Strategic Plan and recommended solutions
2.1 V-Music is a firm dealing with musical products in New Zealand. The company aims to expand and increase its profit margin using a multi-faceted approach. This move will require a strategic plan, which will be the framework of its operations. The plan will pilot the organization towards its objectives. V-Music proposes a fivefold strategy as presented in the following sections.
2.2 Build on the Ongoing Growth Opportunities in existing Markets
In the quest to expand its business locations, the company can achieve this goal by first broadening its product portfolio to cover a wider scope. This action will require the firm to conduct thorough market research to find gaps in the musical products realm around certain areas in New Zealand. As such, it can utilize these opportunities to fuel its growth. Additionally, establishing an online market will be successful if the firm uses the popularity of social media (Majed, Nuraddin, & Hama, 2018). V-Music can create social media profiles on Facebook and Twitter to advertise and reach more customers in the internet world.
To establish a smaller location in the South Island, V-Music needs to comprehend its demographics. Analysis of demographics factors will enable the company to provide the right musical products. Offering the right products to the new location will increase its profit margin (Majed et al., 2018). Regarding an interactive website, the firm needs to develop a user-friendly website. This site should be easy to navigate and have 24/7 customer support. As a result, it will create more leads to their products. These leads can turn into sales, thus increasing the profit margin as well as the market size.
By creating a commercial website intertwined with their physical locations, V-Music Company can be nationwide in New Zealand in a six-month duration. The primary reason is that the internet audience is limitless. Customer satisfaction will be a critical factor in driving this growth.
2.3 Achieving Good Business Procedures
The firm can achieve this goal through value-chain analysis. This examination involves tracking their products up to the consumer. After which, they can request feedback to understand if they satisfy the clients. Additionally, a value-chain analysis will ensure the synchronization of all the business procedures in the company towards a common goal, which is to provide quality products to the New Zealand population.
As the firm wants to minimize its hard assets, it has to utilize the commercial website. The site will allow customers to place an order of their preference. V-Music can use the Just-in-time purchase strategy in this case and deliver the order as requested. These processes will require the firm to hire or buy delivery vehicles as well as employ drivers. Hence, such aspects are pertinent in ensuring the business becomes a success. Besides that, the firm can train its employees on how to handle clients both online and offline, which will establish a solid set of conduct.
Through value-chain analysis, the firm will have reliable contracts with suppliers. Hence, if the vendors supply high-quality goods, customer satisfaction will increase. This effect is advantageous to the company regarding branding and profitability.
2.4 Effective Customer Interaction
The goal of the company is to boost customer interaction through enacting an online system. Here, V-Music can boost its interaction by replying to customer’s messages on their social media platforms (Yazdanifard & Li, 2014). Also, the firm can posts information regarding new products and their unique features on their pages for clients to see, such as videos. Through video tutorials on the various musical instruments, they can attract more customers as well as direct them to apply for a membership for more exclusive content.
In V-Music’s commercial website, the company can allow users to create accounts that can be either basic or premium. This move will enable clients to interact with each other as well as access the website services. Clients’ subscriptions will increase the revenue of the firm
The firm can seek expertise from web designers to make their site interactive and functional. Also, they can read online reviews about their sites’ performance, and include the proposed changes.
2.5 Provision of High-Quality Goods and Services
The goal of the company is to provide the client with top quality products and services. V-Music can achieve this objective by regularly interacting with customers regarding their products (Majed et al., 2018). If there is a need for change, the firm should incorporate it in their next line of products. This way, the quality will be consistent and up to date with the customer’s expectations. They can also employ experts in the music field to provide advice to a client, which increases their service delivery quality.
V-Music needs to ensure that it delivers its product within the provided deadline. This punctuality is possible through the use of courier services or buying their facilities for logistics purposes (Majed et al., 2018). Additionally, they can conduct surveys through poll sites and their social media profiles to highlight the issues customers are facing. Afterward, they can include the feedback in their operations to gain client satisfaction.
Through the evaluation of customer feedback in the survey, the company can develop policies to rectify the negative feedback (Majed et al., 2018).. These policies will increase the level of client satisfaction. Furthermore, commitment to their delivery schedules will be advantageous since it will win the goodwill of their clients.
