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Strategic Plan Overview - Final Strategic Plan

BUS 475 Week 5

Pro Audio Superstore is a musical instrument and equipment supplier that focuses on a niche market. The company can benefit from an in depth strategic plan that outlines the mission, vision, and values of the organization. Formulation of the plan starts at the highest levels of the company and works its way down the ladder. Employees, shareholders, and customers can all benefit from a well communicated strategic plan. Employees can use the strategic plan as a reference from which to base their decisions. Investors will want to review the strategic plan to ensure they are backing a company that reflects their core values. Lastly, the strategic plan will address the needs of the customers to build loyalty with our clients in the professional audio industry.

The strategic plan for Pro Audio superstore is based off of the SWOTT analysis system. This analysis uses the following categories to analyze issues that face the organization: Strengths, weaknesses, opportunities, threats, and trends. Each of the categories will be reviewed with the company is creating a goal or solving a new problem. This analysis is essential to the success of the overall plan because it addresses an issue from all angles. SWOTT analysis can be used for both long term and short term problems and will pin point aspects of a problem that could not be indentified otherwise. Pro Audio Superstore will seek to address problems in a way that will the company closer to its long term vision.

Mission Statement

Mission Statement: Our mission is to provide the professional audio industry with cutting edge music technology. We only carry products that are on the forefront on innovation and of the highest quality. Music stores of today do not fully meet the needs of music professionals and audio engineers. We strive to be the most knowledgeable and trusted store in the professional audio community (Jeff Delaney Week 2 Assignment).    

Pro Audio Superstore is a musical instrument store that specialized in cutting edge technology within the industry. The target customers are audio professionals, produces, and musicians within the audio production industry. Audio professional’s needs are currently not adequately met by music stores in the United States. The majority of mainstream music stores cater to the average non-professional musician, our store caters to full time musicians and professionals in the audio industry. The main product line will focus on guitars, keyboards, and audio production equipment. Also, it is important to note that the products carried will be from the highest quality and highest priced brands, and will also come with a high price tag. Initially, the business will be confined to a single physical retail store, but plans on expanding into an online business. One of the main goals of Pro Audio Superstore In addition to selling instruments, the staff will be trained on care and maintenance of our products. Having a well trained staff will open business opportunities in installation and repair services of specialty equipment.  

Vision Statement

Vision Statement: The business will have become the most well respected provider of high quality musical equipment in the industry. Once this image has been developed, revenue will flow from many different sources. The company will have retail locations in all of the major markets in the United States. In addition, the company generates a significant amount of income by selling products worldwide through its online store

The primary goals Pro Audio Superstore are to grow rapidly and develop a positive relationship with our clients in the professional audio industry. Growth is the goal of many small businesses and can be a very challenging goal to achieve, but we feel we have the tools necessary to succeed in this difficult market. This business seeks to achieve growth by expanding sales to the web. Effective internet business marketing and sales typically requires a significant investment in the development of a website and electronic marketing. The company will need to hire web developers that can build an online store that portrays the business in a positive way. Image is a key to success in this industry and our customer base will expect a high quality design. After the website has been designed and implemented, the next step is to focus on web marketing. Again, the marketing efforts will be directed towards professionals in the audio industry.  

In addition to expanding into the online realm, Pro Audio Superstore aspires to open multiple physical retail locations throughout the United States. The professional audio and music production industry is concentrated in several key cities throughout the country, including Los Angeles, Nashville, Austin, and New York City. These locations would be the ideal locations to expand the physical stores of the company. Acquiring new customers and building a positive image within the industry will be much more practical in these locations and contribute to customer loyalty

Company Values and Ethics

Values, ethics, and social responsibility are important considerations in the strategic planning process. There are several key values that dictate the culture of the company. The main corporate value is customer service and it is used in all aspects of the business. Putting the needs of the customer first will help develop a strong positive image. Another important value is teamwork. In order to achieve the company’s mission, it will require smart minds working together. There are very few companies that have achieved growth and success without promoting teamwork as a corporate value.  

Ethics are also important to consider when dealing with very expensive equipment. There are many opportunities to sell damaged or refurbished equipment without disclosing it to the customer. Ethical violations such as this are strictly forbidden and could have a severe negative impact on the company’s image and reputation. The company also plans on being socially responsible to promoting music to children. Music is an important part of childhood development and many children do not have access to modern musical equipment. With this in mind, the company will strive to help the community by providing non-sellable equipment to charity. This will have a positive effect on the community and will promote a positive image.  

SWOTT Analysis

The main strengths and weaknesses of the company can be summarized in a SWOTT table, which shows how internal and external factors impact the strengths and weaknesses of the company. Pro Audio Superstore will face several important challenges in its initial states of growth. First, the company plans of offering a level of customer service that exceeds that of the competition. In order to achieve this goal, the company will need to find ways retain employees over the long term and provide in depth training. This can be a daunting task for a company in the early stages of growth. Next, the company will need to find ways to market directly to professionals in the audio and music industry. Building strong relationships is a key to success and sales will be partially dependent on repeat business. Customer loyalty must be attained through a combination of price strategy and offering a superior customer experience. The table below shows how these internal and external factors impact strategic planning.

