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As a Business Strategy consultant I must write a complete vision and mission statement for Flintstones Bedrock as well as the long term objectives.
Flintstones Bedrock is a new drive in entertainment centre with an informal restaurant.
We are striving to meet our customer expectations by providing the best entertainment and informal restaurant in the Vaal Triangle.
We strive to satisfy our customer's needs and gain their loyalty, as we strive to act with integrity and upon ethical standards in everything we do. We will only serve the highest quality food and beverages while customers receive the finest service in the Vaal Triangle. The newest top of the range technology in projectors, big screens and surround sound will be implemented and updated continually. We want to provide opportunities, growth and enrichment to our employees, community and all other shareholders. In this respect Flintstones Bedrock will conduct its operations in order to produce healthy profits to ensure ultimate success, while keeping in mind that our philosophy is to keep customers above profits.
1.4) Long term objectives
- To be financial stable through growth in earnings and profit.
- Higher quality and more attractive products and services then rivals.
- Superior customer service and higher level of customer satisfaction than rivals.
- A stronger good reputation with customers than competitors.
- Recognition as a leader in technology innovation and entertainment.
- To be the employer of choice in the Vaal Triangle.
All organisations have internal strengths and weaknesses. Performing an internal audit requires gathering, assimilating and evaluating information about the firm's operations. An internal audit provides more opportunity for participants to understand how their jobs, departments and divisions fit into the whole organisation. In this task Flintstone's Bedrock will go through an internal audit.
2.2) Organisational Culture
Flintstone's Bedrock will have an informal spontaneous culture which should rub off on the customers so they will have lots off fun at the drive-in and informal restaurant. We would like to give the organisation an "old school" atmosphere with 60's - 80's music, everything should be entertaining and relaxed.
Management consists out of five basic activities:
- Planning: Managerial activities related to preparing for the future. Flintstone's Bedrock will have a strategic planning team which will consist out of the senior staff and managers.
- Organising: Managerial activities that result in a structure of task and authority relationships. Flintstone's Bedrock group of managers will heed to this activity.
- Motivating: Efforts directing toward shaping human behaviour. The executive managers will motivate all staff.
- Staffing: Activities are centred on personnel or human resource management. The personnel manager as well as the human resource manager will be held responsible for these activities.
- Controlling: Establishing performance results, measuring individual and organisational performance, comparing actual performances to planned performance standards and taking corrective actions. All managers and senior staff will help control these activities.
2.3.1) Management audit checklist
Ø Customer Analysis: The examination and evaluation of consumer needs, desires and wants. Flintstone's Bedrock already did this analysis and noticed that there is a need for safe family entertainment in the Vaal-triangle. That is why we decided on a drive-in with an informal restaurant for family entertainment. A regular customer analysis will be done to ensure that we keep our customers happy.
Ø Selling products and services: Selling includes many marketing activities such as advertising, sales and promotion. Flintstone's Bedrock main focus is on effective advertising and promotion so all customers will frequently know what is going on at the entertainment centre. Flintstone's Bedrock has to focus on selling products at the restaurant and offering excellent service with the drive-in.
Ø Product and service planning: Flintstone's Bedrock will use test marketing which allows an organisation to test alternative marketing plans and to forecast future sales of products.
Ø Pricing: Factors that will influence services and products of Flintstone's Bedrock:
- Consumers: What are the consumers willing to pay for family entertainment and food?
- Government: Government can impose constraints on price fixing, price discrimination, minimum prices, unit pricing, price advertising and price controls.
- Suppliers: Movie supplier prices and restaurant supplies prices from the chosen suppliers.
- Distributors: Distribution prices
- Competitors: Prices of other informal restaurants and cinema's in the Vaal Triangle.
Ø Distribution: Flintstone's Bedrock has a short distribution channel. They get the newest movies direct from the publishers.
Ø Marketing research: Flintstone's Bedrock does regular gathering, recording and evaluating of data about inconveniences relating to the marketing of goods and services, frequently.
Ø Opportunity analysis: Flintstone's Bedrock is doing regularly cost assessing, benefits assessing and risk assessing associated with marketing decisions.
