week five assignment final strategic plan paper patricia bernard

Final Strategic Plan 1

Final Strategic Plan

CERTIFICATE OF ORIGINALITY: I certify that the attached paper, which was produced for the class identified

above, is my original work and has not previously been submitted by me or by anyone else for any class. I further

declare that I have cited all sources from which I used language, ideas and information, whether quoted verbatim or

paraphrased, and that any and all assistance of any kind, which I received while producing this paper, has been

acknowledged in the References section. This paper includes no trademarked material, logos, or images from the

Internet, which I do not have written permission to include. I further agree that my name typed on the line below is

intended to have, and shall have the same validity as my handwritten signature.

Student's signature (name typed here is equivalent to a signature): ____Patricia Bernard______________________


Final Strategic Plan

Organizations in today’s competitive business world must include a strong and effective

strategic plan. Southern Cab Service must implement such a plan that will carry the business to

new heights. This strategic plan must include a mission and vision statement that will describe

what the company stands for. By using a helpful tool such as the SWOTT analysis, Southern Cab

Services’ strengths, weaknesses, opportunities, threats, and trends will be identified. Another

successful tool that will be used will be the balance score sheet. This will be used to set

objectives, measures, and targets that can be used to help align the company’s mission and vision

statement. The final strategic plan for Southern Cab Service is now in place; next stop, success!

Southern Cab Service is a family owned cab company that was created in 2009 by James

and Patricia Bernard. The organization is located in Lafayette Louisiana, and will serve

customers in Lafayette Louisiana and surrounding areas. The company will employ 25 drivers

along with two dispatchers. Currently there are three competitive cab companies in the area who

have been operating for several years. Southern Cab Company vows to bring something to the

community that has never been offered by any of the competitors. The organization will offer

clean non-smoking vehicles, uniformed drivers, and the customer experience that will leave the

passenger wanting more of Southern Cab Service. Customers will feel like they are being

chauffeured to the destinations.

Southern Cab Service has an obligation to its customers and its employees. Providing an

ethical and fair work environment for all drivers is a goal that the organization wishes to always

achieve. By allowing employee and customer feedback, the company will have a chance to view

aspects of the company through the eyes of the employee and the customer, making changes and

improvements that will help the company grow.


Values

Ethics and values must play an important role in Southern Cab Service. The organization

is built on personal values such as integrity, team work, communication, performance, learning

and training. With the implementation of these values, Southern Cab Service will strive to be the

best.

Vision Statement

The vision statement is for Southern Cab Service to be Louisiana’s number one choice

for quality cab service.

Mission Statement

Southern Cab Service’s mission statement is to provide safe and quality service to all

customers in an effective and efficient manner while transporting customers to their desired

destinations.

Southern Cab Service vows to create a safe riding experience for all customers. The

company will reach this goal by making sure drivers have the proper training and are not

overworked. The company will monitor the demand of cab service annually to determine the

profit made by the company and determine whether or not to expand to a second location.

Customers and drivers will be able to feel safe knowing they are in good hands. The company’s

objective of quality service speaks in the company’s mission statement, allowing the

organization to maintain a suitable objective. The objective of offering quality service to all

customers is the law of Southern Cab Service.


Guiding Principles

Guiding principles are promises made by employees, customers, and society (Pearce &

Robinson, 2005). Southern Cab Service will adhere to these principles and operate and

demonstrate ethical behavior and responsibility. Southern Cab Service’s employees are a

necessity to the company’s success. Employees are encouraged to give feedback and suggestions

to help make the working environment better. Training and mentoring is also important for all

employees. Southern Cab Service is committed to providing employees with the necessary

knowledge and skills needed to perform these duties properly.

Southern Cab Service also understands the commitment to society, by providing a safe

environment for customers and drivers. Southern Cab Service will be committed to providing

employees with the necessary tools to encourage development. An ethical code of conduct will

be put in place for all employees to follow. Employees and customers will be encouraged to offer

feedback and suggestions. All cabs will be kept clean and properly maintained at all times. These

principles should be practiced daily and never should be compromised.

Southern Cab Service must provide a service to the customer that will offer the

customer’s best interest. Evaluating how successful the service will be in an existing market is

important. The company must create a successful business plan in order to compete with other

competitors in the market.

