Process planning is the development of goals, strategies and schedules required to achieve the objectives of a business. The planning process is a necessary function of management and should result in the best possible level of need satisfaction given the resources available.
For business organizations, program goals are blueprints for implementing a firm’s mission and vision. The lack of clear program goals will doom a program from the beginning. As the first stage of the program planning process, developing a program goal statement involves identifying the results sought by the program, which is generally articulated as the long-range outcomes sought by the program.
Program objectives are the nuts and bolts of program goals. Objectives break down program goals into work assignments. For example, this includes setting objectives for matters such as timescales and budgets for specific action plans. In the planning stage, the key to developing program objectives is to break the program down into identifiable phases and into controllable action units. This makes it easier to estimate, plan and control program activities and tasks, as well as to assign responsibilities.
Planning for quality in programs requires paying attention to details and placing a focus on preventing problems rather than simply responding to problems once they have arisen. Quality objectives include getting it right the first time and delivering and improving the value delivered to program end users. Controls such as setting milestones and performing systematic inspections are built in to programs to evaluate processes and procedures for quality standards. This ensures that tasks and activities efficiently fulfill program objectives.
Delivery of quality customer or client service during the course of a program should be one of its objectives. Depending on the type of program, this will make the customer want to return or to recommend products and services to others. Organizational objectives related to customer service focuses on understanding customer expectations and assimilating these expectations into the action of program staff.
Program timescales estimate the amount of time necessary to complete the program objectives, activities and tasks. Timescale objectives involve identifying the earliest time a unit of work can begin, the time duration required for the work unit, and the latest time it can be completed. Time management tools that are used in programs and projects include PERT diagrams and the critical path method, which help with planning timelines.
In “New Bases of Competitive Advantage,” Reeves, Deimler, Morieux and Nicol (2009) argued that increased turbulence in the business environment has invalidated an implicit and critical assumption of classical business strategy: that competition is sufficiently stable and predictable for the basis of competitive advantage to be readily determined. Traditional approaches to strategic planning become futile in a world in which the key variables are constantly shifting and difficult to forecast. In view of this, three important dimensions of turbulence can be distinguished: volatility in market positions, unpredictability of outcomes, and the widening gap in performance between winners and losers. Most industries have experienced instability on, at least, one of these dimensions, but some, such as technology-driven industries and commercial banking, have been affected on all the three. The hardest hit industries are those that have been disproportionately affected by globalization, deregulation, digitalization, connectivity, deconstruction, and the shift from products to services.
Classical management theory:
The classical management theory is a school of thought, which management theorists delved into how to find the best possible way for employees to perform their duties.
Current management and organisational structure can provide many of its roots in the classical management theory. One of the main advantages of the classical management theory was a methodology for how management should work remember. Management principles can be seen as a basis for the current management behavior today, such as use as a power of authority and responsibility. Coined in this period
In addition, another advantage of the classical management theory is the focus on the division of labor. By dividing labor tasks would be faster and more efficiently, thereby increasing productivity. Division of labor can be seen in many applications today, ranging from fast food restaurants, big production. In addition, the classical management theory also gave rise to an autocratic style of leadership, allowing employees to take. Direction and command of their managers
The main weakness of the classical management theory arose from its tough, rigid structure. One of the main principles of the classical management theory is to increase productivity and efficiency; however, achieving these goals often came at the expense of creativity and human relations. Oftentimes, employers and theorists would focus on scientific, almost mechanical ways of increasing productivity. For example, managers would use assembly line methods and project management theories that focused on efficient division of tasks.
Incremental management theory.
In incremental model the whole requirement is divided into various builds. Multiple development cycles take place here, making the life cycle a “multi-waterfall” cycle. Cycles are divided up into smaller, more easily managed modules. Incremental model is a type of software development model like V-model, Agile model etc.
Advantages of Incremental model:
Generates working software quickly and early during the software life cycle.
This model is more flexible – less costly to change scope and requirements.