2.6 Customer Satisfaction
For customer satisfaction to occur, there must be a strong correlation between the firm and its market. V-Music needs to develop this relationship through follow-ups and money-back policies (Majed et al., 2018).. In addition, it can offer video tutorials for free, which will cement the clients’ loyalty to the brand (Yazdanifard & Li, 2014).
The firm can offer discounts for card membership and a special discount for their returning customers. This move will enhance attachment the clients have to the brand. Additionally, they can inform customers continuously with new developments in the music domain to retain their loyalty.
Follow-ups can enable the company to establish a long-term relationship with their clients (Yazdanifard & Li, 2014). . Besides, they will trust the quality of the products and services. This way, they can refer their colleagues to V-Music Company for purchases.
Strategic planning is pertinent in a company since it offers a sense of directionality towards measurable goals. With this strategic plan, V-Music can expand and reach its optimum profitability goals.
- Work Systems their ‘top-level’ essential work activities
4.1 Standard work systems
A Work system framework designed by Alter in 2006 illustrates the involved System Architecture. There are 3 parts defined in the system architecture. The human participants, information and technology. In the alter model these 3 elements define the context of the system model and evaluate how productivity can be encouraged in a business. Allowing for more precise communication in a business system. Our Team has used this model in order to recommend work systems for the V Music Project.
4.2 The VMP value chain and work systems
Referencing the Value chain stated earlier in the report. Our team identified a few work systems that could be effective in improving the core functions that each value chain element offers. The purpose of the value chain is to highlight activities that add value to a service or product. The value chain is connected to the work system as the value chain can be used as a unit allowing for work to be carried out whilst maximising the value of a product or service
4.3 Management Information System (MIS)
The management information system refers to the storage of data, how data is managed, and data collection to be used by administration of a company. MIS is used to encourage the efficiency and productivity of processes and staff. At the top-level activities in this MIS should include support for Decision making, stock management, as well as an evaluation on available stock capacity. Using a database to store information for the company allows for growth and easy accessibility of information by many members in the business.
4.4 Accounting and Finance Management System (AFMS)
Implementation of an AFMS would benefit the V Music project for its reliable financial procedures. Currently V Music Project is relying on Excel to store their financial data. This provides limitations on their ability to track and assess their finances. By upgrading to the proposed system they will be able to make better decisions on their next financial courses of action. A well implemented AFMS can allow a business to prosper financially maximising profits.
4.5 Inventory Control System
The Inventory Control System addresses 3 aspects of the value chain. These are inbound logistics, operations and outbound logistics. This system manages the ordering and upkeep of stock to required levels. An inventory Control System performs constant updates on stock, weekly stock level reports, misplaced or lost stock. Data gathered by the Inventory Control System allows a business to better manage their stock to improve business
4.6 Human Resource Management System (HRM)
V Music has goals to grow as a business. As growth occurs more employees will need to be hired in order to maintain productivity. A HRM System handles activities such as recruiting, training, employee queries and encouraging staff productivity. This helps to increase the efficiency of the business by automating many processes that would be handled by people. It also moves towards more productive and organised IT infrastructure.
4.7 Marketing and Sales System
Without a Marketing and Sales System a business will struggle to grow in the future. Marketing is an important way to sell your products to customers. Without customers a business cannot thrive. Things like a website would help to improve V Musics customer reach. The use of sponsored ads and billboards will also be required in order to promote a business to the local area. Sales systems allow a business to closer meet the needs of a customer base. Gather data on sales analyzing a customer’s history and generate automated emails informing them of upcoming sales and promotions. This helps bring in more customers and further improve store budgets and profit.
2.1 Management Information systems (MIS)
V Music should have a fully functioning cloud-based software. This will allow the business to operate off of a single central database. By using a software that supports data independence it would lower the risk of data errors. Using an MIS will provide many advantages in understanding many of the business operations. Using insights provided by the data collected making beneficial business decisions will be easier. Through the use of a single central database access, managing and maintenance of data will be very simple and easy for users.
