read and create an executive summary OVERVIEW Introduction Organizations strive
ID: 461387 • Letter: R
Question
read and create an executive summary OVERVIEW Introduction Organizations strive to enter new markets to increase their profit levels through different strategies. There are usually different strategies that can be used by organizations when they desire to enter such markets (King & Tucci, 2002). Entering into overseas markets is currently seen as the only way by which organizations can leverage on their income and become better competitors in their various industries. The various options that are usually employed by organizations differ due to the risks, costs and the control that is required in the new markets. Kmart retail chain has always endeavored to operate outside their niche to compete effectively and increase their clientele base. The chain store is located in Australia, and works towards competing with other giants in the industry like Wal-Mart. The chain store offers low priced goods and is currently run by Wesfarmers. It has 18 retail stores in New Zealand and desires to move to other developing nations including China where the need for discounted goods is currently high. Vision, Mission and Strategy of Kmart The vision, values and mission of Kmart clearly defines their clientele experience, culture and brand. The retail chain has a unique mission and vision statement which enables them to provide customized products and services to all those who patronize their stores. The mission and vision of the retail store reestablishes their need to improve their customer experience by providing quality products and services that meet their desired needs and goals in the long run. Kmart desires to be the best retain chain outlet in the region while ensuring that their brands are embraced by all their clients positively. The retail chain has the desire to have a higher position in their industry, and compete effectively with all their competitors. Their mission and vision statement reflects on their desire to satisfy their employees and customers in monetary terms. They endeavor to ensure employment capabilities where workers earn money, while customers enjoy varied products which are lowly priced. Kmart provides quality services to all their customers, and through this they aim at ensuring relationships that are life-long. Their strategy is achieved through their recent innovation practices which have been made to provide efficient services to all their customers (Witell et al., 2011). They operate through different pillars, which include empowerment forums which allow customers to manage their own personal shopping and lives. They also build strong brands from the retail store to achieve high competitive advantage, and foster partnerships with all the stakeholders from the industry. Source of Competitive Advantage The source of competitive advantage for Kmart is their physical and financial tangible resources. The retail store cost of goods sold in the year 2015 stood at $190 billion with a net income of $8 billion. Their online presence also generated increased sales of $100 million a figure that had not been achieved before they embarked on technological innovations. Their physical tangible resource ensured increased businesses around the globe, and more stores were included in New Zealand and USA. They however desire to enter into other new markets in China, and various developing nations that desire their products and brand. In their technology sector, the retail store is using high satellite connections which allow them to communicate effectively with all their suppliers. They have also employed in their human resources, experienced managers who have knowledge on the retail chain business. Business Opportunity Kmart has different opportunities, which if achieved they can compete effectively in the global arena. The retail store is advantageous of the emerging markets, and this can help them to diversify their sales in other regions, thereby increasing their overall customer base and profits in the long run. They also have the opportunity to provide products to different ethinic groups around the globe, and this will ensure increased patronage in to other markets with ease. Their nature of acquiring other brands and smaller labels can not only increase their sales, but also ensure specialization, leading to efficient services to all their customers around the globe. ENVIRONMENTAL ANALYSIS AND INDUSTRY ANALYSIS Five Forces of Competition The strategic direction of Kmart revolves around the Five Forces at play in the industry. The firm is currently among the top in the industry, and stands a chance of becoming one of the best retail outlets around the globe. However, the various environmental forces surrounding the industry necessitate its action to ensure competitive advantage. Strategies that are effective in nature will help them in withstanding various threats from new entrants. The competition in the industry is strong, because of the many different types of firms that are emerging with similar products. Some of the markets are closer to the customers, and this makes it hard for the organization to maximize on their profits and customer base. Most of those local retail outlets are also near the customers, while the large retail outlets like Kmart are situated near the local towns, this makes it easy for the small retail outlets to serve more people who reside in the areas where they are situated, hence a strong force. Kmart should become aggressive in their offerings if they desire to be competitive in the future. The level of bargaining power of buyers is relatively weak, as there are high populations of people who cannot impose new policies or rules to the retail outlets. The diversity of their customers is also high; hence most of them rely on the provisions given to them by Kmart and other large retail outlets and have no powers to impose sanctions on the operations