Three-year strategy plan
For the year 2014, the strategy is to spread the word about the company and the new product it is coming up with. Being the senior head of the marketing department, it is my responsibility to identify the aspects that re related to marketing of the new product that we are planning to come up with. The first aspect is to identify the demand and run a pilot project, which would cost around $500. The sales volume will depend on how our pilot project runs and it is also to be identified as to what all parameters and regulations are to be followed.
Once the project is set and the pilot study has been conducted, it is easy to understand what type of investment and what percentage of returns can be obtained. By the year 2015, it is believed that the new product would be brought into the market, with individual piece priced at $2. This would have a profit of 80 cents per piece and the sales volume targeted is that of 100 pieces initially. $300 of investment would be recovered only when certain initial profit is made. It is projected that about 50% demand will increase by the year end and this will make it mandatory to work on production as well.
By 2016, the expected sales are that of 200-250 pieces and it is also believed that the prices of production will fall down to $1 whereas the selling price can be increased to as high as $5. This shows a clear cut margin of $4 and net profit can be estimated to be about $2.5. The company expects to achieve a good ratio of profit and it also believes that there will be further increase in demand. The investments can be made in terms of increased production and this would help in attaining better market share.
References
Hax, A. C., & Majluf, N. S. (1996). The strategy concept and process: a pragmatic approach.
Hofer, C. W. (1975). Toward a contingency theory of business strategy.Academy of Management journal, 18(4), 784-810.
Scholes, M. S. W., Scholes, M. A. M. S., & Wolfson, M. A. (1992). Taxes and business strategy: A planning approach (No. 336.51/S36t).
Submit a one page paper which will detail your three year strategic plan for years 17-19.
APA STYLE