Competitive advantage is gained through organizations positioning itself through superior

values. If an organization positions itself on that superior quality of service, they look to achieve

that promise (Sekerka, Bagozzi & Charnigo, 2009). Southern Cab Service will position itself on

a high quality standard based on services that will be provided to the customers and the excellent

customer service that will be provided.


Southern Cab Services will offer state of the art GPS technology to monitor driver’s

locations and to act as a safety guard for both drivers and customers. All vehicles will be

equipped with a video monitoring system that will capture photos and recordings of all occupants

in all vehicles.

This technology will be an expensive investment in the initial phase, but as Southern Cab

Service begins to establish a reliable customer base, it is believed that customers will be satisfied

and will feel safer riding in a cab with a friendly driver, video monitored cab, and a company that

looks out for its customers like family.

Southern Cab Service believes customers need to feel safe when trusting another driver

with their safety. Drivers will be training in defensive driver, and will remain up to date on all

learning and training modules that the company will require. All drivers will have to maintain a

clean driving record and will have to take random drug and alcohol tests. Drivers will also have

the state of the art communication system inside every vehicle to stay in constant contact with

the dispatcher. Other cab companies in the area have these but with the incorporated GPS and

video system, Southern Cab Service will meet the company’s mission statement and will provide

excellent service to all customers who decide to ride with us.

Effective communication is also important to the success of an organization. Southern

Cab Service must effectively communicate the company’s vision and mission statement to

employees and customers. To do this, a communication plan was developed to create a visual of

how the strategic plan will be implemented.

Communication Plan Outline-Southern Cab Service


Value Audience Method Frequency Responsible Party

Vision& Mission

All customers in Lafayette, and surrounding areas in need of cab service

TV commercials, radio, billboards, flyers

Quarterly monitoring, President/Vice President. All employees will be encourage to uphold the company’s mission and vision statement

Training All employees of Southern Cab Service

Defensive Driving, modules, hands on activities

Quarterly monitoring/performance based, customer surveys

President/Vice President (managers)

Strategic Objectives

Employees, management staff

Morning meetings, safety meetings, email, memos,

Weekly. Every Monday Morning, objectives for the week will be visited. Then Monthly monitoring of the objectives will be revisited.

President/Vice President

External Forces and Trends Considerations

The external analysis of Southern Cab Service is executed with the consideration of


organizational forces such as social, economic, legal and regulatory, and global forces.

Identifying these forces, and understanding them in a business plan is important to the life of a

business (Rajeev & Vani, 2009).

Social Forces

Southern Cab Service like many other cab companies have contracts with social service

agencies to transport the elderly and disabled in non-emergency circumstances. Requirements

include for all drivers to receive training on operating wheelchair lifts and other devices that may

be appropriate. All drivers will be trained in appropriate customer service. Ongoing training will

be given to make sure all employees have a full and clear understanding of the importance of

customer satisfaction.

A SWOTT analysis of Southern Cab Service was also conducted to gain a solid view of

the businesses strengths, weaknesses, opportunities, threats, and trends. This analysis will help

identify some negative issues that the business may face.

Strength

Showing customers that Southern Cab Service can be trusted with their safety can make

the social interaction strong for the company.

Weakness

In case of an accident or malpractice, Southern Cab Service will lose the trust of society.

Losing the trust of customers can hurt the organization to the point of no return.

Opportunity

If Southern Cab Service follows all laws and regulations, it stands a good chance in


gaining customer support.

Threat

Because social norms are always changing, this doesn’t mean that society will change. If

some individuals do not want that friendly atmosphere in cab service, and would choose to stay

with the competitor this could have a negative impact on Southern Cab Service.

Trends

Social changes and norms provide new ideas for the company to advance to innovative

actions.

Adaptation to Change

Society can make or break a business. An organization has to be prepared to make

diversified decisions and strategies for the diverse culture of social groups to reach every social

level.

Economic Forces

Cab Service must pay a pre-tax to the government. The rate of the pre-tax will depend on

the growth of the business (Rajeev & Vani, 2009). Some economic considerations would be taxi

rates. An analysis would have to be made to determine when the busiest time for many cab

services would be.

