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This paper will describe a new small business which is going to start. This paper will be defined Strategic planning and management and why it is important for the new business to succeed. This paper also will explain the four functions of management relative to creating and implementing a strategic plan. The mission and vision are very important in a company to achieve any objective and goals. The way to find out is there is something wrong is to make a SWOTT analysis to the company to identify what is the situation in the market in comparison with the competence. A score card of the company is also important to make a strategic plan to achieve short term and long term goals in the company. The information above will be explained in this paper as well.
The small business is Arambula Ceramic Tile and is a flooring store, this business sells ceramic tile, vinyl tile, carpet, laminate, hardwood floors, and provide a professional installation as well. Arambula Ceramic Tile is planning to be in the residential and commercial business. The intention is to sell and install flooring for all home builders in the area. But first of Arambula Ceramic Tile must understand and practice strategic management and planning.
Strategic management is a method of mounting and implements several competitive actions to improve the success of a company or organization in the present and in the future. These competitive actions must be derived from the customer’s demand in the external environment and in the same manner in the internal capabilities of the company to develop important decisions. The decisions made by the company must be followed by a analysis of the current business situations to ensures the best decision possible.
Strategic planning is defined as the determination of the process requires achieving an objective that makes the best use of the available resources. As an example in marketing a strategic plan involves selecting target market segments, a position, within the market requirements of a product such as price, characteristics, and channels of distribution to mention some of them.
There are four functions of management relative to creating and implementing a strategic plan and these four factions are planning, organizing, leading and controlling.
Planning is defined as the core of the functions of management, planning is the basis in which the other three functions must be created. Planning can cause trouble for many people in the company and managers as well.
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Organizing organized is the next function of management. Management must organize all its assets in order to realize the course of action it determined in the planning stage. Through the development of getting organized, management will decide the inside organizational arrangement, also give out needed material
Leading is third function of management. During the leading stage of management, people are able to direct and manage the actions of the staff in accomplishing the company's goals, also supporting them in carrying out their own personal or career goals. This influence can be gained through enthusiasm, talking, and leadership
Controlling is the last function of management, during this stage is the process is critical because controlling is all the time to and never ends. The control process is like the other three must be constant if the company wants to achieve their plans.
The four functions of management will give Arambula Ceramic Tile a grate advance with the competitor. Arambula Ceramic Tile have to conduct a research about the flooring market, prices, quality to understand what the customers like and want, doing so Arambula Ceramic Tile can furnish a good plan including find a new unexploited market, dominate the existing market , find the right advertising plan such us a news paper, radio, television, flyers. This is only the beginning of Arambula ceramic tile and with the research the company can understand where is now and where wants to be in next week, month or in the future years.
On the other hand nowadays in El Paso Texas there are many flooring stores that sell and install all kind of floor covering but provide poor customer service .The owner of Arambula Ceramic Tile notice what the situation was in the ceramic tile environment and decide to open his small business. The intention was to cover all the needs of flooring customers in El Paso, Texas. Arambula ceramic tile believe the in the importance of the mission, vision and the values of a company to provide the best product and service to all the customers. The following paper describes the mission, vision, values, and the importance to Arambula Ceramic Tile to take the small business in the right direction to the success.
Arambula Ceramic Tile is a small business which sells and installs hardwood floors, laminate, ceramic tile, vinyl, and carpet. The mission of Arambula Ceramic Tile is to provide the greatest product in the market, including the most excellent prices and the main objective is to endow with the premium customer service and in the same manner award the confidence of the customers that the service and product that is, doing it right at the first time. That is the reason Arambula Ceramic tile guarantees professional installations. This mission will be possible because Arambula Ceramic Tile looked for the best quality products in the market and building an outstanding relationship with the distributors. Arambula Ceramic Tile takes the time to look for the products depending in the customers needs and taking the samples to the customers’ home and doing so the customer can avoid the problem of going from store to store looking for the best product and price because Arambula Ceramic Tile can do it for the customers.