of the retail stores. The large presence of buyers presents a strong force to the retail industry, and Kmart as a whole. However, individual purchases are seen to be small in nature, and this brings about a weak force leading to a counter reaction to the strong force. In particular, the bargaining power of buyers is generally weak in the process of influencing the retail store. The retail industry has a weak bargaining power of suppliers, because of the many suppliers who are in existence in the industry. Firms like Kmart can affect the provisions from the suppliers and make changes when they desire. However, the increasing number of suppliers in the industry has given the suppliers the potential to make changes, but instead they are fighting for the slots that are available for them to deliver different goods and services to the retail outlets. The threat of substitutes has a low intensity in the retail industry (Sarasvathy & Dew, 2005). Kmart has several products that are sold to their customers; most of these products have limited substitutes. Kmart’s products are not easily sold in other retail outlets, and this makes them unique and not easily substituted. The customers on their part stick to the retail outlet because of the products offered, which are not readily available from other new sources. In addition, most of the substitutes are more expensive compared to the products sold by the retail store, and this makes it hard for the customers to go for other products outside the retail outlet. New entrants into the business operations are low, because of the high capital required, and the process that often takes a particular retail outlet to create and market their brand in a particular region (Zahra et al., 2000). However, entry into the market through smaller retail outlets is easy because of the low amounts of money required, and the relative advantage of location, convenience and specialty. It is always costly to being the process of developing a new brand in large retail outlets, leading to a moderate force within the large scale retail industries. When firms endeavor to begin as large retail outlets they can begin small, and develop their brand, and this is a threat to brands like Kmart. CAGE Model The CAGE model provides the administrative, cultural, economic and geographic differences between two nations when desiring to do international business (Wang & Lestari, 2013). It is an important tool as it ensures clear understanding of the people, information, capital and trade patterns. In the case of Kmart, the cultural differences that are at play include lack of trust, diverse norms, different languages and ethnicities. The firm will need to address these issues before embarking to China and other developing nations where they intend to begin their operations. The administrative aspects on the other hand clearly indicate a lack of ties and shared trading forum. The firm also deals with different currencies in their home countries when compared to the new markets they desire to enter. The geographical locations are also diverse, with different levels of people in terms of purchasing power. Organizational Trend Competition in the business sector is relatively high, as most firms tend to come up with new innovations every other day to surpass those being provided by their competitors (Harms & Schiele, 2012). Most of the firms from the industry want to extend their brand recognition to other nations to have more customers and also increase their profits and sales in the long run. Kmart is currently competing with Wal-Mart which is globally recognized because of their unique brands. MARKETING PLAN Executive Summary Kmart desires to improve their position in the market and industry as a whole, and plans to do this by entering new markets in China and many other developing nations. These are regions that are ripe for business as their desire for products and services is increasingly high due to their stable economy and earning potential of the people. The size of the potential market is relatively large, as the retail store will venture into nations that have improved GDP in the last five years. The low sales that have been witnessed in the recent past in Kmart necessitate the move to go international so that they can increase their customer base and profits in the long run. The retail store will make use of agents and also acquire other business models to expand their operations and brand. The firm is guaranteed on increasing their sales because of the low prices they have set for all their products. They however desire to attract new customers through the use of development strategies if they desire to increase their customer base within short periods of time. Through advertising, firms can be able to market their products, and the use of agents will be vital to reach other customers who are situated in the remote regions (Gruber et al., 2008). Brand awareness is crucial to success, hence the need for serious advertisements on both print and television modes of advertisement. STRATEGIC BUSINESS GOALS AND OBJECTIVES Beliefs and Values Kmart follows after different values and beliefs, which are core to its business operations. The company has respect for their employees and customers, and provides quality and efficient services and products to all their customers from all the braches. All their employees are given the opportunity to express their thoughts and views without being reprimanded, and this has led to new ideas in the business operation, hence its continuous expansion. Customers are politely engaged by the workers, who are always informed to engage with each other with respect. The firm is proud of their success, but desires to increase their operational base and become the leading retail outlet around the globe. Environmental Analysis Due to the nature of unstable economies around the globe, businesses are never sure whether they will continue operating in their new ventures