The company under consideration is a successful company located in Tennessee, which specializes in production of electronic, highly specialized goods. Additionally, the company operates only on the local market. Such situation significantly limits potential for growth of the company. That is why the company is planning to penetrate the global market. The main task of this report is to develop appropriate mission statement for the company and prepare strategic plan of penetration of the global market.
To begin with it is necessary to provide some background information about the company under consideration. Tolapp Corporation is an American company that specializes in manufacturing and marketing of power tools, lawn mowers, lawn furniture, microwaves and ranges. The main sales channel of the company is based on such large retailers like Sears, Best Buy and Wal-Mart. At the moment, the company is experiencing success in the United States of America and Canada. However, the company is planning to enter the global market. The main task of this project is to develop a plan to penetrate the international market. The delivered plan is a strategy, which must answer the following questions:
- What should be a mission and a mission statement of the company in the face of new challenges?
- What should be the steps in the process of realization of this mission?
- How it is possible to evaluate efficiency of the process of the strategy’s realization and get a required feedback?
First of all, a definition of the term “mission statement” should be provided. In our opinion, one of the most appropriate definitions of this term is the following.
“A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.” (Entrepreneur.com).
In simple terms, a mission statement defines how a company sees itself on the market and in society in general, taking into account its current position, available resources and conditions of the external environment. The current mission of the company under consideration can be perceived as a stable company, which is an integral part of the local community. Tolapp Corporation strives to provide high quality goods for customers, mutually beneficial cooperation to partners and support for own employees.
However, the company wants to enter a global market. Respectively, the mission is going to be changed. In order to define a new mission, first of all it is required to define the new challenges for the company and its current features.
Among the challenges of the global market the following ones may be pointed out in the discussion. First of all, the global market is characterized with higher degree of competition. That is why the company should be ready to focusing on improving the current competitive advantages of its products and introducing new ones.
Secondly, the company will be forced to work in the different regulative environments. Every country has its own requirements to the products, specifications and requirements, which Tolapp Corporation has to attend to. For example, specifications of the company’s products must meet requirements of the local laws.
Thirdly, different countries are characterized with the different cultural and institutional environments. This fact should be also accounted for in the process of development of a new mission statement and a strategic plan of penetration of the global market.
Fourthly, it is the company’s current strategy to sell its products via retailers. By deciding to enter the global market, the company should find effective ways of selling and distribution of the finished goods. These ways should be effective and not cost-efficient.
Finally, the modern global business environment is characterized with the consequences of the global financial crisis. These consequences are less appreciable on the local area, than in the global market. It is quite difficult to say, when the crisis is going to end:
“In the circumstances, it is hard to be wildly optimistic about how events will play out. Markets are bound to remain highly jittery, although it seems unlikely that American bond yields will rocket as a result of the S&P downgrade. Japan lost its triple A rating long ago and has national debt well in excess of 200% of GDP but its bond yields remain extremely low. The reason for that is simple: Japan's growth prospects are poor” (Elliott).
Taking into account all the mentioned challenges, a new mission statement of the company under consideration can be the following.
Tolapp Corporation a firm with a global character of performance, which combines cultural diversity with unified approaches to the manufactured products, which are always characterized with high quality. We are the company among the leaders of the global market, and our name is considered to be a guarantee of mutual cooperation, integrity and quality assurance. We are going hand in hand with modern trends; thus Tolapp Corporation is also environmentally and socially responsible.
The following task is to develop the strategic plan of realization of the new mission. This plan consists of the following steps:
First of all, the plan should be developed and approved by the company’s stakeholders. Probably, some outsourcing company with extensive experience in the international arena should be invited for this purpose.
The following step is to appoint people or departments, responsible for the process of plan’s realization. It is an important step for the further monitoring and control.
Appropriate sources of financing should be found. This process can be time-consuming and expensive. However, the final benefits are going to be much higher than the initial costs, which should be included in the financial plan. It is important to employ own financial resources of the company.
Every big deal starts from something small. The company should choose the first area on the global market to enter. For example, the company may locate its production facilities in Germany and distribute the products to the whole Europe from there. It is very important to choose the most effective sales channels, which include large retail store, special tool stores and home repair stores.
The next step would be to develop production and distribution facilities, to enter new regions, and to improve own reputation and positions on the global market. All these objectives are achieved through marketing plan realization.
Finally, efficiency of the strategic process’ realization should be evaluated. It is another important task of this report. The whole mechanism of control and monitoring should be developed. It is important in order to reach the highest efficiency. Also, this mechanism can be used in the process of realization of the following projects, both on local and international arena. We believe that this mechanism should be based on the following principles.
Control should be a constant process that supports all the stages of the project’s realization. People responsible for the final result must regularly report to the top-managers and shareholders. The whole process should be divided into several small steps. Each one should be monitored. It is possible to implement changes operatively in such situation. Finally, the process should be standardized and automated. It is going to eliminate possibility of mistake.
“Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals. Implementing your strategic plan is as important, or even more important, than your strategy.” (Strategic implementation).
To conclude, we would like to say the following. The company under consideration is going to enter the world’s market. As a result, its mission statement should be changed. Nowadays, Tolipp Corporation establishes itself as a global company, one of the leaders in the market, which proposes high quality products to the whole world. In order to reach this mission a strategic plan has been developed. The main stages of strategic plan have been outlines in this report. Realization of the plan will help the company to reach its goals in the nearest future.