Turn-Around and Strategy Plan
Milliford Labs has been operating for years now, and my primary objective is to see the company grow into the future. As the CEO of the company, I appreciate the effort that every stakeholder has put into the company. The far that we are is a result of the combined effort of my colleagues, our investors, and not to forget, our esteemed customers. My vision, as it has always been to see the company at the top of the industry with the most extensive customer base and market shares. We have regularly communicated the need to work together and cultivate the vision of this company together as an organization. Milliford Labs is, and has been an outstanding performer in the industry, known for the following business capabilities;
- Innovation
- Fast new product development
- Ownership of multiple utility patents
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The three aspects of the above list are our core competencies and our significant sources of competitive advantage. It is, therefore, crucial that we prioritize the three elements of our business to become market the leader. However, recent data indicate that we have not been doing quite well in two of these aspects. The first two are tied together since they are interrelated. Innovation is the mother of new product development, and the level of innovation determines the rate and speed of new product development. To illustrate this, I compared the data for three previous years, 2019, 2018, and 2017 with respect to the three aspects. The results are shown in the graph below.
It is evident that innovation is declining, which consequently results in a reduction in the rate and number of new product development. The executive coach advises that the company must check on the reasons behind declining innovation and come up with a plan that will rejuvenate the company’s product development function. As the CEO of Milliford Labs, I understand the value of innovation in positioning our company in the market. I treat the advice of the executive coach with the weight it deserves. In consultation with the executive and representatives from the research and development team as well as the product design and development staff, I have come up with a strategic plan that will help the company become more innovative and quickly develop new products.
Strategy plan
According to my assessment and recommendations from various concerned individuals, lack of regular training, obsolete technology, and inadequate resources are the major reasons for declining performance. The reasons for declining performance give direction and guidance in developing strategies that will help the firm turnaround.
| Strategic objective | Course of action |
| 1. To train and develop employees | Organize for periodic training of employees across the product development line every month. |
| 2. Improve technological capabilities | · Partner with NevTech to provide latest technological support · Dispose of current IT infrastructure and replace it with new equipment compatible with NevTech’s technology. |
| 3. Avail resources | · Allocate more fund for research and development · Optimally schedule capacity to ensure efficient use of available resources. |