hence the need to employ new strategies that are workable for success (Seelos & Mair, 2007). With the past recession, there were critical lessons that were learnt by most business as they opted out of their operations. However, low income earners often desire the necessary provisions from the retail industry, and necessities like food and clothing never go into any waste. Kmart has the opportunity to operate in their new regions and become low cost providers, as this will help them increase their profits and clientele base with ease. With increased campaign on their brand, and advertisements on all their provisions, the retail outlet will come out stronger and compete effectively with other operators in the industry. Industry Analysis Kmart has its operation under the retail chain industry, with its competitors being Wal-Mart and CostCo. There is relatively low entry into this market, because of the high costs that are involved in any startup of this kind. Because of the economies of scale, the level of substituted products is also low, because most of these products are highly priced compared to those that are sold from the retail store. The buyers have a relatively high impact on the retail store, while the suppliers have low powers. Organizational Analysis The main objective of Kmart is to increase the value of their shareholders, and this will be done through low costs and increased profits. The retail outlet’s main strength is the economies of scale it enjoys and their overall dedication to the values and strengths. The retail outlet’s weakness lies in its different practices that have been criticized in the past by most shoppers. There is an increased level of profits in the firm, but experts expect more increase in the coming years. Marketing Strategy Analysis According to experts from the retail chain business in China, most families do their shopping from Kmart twice a week (Wu & Knott, 2006). There will be an establishment of competitive advantage if customers associate the retail store with different services or products, hence the need for a clear analysis for the products that need to be withdrawn, and those that the retail store will need to introduce. In the past, the retail outlet had come up with an idea of providing high end products, but later realized that their customers often attend their shop for low cost products and groceries. This made changes to their operations, as they started offering cheaper products for their customers. Their online presence has led to increased profits, a fact that has also increased their clientele base in the past. Strategic alternatives Kmart recently realized that most of their customers often attend their shops for those groceries and items that are cheap. Considering the relatively good economy in Australia, Kmart should endeavor to use a market strategy to ensure increased customer base, and this will increase their profit levels in the long run. Product Kmart has different products that have put them in the forefront, and these products include medical appliances, clothes, food stuffs and assorted entertainment products. Due to the current economic conditions and their desire to introduce their services to other markets, the firm needs to maintain its focus on all their products. For purposes of increased value, they should ensure quality services to their customers, and better prices through their economies of scale. Their products should always be neat, but they should never spend more on packaging. Promotion Awareness is important when selling products and services to customers. There is a need to increase advertising modalities to ensure increased awareness of the products that are being sold by the retail outlet. Kmart should also ensure sales promotions in the event of shopping, and during other special days that are set aside for the main purpose of promoting their business operations. The use of television should be emphasized in their advertisements because of the larger groups that will be reached. Advancement incorporates all correspondence and offering exercises to persuade prospects to purchase the item. As these expenses are enormous when contrasted with item value, so it's high to perform and earn back the original investment investigation before designating the monetary allowance. Place (Placement) It does not just incorporate the spot where the item is set, every one of those exercises performed by the organization to guarantee the accessibility of the item tot his focused on clients. Availability of the item at the ideal spot, at the opportune time and in the right amount is significant in situation choices. Distribution The direct channel option should be used for distribution, as this will limit on the number of intermediaries. This will enable the retail store to offer low costs while earning increased profits without problems. The method will also provide the retail store with high control capabilities because they will be in a position of controlling the buyers. Price The firm should consider setting their prices on low to increase their clientele base, but they should also be aware of the need to make profits. The prices for their perishable products should be high to avoid different impressions that they might be of low quality. Cost incorporates the valuing methodology of the organization for its items. Estimating procedure identified with the net revenues, as well as aids in discovering target customers. Evaluating choice likewise impacts the decision of promoting channels. Utilizing cost as a weapon for adversaries is as old as humanity. ORGANIZATIONAL PLAN Management Team The management team comprises of one CEO who oversees the whole operations of the organization, with skills in management and experiences in leading retail stores. The manager is well versed with the logistics capabilities which are often essential for organizations run various chains in their operations. All the vice presidents have