Strength

Well developed countries like the United States has a good level of economy, despite the

recent recession. The United States is still better prepared than other countries if a country has a

good level of economy, this would cause less of a tax burden, which would improve the

profitability of Southern Cab Service.


Weakness

Economic falls such as a longer recession, would cause the business to fail.

Opportunity

Southern Cab Service has a chance to flourish. The economic status in the United States

shows the recession may be nearing its end which could be a huge opportunity for Southern Cab

Service to grow.

Threat

The recession may have caused customers to think twice about paying for a cab and may

chose to carpool, or take a cheaper route to their destinations.

Trends

Economic fluctuations have a regular pressure on the organization.


To operate Southern Cab Service successfully, additional funds must be kept in case

business gets slow. A successful company must be able to still operate smoothly even though

economic hiccups may arise (Rajeev & Vani, 2009).

Legal & Regulatory

Any organization must adhere to laws and regulations set forth by the state and federal

government (Skok, 2000). Some regulations that Southern Cab Service will have to adhere to in

the state of Louisiana are requiring all drivers to obtain a Common Carrier Certificate. Louisiana

Law states that cab services would provide services 10 miles beyond their parish of domicile in

their vehicles and have a seating capacity of less than 10 passengers must obtain their certificate

(Skok, 2000). Southern Cab Service must meet all legal regulations according to the law of

Louisiana.


Strengths

Adhering to all legal and regulatory aspects would work in favor of the business. This

shows that the company is following all regulations required.

Weakness

Changes in regulations can make the business amend its own business policies.

Opportunity

By adhering to all legal regulations looks good to customers who may be considering

using Southern Cab Service.

Threat

If the company does not follow legal laws, the organization could be shut down, and gain

a negative reputation.

Trends

Legal rules are constantly changing. As regulations update, Southern Cab Service will

adhere to these updates and will create a growing trend for other competitors.


Southern Cab Service should frame its services and policies according to the related legal

regulations, and make changes accordingly.

Global Forces

There are no plans for globalization at the moment. If Southern Cab Service were to go

global, extreme market research would need to be done to determine the demand of the cab

service.

Strengths

The demand for cab services has grown over the years. With unsteady gas prices,


consumers find it easier to pay for cab services.

Weakness

When operating at a global level competition will also increase.

Opportunity

The opportunities of global cab services will be an advantage for Southern Cab Service.

The cab companies in the Louisiana area are currently not global.

Threat

Running a cab service globally may be a challenge due to already existing markets in the

global arena.

Trends

With the increased level of globalization the growth chances will increase.

Adaptation for Change

Running a business at a global level will provide diversified services to customers.

Internal forces that would affect Southern Cab Service would not have an impounding impact as

external forces. Internal forces can be controlled by the company, while with external forces, the

company has no control.

Strategy

Business strategies are the fundamentals of an organization on which its business resides.

Business strategies can help make a business successful and can also destroy one (Skok, 2000).

Strength

Fully developed strategies can be a positive accomplishment for Southern Cab Service.


Weakness

The company would have to use a large amount of its capital share which could decrease

the company’s profitability.

Opportunity

Southern Cab Service can be the first cab company in Louisiana to offer innovative

services that no other cab service has to offer.

Threat

If the strategy does not work the company will have to change its strategy.

Trend

If the company would develop a new strategy this would help the organization attain a

competitive position.


For a new and innovative business strategy, the company would have to hire skilled

professionals to do the job.

Processes and Systems

The business process and its systems are required to be handled in a proper manner for

the industrial success.

Strengths

Business processes can make Southern Cab Service’s business plan effective. The

company will work on a system that will allow customers to request a cab online for assurance of

a cab at a later time. The database will keep track of drivers’ logs, and vehicle information and

maintenance as well as customer information and destination, rates and regulations.

Weakness


If carelessness is shown in the business, this could create a negative reputation for the

business.

Opportunity

Effective business processes can create popularity for the company. Potential customers

will have an opportunity to explore what Southern Cab Service has to offer.

Threat

If Southern Cab Service wants to adopt a new business process. It would be wise to get

the customers consent. If customers do not accept the new strategies this could be a threat for the

organization.

