In brief, Target aspires to increase its market share, increase revenues, decrease expenses, improve profitability and embrace innovation using a customer-centric approach. Similarly, the company plans on reducing customer turnover while increasing retention, increasing customer satisfaction, uplifting and maintaining customer value. Other strategic objectives include adopting advanced performance measurement metrics, improving productivity and successfully implementing change. Lastly, Target intends to enhance employee satisfaction and retention, increase the level of organizational capacity, embrace a frugal culture and innovative technology.
The Balanced Scorecard, its Impacts on Stakeholders and Communication Plan
Target will employ the Balanced Scorecard for its strategic planning and management, which will enable it, have a view of the organization in four critical perspectives. The perspectives will include Finances, Customers and Stakeholders, Internal Processes and Organizational Capacity. Stakeholders will benefit from the incorporation of the balanced scorecard in Target by attaining better strategic planning, improved communication of strategies, improved reporting of the companys performance, and the better management of its data (Tayler, 2010). Lastly, a communication plan will be developed to outline approaches that will be used to communicate to stakeholders the contents of the balanced scorecard. The communication plan will be considerate of the audience and the communication channel.
Trends, Assumptions, and Risks of the Business Model
Trends
There exists a tendency whereby there is an increase of demand for prompt order fulfillment, which will enable customers to save time while shopping. At the moment, customers take a lot of time moving around retail stores in search of products which are sometimes difficult to find. With the new business model, time spent in the store by customers will be reduced.
Assumptions
It is assumed that the change that comes with the business model will be readily accepted and successful. The assumption is based on the fact that previously, Target has been successful in adapting to change by evolving as per the needs and demands of its customers.
Risks
The business model runs the risk of the potential loss of the unmanned aircraft due to their short invention life cycle. Similarly, there is also the possibility that customers who prefer the traditional shopping experience will have a hostile response to the innovation.
Strategic Objectives in a Balanced Scorecard Format
Financial Perspective
To increase Targets market share
To increase the company's revenue through an increase in sales and reduce labor costs.
To increase Targets profitability
To be associated with innovation that is customer-centric and a value creator for consumers.
Customer Perspective
1. To increase the companys customer retention rate while decrease customer turnover
2. To raise customer satisfaction rates
3. To uplift and maintain customer value
Internal Operations Perspective
1. To adopt advanced performance measurement metrics
2. To systematically improve productivity of each store
3. To adopt superior operation metrics
4. To successfully introduce change into the organization
Learning and Growth Perspective
1. To improve employee satisfaction
2. To reduce employee turnover while increase employee retention
3. To increase the level of organization capability
4. To successfully embrace a frugal organizational culture.
5. To strategically embrace innovative technology that has potential to improve yield.
Evaluation of Potential Alternatives
By incorporating drones into its in-store operations, Target benefits from the opportunity to improve its organizational standing and increase revenues. However, the retail giant can integrate the drone alternatively in out-of store operations. The out-of store operations will be in the form of door-to-door delivery of products purchased by customers on an e-commerce website. The alternative will not only improve the companys image in the market but will also generate additional sales.
Creation of Strategic Objectives for the Four Balanced Scorecard Areas
The alternative may, however, suffer from the risk of regulation hurdles by aviation authorities who may be adamant to permit them due to safety concerns. The company may, however, mitigate the concerns through a control pilot program, which will demystify safety concerns. There may be a batch of stakeholders who are customers that may be resistant to the change. Their resistance will be countered by retaining the conventional mode of shopping. The organization must, however, observe ethics while retrenching employees whose roles will be taken by the drones. Target must follow due process of retrenchment.
Development of a Specific Metric and Target for Each Strategic Objective
Financial Perspective
To increase Targets market share
Metric: Percentage
Target: 3.5% by the end of the 2018 financial year.
To increase the company's revenue through an increase in sales and reduce labor costs.
Metric: Percentage
Target: 2% and 3% Respectively
To increase Targets profitability successively
Metric: Percentage
Target: 1.5% for the next four quarters
To be associated with innovation that is customer-centric and a value creator for consumers.
Metric: Percentage
Target: 10%
Customer Perspective
To increase the companys customer retention rate while decrease customer turnover
Metric: Percentage
Target: 4% and 0.5% respectively within the next six successive quarters.
To increase customer satisfaction rates
Metric: Percentage
Target: 3% in each successive quarters to optimum levels.
To uplift and maintain customer value
Metric: Percentage
Target: Above 93%
Internal Operations Perspective
To adopt advanced performance measurement metrics
Metric: Percentage
Target: In four months
To systematically improve productivity of each store
Metric: Percentage
Target: by 5%.To adopt superior operation metrics
Metric: Accuracy of Data
Target: In four months
To successfully introduce change into the organization
Metric: Change in organization processes
Target: By the end of the 2018 financial year
Learning and Growth Perspective
To improve employee satisfaction
Metric: Percentage
Target: by 4%.To reduce employee turnover while increase employee retention
Metric: Percentage
Target: by 3% and 5% respectively
To increase the level of organization capability
Metric: Percentage
Target: by 10%.To successfully embrace a frugal organizational culture.
Metric: Cost reduction
Target: Achieve cost saving
To strategically embrace innovative technology that has potential to increase yield.
Metric: Incorporation of technology
Target: Increase Yield
Outline of a Communication Plan for Communicating the Strategic Objectives
Purpose
The purpose of the communication plan will be to inform stakeholders on the business's vision, mission, and brief employees on what the company expects from them.
Audience
The audience for the communication plan will be stakeholders who participate in the businesss operations. They will include employees, shareholders, customers, the organizations board of directors and the community from which Target draws its resources.
Channels of Communication
Target will utilize two channels of communication, which are its official website and printed notices. Targets official website was chosen since it will provide an easily accessible and retrievable platform for the stakeholders to review it. The printed notices will also be instrumental in placed in high traffic areas where employees tend to converge such as break rooms thus ensuring that a huge number of relevant persons have access to it (Guffey & Loewy, 2010).
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References
Guffey, M. E., & Loewy, D. (2010). Business communication: Process and product. Cengage Learning.
Tayler, W. B. (2010). The balanced scorecard as a strategy-evaluation tool: The effects of implementation involvement and a causal-chain focus. The Accounting Review, 85(3), 1095-1117.
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