SWOT analysis of the plan’s focus area(s) with strategies Essay
This part will constitute the formulation of competitive strategies by incorporating stated goals and objectives for a 3-5 year period. The purpose of the strategies is to attain goals and objectives in relation to the company’s mission and vision. While goals are broad guides to action, objectives are measurable targets, the accomplishment of which is by the use of strategies or plans. Its goals include positioning itself to be the preferred shopping choice of Middle America, providing its customer with style and quality at the smart price and increasing access to after-school program for children in need.
To attain these goals there is a need to translate them into measurable objectives. The objectives include increasing its net profit margin to not less than 10% and maintaining the same for the next five years. The objective must be supported with increasing return on assets of 10 to 12% for the next five years and keeping the return on equity not to fall below 20% for same number of years. Based on the industry’s opportunities and threats as well company’s strengths and weakness, this part aims to make appropriate competitive strategies for the next 3-5 years for J.
C Penny with particular emphasis on
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Instead of borrowing funds to keep the strategy, the company’s operation could provide such needed support. Basis 2 – Strengths – Generally Good Liquidity and Generally Acceptable Solvency The same may argument as that of profitability may be said about the use of the company’s liquidity. A company may make use of its funds to serve a greater number of customers and the same could be a better option than giving the extra funds to stockholders as dividends since the company has already given to stockholders enough dividends.
Moreover, customers are the very reason why the company is in business, hence it is only expected that these customer would be continuously served by giving them the products that they deserve. The company’s generally acceptable solvency or leverage still allows the company to make further investments without making the company to risky to invest with. Basis 3: Threat: Moderately High bargaining power of buyers.
The high bargaining power of buyers could be reduced by trying to address really what would keep the company unique and different from competitors. The best way to meet customers who are increasingly incorporating the impact of changing taste and preferences and life styles into their purchase decisions is to be able to address that specific need by readily available information that could be obtained through its research and development efforts.