Reference no: EM131152170 , Length: word count: 350

Write a synopsis of no more than 350 words.

summarizing what the team has learned from the review and discussion.

Strategic Plan Part 1: New Product or Service

Main requirements for the paper below.
•Propose a new product or service for the new company division. The division should be customer-focused with an innovative mission statement. Ensure that you are differentiating your product or service.

•Describe how the division addresses customer needs and achieves competitive advantage.

•Create a vision and a business model for this new division that clearly demonstrates your decision on what you want your business to become in the future.

•Explain how the vision, mission, and value of the new division align with the company's mission and vision.

•Summarize how the vision, mission, and values guide the division's strategic direction.

•Define your guiding principles and values for your division in the context of culture, social responsibility, and ethics.

The Army and Air Force Exchange Service

Strategic management is a very important process when it comes to running any type of business whether it is a small business or a large business. There are nine steps in preparing a strategic management plan for a business they are,

1) Develop a clear vison and translate it into a meaning mission statement,

2) Assess the company's strengths and weaknesses,

3) Scan the environment for significant opportunities and threats facing the business,

4) Identify the key factors for success in the business, 5) Analyze the competition

6) Create company goals and objectives,

7) Formulate strategic options and select the appropriate strategies.

8) Translate strategic plans into action plans, and finally

9) Establish accurate controls. (Zimmerer, Scaebough, & Wilson, 2008, p. ).

The Mission Statement
The Army and Air Exchange Service's mission statement is ""WE GO WHERE YOU GO" ...epitomizes the Exchange's mission, particularly when our service members are stationed away from American shores. (The Army and Air Force Exchange Service). This mission statement provides the vision our this organization, which is to always be where our soldiers are in order to provide them the necessities that they need in order to perform their jobs. This statement provides direction, determines the decisions that need to be made and has truly motivated their entire workforce. This mission statement has motivated thousands of Exchange associates to deploy to Iraq, Afghanistan, and several other countries.

The Exchanges mission statement incorporates all the elements of a good mission
statement of which a few are to; Keep it short, Keep it simple, Get everyone involved, Keep it current, Reflects the value of organization, Is appropriate for their company's culture, and most importantly they Use it!. (Zimmerer, Scaebough, & Wilson, 2008).

Strengths and Weakness
The Army and Air Force's has more positive internal factors than negative ones.  Although the Army and Air Force Exchange is not a public organization, when a military service member is asked who they are and what does the Exchange represent? They will tell you that the Exchange is always there for our soldiers and their families. The Exchange gives back to all the military installations where they are located. The Exchange gives 40% of their profits to MWR (Morale, Welfare and Recreation). This organization (MWR) operates Day Care Centers, Auto Shops, Pools, Gyms, and other programs on the installations that are used by the military and their dependents. Base Commanders rely on these funds given by the Army and Air Force Exchange Service in order to aid in the financial relief of their funds. By The Exchange giving 40% of their profits to their local installations as stated above helps maintain activity outposts so that family members can enjoy themselves at no costs.

Opportunities and Threats
The Exchange offers many opportunities for the military communities. The primary opportunity is being able to offer employment to the service man's dependents. Dependents are offered priority employment with the Exchange. This also allows for lifestyle scheduling. By offering this opportunity it reinforces the strengths of the Exchange and also reinforces the fact the Exchange offers priority to dependents of our service members. One of the largest threats that the Exchange faces each day is the reduction of military forces. When troop strength is reduced this creates a threat. The Exchange is tasked with each troop strength reduction to realign and restructure how business is conducted on a daily basis. Unfortunately when there is troop reduction the Exchange has to at times reduce employee strengths but they do this in such a way so that it is no extremely harmful to our associates or customers. They also work to maintain the morale of each and every Exchange. However the Exchange never lowers the quality of service they offer to the men and women of the Armed Forces.

Key Factors for Success
The Exchange has been in business for 121 years; they could not have stayed in business this long without having success factors. For the first 120 years of business the Exchange was at the command of a General. Then in 2012 a civilian led the Exchange to the ranks equal of a General. With a civilian in command the Exchange has succeeded in ways that was not possible with a member of the Armed Forces. The reason is "Experience". A general runs a retail operation like a he is commanding a war. A civilian runs a retail operation like a retail operation. During the last 4 years of the Exchange being led by a civilian they have become one of the top 10 retailers in the nation. Here are some other key factors. For 2015 The Exchange had $8.5B in revenue, $405M in earnings, $237M in dividends, 88% of their associates are connected to the military, and there was has been 4,468 Exchange associates deployed to combat zones since 9/11 (The Exchange 2016).

Analyze the Competition
Sizing up the competition, the Exchanges largest competition is Wal-Mart. For many years Sam Walton would not build outside of any gates of a military installation, however after his death in 1992 this all changed and Wal-Mart started building outside of most gates. This has created many challenges for the Exchange. One major challenge is Wal-Marts pricing versus Exchange pricing. With this type of pricing competition this has forced the Exchange to sell some products at cost, causing these items to be loss liters while at the same time creating a destination product for their customers. This type of competition has not stopped the Exchange from striving to be the best they can to their customs. Their competitors my think that the Exchange has a captive audience, they have to always stay one step ahead of the competition. They do so very well, here are some annual numbers that con be somewhat mind blowing considering that The Exchange has a limited audience. During Fiscal year 2015 they sold 1.3M Krispy crème donuts, served 3.2M school lunches, outfitted 1.5M combat uniforms, sold 450M gallons of gas, served 107M meals at their Exchange restaurants, and gave 9M haircuts in their barber shops and salons (The Exchange 2016).

Create Company Goals and Objectives
The Exchange has created goals and objectives that are very specific. Their goal and objective is to "Sell quality products at the best price to our soldiers and their dependents".

Translate Strategic Plans into Action Plans
The Exchange has goals set in place that has led to the success over the last 121 years. Once again there are very few organizations or companies that can say that they have been in business for 121 years. They have very specific strategic plans in place starting from senior leadership to all those who keep their facilities clean and serve our armed forces men and women.

Establishing Controls
In order to run a successful business there must be controls set in place. Without proper controls and people to abide by these controls there would be dysfunction within the organization. All successful businesses have controls set in place in order to guide leadership and associates in the right direction needed to accomplish the mission statement set in place.

Conclusion
In closing the Army and Air Force has been in business for the last 121 years. They could not stay in business if there was not a Mission and Vision statement, Strengths and Weaknesses that are recognized, identifying opportunities and threats that they face each and every day, identify key factors for success, analyze the competition, create goals and objectives that will be followed through by all the managers and associates in the organization, translate strategic plans into action plans and establish accurate controls. Due to the Exchange following all the guidelines given to be a successful business organization their associates will be rewarded once again with a Team bonus. This is a very small amount but still shows them how much they are appreciated by the organization and our service men and women.

References
Zimmerer, T. W., Scaebough, N. M., & Wilson, D. (2008). Designing a Competitive Model and Building a Solid Strategic Plan. : Prentice Hall, Inc.

The Exchange (2016) https://www.aafes.com/about-exchange/exchange-by-the-numbers/