The vision of Arambula Ceramic Tile to be one of the most important flooring stores in El Paso Texas and surrounded areas. But not limit to sell and install floor covering because Arambula
Ceramic Tile wants to be an exclusive distributor of a major flooring brand and at the same time maintain the great relationship with the customers and distributors and never lose any customer due to a bad customer service. To make the vision come true Arambula Ceramic Tile must follow the policies and procedures all the time, having a good communication with employees and atthe same time providing training courses for the employees. Arambula Ceramic tile must be monitoring the employees to maintain control of the operation in the business.
Arambula Ceramic Tile knows s that the principles and values play an important roll as well. These principles are that all the customers need to be attended with respect all the time no matter if the customer wants a minor repair or a large job. The employee’s requirements are to evaluate the customer’s needs to offer the best option possible. Identify the culture of the customers and doing so the employees can identify the possible options for the customers and provide customers satisfaction all the time.
The social responsibilities of Arambula Ceramic Tile are to dispose all the waste in the right way to help maintain a clean environment. Ethics plays an important roll in the business decision because the customers have the right to get the best value for the product and service that they are paying. Arambula Ceramic Tile is aware of these customers’ requirements, this is the reason for the company to provide the service without lies to the customers, and only promise the customer what Arambula Ceramic Tile can accomplish. That is the reason why ethic is so important.
The SWOTT analysis plays an important roll in the strategic planning decision. The following is ACT’s SWOTT analysis the first to analyzed in Arambula Ceramic Tile are the strengths, Arambula Ceramic Tile have a detailed contracts to avoid any misunderstood with the customers, ACT provide the competitive prices comparing apples to apples and the same way only carry first quality to avoid any future problem with the installation. ACT always is looking for new product and services to satisfy the customers’ needs. Customer service is one of the most important policies. Strength is that ACT is available any time of the day to make estimates and provide samples of the products.
Professional service and installation guarantee in all the different service provide by ACT because ACT is always looking for diversity in products and taking advantage of the supplier’s technology to offer the newest products. The last straight is that ACT is always doing the job right at the first time.
The weaknesses of ACT are that the company only has a limited insurance and only can bid in estimates less than 25,000 dollars and ACT can not bid on any commercial job over that amount. The budget is one of the most important weakness because as a small company is very difficult to obtain good credits. Competence innovation in their products is a problem for ACT. Another weakness is that ACT does not have a showroom or warehouse and this problem limits ACT to have a low buying power because ACT.
The opportunities that ACT has are to acquire a better commercial insurance, find the way to get small business loans. Find brand name products direct from manufacture. Expand the products and services in a bigger office or in a small showroom. Maintain the overhead as minimum as possible to maintain same prices. Maximize the way to advertising and look financial help to obtain mayor brand and work as a distributor.
The threats are the big corporation such as Interceramic, Emser tile, Casa Carpet to mention some of them. These corporations have financing programs that ACT does not have. Competences buying powers makes them strong and grow faster than ACT. Competence products and advertising is another threat. The competence’s opportunity of offer specials or close out products is another threat for ACT. Competence’s big innovation showroom and have all the products in one place are also a threat for ACT. Competences’ sales representatives are everywhere and ACT can not be at the same level.
Trends for ACT are acquiring a commercial insurance to bid and win commercial contracts. Find new suppliers that can provide a financing for customers. Working with current suppliers to obtain a product or brand to distribute. Make the better budget to acquire a new office with a showroom to offer all the products in one place and offer the best customer service in the area. Another tend is to hire a promoter to sale door by door. Promote new products and services such as a digital phone that it has nothing to do with flooring but is another service to provide to the customer.
In the writers opinion strategic planning and management is very important for Arambula ceramic tile and to any other company who wants to take the business to the next level. Arambula ceramic tile will be learn about this and will apply for his new business and will be take advantage of the strategic management and planning include the four functions of management to accomplish all the goal in the nearest future. Arambula Ceramic Tile highly believe in importance if the customer needs and wants this is the main reason why the company wants to take the vision, mission and values as the most important factors. Arambula Ceramic Tile believes in focusing in the objectives in short term and long-term to take the company in the right direction to the vision