2.4.1) Marketing audit checklist
The financial condition of an organisation is the best measure of its competitive position which leads to the overall attractiveness to investors. The functions of finance and accounting comprise three decisions:
- The investment decision
- The financing decision
- The dividend decision
As this is a new company it doesn't have a balance sheet or an income statement yet. We can't make any big decisions regarding the finance and accounting yet, our only goal with the finance for now is making a profit, later on we'll decide on investments and shares.
2.5.1) Financial/accounting audit checklist:
2.6) Production and operations
This is the functions which deal with the inputs, transformation and outputs in the informal restaurant. The basic functions of production management will consist out of:
- The process: Where the design of the production system layout is decided on while making technology, facility and process choices.
- Capacity: Forecasting, scheduling and aggregate planning.
- Inventory: Managing the levels of raw material, work-in-progress and finished goods.
- Workforce: Managing employees, motivating employees and training employees.
- Quality: Ensuring high quality goods through quality control, testing and feedback.
2.6.1) Production and operations audit checklist:
2.7) Research and development (R&D)
Flintstones Bedrock will only use its research team to make sure customers are happy with the products and services and if not we'll use the development team to make sure we satisfy the customers needs and desires to win a competitive advantage. The R&D team won't be appointed full time, only in emergencies.
2.7.1) Research and development audit checklist
2.8) Information Systems
Checkmate will be used for Flintstone's Bedrock to help with strategy formulation and implementation. (David, 2007)
2.8.1) Information System audit checklist
2.9) Internal factor evaluation matrix2.10) Conclusion
The company have a positive IFE matrix rate which means the company is off to a successful start within its internal environment.
To perform an external audit, Flintstones Bedrock must gather competitive intelligence and information about:
Once information is gathered it will be assimilated, evaluated and prioritised.
3.2Impact of economic forces
3.3 Social, cultural, demographic and environmental forces
These forces are shaping the way people across the world are living, working, producing and consuming goods, services and strategies. These changes have a major impact on virtually all products, services, markets and customers.
Flintstone Bedrock will need to monitor all trends and new consumer needs in the entertainment segment to make sure that we satisfy their needs. The new needs of the consumer will be implemented in the strategy formulation. Flintstone Bedrock will examine the following cultural differences:
- universal vs. Particularism
- Affective vs. Neutral
- Collective vs. Individual
- Specific vs. Diffuse relationships
- Achieving vs. Ascribing status
- Time as sequence vs. Time as synchronisation
- Inner directed vs. Outer directed
3.4) Political, Governmental and Legal forces
Political and governmental: Flintstones will only have political forces at local scale. This concerns any authority which is subservient to national governments and whose decision making powers derives from the national government.
Legal: Flintstone Bedrock has to obey the national law. We will also have to get permission and a licence to serve alcohol in the informal restaurant. Also as we will use internet for marketing, communication and a resource we must pay attention to cyber laws that will affect the business. (David, 2007)
3.5 Technological forces
Technology is one of the most important forces in Flintstones Bedrock. Only the best and latest technology in sound, projectors and comfort will be good enough to use for the drive in. Internet will be used for communication, marketing and resourcing. (David, 2007)
3.6 Competitive forces
An awareness of competitive forces is essential for success.
With these three steps Flintstones can reveal whether they can make an acceptable profit despite of competition:
- Identify key aspects or elements of each competitive force that impact the firm.
- Evaluate how strong and important each element is for the firm.
- Decide whether the collective strengths of the elements is worth the firm entering or staying in the industry. (David, 2007)
3.6.1 Porters five competitive model:
3.7 Sources of external information
Flintstone Bedrock will get external information through:
3.8 Forecasting tools and techniques
Forecasting is a complex activity due to factors such as technology innovation, cultural changes, new products, improved services, stronger competitors, shifts in government priorities, changing social values, unstable economic conditions and unforeseen events. Even though forecasting is so complex, Flintstone Bedrock needs to forecast in order to plan successfully. Therefore they will use the following two techniques:
Quantitative forecasts: Economical models, regression and trend extrapolation.
