Reference no: EM132335194
Strategic Plan Environmental Analysis-
Internal Environment -
Strengths -
- BCG Design Studio has been operating for 20 years.
- Wide range of products.
- Sells exclusive art pieces.
- Established customer base.
- Responsive to the requirements of their clients.
- Unique and contemporary products.
- Growing reputation.
- Niche market.
- Outstanding business growth over last 5 years.
- Increased sales by 233% in last 5 years.
- Exceeding targeted sales growth.
- International demand for product.
- Ceramic designers and gallery director communicate regularly.
- High quality product.
- Sales to account customers are growing steadily.
- Products are made to the highest technical and artistic standards.
- Existing IT infrastructure.
Weakness
- Cost of selling product (manual processes).
- Ordering of products must be done in person, by phone/fax, or by email.
- Ordering process time consuming.
- Return on investment has decreased due to the high costs of running the gallery and maintaining our international marketing campaign.
- The main source of revenue continues to be from gallery sales (in person).
- Interstate and overseas clients find the current arrangements for purchasing cumbersome.
- No IT or technical staff employed by BCG.
- Increased number of employees have increased fixed costs of the business.
- The showroom has increased fixed costs dramatically in the last 3 years.
- Negative return on investment in the last 3 years.
- Decline in mark-up on product in the last 5 years.
- Cost of goods sold has increased over last 5 years.
- Showroom not big enough to display all products.
- Production of un-saleable products.
- Inability to capture sales information about popular products.
- Double handling of products made by remote workers.
- Any advertising brochures become quickly out of date due to uniqueness of each product.
- Orders from international customers entails time zone differences.
- Inability of international customers to order by phone (time zone differences).
- Only personal customers can view products adequately.
- Manual order forms (costs of printing).
- Time consuming to fill in order forms for phone/fax orders.
- Staff can make errors transcribing information onto forms (5%errors).
- Redundant information due to multiple forms
External Environment
Opportunities
- Business expansion.
- Expand into national market.
- Further expansion into the international market.
- Customer requests to provide online ordering facilities.
- Create communication and product website.
- Create website to market products (brochure site) - Decrease marketing costs and Increase profile.
- Create website to sell products (e-commerce site) - Increase customer base and Increase business reach.
- Establish a strong international reputation in the 'art market'.
- Move to smaller showroom to reduce fixed costs.
- Gather and incorporate more feedback from customers.
Threats
- Competition.
- Competitors continue to make inroads into the world wide web.
- Competitors have a pricing advantage because of their website (reduced marketing and sales costs).
- Fear of being 'left behind' competitors if website is not implemented.
- High advertising costs.
- High value of Australian dollar is a constraint to exporting into international markets - Products less affordable to overseas customers.
- Growing bargaining power of account customers (25% discount fair?).
Critical Issues and Strategic Objectives -
Critical Issue 1: Gallery costs
Strategic Analysis:
- Return on investment has decreased due to the high costs of running the gallery and maintaining our international marketing campaign
- The main source of revenue continues to be from gallery sales (in person)
- Cost of goods sold has increased over last 5 years
- The showroom has increased fixed costs dramatically in the last 3 years
Strategic Objective:
- Explore alternatives to selling in gallery sales
Critical Issue 2: Manual processes
Strategic Analysis:
- Manual order forms
- Cost of selling product (manual processes)
- Ordering processes time consuming
- Staff can make errors transcribing information onto forms (5%mistakes)
- Redundant information due to multiple forms
Strategic Objective:
- Automate processes for employees
Critical Issue 3: Double handling of Products
Strategic Analysis:
- Double handling of products made by remote workers
Strategic Objective:
- Develop direct shipping processes from remote workers to client
All the above could come under one heading "production costs" with strategic objective: automate production processes where possible and improve efficiency in handling goods.
Critical Issue 4: Pressure on profit
Strategic Analysis
- Increased number of employees have increased fixed costs of the business
- The showroom has increased fixed costs dramatically in the last 3 years
- Negative return on investment in the last 3 years
- Decline in markup on product in the last 5 years
- Manual order forms (costs of printing)
- High advertising costs
- Exchange rate
Strategic objective:
Critical Issue 5: Ordering process for customers
Strategic Analysis
- Ordering of products must be done in person, by phone/fax, or by email
- Ordering process time consuming
- Interstate and overseas clients find the current arrangements for purchasing cumbersome
- Orders from international customers entails time zone differences
- Inability of international customers to order by phone (time zone differences)
- Time consuming to fill in order forms for phone/fax orders
Strategic Objective
- Automate ordering process for customers
Critical Issue 6: Lack of IT support
Strategic Analysis
- No IT or technical staff employed by BCG Design
Strategic Objective
Critical Issue 7: Lack of showroom space
Strategic Analysis
- Showroom not big enough to display all products
Strategic Objective:
- Explore alternatives to gallery display
Critical Issue 8: Inadequate sales information
Strategic Analysis
- Production of un-saleable products
- Inability to capture sales information about popular products
Strategic Objective:
- Improve feedback mechanism from customers
Critical Issue 9: Advertising processes cumbersome
Strategic Analysis
- Any advertising brochures become quickly out of date due to uniqueness of each product
Strategic Objective:
- Find alternative methods of advertising
Critical Issues 10: Competition
Strategic Analysis
- Competition
- Competitors continue to make inroads into the world wide web
- Competitors have a pricing advantage because of their website (reduced marketing and sales costs)
- Fear of being 'left behind' competitors if website is not implemented
- Growing bargaining power of account customers (25% discount fair?)
Strategic Objective:
- Explore opportunities to improve competitiveness
- Review the current IT system described in the current BCG Design IT infrastructure inventory
You are required to develop recommendation for which option to adopt to meet BCG design business needs. You should;
Write Gap analysis finding based on Gap analysis and your list of solution options. Use recommendation template.
Summaries your recommendation.
Attachment:- Template.rar