It is easier to test and debug during a smaller iteration.
In this model customer can respond to each built.
Lowers initial delivery cost.
Easier to manage risk because risky pieces are identified and handled during it’d iteration.
Disadvantages of Incremental model:
Needs good planning and design.
Needs a clear and complete definition of the whole system before it can be broken down and built incrementally.
Total cost is higher than waterfall.
Emergent management theory.
An emergent strategy is not predictable because it arises out of a specific set of circumstances that a business owner could not anticipate. In fact, in many instances, emergent strategies do not become apparent until the deliberate strategy that was originally implemented, fails to produce the desired results. Businesses faced with this kind of failure often adapt their plans to take advantage of the emergent strategy. Typically, emergent strategies develop from rank-and-file workers that recognize patterns and submit ideas about how to improve a process.
One of the primary advantages of an emergent strategy is that it can help a business provide what customers actually want, rather than what businesses assumed customers wanted when they implemented a deliberate strategy. This is especially true when emergent strategies develop from a flawed deliberate strategy that has not produced the intended results. Another advantage is emergent strategies that are the result of innovations or ideas submitted by a company’s employees could boost morale, improve work culture, and make workers feel more empowered.
The main disadvantage of an emergent strategy is that it isn’t predictable, and therefore can’t be planned. In other words, emergent strategy occurs as part of the ongoing organizational activity. As a result, it does not offer a genuine alternative to more traditional deliberate strategy, especially for new businesses operating on narrow margins. Businesses, therefore, cannot abandon a deliberate strategy and rely on an emergent strategy to develop. Emergent strategy best serves to complement and serve as a corrective measure for deliberative strategy.
2) PESTLE for Amazon
Political: Political situation in a country has its effect on number of things. Some decisions can have effect on business practices too, like recently Google has been banned in China due to some data in its data bank that according to Chinese authorities was not suitable for China’s interests. Now Google has lost big market of China. In some countries there are no regulations or policies for the use of Internet and in such state people don’t trust Internet for any purpose. As in a recent survey in Peru it was observed that almost 76% people don’t think Internet is safe for buying anything. Amazon has no immediate problems in operating in china and luckily recent lifting up of restrictions on e-commerce has given chances of more business to Amazon.
Economical: currency fluctuations can be a problem for Amazon and their customers for example when selling multimedia over the internet, since the company is based outside of the US but actually deals in US dollars, Also with economic problems this means that when the economy was down Amazon was receiving viewer sales which means less profit, however now the economy is rising again they are seeing greater sales and are improving.
Social: in some areas of the world there is restricted internet this may be due to religious or ethical reason, and because of these factors they will prevent amazon from growing and becoming a popular retailer in these regions. Also with the increase in internet and internet speed around the world in recent year more people are using the internet shopping and for social media, social media is becoming vital for firms like amazon as they can use promotions on these sites and by seeing what consumers interests are from their social media page Amazon can give them suggestions on products based on these interests.
Technological: Ever increasing speeds and better connectivity provides huge options for Amazon to increase its business. With such speeds Amazon can offer its users many online features such as online video and music download for far less price as compared to actual possession of these products.
Legal: when selling internally Amazon needs to be careful, as you have to be more aware of any international laws. Some items will have separate laws depending on the state it’s shipped to like certain chemicals or alcohols. Also amazon have to acquire certain rights when dealing with selling multimedia as Hollywood is fighting the sale of digital copied due to the ease of making duplicates, which makes obtaining the rights to sell multimedia online difficult.
Environmental: Amazon.com mostly sells consumer goods from trusted manufacturers. Such manufactures already produce environmental friendly products so such factors do not directly affect Amazon.
SWOT analysis for Amazon
Amazon has acquired a position where people think of only one name when it comes to buy online. Recently Amazon introduced a digital book reader to its customers and even though there are other digital book readers available in the market, Amazon was out of stock for kindle in just 2 days. This shows the recognition and trust Amazon enjoys from its customers.
