Implementation-week-5

Implementation, Strategic Controls, and Contingency PlanSTR 581University of PhoenixImplementation, Strategic Controls, and Contingency PlanAbstract

The fast space level at which changes take place in the global marketplace has made the need for strategic control key in managing a business. Most organizations established strategic controls to track their strategies as it is being implemented, this will help them detect various problems or changes in its underlying premises, and make necessary adjustments (Pearce and Robinson, 2011). If a business designs an implementation control, it can use it to evaluate whether the overall strategy should be changed in light of any unwanted results (Barney, 2007). Managers implement strategy by converting broad plans into the concrete, incremental actions and results of specific units and individuals

Introduction

For the organization to gain competitive edge over its competitors, this paper will describe a strategic plan generated to give the business that edge, the plan will also include an implementation plan. The paper will elaborate on any change management strategies that would enhance successful implementation. The paper will also provide a Key success factors, budget, and forecasted financials. I will also implement a Risk management plan that will include a contingency plans for identified risks (UOPM, 2012).

Implementation Plan

The Implementation Plan for IKEA in New Zealand will outline the short-term objectives, functional tactics, action items, milestones and deadlines, tasks and task ownership, and resource allocation for the business (UOPM, 2012). The three most important short-term objectives for Omega Inc. are listed below:

Launch a new organization that manufactures ice in various sizes for bars and restaurants, homes and local fish mongers to preserve their food and other perishable items.

Establish a social responsibility within 6 months where the company helps in women development programs in communities we will be doing business with.

Developed a marketing program that will create a brand for the company in 4 months.

Functional tactics

The company first concern when implementing a business strategy is how to transform that strategy into positive actions all over the business. Functional tactics will be derived from the company’s business strategy. They will identify specific, immediate actions that IKEA must take in key functional areas to implement the business strategy (Pearce and Robinson, 2011). These immediate actions are as follow:

Accounting: prepare a budget estimate, estimate the target cost of capital and finding ways the company can best account for the costs of creating and providing our business’s products to customers

R&D: create and launch a company website, Omega Inc. will maintain an offensive posture, seeking to lead innovation in the ice industry in Sierra Leone

Marketing: establish key promotion priorities and approaches, the company will be competing primarily on price and establish a level of market coverage that is necessary. Omega Inc. will also find a media that would be most consistent with the total marketing strategy of the company.

Human resource management: the company will evaluate key human resources that are needed to support the chosen strategy and developed levels of pay that will be suitable for the tasks we require.

Action items

IKEA action plans will translate the company’s generic and grand strategies into “action”. The company will identify specific actions to be undertaken, establish a clear time frame for completion of these actions, create accountability by recognizing who is responsible for each “action” in the plan, and each action must have one or more detailed objectives that the action should achieve (Pearce and Robinson, 2011).

Registration requirements for a startup business is New Zealand

Initiate market research, conduct surveys on services provided

Evaluate internal and external environment and prepare a SWOT Analysis

Create a targeted sales goal

Acquired office supplies, equipment and leasing agreement for rented buildings

Prepare a contract that outlined all terms and conditions.

Milestones and a deadline

Identifying competitors is a milestone in the development of strategy. But it is a process laden with uncertainty and risk, a process in which IKEA will make costly mistakes if certain precautionary measures are not implemented (Pearce & Robinson, 2011). The company has identified important milestones that will be targeted during the strategy implementation process. The milestone reviews that then take place usually involve a full-scale reassessment of the strategy and of the advisability of continuing or refocusing the firm’s direction. The table below illustrates the major steps in the company’s strategy’s implementation plan being taken

Tasks Start Date Duration Finish Date

Wrap up Legal paper work and determine setup time frame 10/01/2012 30 days 10/30/2012

Cross check and verified Market Analysis 10/10/2012 12 days 10/22/2012

Complete Marketing Strategy 10/12/2012 15 days 10/27/2012

Equipment Purchase and Setup phase 11/01/2012 15 days 11/16/2012

Finish QuickBooks training and finalize accounting needs 11/01/2012 20 days 11/21/2012

