bachelor s degree in Information Technology Salary: $60,000 Job Summary: The Technology Director s main purpose at All Wrapped Up, Inc. is to strategize, establish, and execute all IT functions. Primary Responsibilities: Keeps the network up and running, Website and data backup/recovery management,

11 ORGANIZATIONAL STRATEGIC PLAN 11 Meet customer requirements and appropriate support, Research and establish long-term IT goals, and Lead and directs the work of others. Job Advertisement Marketing Director Advertising Flyer Advertising Prices per sources below 1. Professional Journals: Journals listed below are ranked number one and number four overall for prestige, importance, and popularity (Academy, 2017). a. Journal of Marketing: The Journal of Marketing is a leading publication comprised of peer-reviewed articles encompassing most current topics in the marketing industry that is issued by the American Marketing Association (American, 2017). Estimated advertisement on the digital posting for seven days, charging per word, single-colored image, on ¼ of web page costs $115. b. Journal of Retailing: The Journal of Retailing publishes the latest peerreviewed article featuring information relevant to all elements of retail including management, consumer, products, services, supply and distribution (Elsevier, 2017). Estimated advertisement on the journal s digital web page for 10 days, charging per word, single-colored image, on ¼ of page costs $ Newspapers: Traverse City, MI has several local newspapers, both in print and online.

12 ORGANIZATIONAL STRATEGIC PLAN 12 a. Traverse City Record-Eagle: The Traverse City Record-Eagle is a leading print newspaper that distributes to 13 counties in northwest lower Michigan 7 days a week (Record-Eagle, 2017). The newspaper has partnered with Monster.com for job advertisement and provides a package advertising deal (Record-Eagle, 2017). A package that provides 30 days on monster.com (which includes notifications for up to 5 matching resumes), up to 30 words, and a 4-day charge for the print ad costs $557 (Record-Eagle, 2017). b. Northern Express: The Northern Express, a print and online newspaper, delivers over 30,000 copies each week (Northern Express, 2017). Estimated cost of a week-long digital ticker advertising is $5, limited to 10 words (Northern Express, 2017). A print advertisement charged per day, 15-word limit, one single-colored image costs $280 (Northern Express, 2017). Six-day print ad plus 7-day digital ticker ad for total of $ All Wrapped Up, Inc. will reach out to job hunters through various social media outlets including Facebook, Instagram, and Twitter. Monster.com will already be utilized as a combination package offered through the Traverse City Record-Eagle newspaper. Otherwise, Monster.com and Indeed.com are essential online job advertisement and recruiting resources.

13 ORGANIZATIONAL STRATEGIC PLAN 13 Benefits! Health Retirement Vacation NOW HIRING! MARKETING DIRECTOR Locally Owned Globally Connected! All Wrapped Up, Inc., offers plenty of small-town charm amidst an array of Traverse City s amenities including the airport, museums, colleges, shopping centers, casinos, professional sports, and plenty of tourist attractions and beautiful northern Michigan scenery. ALL WRAPPED UP, INC. 123 First Aid Rd. Traverse City, MI M F 8:00 a.m. 5:00 p.m. allwrappedup.com Bachelor s degree in Marketing Required Experience will be considered Responsibilitie s: Budgeting, approve policies/procedures, manage financial statements, organizational development, and employee growth Find Your Apply online allwrappedup.com

14 ORGANIZATIONAL STRATEGIC PLAN 14 Budget Proposal Overall expenses do not exceed revenues with a 15% estimated and projected growth rate. Estimated expenses are approximately $618,250 which includes employee expenses and operating expenses. Estimated revenues are $711,250 from grants, interest earned, and sales. Year one profit estimated to be $106,685. All Wrapped Up, Inc. shows a 15% growth rate in While 15% is a less than moderate growth rate, it is a sustainable growth rate that will move a business to double in size within five years (Nagel, 2017). The projected growth rate for 2018 remains at 15% profit to resume that overall expenses will not exceed revenues. This projected growth rate will slowly allow for additional expenses. To be cost-effective, we considered that the proposed budget shows that the company cannot sustain hourly employees until the third year of business. The plan is to include one sales associate and at least six line workers paid at an hourly rate and offered a basic health insurance benefit contingent upon working at least 40 hours per week by the third year of operation. Meanwhile, the five Department Directors and President will have full-time salaried positions that include health insurance, retirement with an estimated 5% company match, and limited earned time-off with one week during year one and two weeks the second and third year. With the level of education required for these positions, we feel that they can take on multiple rolls of Managers and Associates for the first two years to allow time for profit margin growth. The plan is to build product four days a week and execute department duties one day a week, in addition to at least one hour a day. The President will primarily help with department duties throughout the week. The hours of operation will be Monday through