Amazon delivers products directly to customers upon an order after acquiring it from the supplier and this method saves time and cost of keeping a large catalogue in stores. Amazon offers a large variety of products in different geographical areas and this creates a huge customer base for Amazon on regular basis.
Amazon is strong based on the wishes of customers so new products are always being introduced into the existing product base and new methods are used to fulfill customer needs as efficiently as possible. Amazon is now operating in over 160 countries of the world that gives it a global reach and customer’s stick to Amazon due to this hugeness and depth of its operations. In customer’s mind this shows quality and commitment.
Amazon spends a large chunk of its revenue on innovation and research and this gives it a hold of customer needs and also an idea of future trends, which are emerging, and this keeps Amazon ahead of its competitors.
New competitors are entering e-retail business and are offering products at lower prices than Amazon due to their limited operating costs. Amazon is now offering products in so many countries of the world but due to this hugeness of geographical area and products Amazon is facing some incurring costs and has to face many associated problems.
Due to Amazon’s free delivery offerings many a times the delivery time is too long and any customer can buy a book or a product from a store near him instantly. Growth of Amazon was enormous but now it has slowed down and even with addition of new products the rate of growth is falling down.
Amazon is operating in many countries of the world but its premium products are not offered to people outside the US, this gives a bad feeling to people outside US. Amazon is relying on a specific set of suppliers from early years of its operations and this is making it hard for Amazon to be as cost effective as it was before.
Amazon sells the products in advance to its customers and takes the amount in advance and then pays the suppliers upon delivery to the customers. This is a healthy and safe way for Amazon to earn revenues.
Buying power in Europe and US is falling but in huge markets of China and India the buying power of people is increasing. This offers a great chance for Amazon to find customers in these geographical areas. As Internet speeds are connectivity is getting better and better, there is a trend of buying online music and movies from Amazon online store and all this was not possible with slow speeds of the yester years. Internet is reaching to new geographical areas and thus increasing customer base for Amazon.
Amazon should not rely on only a few suppliers, as now there are a large number of suppliers present in all kind of consumer markets. This gives Amazon a bargaining power and thus customers in the end can get products at a cheaper price. Amazon can offer products for specific geographic areas and for particular religious occasions and this can create a niche market and Amazon can also open new localised web pages in local languages as its already operating a few non-English websites.
Along with suppliers there are some companies, which want presence on Internet by entering the online retail market, and for such companies Amazon can offer workable choices, which will benefit both the companies and Amazon.
Companies like Yahoo, Google and eBay are giving tough time to Amazon now. Though Amazon is still the market leader and way ahead of these competitors but they can pose further threats by offering innovative and cheaper products. In case of recent kindle case it has proved that Amazon sometimes couldn’t control the flow of demand and supply in an efficient manner, which causes discomfort to many customers.
People outside US are not really so aware of Amazon’s credibility and Amazon may have to tie up with local associates in those areas. Due to free delivery offer Amazon waits for of orders to deliver them in bulk and save transportations costs but this practice of delay is getting very unpopular amongst customers of Amazon. Due to delays in order placement local stores which offer same day delivery or from where customers can buy in a walk in sales is posing threat to Amazon’s sales. There are some e-retail businesses that offer books and videos on rental basis, which proves very cheap for customers instead of buying them from Amazon.
Based on the internal and external audit conducted above, the best strategy for this organisation to take on board is the Ansoff Matrix.
Ansoff’s Matrix goes on the principle that a business aim to grow and developed is based on whether it markets new or existing products in new or existing markets.
This is where the company sells existing products in existing markets, which All Sewn Up is already doing to be where it is today. There are four main objectives of market penetration, which are;
• To maintain the level of market share the company already has, or to increase with the products it already sells. This can be done by expanding their advertising, becoming more personal with their products, or even holding more promotions on stock.
• It will help them stay as dominant as they are now, being one of the leading embroiders for the area.