analytical skills and communicate effectively to the CEO and other members who are below their lines of operations. The finance vice president is skilled in finance issues while the HR vice president is knowledgeable with issues of the employees. The administration vice president has relevant knowledge on administration while other managers like the budget analyst are conversant with issues of budgeting. Accounting capabilities are also required on the part of the store keeper, while the operations manager is knowledgeable on issues of logistics and operations. McKinsey 7-S Assessment/Model The McKinsey 7-S model is applicable to all organizations or employees for purposes of effectiveness (Morschett et al., 2010). When there are things that are not working properly in an organization or within a particular team in the organization, it is clear that some elements of the model could be inconsistent. Revealing such inconsistencies is important for continuity and increased sales or operations leading to profits. Aligning all the elements in Kmart is vital for purposes of ensuring full contribution to all the segments towards achieving the laid down goals and objectives of the organization. It is important to analyze Kmart’s position through the use of these elements, because the organization and its team members can move forward and achieve increased benefits for themselves. In the retail store for example, the elements will help improve their overall performance, indicate future changes, align all the processes and segments in the organizations in case of acquisitions and know how to implement a particular strategy. In Kmart, there are both soft and hard elements, where those that are hard comprise of those elements that can be defined easily, with clear management intervention. Some of the elements that are in the organization include IT systems, company charts and other formal processes. The soft elements are never tangible and always hard to explain as they are culturally influenced. This might include the style, skills, shared values and staff. Below is a figure that represents the model and how they relate with one another. In Kmart, the strategies are those plans that have been implemented by the organization to ensure competitive advantage. It is often vital for companies to come up with different plans which make them superior than their competitors. Such plans emerge from new strategies or innovations leading to effectiveness in the business operation. Kmart introduced its online system to their customers, and this has made them to increase their clientele base and profits. The company structure is vital for the whole organization, as it helps them to understand the roles played by each member or employee. The company has a form of reporting whereby the employees report to their immediate supervisor, who later reports to the unit manager. These managers who come from different segments have the mandate of reporting different organizational issues to the CEO who later informs the board of any issues that have arose within the organization. The systems in Kmart involve all the activities that are engaged by the workers to ensure that all their customers are served well. The employees often update their price tags, ensure neatness and provide guidance to all their customers when faced with different challenges when purchasing goods. The employees together with their supervisors offer advice and also help customers make the right choices that fall under their needs. The company shared values are those core ethical responsibilities that are embedded in their operations. Kmart shared values lie on the premise of offering quality goods and services to all their clients, and creating long lasting relationships. The employees work better in this section as they are the people who engage directly with the customers. Laissez faire style of leadership is being practiced in Kmart, and this has allowed the workers to converse freely with the managers leading to low level controls. The workers are encouraged to come up with different ideas that might help the organization move forward. The staff members have different capabilities, and all of them have been trained to provide quality services to all their customers. The workers have been trained on customer care services, and such information has helped them to handle all their customers as required. The shared values of the organization have been placed in the central part of the model because they are vital when creating other elements, as Kmart’s system, skills, staff, structure and style come from the main reason why the company was initiated. The vision of Kmart was first created from the core values of the initiators; hence changes to the values can change their overall goals and objectives. Business Level Strategy and how it fits with the corporate level strategy The business level strategy of Kmart involves three different strategies, and they include overall cost leadership, focus strategy and differentiation strategy. Through the focus strategy, the retail store offers products to their customers while focusing on various segments or markets. Through the differentiation strategy, Kmart offers different products that are unique to particular groups of individuals who comprise their whole clientele base. The last strategy which is employed in the retail store is the overall cost leadership strategy to ensure low prices for their commodities when compared to their competitors who operate from the same industry. The organization’s business level strategy allows them to fit into their corporate level strategy by combining both the cost level strategies and differentiation to ensure full packages for their customers. The organization also makes use of the internet to reduce on costs and also offer low prices for their commodities without making large losses. The overhead costs have been reduced in the organization, and this has been possible