A. Current Performance
Orchid Couriers has a good penetration into corporate contracts, commercial tenders and individual courier systems now and in the past one year the company has been successful in achieving 17% of ROI and increasing 1.2% of local market share, there is a new market which has started to get covered and that is the e-commerce market.
B. Strategic Posture
2. Vision:
3. Mission:
The mission of the company will be to exceed the customer’s expectations for every transaction of documents across the world, and to create value in the services by ensuring a planned strategy with effective delivery solutions & with the help of networks that have been established to become a leader in the industry with a firm focuses on the people management and efficient service deliver.
4- Objectives:
Identify the present objectives of the corporation. In this discussion, both financial and strategic objectives should be identified.
a. Strategic Objectives
It is important to align resources and work breakdown structure in order to ensure that the progress of the mission takes place in an organized manner and therefore the objectives are to be decided so that the strategy of progress is well defined. Orchid is not a known brand in the market and there has been a significant improvement in the technology in last couple of years, however due to the slowing down market the financials of the company have suffered. Hence it is important to acquire a better market share, to balance the slow down and develop sustainable operations.
b. 3.1 Delivery Management System – The improvement strategy will be based on a proposal which will talk about advanced delivery management and tracking system, equipped with the latest mobile app and GPS tracking system, all geographies to be covered by the end of three years, and the target will be to enhance market share by 5%, whereas the owner of this objective will be the respective national sales manager.
c. 3.2 Customer Satisfaction – Customer satisfaction is a very important decider of success and in order to acquire good market share, it is important to achieve customer loyalty, therefore another major objective will be to answer it is 95% of customers calls within 10 seconds, and this will help to meet the mission of creating the most effective solution for the customers.
d. Carbon Efficiency Improvement - the company will also target and improvement in the carbon efficiency by 15% in the coming three years and will contribute to reduce an environment impact of our business operations.
b.
Financial Objectives –
•
Achieve revenue growth of 10% per year
•
Increase earnings by 15% annually
•
Increase dividends per share by 3% per year
•
Boost annual returns on invested capital from 5% to 10%
•
Improvement brand recognition in terms of financial returns.
5- Driving Forces:
Example of Driving Forces
There has been a drastic change in the last five years in the couriers and freight services in the last five years:
•
Electronic Communication – The ability to share and produce electronic secured documents has impacted the market majorly and has led to decrease in official document sending, through couriers.
•
E-commerce – The trend of ordering online and receiving goods in mail, has given a strong push to the courier industry.
•
Logistics – Logistics and travel has become far more costly due to the global hike in fuel prices.
6- Assumptions.
E-commerce – will continue to grow in the coming years.
7- SWOT:
Strengths: Advanced technology is the first important strength of the company, and it also the most important strength that the company possesses, is about the advanced technology which is not only pioneer, but is also a major differentiator in the market. Innovation is strength, and this is something ensures that there are eco-friendly vehicles in use, which is highly appreciated by the activists.
Weaknesses: One of the major weaknesses of the company is the operational costs, and due to the lower operating costs for the bigger competitors there is a lack of competitive advantage. The market in this industry is quite diverse, which is one of the major factors of selecting a particular service. There another major factor which is proving to be a weakness and that is the presence of multiple air fleets for bigger contributors which give them an added competitive advantage.
Opportunities: Asia-Pacific is a new and emerging market for all the international courier companies and Orchid has a great opportunity to establish itself into this market. E-commerce has emerged as one of the greatest markets of this industry and this is one area which can prove to be a highly feasible opportunity. There is another change in the market trends, according to which there is an increase in the demand of courier services for various lines of businesses.
Threats: Internet is providing the opportunity to the customers to compare the prices online which can lead to customer detraction. Secondly, the oil and fuel prices keep on fluctuating thus putting pressure on the operational costs and big competitors like DHL, UPS and FedEx can really acquire great portion of the market, which is a threat. Latest software and e-mail systems are providing the facility to reduce the transfer of documents manually and also there are various regulations in countries which may restrict the business growth.
8- Analysis of Strategic Issues:
Internal Factors
Strategic Issues
External Factors
Product Cost
Objectives of Marketing
Strategy of Market Mix
Budgeting and Pricing
Nature of Market
Product Demand and Supply
Competition and Relative Pricing
Environmental factors including economy, government’s policy and trade licensing
9-Strategic Alternatives:
Consider the pros and cons of pursuing the various corporate strategies, business strategies, etc. (Review Section I for a discussion of the possibilities.)
1.
Corporate Strategies – Knowledge Management, Process Development
2.
Business Strategies –
a.
Generic Strategies – Diversification, Product Development
b.
Competitive Strategies – Digitization, Market Penetration, Market Development
10- Recommended Strategy:
1.
Recommend a strategy based on a subset of the strategic alternatives identified in this section i.e. at least one corporate strategy; one generic strategy and two or more competitive strategies.
2.
Provide a rationale for the chosen subset.
3.
Ensure all strategic issues have been addressed.
11- IMPLEMENTATION:
A.
Briefly assess the eight components of implementing strategy:
Allocating Resources – Special transitions team will be involved to do this.
Establishing Strategy- A circular will be given to all employees, vendors.
Instituting Best Practices for Continuous Improvement – Lean/Six Sigma will be used as a strategy for continuous improvement.
Installing Support Systems to Carry out Strategic Roles – The transition team will be responsible to first, implement and establish the strategy and then monitor pilot and ongoing operations.
Tying Rewards to Achievement of Key Strategic Targets – Gain share will be used as a strategy to give rewards on successful achievement of ‘Key Strategic Targets’.
Shaping Corporate Culture to Fit Strategy – Development of an organization based value driven strategic system will take place to embed strategies as values.
Exercising Strategic Leadership – Leadership will be closely involved in all the above mentioned activities.
8.
Building a Capable Organization
B.
Who will develop these programs?
The leadership along with strategy transitions team will build the program.
C.
Who will be in charge of these programs?
The transitions team will be responsible to first, implement and establish the strategy and then monitor pilot and ongoing operations.
12-EVALUATION AND CONTROL (if appropriate)
The desired outcomes must be monitored appropriately, hence there will be an analysis after every three months which would be a comparison between the previous year’ profits and market share as compared to the current year. There will be a customer satisfaction survey score which will be determined after every six months and steps will be taken to improve it till the time the target of 95% is achieved.