15 ORGANIZATIONAL STRATEGIC PLAN 15 Friday from 8:00 a.m. to 5:00 p.m. Employees will rotate Saturdays to work during the hours of 8:00 a.m. to 2:00 p.m. fulfilling orders and shipping demands. The operating expenses are listed in detail within the spreadsheet. Since the budget is so tightly structured, smaller economical advertising packages are the best option. Business insurance, licenses, fees, and taxes are also important expenses considered. The President will work to secure both state and federal grants to off-set expenses as part of health and wellness programs. Product sales are a primary source of revenue and the cost of shipping will be incurred by the customer at present. Quick growth poses a real challenge to the infrastructure of a company and while it is appealing, it can be difficult to support increased demands to the point that a business suffocates (Nagel, 2017). The business framework that All Wrapped Up, Inc. embraces sanctions a slow and systematic growth that will not only meet objectives, but prove sustainability over time in the first aid kit market. Position Expenses Annual Monthly Health Insurance Monthly Retirement Revenues Annual President $80000 $8000 $2500 Michigan Grant $ Director of Marketing $50000 $8000 $1850 Federal Grant $ Director of Quality Assurance $50000 $8000 $1850 Asset Return Interest (0.97% of 100,000) $970 Director of Operations $60000 $8000 $2000 Product Sales $ Director of Finance $50000 $8000 $1850 Director of Technology $60000 $8000 $2000 $ $48000 $12050 WAGE TOTALS $410,050 REVENUE TOTAL $711,250

16 ORGANIZATIONAL STRATEGIC PLAN 16 Operation Expenses Annual Per Month Utilities (Internet, Phone, Electric, Gas, Water, Cleaning) $36000 $3000 Rent $30000 $2500 Business Insurance & Fees (Licenses, Permits) Office Supplies (desks, chairs, computers, printers, ink, phones, paper, pens, staplers, etc.) Product Supply/Inventory (all supply to build kits) Advertising/Marketing (Professional Journals, Newspapers) $4800 $400 $4800 $400 $ $10000 $10200 $850 Taxes $2400 $200 OPERATION TOTAL $ TOTAL EXPENSES $618,250 TOTAL PROFIT $106,685

17 ORGANIZATIONAL STRATEGIC PLAN 17 References Academy of Marketing Science. (2017). A ranking of marketing journals. Retrieved from American Marketing Association. (2017). Journal of marketing. Retrieved from Bomey, N. (2015, January 4). The 10 hottest jobs in Michigan in Detroit Free Press. Retrieved from Cohen, S. (2014). Owning your role: Effective leaders know that taking ownership of their job descriptions means success for their careers. Nursing Management 45(3), 8-9. Elsevier. (2017). Journal of Retailing. Retrieved from Katzowitz, J. (2015, April 10). Top 5 industries in Michigan: Which parts of the economy are Nagel, J. (2017). Five rates to guide your business growth. Retrieved from strongest? Retrieved from Northern Express. (2017). Advertise with the northern express. Retrieved from

18 ORGANIZATIONAL STRATEGIC PLAN 18 Record-Eagle. (2017). About us. Retrieved from Research and Markets. (2016). Global first aid kit market Retrieved from Success Factors. (2017). The incredible power of company-wide goal alignment & organizational business goals. Retrieved from Yoder-Wise, P.S. (2015). Leading and Managing in Nursing (6 th ed). St. Louis, MO: Elsevier.