through the use of layers of management that are not complex. Their management team comprises of one CEO who is assisted by three distinct vice presidents in their various spheres of operation. The different segments in management were provided so that the organization can provide specialized services to all their customers. The organization has increased their profits and revenues in the short run, and works towards offering quality products to ensure more clients who will increase their profits in the long run. They can compete effectively in the industry, and also move to other markets with ease through their experienced personnel and professional outlook. OPERATIONAL PLAN Kmart’s supply chain originates from its operations, and this they do by dealing with different manufacturers directly. The organization also gives most of their suppliers the opportunity to manage different inventories, and this is a clear move that helps in eliminating irregularities or flow of inventory from one region to another. The whole process involves collaborating and cooperating with the suppliers, and giving them the opportunity to access different products from the manufacturers direct into their stores without making use of different agents. The organization add value to their supply chain through the use of different technological innovations, like computer inventory systems, which provide information to the managers without their physical appearance to the different stores or their main warehouse. The inventory system that is computerized provides data from the stores and the warehouse, and this data is presented directly to the main database that is centralized. The managers can easily follow after the operations of the organization and make strategic changes when needed to ensure smooth operations. Such information is often shared with other relevant suppliers who are then notified of the type of products to ship, and the times such products will be needed in the organization. Such information is critical for success, as it lowers the costs of distribution on the total sales. The organization has been able to merge their services and those of their competitors with ease, and this helps them to determine where they are supposed to make changes. The process that revolve around Kmart are not fully concentrated on their technological innovations, but other distribution centers that are located in the US and Australia. The idea of cross-docking is also used in Kmart, and this is a method that is used to move inventory direct from the delivering trucks to the stores. The store manager handles such inventory and makes records which are later put into the central database. The cross-docking ideas saves on time, and this usually helps when there is a need of particular products have been depleted from the stores. Warehouse congestion is eliminated when using cross-docking an idea that helps the supervisors and managers to make records that are a true reflective of what has come in and those products that have been sold to the customers. The methods employed by Kmart differ slightly from normal operations in other retail chains. Most retail outlets make use of integration, distribution, operations and purchasing, whereas Kmart only operates on important supply chains that enable the products to move from the warehouse to the stores and later to the customers. A succinct supply chain requires integration for purposes of smooth flows of products and services. Kmart suppliers and partners are all those stakeholders in the industry who ensure smooth running of operations, and those that ensure provision of different products and services to enhance their operations. The retail store has partnered with environmental groups who help them to operate within the required environmental laws, while lawyer’s advice those on the changes made on their operational policies to avoid conflicts with the government. They have also partnered with insurance firms who ensure that their stores are safe and insured against any eventualities. The organization’s suppliers are all those individuals or firms who supply them with products and services as they continue serving their customers. Most of the partners and suppliers come from Australia where the store is managed, while others have emerged from overseas with experienced skills on how to integrate their systems with those of other nations where they want to venture into in the long run. The organization has contingency plans which assist them to deal with different risks. They have insured their stores and all their products, and have also kept different kinds of products in their warehouses for purposes of using them before the suppliers provide them with the same products when they are required. Kmart ensures that they are lean through the provision of quality products to their customers. The company ensures effectiveness by understanding the needs and values of their customers. They operate with minimal wastes while ensuring state of the art services and products to all their customers. The main aim of the organization is to provide efficient services and customer value in the long run. The managers have also changed their focus and currently optimize separate assets, departments and technologies to ensure a flow that is profitable. Through their waste elimination processes, they make use of less effort from their employees, spend less time in their operations and also ensure minimal capital expenditure. Kmart has different primary and support activities in their operations, and through such activities they are able to provide quality services to their customers from all their branches. The organization makes use of different capabilities to make their brands known, and through such modalities they have been able to increase their profit levels. Their brand initiatives have been supported by the use of the internet, where they advertise their services and also ensure quick