Trends

The adoption of a new process could become a fruitful achievement for Southern Cab

Service.


Southern Cab Service business process should be changed only if effective profitable

change can come about.

Culture

Southern Cab Service is based in Louisiana which is known for its Southern hospitality.

Southern Cab Service looks to express its culture to customers by offering them friendly and

hospitable service.

Strengths

Business culture can be an effective competitive advantage for Southern Cab Service.

Weakness

The absence of favorable culture could have a negative impact on the business, causing


customers to go elsewhere.

Opportunity

The encouraging business culture can allow Southern Cab Service to have an opportunity

for new and innovative ideas.

Threats

If cultural values are not found favorable among customers this could lead to a decreasing

customer base and decrease in profits for the company.

Trends

Proper management could lead to a successful business.

Adaptation for change

Southern Cab Service can take customer feedback and work toward ways to make the

business successful.

Issues and Opportunities

The main issue for Southern Cab Service is culture. Culture in society is constantly

changing. The business process must be molded in accordance to required cultural values.

Strategy formulation should be favorable to all stakeholders of the company.

SWOTT Analysis Table


Ø Strategy- Strong business plan already set in

placeØ Structures- Business knowledge and

experience from James Bernard and Patricia Bernard

Ø Goals- Long and short term goals are realistic and achievable

Ø Culture- Southern HospitalityØ Innovations- State of the art GPS, and video

monitoring systemsØ Intellectual Property- Patent brand nameØ Leadership- Skilled leadership skills from both

Patricia and James. Effective communication skills and management skills.

Ø Processes and Systems - New to the market and

the area.Ø Resources - the company will use all resources

such as the internet for some directions. If the internet is down, this may cause a problem

Ø Technologies- Because the company is just starting, and the company will have state of the art technology, it may be hard to maintain state of the art technology as technology is always changing.

Ø Strategic Capabilities- Our management skills must be effective and solid. This may become hard for 2 people. As the company grows, more people will have to be hired.

Opportunities Threats

Ø Legal and Regulatory- Licensed drivers,

Common Carrier Certificates are needed for any cab service who operates ten miles beyond their parish of domicile in their vehicles, and have a seating capacity of less than 10 passengers.

Ø Social- Because of the effective customer service, drivers will become like family to the customers

Ø Environmental- Small channels of distribution are needed for this particular business.

Ø Competitive Analysis - Have researched the current cab companies in the area, and have also been a customer. We researched how the company operates, and how customers are treated.

Ø Global- Unfamiliar market, the foreign market

may not be ready for Southern Cab Company’s style

Ø Economic - The recession may still have a ways to go before people can feel at ease.

Ø Goals- If my company does not meet the goals set forth, we could lose customers, or go out of business.

Trends

Ø Culture- A friendly atmosphere could lead to customers telling their friends about our services


A balance scorecard provides stakeholders with valuable information of how an

organization is developing towards their strategic goals. In a balance scorecard, four perspectives

are examined. The financial perspective involves strategic objectives such as market share,

revenues and costs, profitability and competitive position. The second perspective to be

examined is the customer perspective which involves customer retention, customer satisfaction,

and customer values are examined. The third perspective is the internal perspective which

includes measuring the process of performance, productivity improvement, and operations

metrics. The fourth perspective is the learning and growth perspective. The perspective includes

employee satisfaction, employee turnover, level of organization, nature of organization culture,

and technological innovation (Pearce & Robinson, 2005). The balance scorecard for Southern

Cab Service consists of the four perspectives which will create a solid picture of long-term goals

of the company.

Financial

The financial perspective is the ultimate goal of a company. This perspective is driven by

revenue growth and cost efficiency. Within the financial objectives, Southern Cab Service is

committed to cost efficiency by improving cost structure, and increasing asset utilization. The

company can focus on revenue growth by expanding revenue opportunities, and enhancing

customer value. The financial goal of Southern Cab Service is to become profitable and expand

into a second location in three years. With financial plans to expand, the company must be

prepared to employ more employees and invest in more equipment for the business. Southern

Cab Service must also consider competitive position. Determining where the company will be

compared to other cab services in Louisiana, is an important factor to consider. New innovative

ideas can increase the company’s financial profits and have the company soaring to new heights.


