Strategic Choices and Evaluation of JHC

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1 JANAKPUR HANDICRAFT CENTER Strategic Choices and Evaluation of JHC Strategic Planning and Implementation seema parween 12/15/2013 Janakpur Handicraft Center (JHC) has a very good vision of helping the society and women. The area the company has been lacking is a strong long term objective. This report will evaluate best alternatives like value discipline, generic strategy, and grand strategy that JHC must consider to realize growth. This report also recommends a combination of strategies for each alternatives the organization should implement.

2 Strategic Choice and Evaluation It is very important for any business to make its own place in the market as well was grow the business. When a business manager knows where he wants to see his business in coming years, he will use all different strategies to make it possible and successful. Janakpur Handicraft Center (JHC) has a very good vision of helping the society and women. The area the company has been lacking is a strong long term objective. Long term objectives provide firms with a perceived road map to help guide their operations. These forward looking objectives are traditionally set for periods of three to five years and focus on several key areas where the company wishes to achieve. These include areas of profitability, productivity, competitive position, employee development, employee relations, technological leadership, and public responsibility (Pearce & Robinson, 2013). This report will evaluate best alternatives like value discipline, generic strategy, and grand strategy that JHC must consider to realize growth. This report also recommends a combination of strategies for each alternative the organization should implement. JHC was established around 19 years before. In all these years, Art market has become very competitive. In present situation, JHC's a long-term strategy must be based on a central concept about how the business can sustain and win in the market competition. The well-known term for this particular concept is generic strategy. Generic Strategy In Los Angeles, there are so many handicraft businesses which are popular among consumers and were opened more than 20 years ago. These are the strong handicraft suppliers in Southern California and have great public relations. These competitors have covered the entire

3 handicraft market in Southern California. Handcrafted items and paintings are considered in luxury items which cannot be sold in low cost because this can affect the company's products quality as well as reputation. JHC's products should be planned to attract customer s interest with an exceptional sensitivity for a core design or feature. By giving emphasis on the feature over other product qualities, JHC can strive to build customer loyalty. Many times such loyalty changes into a company's facility to charge as additional price for its product. JHC's product feature must also depend on its marketing channels through which the product will be delivered, its fame for good quality, the design, and the service network that will support it (Pearce & Robinson, 2013). The Value Disciplines Value disciplines are very effective alternative approach to the generic strategy of JHC. This strategy focuses on delivering superior value to the customer through one of the three types of value disciplines: customer intimacy, operational excellence, and product leadership. JHC must implement the strategy of operational excellence to reduce costs by minimizing overhead, getting rid of intermediate production steps, minimizing transaction costs, and improving business processes across functional and organizational boundaries. This will focus on delivering arts and craft products to customers at best prices with best convenience. For example, JHC can improve the online websites system to be able to replace the traditional paper process to calculate and ship out its in-store inventories in all different locations. The company can use this concept to access a 24-hour online order processing program that can promise JHC's best price and product efficiency. This system can allow the bulk buyers to see new updates from JHC, the new products with designs, place order, and get easy access to

4 JHC warehouse inventory for accurate shipping and production information. Customer-intimate companies are willing to spend money now to build customer loyalty for the long term, considering each customer s lifetime value to the company, not the profit of any single transaction. Consequently, employees in customer-intimate companies go to great lengths to ensure customer satisfaction with low regard for initial cost (Pearce & Robinson, 2013). JHC's team can also spend the necessary time with customers to determine the product that best suits their needs, because the company s business strategy is built around selling products that the customer value rather than charity. JHC's products are beautiful, efficient, and attract people. The best thing about JHC is that the company tries to bring new designs in market all the time. JHC should continue implementing this creative product leadership strategy to pursue its goal to be the best in the market. With the help of all these strategies JHC can build a strong competitive advantage by offering brand and product distinction in terms of value, price, quality, and performance. Grand Strategy JHC needs master plans of strategy for the company. The conditional and sustainable efforts of JHC can be achieved through the use of grand strategies and this will help the company to achieve long term business objectives. In using grand strategies to achieve a competitive advantage JHC will be able to grow and performance will excel. JHC's innovative new products can give the company other original or novel ideas. JHC can also develop the existing products to make them better based on product quality and style of United States and international market. All different countries people have their own choices styles.

5 In Asia customers like more bright colorful products. In United States consumers do not want too much bright colors used in the craft items. JHC can keep this factor in mind and develop the existing products based on the market demand. In many industries, it has become increasingly risky not to innovate. Both consumer and industrial markets have come to expect periodic changes and improvements in the products offered. As a result, some firms find it profitable to make innovation their grand strategy (Pearce & Robinson, 2013). Recommendations for Growth According, to Pearce & Robinson (2013), "Most strategic managers recognize that shortrun profit maximization is rarely the best approach to achieving sustained corporate growth and profitability. An often repeated adage states that if impoverished people are given food, they will eat it and remain impoverished; however, if they are given seeds and tools and shown how to grow crops, they will be able to improve their condition permanently." This same concept applies to JHC's strategies too. The company had been selling paintings and craft items for social cause and was able to employ needy women and improve their lives. Now the company needs to think differently and should increase the women employment, increase sales as well as make its own position in the market of folk arts and handicrafts. As JHC seeks to evaluate and choose strategies that make the business successful. The company's focus on product and market development is something the management must continue to work on. Compared to competitors such as World Market and Ten Thousand Villages JHC is a very small company with less presence and customer loyalty.

6 In last few years JHC has not been able to reach to the consumers that well. The more the company understands the consumer's demand and choices, the more business the company will get. However, getting customers for online, retail and the wholesale business isn t enough to continue JHC's growth and development. Once customers are in JHC, The company needs to work to earn loyalty by continuing to create and develop innovative crafts and Arts that can attract customers. Conclusion JHC is a good manufacturer of hand crafted products and can grow stronger in the future years. The company's objectives play important role to prevent the firm s direction and progress from being determined by random forces and these objectives can be achieved by implementing right strategies on right time. Therefore JHC should also search to gather the high profits associated with customer's choice of a new or greatly improved product.

7 References Pearce, J.A., & Robinson, R.B. (2013). Strategic Management: Planning for Domestic and Global Competition(13th ed.). Retrieved from The University of Phoenix ebook Collection.