services at their points of sale. Financial Plan Pro Forma Income Statement for the organization for the years 2014, 2015 and 2016 Period Ending 1/31/2016 1/31/2015 1/31/2014 Total Revenue 450,150,000 425,620,000 398,781,000 Cost of Revenue 379,846,000 300,046,000 292,049,000 Gross Profit 70,304,000 125,574,000.00 106,732,000 Operating Expenses Research Development - - - Selling General and Administrative 87,100,000 85,500,000 83,246,000 Non Recurring - - - Others - - - Total Operating Expenses - - - Operating Income or Loss 24,105,000 27,147,000 26,872,000 Income from Continuing Operations Total Other Income/Expenses Net 71,000 110,000 106,000 Earnings Before Interest And Taxes 23,168,000 26,258,000 25,885,000 Interest Expense 2,452,000 2,342,000 2,223,000 Income Before Tax 20,368,000 23,789,000 23,872,000 Income Tax Expense 5,554,000 6,859,000 7,109,000 Minority Interest (358,000) (728,000) (587,000) Non-recurring Events Discontinued Operations - 268,000 138,000 Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - Net Income 15,782,000 14,258,000 13,025,000 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 15,782,000 14,258,000 13,025,000 The organization will increase its income from year one through the third year. It is anticipated that the last year revenue will stand at 450,150,000 while the second year the revenue will be 425,620,000, and the first year will have low revenue of 398,781,000. Before any organization maximizes on their provisions and fully responds to the market they usually exhibit low revenues, but these changes with time as the organization fully understands the market and operate towards competing with the others in the industry effectively. The organization need to make use of new technological innovations will not only be advantageous to their increased revenue, but also the overall level of their clients. The organization breakeven point will be at the level whereby its revenues are equal to the costs. This is the point where the levels of profits begin to come up as the losses end. At this point, the business operation will be viable, and this will give the managers the opportunity to come up with different strategies to increase output and revenues. Alternatively, the point will be found when the total expenses equals the sales leading to a zero in the profit level. The leaders through their finance office will calculate the breakeven point using the contribution margin. The organization will consider different areas to get their sources of capital to ensure smooth operations. First the company will consider three options for funding, and this will include from those investors in the company in the form of share capital, the banks and from directors. The organization will not consider taking loans from its directors because of the size of the company. It will therefore consider the banking institution and other investment companies that offer loans to large companies. Funds from the shareholders will also be considered by the organization as they always come with low interest levels that are not fixed. The best option for capital will however be other financial institutions and the banking sector which often has rates of interest that vary. The best bank with the lowest interest rate will be considered by the company, and the money will be put into use immediately to be able to repay the total sum when due. However, it is important to note that capital from shares is usually low in profits although its risk is low when compared to loan capital which is risky with increased returns for an organization. The company will have to consider the balance between risks and profits and make use of sources of capital that are less risky with high returns. This is because in the event of various losses the company will be required to pay the loans even if they have made minimal amounts of money in their operations. If the company experiences tough periods that have low liquid, they might end up closing because of the need to repay loans with minimal returns. Therefore the company will consider the use of the bank and other financial sectors as opposed to other forms of investment opportunities. The business will always endeavor its shareholders to invest in its growth for purposes of increasing its profit levels, and the business will also pay back the shareholders returns that are high compared to most commercial banks. Financial information in the business will be of great help, as it will help the shareholders and managers to understand where their operations are heading. The information will point to the needs of the business, and how the profits can be reinvested into the business to ensure growth and in the long run. The information gathered from different financial statements will clearly indicate the types of strategy that can be used for purposes of ensuring increased returns and profits in the long run. Through the information, the users will understand different areas that will need to be uplifted and those that will need minimal funding. The information will also bring about different ratios that are important to understand the performance of the organization. Some of the performance indicators that will easily be calculated include the return on owner’s equity, profit margin and return on investment. Most retail outlets make use of different Key Performance Indicators because of the nature of their operations. The retail outlet will make use of the sales indicator, which will inform the management on the annual turnover of the company, the transactions made and their expenditure against the laid down budget. Sales will provide a clear picture of the operations in the company and any changes that will be needed to ensure success and profits. The sales indicator will also inform the leaders on the different methods they will need to employ in their operations if they desire success. The success of the organization will be measured by how much they will be able