Customer

Southern Cab Service acknowledges the customer is what makes our company

successful. The organization believes in customer satisfaction and safety. By helping our

customers to feel safe while traveling with us will lead to a satisfying experience and will create

customer loyalty in the future. Southern Cab Service will provide customer satisfaction and

quality service to create a safe and reliable experience for all customers. The customer

perspective will include measuring the level of customer satisfaction, and customer retention.

The balance scorecard will create a visual image of how successful Southern Cab Service can be.

The customer perspective can be viewed as how the customer sees our company. By stepping

into the customer’s shoes will help draw a picture of the customer’s perspective. The balance

scorecard will determine a clear picture of the customer’s perspective of Southern Cab Service.

Internal Process

This process will determine how Southern Cab Service will rank in the transportation

market. Although Southern Cab Service will be new to the transportation market, this process

will help the business structure to form a solid foundation. This process examines and focuses on

the most critical aspects that would make the company successful. Southern Cab Service must

determine what the company will excel at the most. This critical piece of information will

separate the company from the competition. The balance scorecard will help determine the

unique factors that the company possesses compared to the other cab services in Louisiana.

Learning and Growth

After Southern Cab Service is considered an established entity, the company will need to

make sure all employees have the proper training and ongoing training available. Employees

must remain certified in all areas of the business in order to maintain a safe operating facility.


Managers will be trained on effective leadership skills and management skills. All employees

will be trained on proper communication skills and customer satisfaction. Training requirements

will be updated annually for employees to remain in compliance with company policy.

The balanced scorecard is an added tool in creating successful short and long-term goals.

This scorecard will provide direction for Southern Cab Service and will lead to a successful

organization.


Southern Cab Service Balance Scorecard

Areas for Measures

Objectives Measure Metrics Target Year 1

Target Year 2

Target Year 3

Financial Increase profitability

Market value % in market share

2% 3% 5%

Increase revenue

Price of vehicles % of vehicles 1% 2% 3%

Lowest costs Cab fares % of fares collected

80% 92% 100%

Customer On-time cabs Arrive rating Customer surveys

80% 85% 100%

Lowest prices Customer ranking Customer surveys

80% 85% 100%

Safety Number of customers

Rank all customers

satisfied and dissatisfied

80% 90% 100%

Internal Improve turn around

On time pickup and arrive

% of on time arrival and

pickups

85% 90% 100%

Communication Effective communication

Feedback from customers and

employees regarding

communication

75% 80% 95%

Reliable services

Skills with employees/customer

monitor reliable service through

surveys

% of satisfied customers who

think our services are

reliable

80% 90% 95%

Learning & Growth

All employees receive proper

training

Provide clear understandable

instruction

Employee training program

80% 85% 90%

Evaluations Customer and employee feedback

Performance surveys

(excellent =5 to poor =1

85% 90% 95%

Ensure effective customer

service skills

Encourage communication

both internal and external

Monitor employee

feedback and involvement

85% 90% 95%


This strategic plan will help ensure success for Southern Cab Service. Now that the final

strategic plan has been developed, it must be communicated and implemented throughout the

organization. With every employee on the same page, the company can work towards creating a

new breed of cab service for Louisiana.


References

Pearce, J. and Robinson, R, 2005). Strategic Management (9th ed) McGraw Hill, 2005 Boston,

MA

Rajeev, M., & Vani, B. (2009). UNDERSTANDING STRENGTHS, WEAKNESSES AND

COMPETITORS. Journal of Services Research, 9(1), 51-67. Retrieved July 31, 2010

from ABI/INFORM Global.

Sekerka, L., Bagozzi, R., & Charnigo, R.. (2009). Facing Ethical Challenges in the Workplace:

Conceptualizing and Measuring Professional Moral Courage. Journal of Business

Ethics, 89(4), 565-579. Retrieved July 31, 2010 from ABI/INFORM Global.

Skok, W (2000). Managing knowledge within the London taxi cab service. Knowledge and

Process Management, 7(4), 224. Retrieved July 31, 2010 from ABI/INFORM Global.

week five assignment final strategic plan paper patricia bernard

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