 

Helpful

Harmful

Internal Factors

- Extensive Employee Training
- Strong Corporate Management
- Positive Customer    Relationships

 - High Employee Turnover
- High Employee Training Costs

External Factors

- Positive public image
- Good reputation with industry professionals

- Aggressive competition from key rivals.
- Strict Legal and Regulatory Considerations. 
- Weak Economic Conditions

The above SWOTT table helps the company identify how internal and external factors can impact the plans of the company. Each factor is organized into a helpful and harmful category to analyze its impact on the company. External forces are those that exist outside the of the direct control of the company’s management. External factors are extremely important to manage in a strategic plan. Internal factors refer to aspects of the business that can be controlled by personnel within the company. Corporate values and the mission statement are important internal affairs to incorporate into a strategic plan.

External Forces and Trends

The first external factor to consider is the legal and regulatory environment in which Pro Audio Superstore operates. Professional audio equipment does not face strict regulations, but the company tax and corporate structure laws. The first planned retail location is in the city Los Angeles and will be subject to California regulations. All sales of merchandise at the store must report and pay taxes to the California State Board of Equalization (CBOE). This special department is a specific only to businesses conducting operations within California (California SOS 2009). In addition, our store must also consider local economic conditions. The products sold at the store are high quality and high priced, and would be considered a luxury items by many consumers. Poor economic conditions could adversely affect the volume of sales and loyalty of customers. As the company expands to other geographical regions, the local economic conditions must also be analyzed thoroughly.

Technology and innovation are other external factors that must be analyzed closely. Pro Audio Superstore is focused on providing top of the line equipment, so changes in technology could spell change for the company. Because technology advances rapidly, the company will need to keep low inventory levels of products that could become obsolete. If a product becomes outdated, the company could be forced to sell it at a loss, which would have a negative impact on total profit. Constant monitoring of industry trends and technological advances will help the company avoid problems of outdated inventory. Also, the company will need to find innovative ways to provide services to customers. The ultimate goal of the company is to provide a level of customer service that promotes loyalty and repeat business.

Internal Forces and Trends

Strong corporate culture and values are needed to achieve the company’s long term goals. One of the most important factors to consider is leadership. Without strong leadership the company will not be able to stay on a clear path to achieve long term goals. Leadership starts with top level management, which would be the officers of the corporation. Top level management, such as the CEO, can provide direction to lower level managers. This type of leadership will spread throughout the company. Employees can also be motivated through performance incentives and the ability to move up in the company. The company can improve its leadership position by creating a plan that addresses the motivation of its key employees.

Resources and technological systems will be required for the success of internal operations within Pro Audio Superstore. Most importantly, the company will rely on its online store to generate sales. There is a great deal of existing competition, so the company must invest in technologies that will surpass that of the competition. An excellent supplier network will also be required for the success of the company. Low prices and availability of top products will be required for the company to achieve its mission. This is true for both the physical retail locations and the online ordering system. Overall, resources and technology will be required for the company to meet the goals outlined in the vision statement.

Communication of the Strategic Plan

Pro Audio Superstore has recognized that the internal and external factors that affect a company are constantly changing. As these factors change, the organization adjust the strategic plan to reflect the changing environment. Constantly adapting to change will assure that the company is taking the most efficient path to achieving the goals laid out in the mission and vision statements. Fundamental changes are taking place constantly, and must be recognized and addressed in order to remain competitive.  Updates to the strategic plan can address a wide range of issues including, legal and political changes or industry environment changes.

Updates to the strategic plan should start at the highest levels of management within the company. Executives are able to gather information from all levels of the company, which gives them the best perspective to develop a strategic plan. Changes to the strategic plan should be communicated to lower level managers who are in charge of sending this information down the ladder. Changing the strategic plan at the executive level will make it possible for the entire company to be working on the same strategy. Therefore, the updates to the strategic plan should be completed and communicated through the highest levels of management. 

Summary

In brief, the strategic plan of Pro Audio Superstore outlines the organization’s long term and short term goals. This will ultimately contribute the company’s success and competitiveness within the professional audio industry. Each area of the strategic plan s designed to serve an specific purpose. First, mission and vision statements give us an idea of what the company is all about and were it envisions itself in the future. These statements will be updated periodically as the changes in the business environment are experienced. Next, the SWOTT analysis takes a look at the strengths, weaknesses, opportunities, threats, and trends that face the organization. This analysis is extremely valuable for developing goals and solutions for difficult challenges. Last, the balanced scorecard lays out objectives, measures, targets, and initiatives that will help the company develop goals for each area of the business. Overall, the strategic plan is a valuable asset for Pro Audio Superstore and will contribute the company’s long term success and growth.

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