Strategic Plans

1219 Words Jul 8th, 2018 5 Pages
Strategic Plans
Foremost for the success of our team, it was felt that the development of a strategic plan was essential—before we started the simulation. It was determined that our team had to focus on three principles for determining a strategic plan: Strategic Position; Strategic Trade-off; and Strategic Fit (Porter, 2006). Our basic strategic plan can be paraphrased as: focusing on production utilization, manufacturing a product that was different than the competitions, focusing on a product with a high margin, creating an organization of specially skilled individuals (which is addressed in the organizational structure section—and possibly our demise), short turnover time in production, and focused on capturing market share through
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This large investment meant that the investment amount was large enough that competitors would be unwilling to copy our investment and capacity increase. With the increase in capacity the per unit costs drastically decreased because the fixed costs became the numerator and the produced units became the denominator which as the denominator increase the end per unit cost decreased.
Along with investment in capacity increases, we also planned to spend a large portion on marketing to our prospective customers, thus protecting our position again from competition. We spent a total of $115,717 on marketing. We thought that this was going to be high in comparison to the other organizations; however, in reviewing the other organizations financial figures we can see that we were actually one of the organizations that spent the least on marketing (it in the end did not drastically affect us, because out of all the sections we still finished second, despite our low spending on marketing).
Strategic Evolution
We also understand as an organization not everything can be planned for in creating a strategy. As the simulation went on there were operational mistakes made that required strategic changes that were not planned for initially.
The strategy did work for the first few runs on the simulation. Our organization was able to have the highest net profit in comparison to all the other section teams. We were able to achieve this through a high utilization
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