• All Sewn Up have the opportunity to drive out competitors and make the market less appealing for potential competitors by staying in their dominant position by price and quality brand.
• Increase the return of the existing customers. This can be done by simply good quality service and goods, or even introducing loyalty schemes.
This section is about being at the level they are at, basically doing what they already are doing. They are already a dominating company in the area it is in, providing high standards of quality and service. And being the only company in the area providing this kind of service.
An opportunity for the business to sell existing products into a new market. This would open up doors for them to become a larger wide spread. Looking at markets in other countries, with no tariffs or quotas on trade amongst countries within the EU the potential could be large for this small business to expand further. Updating their product packaging could prove more appealing, by pushing their website they could increase sales through online markets not only in the UK but across the world. By carefully selecting packages or offers and pricing they could create new market segments and set the bar for competitors.
By expanding their product range further and placing them in the same market, they will separate themselves from their basic competitors. Whether it be expanding their clothes range further, becoming more personal and providing individual things such as; laptop covers, home décor, car stickers. These are small things that will make a huge difference in such a competitive market.
To achieve this they need to look at their market research, what do customers want? What are their needs?
This would be the biggest hurdle for All Sewn Up to face, entering new products into new markets, it’s a chance to be taken that could be the push this small business needs to expand further. If market research is done right, by finding out what customers want, not only in this area but areas elsewhere then the market dominance could be theirs. This could be done by local feedback, questionnaires, online feedback from existing or new customers, and then looking into markets elsewhere and what makes the organisations in them so unique and how to beat that.
Sadler (2003) introduces three main roles of strategy implementation. Those roles are envisioning future strategy, aligning the organisation to deliver that strategy and embodying change.
As All Sewn Up consist of only 4 employees 2 which are full time and 2 being part time, this being family run and consist of husband and wife, and two daughters. This business being hard to compare as each employees roles and responsibilities consist of the same. All strategy implantation towards the company are discussed and decided between the family.
To implement a new strategy the organisation needs to look at four main resources;
Finance – For All Sewn Up to expand it would need finance to support the opening of new premises, machinery and the training of new staff. To conduct Market Research into new markets and what their customers want. Would also need disposable finance in order to try pushing new products into new markets because of the possibility of it failing to succeed.
People – If the company was to expand it would have to recruit new employees who were suitable for specific jobs, from admin to detail to using the machines to delivering the goods. This would also involve training them to be at the standard the company needs.
Materials – Again expanding further means more equipment is needed for new premises, and as they become more market dominant in wider markets the demands are going to get higher meaning more equipment will be needed to keep up with the demands. This also leaves a means for more stock to be printed on, leaving All Sewn Up relying more on suppliers to keep up with their demands for stock.
Time – Time will be needed throughout the process, meeting will need to be held to see how things are going, and what is expected. This would also provided them with an opportunity to give new staff the feedback they need in order to keep bettering themselves. This would have to be monitored over periods of time. Everything takes time from the training of new employees, to the development of products to the entering of new markets.
With Ansoff being the organisational strategy chosen, it would need to be looked at and given a timescale realistically. With the first part of this strategy being Market Penetration which is almost doing what they already are doing and keeping on doing it, a time scale for this particular part is not needed realistically because its already happening.
However the other areas will need time, and more specifically it could take up to5 years for get to where they want to be. Market development will be about trial and error, seeing where existing products work and what gaps in different markets there are to take this on board. This should take around 12-18months for the company to get a good view of where they fit in. Product development is something that will always be going on in the company but the researched involved in finding out exactly what it is that customers want, and what trends are about, this will be an everlasting goal because people’s wants and needs are constantly changing. And lastly is the biggest step of all, diversification. This will be the biggest risk the organisation takes, but could be the most rewarding, for this to be right it will take the full time of the timescale. This will be the longest process of them all and require the most time and attention.
However, setting a strategic plan the business should aim for around 3-5 to at least have an indication of where they are going and put these four key developments in place.