- Sales force estimates
- Juries of executive opinions
- Market research
- Scenario forecasts
- Delphi forecasts
3.9 Global challenge
Flintstone Bedrock will not be part of the global challenge; we only provide a service locally and won't be exporting or importing any goods.
3.10 Competitive Profile Matrix
Flintstone Bedrock has a competitive advancement comparing it with its competitors. The external audit has learnt Flintstone Bedrock a lot about how to assimilated, evaluated and prioritised information about the external environment.
4.1 Different Strategies
Flintstone Bedrock should formulate strategies now that it knows it's internal and external environment. The following strategies will be use full for Flintstone Bedrock:
4.1.2 Intensive Strategy: Market Penetration
Definition: Increasing the number of sales persons advertising expenditures and publicity efforts or offering extensive sales promotion items.
With the market penetration strategy Flintstone Bedrock will:
- Increase advertising expenditure through:
- Advertising on the internet. On "What's happening in Vanderbijlpark" website.
- Advertising in billboards
- Advertising on local radio stations such as IFM, OFM and 90.6 FM.
- Flyers in high schools and at robots
- Publicity efforts:
- A big opening with dancers, singers, entertainment for kids, big screen rugby, free movie and specials at the restaurant for publicity.
- Offering extensive sales promotion items:
- Regular specials on the movies and at the restaurant for example Half price on movies on Mondays.
4.1.3 Cost leadership Strategy
Definition: Products at a very low cost for consumers who are price sensitive.
1. Low cost strategy offers products to a wide range of consumers at the lowest price available on the market.
2. Best value strategy offers to a wide range of customers at the best price value available on the market.
The goals of this strategy are to under price competitors or offer a better value and thereby gain market share and sales, driving some competitors out of the market entirely.
To successful employ a cost leadership strategy, Flintstone Bedrock will ensure that total costs across the value chain are lower than that of the competition. This will be accomplished by:
- Performing value chain activities more efficiently than competitors.
- Eliminating same cost producing activities in the value chain.
4.1.4 Focus Strategy
Definition: Focus means producing products and services that fulfil the needs of small groups of consumers.
Flintstones Bedrock can focus different days on different consumer groups for example:
Monday: New movies- Young adults, 16-25 yrs.
Tuesday: Old movies- Elder people, 50+ yrs.
Wednesday: New animation movies, 5-16 yrs.
Thursdays: New Teenager movies, 13-21yrs.
Fridays: New movies, adults, 18+ yrs.
Saturdays: New movies, everyone
Sundays: Family movies.
4.2 Evaluating Strategies
4.2.1) The nature of strategy Evaluation:
Strategy Evaluation includes three basic activities:
- Examining the underlying basis of a firm's strategy.
- Comparing expected results with actual results.
- Taking corrective actions to ensure that performance conforms to plans.
Four criteria's I will use in evaluating my strategies:
- Consistency and Feasibility
- Consonance and Advantage
4.2.2) Strategy- Evaluation Assessment Matrix
Flintstones Bedrock's strategies will be successful because after the strategy evaluation we realised that the strategies will be effective if good planning and management is implemented.
Effective strategy implementation sometimes leads to conflict in organisations; Flintstones bedrock will use the following strategies when conflict arose.
5.2) Conflict management strategies
5.3) Approaches to keep conflict constructive
- Separate the person from the problem
- Enter their world
- Focus on improving the relationship
- Be honest
- Generate a variety of options
- Discover common goals
- Be informal
- Be as flexible as possible
Be creative in your approach
If all stakeholders agree to comply The Flintones Bedrock conflict policies, we can take corrective actions to create a win-win situation as soon as possible.
David, FR 2007, Strategic Management: Concepts and Cases, 12th edn, Prentice Hall, South Carolina
YWCA, 2006, Confronting Conflict. Retrieved on 1 September 2009 at http://www.ywcatoronto.org/assets/lp-samples/16_CONFRONTINGCONFLICT-PG-57-62-smpl.pdf