to sell and at what cost against the set budgets. Such information will be critical for decision making and other changes in the management segment. Risks Assessment and Milestones Schedule for the Capstone Project The organization will train their workers to know how to handle their clients after they have set up a working HR office in the beginning of its operations and later endeavor to ensure a clean environment for all its stakeholders. The retail outlet currently understands their need to have renewable energy that is 100%. The energy when put together with the efficiencies of energy will be vital for the customers, future generations and the shareholders. The company desires to make use of energy that is affordable and clear for their operations to be efficient. This cannot be possible if they do not come up with new policies that are geared towards ensuring cleaner and affordable kind of energy. The organization desires to have zero wastage, and this is not an easy undertaking, but with increased cost effective methods in their operations coupled with the desire to have low costs will lead them to their ultimate goal. This will be done in the first three months of its operation, and fully ensure that they are environmental friendly. The organization is looking for different partners across their stores around the globe who can help them reduce the amount of waste they incur on a daily basis to maximize on their profits and reputation. They have currently started to enhance all their stakeholders and data from all their regions of operation to make this a reality. The organization endeavors to stop the use of plastic shopping bags to reduce the amount of wastes that are flown to the landfills. There will be different initiatives towards these objectives around all the branches as only paper bags will be provided to the customers. Plastics will be eliminated, and the customer informed of the need to make use of paper bags. Through such educative forums the customers will also reduce the amount of plastic bags they use, and this will ultimately reduce the landfills at an increasing rate. The organization will also ensure responsible packing for all their bottled products to reduce on costs and prices of such products. This objective will be fulfilled in the next six months of its operation. This objective will not only reduce the amount customer spend on the bottled items but also the rates of filling at the landfills. The organization will make use of large packages as opposed to small ones and this will be attractive to the customers as they will not be expensive and bulky. Recycling of electronics from the stores will also be done by the organization, and this will be possible after merging with other organizations that are efficient in recycling such products. The customers will be allowed to return spoilt gadgets to the stores and branches where they were bought for purposes of recycling. This will give the stores an advantage as most of the customers will desire to purchase other products to replace those that have spoilt. Apart from the objectives of keeping the environment clean and attractive for the customers, the organization will move their operations to china and later to other developing nations. They will first perform some research on the required products in those areas before embarking on their operations. They will involve all the cultures and provide products and services to all the age at groups. This will be an important step for the store as they will have a presence overseas, and this is vital for growth and increased revenues. Lastly, the organization will offer after sales services and advice on how to use different products from their stores on particular days of the month or week. This option will help the customers understand how different products operate and fully embrace new ideas of how to use them. They will also be given hands-on experiences of using such products, and this will involve practical products like electronics. Strategic Leadership and Entrepreneurship Analysis Strategic leadership is important in any organization as it ensures minimal spending and increased satisfaction on the part of customers. My sphere of influence from the organization is management, where the role of anticipation is inclusive. There is always a need to anticipate good returns and also other challenges that might occur while in operation to avoid losses and increase returns. Most firms have managers who are not good at detecting different threats at an earlier stage, and this is often a prerequisite for failures. They should also be aware of different opportunities that are at play in their industries to soar high and compete effectively with all their competitors. As a strategic leader I am always vigilant and anticipate the future with skills that can enable me to accomplish my tasks with excellence. I am also vibrant in making different decisions that pertain to the operations in the company, and this has helped in making different strategies that are vital for survival and growth. Reacting to different crises when they come is important for any leader to eliminate instances of losses and low morale on the part of the employees. Based on my sphere of influence I can easily influence the implementation of the business plan, and come up with different strategies to compete effectively in the global arena. I can ensure quick responses from the suppliers and partners when there is a need for a product change, and influence the customers to go for different products that are in line with their needs and desires. This will reduce the time spent on making decisions and provide quality products and services to all the customers. I can also influence the organization to move their operations to other markets with ease with the desire to increase the organization’s customer base and profits. The employees can also be aligned into their capabilities and informed to change with the trends of the market. Every leader or manager in an organization possesses some form of bias. This is because of the limited perspective the leaders have on one single present occurrence. The individuals only see and articulate what is before them as opposed to what the universe offers as an alternative. There is no single individual who has a clear version of the reality on the ground, and this calls for clear understanding of the environment and continuous learning processes. The social locations of individuals often form an important part in their bias, and this can only be eliminated if they try to learn from other cultures, races or religions. My personal bias is self-serving, as I am continually prone to see and claim the various successes that are involved in the industry as opposed to their failures. I believe on success as opposed to failure, and always attribute failures to different errors that have been created outside my control and area of operation. I have however learnt to understand different situations in my career for purposes of coming up with different solutions that can salvage a particular situation. In the process of learning I anticipate different hurdles which might tamper the full operation of businesses. There could be different challenges of aligning people to take responsibility of their actions as opposed to making different excuses. Such scenarios might lead to success levels that are low, coupled with minimal solutions to the problems that have been anticipated. There is therefore a need to teach people to be responsible of their actions and always operate within the laid down rules and regulations. I will demonstrate a Laissez-faire leadership style in all my operations because it allows individuals to make contributions without any interference. Through this leadership style individuals will be free to bring out different ideas and try them out for purposes of success. The individuals will therefore be allowed to operate freely without any hindrances. This kind of leadership style is crucial for all organizations as it can easily inform the managers how the employees are feeling and readily make different changes that are pertinent for success. I however fall short in the various precepts of the style as I will check on the provided ideas and make changes that are in line with my processes of leadership. I will not fully embrace the ideas provided, but will only make use of those that I feel are important for success. Such occurrences deny individual’s opinions to be incorporated into the activities of an organization a fact that can demoralize them in the future. Such members might refuse to make contributions in the future for fear that their ideas will not be acted upon. I have different strengths and weaknesses in my area of operation. I am determined and self-motivated, and this is an important concept when one desires success. I always strive to do hard tasks while helping other members of my team to achieve success in their different areas of operation. I am also a team player, and this is also another important concept that leaders ought to have if they desire to succeed in their various positions. Being a team player ensures increased ideas and breaking down of different tasks which can easily be handled by individual’s members. Lastly, I am self-confident and intelligent, and always able to detect problems before they become a reality through team work. I also possess weaknesses, and these have helped me cope with different situations and desire increased learning. I always go out of my way to help other people achieve their desires and goals in business and life. Doing all the work in an organizational setting is sometimes tedious and can lead to unfinished job portions which might be dangerous to an organization’s growth. I also lack some skills in my operations which are essential for growth and success. I can easily influence other people and the organization to deliver better results through training and helping when there are hurdles. Through my assistance and enthusiasm the people and organization can fully embrace my ideas and follow after my footsteps without problems. I will inform them of the needed steps to complete different tasks and be part of the process of doing the work that is required by the organization. I will also advice the people and organization on the benefits of doing particular activities in certain ways, and the end results. People often become more cooperative when they have full information of how a particular activity will benefit them as individuals. When people or organization recognizes the impact of that particular activity they will be able to embrace it without problems.
Explanation / Answer
The above stated article is about the retail store named Kmart which is doing well in terms growth and revenue its competing with the Multinational brands like walmar and other chains of Australia. Kmart ahs been really struggling streamline its processes wheather be Human resource or operations they are in a process of streamlining the process that SOPs of the company. Kmart has been esnuring that their processes and the working culture is regarded as one of the best cultures. Also it has been focussing on the staff their training grooming and incentive plan. They have also focussed on the finances for which they have hired the CFO who will keep a track of the finances also to head the scomplete Kmart a CEO is also hired who has ensured that the companys ethics procedures and policies are properly adhered he has done a complet makover of the stores also they have ensured that the functioning of the store would be lttle harsh. In general Kmart have decided to revamp their stores and see that they are regarded as the store in retail. The major business is food and hyper markets where all the processes are streamlined properly for the smooth inflow and outflow.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.