Stored in the database will be all information relevant to the participants of the business like customers, suppliers and staff. Allowing for easier access of information by said participants. For example customers will be able to view available stock in the store, suppliers will be able to view stock needed and staff will be able to view any and all information regarding keeping the business running.
As V Music is hoping to expand to more stores using the database will allow staff to communicate between different sites. Quick and efficient communication between different stores allows for improved business operation.
Storing information regarding trials and errors in the MIS will allow upper management staff to better analyse and evaluate future decisions for the business.
2.2 Accounting and Financial Management System (AFMS)
Using a Financial Management System to keep track of all financial data, sorting and formatting all data enabling the upper management for V Music to determine what their profit margins are for the business. Viewing the cash flow, currently confirmed costs and extra costs as well as seeing which products are profitable and which are not will allow the business to make decisions enabling future more successful business ventures.
Business trends and extra costs can be viewed to maximise the profit for the business.
Recording all transactions online and in store so that they can be referred to in the future will allow for better business decision making tools. Keeping transparent financial records in the system will also lower the risk of fraud by any parties involved in the business.
Involved in the Financial system will also be a payment system that generates the weekly pay slips for staff. Using set pay rates that can be adjusted accordingly to simplify the payroll system. Supplier payment will also be automated to further simplify the business operations.
2.3 Inventory Control System
V Music wants to keep all hard assets to a minimum. By outsourcing work or ordering stock as it is purchased they can maintain a lower stock count. As V Music plans to sell both products and services keeping the stock count to a minimum means a lower workload.
Using an inventory and stock system in order to manage the stored stock before sending it to a customer can be implemented. By implementing a System that uses barcodes. The staff can just scan the barcodes as supply comes in and as they send it out. The system will do the rest of the work.
The System will notify suppliers when a Customer orders an item. The data collected from the inventory will also allow management to make decisions based on what products are selling better than others.
The System will also keep detailed reports on the trends and usual sales so that management can better visualise sales. This will better allow the business to set goals and make improvements to the business.
2.4 Human Resource Management System
A HRMS will be necessary to manage internal relations and staff queries. Accessible by staff at all levels of the business. Containing a list of all staff members and relevant information. As well as any staff member issues. These issues will be recorded by the system and stored so that the probability that the issue reoccurs is reduced.
The training and performance of staff will also be monitored through the HRMS. If an employee appears to be lacking in certain skills they will be trained accordingly. Staff members will be informed of any important training sessions that are upcoming.
Using an HR software will help reduce the costs involved with handling HR as it decreases the scale of monotonous work that a staff member would normally carry out.
2.5 Marketing and Sales System
Arguably the most important system in maintaining a business. Marketing and sales are the core aspect of a successful business. Advertising products online will help expand the customer base without the need to expand to another location right away. A website also promotes the business 24/7 from anywhere in the world which enables more sales. The information gathered from people visiting the website also allows the business to identify geographical areas of popularity. This will aid the business when they decide to expand to other locations during future business endeavours.
The website also allows the customers to view all products provided by V Music. They should be able to specify their search requirements. This will increase the chances that a customer will make a purchase. An algorithm could be used in order to recommend certain products to customers based on their preferences.
As this V Music is planning on being primarily Virtual incorporating a customer loyalty program will be very beneficial to both customers and the business itself
A Customer that signs up should be able to collect and track their accumulated points. Receive emails regarding discounts and promotions through whichever form of communication. Members will be able to use their points in replacement of actual money after they have used a certain amount. V Music can also do things like send loyal customers free items in order to maintain their interest in the business.
- Recommended Applications Software solutions for Work Systems
You must complete this section
Example
- Accounting and finance– we recommend Accounting and Finance Management System
- Modules here and how they will help achieve the strategic plan which is listed if you scroll to the top. eg: modules: Invoicing financial reports, payroll, paying vendors, etc.
Below are the Recommended Applications Software solutions without modules you may watch the video from 14:20 onwards to get a idea of the modules and you must explain how they will achieve the strategic plan. Furthermore look at the document attached called UseAsExample.docx to get a better idea.
- Management Information System (MIS)
- Accounting and Finance Management System (AFMS)
- Inventory Control System
- Human Resource Management System (HRM)
- Marketing and Sales System