Able Corporation Business Plan

The Boiled Frog phenomenon

The boiled frog phenomenon refer to a metaphorical situation where if a frog was placed in normal room temperature water the frog would continue to survive in the pleasing warm water which is the same as a heating Jacuzzi until it is cooked and dies. The metaphor is a commonplace occurrence in most businesses that are not in contact with most businesses. For example the dot com businesses were not able to appreciate changes in the market and underwent loses due to their failure to observe changes in the market environment. This principle is used in businesses that fail to recognize changes in the market environment. Changes have to be gradual and be appreciated. The current business environment is very competitive. Most companies find themselves in hot water and have to sense changes in the markets to stay afloat. They do not have to be thick-skinned as frogs and blind to the needs of their clients but instead have to be aware of the existing changes in products and service innovations in the world (Docmario, 2001).

Able Corporation Business Plan

According to Kotler and Keller (2006), any company that seeks to enter the multinational environment needs to have a “clear, thoughtful mission statement” in order to for its employees to have a “shared sense of purpose, direction, and opportunity” (p. 44). A good and effective mission statement has to take into consideration the interests of stakeholders, managers, employees and even customers of the company. In the case of Able Corporation an effective mission statement would be: To become a global leader in the field of power tools and lawn equipment supplies provision with emphasis in reliability, cost effectiveness, and modern innovations in its products that meet the most competitive pre-sale and post sale standards. Such a mission statement addresses the current abilities and future plans for the company in meeting the requirements of international standards of outdoor and power tools industry.

Beech (1997) states that a company’s operating plan “outlines your product/service, its purpose, how it will be produced and the facilities to be used” (p. 29). In the case of Able Corporation in its move to enter the international market would include the use of charts and graphs in mapping its operating principles. The main concerns of the company in its expansion would involve the following:

Promise of delivery of the best and high quality products to its clients.

Dedication to building the company’s long term value.

Responsibility and ethical approaches to its mode of providing services.

The company would greatly benefit from dedicating itself to building a long lasting and solid relationship with its clients through the provision of reliable products in meeting the demands of the international market. Information about the company can be derived from a SWOT analysis of its current status. Generally speaking, the company’s strength and weaknesses provide the main internal factors the affect its organization and at the same time its opportunities and threats are the external factors that affect or have an impact on its organization. An evaluation of strengths, weaknesses, opportunities, and threats with regard to a company’s competitors in the same industry can be useful in determining its position and in developing strategies. This information can be garnered from the existing conditions of its competitors like the Smith and White Corporation and Makatume in the U.S PEPT industry.

The principle I would use in the implementation steps to achieve strategic objectives would involve an evaluation of short-term operations and long-term goals. As described in the mission and vision statements of the company, the major concern would be forward looking statements of the firm that are aimed at achieving its strategic goals. For example I might look at the expectations of the company in one year and what it hopes to achieve within that period. Such an evaluation shows that the company has to meet two major goals in lieu of the issues plaguing it in order to improve its overall rating. These two major goals involve focusing on the international market and ways of improving its financial status. Its long term goals would involve a five year outlook in the market analysis and improvement on quality of its tools manufacture. A ten year outlook should focus on increased market share and profitability. These are the major strategic objectives I would focus on during implementation.

For post implementation and regular feedback, I would rely on two mechanisms namely the sales forecasting and the SWOT analysis. These two measures would be important in analyzing how Able Corporation would fare in the international market against its competitors. Business Link (2009) describes a sales forecast as “an essential tool for managing a business of any size” (p. 2). Every company needs to have a monthly analysis of its core markets in order to discover whenever a need arises but in the case of Able Corporation would include an annual analysis of comparable forecasting. Forecasting of future sales for this company would include an evaluation of how economic factors of the industry stand to negatively affect its major sales. For example an increase in utility rates such as gas and electricity would mean consumers will buy fewer power tools which will adversely affect profits. Performance of the housing market will also have an impact on power tools sales just like the other household items because with reduced construction of homes, the sale of equipments will also drastically drop.

The other measure I would use as a feedback mechanism would be the SWOT analysis of the company in the post implementation phase. According to Bateman and Snell (2003), the identification of opportunities and barriers in both the external and internal environment is helpful in providing information to “formulate corporate, business, and functional strategies of the organization” (p. 122). A SWOT analysis is therefore necessary in providing a comparison of the firm’s strengths and weaknesses against the existing opportunities and threats it faces. It can thus capitalize on opportunities in order to grow and minimize the threats it faces in a competitive environment. The circular saw market, for instance, is one of Able Corporation’s strength while a lack of understanding of marketing in its core industry and moderate tool quality are its major weaknesses. Therefore a market analysis would be quite helpful in the post implementation period. However, a good plan does not necessarily guarantee a successful implantation of the business plan (Drejer, 2002). It would therefore be important to use tools and resources in the organizational structure. This might include feedback from human resources, the company’s IT department, and other forms of technology used in the firm.

There will be legal and ethical issues to be considered. These will involve corporate ethics that will guide the company’s moral issues in its operations within the business environment. For example the company will be obligated to laws and business ethics that have been put in place to ensure that its products, power tools in this case, do not cause harm to the consumers and are able to be processed safely. The laws will ensure that there are no defective and inherently harmful products released to the consumers. There will also be an ethical responsibility of the company to the environment, use of emerging technology, and in product testing.

References

Bateman, T. & Snell, S. (2003). Management: The New Competitive Landscape (6th Ed.). New York: McGraw-Hill Companies.

Beech, W. M. (1997, September). Before Hanging out Your Shingle . Create a Business Plan, It Can Be Your Road Map to Success. Black Enterprise, 28, 29. Retrieved from Questia database: http://www.questia.com/PM.qst?a=o&d=5000472529.

Business Link. (2008). Forecast and plan your sales. Retrieved fromhttp://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073901350

Drejer, A. (2002). Strategic Management and Core Competencies: Theory and Application.Westport, CT: Quorum Books. Retrieved from Questia database:http://www.questia.com/PM.qst?a=o&d=101317980

Docmario. (2001). He boiled frog phenomenon. Retrieved fromhttp://docmario.wordpress.com/the-boiled-frog-phenomenon/

Kotler, P., & Keller, K.L. (2006). Marketing Management (12th Ed.). Upper Saddle River, NJ:Pearson-Prentice Hall.