Create a Sales Plan 11/01/2012 30 days 12/01/2012

Complete and unveil new Website 11/25/2012 25 days 12/18/2012

New Business launches 10/01/2012 90 days 01/01/2013

Tasks and task ownership

In any organization, tasks need to be define clearly and required tools needed to be available for the successfully completion of the said task. IKEA strategic task in this new market is to formulate and implement a strategy that will reignite interest in its image. Since the company is in its start-up phase so most of the required tasks will be completed by the owner. As the company grows task ownership will be reevaluated and tasks will be delegated to employees. The table below describes the immediate task and owner of those various tasks the company will be undertaking.

Tasks Ownership

Registration and legal documents Outsource to a law firm

Purchasing of equipment’s owner

Budget estimating owner

Equipment installation and setup Recruit and hired qualified personnel

Develop a market strategy owner

Develop market analysis owner

Draft leasing contract for rented building Outsource to a law firm

Resource Allocation

To avoid the problems of zero-based budgeting, some firms manage capital allocation as a cross-divisional process. Allocation is based on a product’s gross margin. IKEA will prioritize it Resource allocation, since it’s a new business, the company will be investing more on advertisement and market strategies to increase sales and create a strong public image in geographical areas it will be operating.

Organizational change management strategies

With the unstable market environment, organizations are finding it difficult to predict their future. It is a top priority of the company to make sure that the employees are well informed about the organization policies and regulations, what are the obligations of each employee, and a detailed structure of the changes which are to be implemented. IKEA will implement a five step strategies to avoid resistance to the changes the company will have to make in the future:

A clear outline: the company will clearly outline its policies and guidelines, so that employees will understand the goals and objectives of the company.

Commitment: Full Corporation from top-bottom and bottom-top for any change to be fully effective

Advocacy: each employee will have the chance to voice out their views

Responsibility: employees will be held accountable for their actions

Flexibility: Management of IKEA will implement a flexible methodology to the various methods of change strategies that will be implemented so that unanticipated emergencies can be executed, if it’s required.

Budget and forecasted financials

IKEA strategic management process will focus on the flow of historical and current information which the company will use to create a forecast data on the operations and environment of the business. To gain a completive edge, IKEA must evaluate these data in other to attract stakeholders that are vitally interested in the actions of the business. The following tables will illustrate the budget and forecasted financial information about the company.

Risk management plan

The objective of conducting a risk management plan for IKEA is to increase the probability and impact of positive events, and decrease the probability and impact of negative events that would happen throughout the life span of the company (Pearce & Robinson, 2011). A decision-making setting is said to be risky when its future state cannot be characterized by a single point but rather must be characterized by a probability distribution of possible outcomes. Controlling risk is adopting measures to eliminate or at least reduce the possible negative effects of the recognized risk factors. These measure are embodied in contingency plans sent in place (Hyden, 2012)

A risk breakdown structure will be implemented to help break down the risks associated with the Omega Inc. The company will be creating a decision tree diagram to help the business make decision between alternative capital strategies. Sensitivity analysis will also be used to help determine which risks have the most potential impact on the business. As a contingency plan, the company will have in place a special alert control a thorough, and often rapid, reconsideration of the firm’s strategy because of a sudden, unexpected event (Pearce & Robinson, 2011).

Conclusion

The central goal of IKEA strategy is how to survive, increase growth, and improved our competitive position in the face of ever-accelerating rates of change in New Zealand. Omega Inc. implementation strategy clearly identified the short term objectives, functional tactics, action items, milestones and deadlines that will be put in place once the business is in full operation. As owner of the business, I will seek to control the execution of the various strategies that will be implemented and in the process, increase my awareness for the need for innovative and entrepreneurial thinking. Creating a budget and forecasted data, has allowed the company to develop a break-even point. The risk management plan that will be implemented will help the company identify risks (positive and negative), determine when and how to perform quantitative risk analysis.

References

Hyden T. (2011). Risk Management: Planning to Avoid Losses

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Barney, J. B. (2007). Gaining and sustaining competitive advantage (3rd Ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Pearce, J. A., II, & Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin.