Strategic Business Plan for CC Industries. Business Planning


Master's Thesis, 2009
40 Pages, Grade: A

Excerpt

Table of Content

Executive Summary

SECTION 1: STRATEGIC THINKING
Finance/Managerial Economics
Marketing
Data Analysis/MIS
Human Resources/Management
Legal

SECTION 2: STRATEGIC PROCESS PLANNING
Finance/Managerial Economics
Marketing
Data Analysis/MIS
Human Resources/Management
Legal

SECTION 3: OPERATIONAL PLANNING
Finance/Managerial Economics
Marketing
Data Analysis/MIS
Human Resources/Management
Legal

SECTION 4: IMPLEMENTATION
Finance/Managerial Economics
Marketing
Data Analysis/MIS
Human Resources/Management
Legal

SECTION 5: EVALUATION AND CONTROL
Finance/Managerial Economics
Marketing
Data Analysis/MIS
Human Resources/Management
Legal

SECTION 6: STRATEGIC ANALYSIS
Finance/Managerial Economics
Marketing
Data Analysis/MIS
Human Resources/Management
Legal

REFERENCES

Executive Summary

Being able to understand the marketing plan from a strategic standpoint is very important for the overall strategic business plan of the company. CC Industries can develop ideas, make the marketing plan and continue to make corrections and evaluations. CC Industries would not be successful without a well thought out and powerful marketing plan.

Employee retention is a critical tool CC Industries will use it to the long-term health and success of their business. Managers readily agreed that, retaining the best employees ensures customer satisfaction, products and services sale, and deeply imbedded organizational learning curve. Like other human resource responsibilities, the employee relations roles provide a real opportunity to demonstrate that CC Industries caring philosophy toward its people. Because when emotions are often elevated in employee relation’s situations, managing these situations can be especially challenging. But helping people find solution to situations that are very important to them can also be extremely rewarding.

SECTION 1: STRATEGIC THINKING

Finance/Managerial Economics

Financial management firm CC Industries is looking to expand its product offering to include online payroll services to its customer base, which consists of mid-size and large corporations, including a number of Fortune 500 companies. This new online payroll service will enable customers to perform paycheck calculations, process direct deposit, complete W-2 forms, and make electronic tax payments. This new payroll processing service dovetails with all the other financial services, such as banking and investing, that CC Industries currently offers to its members. The addition of this payroll service allows CC Industries to provide a comprehensive set of financial services to its clients.

From a financial perspective, entering this new category would enable CC Industries to strengthen its appeal to businesses to which the firm currently offers a number of other financial services, while also drawing interest among potential clients who appreciate the simplicity of dealing with a single company for all their financial services, including payroll processing. By providing virtually all of the financial services its customers need, CC Industries would add a new revenue stream via online payroll processing.

In addition, this service would also cause its customers to strongly consider not renewing their payroll processing contracts with their existing providers, many of which are competitors with CC Industries in other financial services. Even for those payroll processing firms that aren’t competitors in other financial services, by driving them out of their clients’ businesses, CC Industries eliminates the possibility that they could use their foothold in payroll processing to expand their accounts with those clients into other financial services. This follows the first force in the five forces model of competition, which consists of “competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry (Thompson Jr., Strickland III, & Gamble, 2008, p. 54).

Marketing

When developing a strategic thinking phase for marketing, a company needs to brain storm ideas to discover the best options for the company. The company as a whole must decided on a few key ideas. First, the company needs to decide the who, what, where, when of the specific service going to market; like what CC Industries is trying to sell.

The ‘what’ is determined by what CC Industries has to offer to the public. CC Industries specializes in human resources software, offering customers a full range of services, including Talent Acquisition, Learning & Organizational Development, Performance Management, and Compensation and Benefit Management. The focus needs to be on service in order to continue to decide the marketing plan.

First CC Industries must do research on who their market is going to be. Before any company can put out a marketing plan there must be a great deal of thought as to who is the target market. Not all markets are going to need or want the service of human resources software. Once a target market is established, then a marketing planning can begin.

After the target market is established, the decision of where to market is the next question. There are many different areas in which to market. Through marketing research the company can identify where to focus advertising to hit the target market. There are a variety of different options such as, TV, magazines, billboards, online, fliers, etc. “An integrated marketing plan is critical to growing a successful accounting practice, and online marketing is playing an increasingly important role.”(Olesinski page 40). The research that the company will determine what will be most successful in hitting the most of their target market.

Another important idea that must be strategically though developed the idea of when this service goes to market. It is possible that a different time of year or season may be more profitable for the company to advertise and market the online payroll service that CC Industries is offering. By researching, this concept of when to market can be understood.

By strategically thinking through the different concepts that are developed during marketing planning process, CC Industries can establish a successful way to enter the market. Most of the brainstorming needs to be first developed by research within the company and in the market that CC Industries is trying to enter.

Data Analysis/MIS

CC Industries will need the data management team in its Information Technology (IT) group to deliver a reliable, safe and yet easy-to-use product. By introducing this new online payroll option, CC Industries will expand its marketing base across the country.

Outcompeting rivals based on differentiating features such as higher quality, wider product selection, added performance, value-added services, more attractive styling, technological superiority, or unusually good value for the money will allow the company to have a strong sustainable competitive advantage (Thompson et. al, 2008, p. 6). The IT department’s strategy for this new online payroll option is to use only the best and well-known and trusted brands, with compatibility and user-friendly requirements that are needed for the new service, while maintaining customer security. The goal of CC Industry is to achieve sustainable competitive advantage through such features.

With respect to data management and system maintenance, CC Industries will meticulously monitor service performance and availability, alertness and quick response to events and exceptions, and will enforce security and usage policies. To maintain data security, CC Industries will maintain not only physical security, but operating system security, network security, and provide back-up processes to ensure customers have a complete peace of mind. Given the sensitive nature of the information handled by CC Industries, it is imperative that client information is secured. Security of data forms the centerpiece during every phase of planning, implementation, and managing of client information.

CC Industries will employ a cadre of highly skilled programmers to develop proprietary code; and keep the source code hidden so as to keep the inner workings of the company’s software proprietary (Thompson et. al, 2008, p. 14).

Human Resources/Management

Strategies have never been more challenging or more important than in today’s environment of global competition. Corporate strategies must therefore transcend to the borders of nations and markets. Executives need to thoughtfully consider how to create value for customers. CC Industries executives will be provided with the latest strategic insights and approaches for leveraging the firms’ capabilities to capitalize on current opportunities in the marketplace. This program will offer our experienced corporate planners the opportunity to benchmark their current practices against those of other companies.

CC Industries will adequately cover sections such as strategy formulation and business planning, corporate growth via acquisitions, and implementing. At CC Industries, we have noted that, human resources should not be defined by what it does, but by what it delivers. This result will enrich the organization’s value to customers, investors, and employees. CC Industries cares about how to help increase sales, cut costs, help others bring more projects in on time, or improve quality of work life (Ulrich, 1997). Human resources will help the organization achieve its vision and strategic objectives, whether directly or indirectly. That means all human resource activities should be "strategic." For example, improving quality of work-life can have a substantial impact on the bottom line by reducing errors and accidents, reducing absenteeism, turnover, improving productivity and customer service.

The human resource employees at CC Industries will have a wide variety of responsibilities, tasks, offering a wide variety of challenges and rewards. Like other human resource responsibilities, the employee relations roles provide a real opportunity to demonstrate that CC Industries caring philosophy toward its people. Because emotions are often elevated in employee relation’s situations, managing these situations can be especially challenging. But helping people find solution to situations that are very important to them can also be extremely rewarding.

People will correlate their interactions with and impressions of senior leaders, human resources and others who speak and act on behalf of CC Industries to their relationships with our company. In other words, a good relationship within CC Industries will be excellent to our growth.

The reputation that CC Industries has built over the years for high ethical standards is one of our greatest business assets. Our goal has never been solely to comply with the law, but to abide by the highest principles of integrity, honor, and concern for others. As a company we are committed to serving the best interests of all our varied constituencies, increasing shareholder value, providing consumers with safe, quality services and to meeting our public responsibilities as a member of the global community.

Staffing, employment and recruitment are among the most critical human resources functional areas that will contribute to CC Industries business strategies. Mostly, human resource functions are viewed within organizations depending on factors such as the size of the organization’s staff, its employment sector, and the dynamics of how the organization operates (Gurchiek, 2008). This indicates that human resources will support the CC Industries business strategy through human capital related areas such as, building, developing, and maintaining the work force. CC Industries will constantly examine the benefits of all programs, not only from a competitive perspective but also in terms of cost- effectiveness.

Legal

As CC Industries moves into the online payroll service market, it will be important to become familiar with the nationwide laws. This will mean comprehensive examination of all payroll and tax laws. The company will allocate specific staff members to the job of meeting with legal representatives from each region that is entered to gain a full understanding of how these laws will impact the way the service is offered. This will include educational opportunities for these staff members and possible certifications in payroll law as required.

The CC Industries’ legal department will grow to reflect the need for more qualified experts in the field of payroll and tax laws. CC Industries will guarantee that all laws are followed in all areas of business and will continue to have legal counsel in-house to deal with issues as they arise. Staff will be required to meet with legal counsel as needed to discuss payroll issues and/or other legalities. Legal counsel themselves will be required to maintain their qualifications on all aspects of payroll and taxes and will be expected to keep updated on all new or upcoming legislation that may impact the company.

With the development of innovative products and services comes the need to protect the trade secrets of the business. This is difficult due to the fact that “trade secrets may lose value once they are no longer secret, and damages for their misappropriation must account for this unique form of asset erosion (“How to assess”, 2006).” This means that CC Industries will need to continue to lead the way in innovation so that they remain competitive and at the top of the industry. All company representatives and staff members will be bound by confidentiality and this factor will also need to be managed by our legal counsel.

SECTION 2: STRATEGIC PROCESS PLANNING

Finance/Managerial Economics

While CC Industries faces a number of financial hurdles in starting its new business unit by entering the market for payroll processing, it has a significant advantage over a business that would be entering this market from scratch. Because it already provides services in similar service categories, CC Industries has many of the general internal financial processes in place to enter this new service category.

CC Industries, a publicly traded company, can generate the requisite funding for this market expansion through its existing sources of capital by using any combination of selling new common or preferred stock, issuing additional bonds, or tapping into its cash reserves.

Still, entering this category will require a significant amount of funding in order to pay the management information systems, marketing, human resources, and legal expenses that will be needed. Information Technology (IT) expenses will fund the development of the entire online payment system, while marketing costs will be incurred in order to let potential customers know about the new service and its benefits. Human resources expenses will be needed in order to staff the new division with skilled employees, including a new IT division, marketing managers, and accounting staff. The company will no doubt encounter reams of legal files that will need to be processed, as well, adding more cost to the project.

In light of these startup costs, including fixed asset costs, including computer equipment and additional office space, and variable costs, such as the addition of staff members, CC Industries has to consider the option of acquiring a current payroll processing firm. However, combining its existing financial management services with an existing payroll processor would require a significantly greater up-front cost due to the acquisition, which would most likely be funded through a stock swap, where current shareholders or owners of the payroll firm would receive a certain number of shares of stock in CC Industries.

Such an acquisition, however, would enable CC Industries to immediately enjoy an installed base of customers, which would enable it to catch up to other companies that already provide both financial and payroll services. We need to ensure, however, that when evaluating a potential acquisition target, that “we make a nice complement to each other ”so that post-merger, we’re “clearly moving in a unified direction (Givner, 2009).” Because of this key benefit, we have decided to pursue such a merger.

Marketing

Strategically planning the initial marketing plan for CC Industries must continue after all research is done for the company. The next step would be to outline a marketing plan for the company. This entails understanding the parts of a marketing plan and how the parts can be relayed through CC Industries.

When planning for a marketing process, CC Industries must decide on a mission statement. The mission statement is very important to the marketing plan because it focuses the company into its main goals.

Another important process to develop when strategically planning to go to market is to understand the S-W-O-T (strengths, weaknesses, opportunities, and threats) analysis. To become successful in the market that the company is interested in, CC Industries must understand what their strengths, weaknesses, opportunities and also threats that the company has.

Understanding CC Industries strengths can be very useful when planning to go to market. CC Industries can build on these strengths and expand what is good about the company. Such that the concept of CC Industries’ new online payroll service will have multiple functions. This sort of strength can be emphasized when advertising or entering the market. The service that CC Industries offers may not be available anywhere else, making the company high in demand.

CC Industries also needs to know their weaknesses. As the company grows there can be malfunctions or corrections that need to be made. Without understanding the weaknesses of a company, there is no way to fix them. Understanding the weaknesses can also help steer the company in the correct direction to market. Maybe the online payroll service CC Industries is now offering is complicated for consumers who do not know much about computers. This means CC Industries would need to stay away from marketing to companies that are old fashioned.

Understanding opportunities is probably one of the most valuable things a company can have. This idea can open doors and different markets that were not realized before. CC Industries has a great online service that is very useful to human recourse departments, however, it can continue to grow and expand its market. The knowing how and when to expand involves understanding opportunities. This can also lead to a more profitable company.

CC Industries also needs to know its threats. Knowing the competition is very important when going to market and also for advertising. Understanding what other companies have to offer can extend a target market and key target process. Currently CC Industries is the product leader for online payroll systems. To stay on top of the market, the company needs to know what other companies offer the same service and how the other companies are trying to differ from CC Industries.

Data Analysis/MIS

The cornerstone of the IT strategy however, is having the CEO of CC Industries commit to our new product. IT strategies can fail because of stakeholder communications, and IT organizations have a hard time accepting this fact: IT strategy is owned by the CEO not the CIO (Hajela, 2006, para. 6, 7). Therefore, the IT department will employ a communications lead to work with the company’s communication department, to ensure messaging about the new product to both internal employee and external customers is consistent and on target.

The IT department will be responsible for: providing status reports on the IT strategy initiative; holding IT strategy meetings (owning a deliverable is engagement); and having different managers report out sections of the report regularly (Hajela, 2006, para. 11). No matter what IT leaders may want to believe, no matter how much they may wish it were not true, if their business partners do not have sufficient information to understand and appreciate the importance of IT to the business, the IT leadership is at fault (Hickman, n.d., p. 1). Managing the IT/business interface is the responsibility of the IT leadership (Hickman, n.d., p. 1).

In order to ensure that the company strategy is the right one and should be maintained, the IT department will practice strategic group mapping which will allow CC Industries to understand the competitive structure of the online payroll market (Thompson et. al, 2008, p. 81). Additionally, the IT department will have a scorecard, which will be tied to the corporate scorecard. Having quarterly and annual objectives focuses attention on delivering immediate performance improvements (Thompson et. al, 2008, p. 32). Targets to be achieved within three to five years prompt considerations of what to do now to put the company in position to perform better later (Thompson et. al, 2008, p. 32).

Using the scorecard approach provides a common language for IT leaders and their business counterparts (Hickman, n.d., p. 3). By using the agreed language of the company strategy, each IT measurement can be viewed in the same light (Hickman, n.d., p. 3).

Human Resources/Management

Today, managers have to meet more challenges with fewer resources. Doing so successfully means quickly adapting to shifting circumstances, utilizing our skill sets, and effectively managing our resources. Strategic thinking and management for competitive advantage will help our company meet, head on, the challenge of building strategy. It distills and applies the latest strategic insights and approaches and helps us accurately assess the competition in our industry. We need to quickly increase our understanding of business fundamentals and extend our knowledge of management. Alignment will drive CC Industries and guarantees that people understand company objectives (Frisch, 2009, page 66). From a human resource perspective, teams will help develop our people, reach business objectives, and serve internal and external customers. At CC Industries we leverage teamwork by using continuous improvement (CI) concepts and tools to create alignment, deploy policy and drive our excellences.

One of our first initiatives will be to create an online intranet-based human resource portal. The objective is to improve employee’s communication and access to benefits, and to reduce administrative burden.

CC Industries management strategies will include all the steps and decisions necessary to execute strategies successfully. Implementation of these strategies will be a complex process. It will require that managers set up short-term objectives, re-examine the organizations structure and corporate culture in light of any new strategy. Making the right resource decisions in support of the strategy and managing the human side of the change process is paramount to CC Industries. At CC Industries we strive to manage our business growth, which means running a big profit maker and market-share.

Legal

As CC Industries pursues the acquisition of an existing online payroll company, the laws of a merger acquisition will be closely followed and outside legal counsel will be utilized. CC Industries will initiate the acquisition by starting with a tender offer by buying up shares in the company. CC Industries can only purchase up to 5% of shares before it must file with the Securities and Exchange Commission. In the filing, we must formally declare how many shares we own and whether we intend to buy the company.

Working with financial advisors and investment bankers, CC Industries will arrive at an overall price that we are willing to pay for the payroll company in shares. The tender offer will then be presented to the shareholders in the target company. Once the offer is accepted the deal can proceed. New shares from our company'sstock will be issued directly to the target company's shareholders, or the new shares are sent to a broker who manages them for target company shareholders depending on the legal advice we are given. The shareholders of the target company are only taxed when theysell their new shares. When the deal is closed, investors will receive a new stock in theirportfolios-- CC Industry’s expanded stock (Anonymous, n.d. www.investopedia.com)

[...]

Excerpt out of 40 pages

Details

Title
Strategic Business Plan for CC Industries. Business Planning
College
Centenary University  (Business Administration and Technology)
Course
Business Strategy
Grade
A
Author
Year
2009
Pages
40
Catalog Number
V492482
ISBN (eBook)
9783668993303
ISBN (Book)
9783668993310
Language
English
Tags
strategic, business, plan, industries, planning
Quote paper
Doctor in Business Administration Franklin Atadja (Author), 2009, Strategic Business Plan for CC Industries. Business Planning, Munich, GRIN Verlag, https://www.grin.com/document/492482

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