Running head: Strategic Plan 1

Strategic Plan

Ronald B. Phillips

BUS/475

July 5, 2013

Strategic plan 2

Strategic Plan, Part I: Conceptualizing a Business

A business that creates a profit is what most business

owners’ desire. A prospective business owner who takes on the

duty of forming a company and bases it on something they love to

do is more likely to follow through with their plans and that

much more likely to succeed. Like any business; one should first

start by saying what it is the business will portray in the form

of a mission and vision statement. The stated vision and mission

statements of a business will drive the strategic goals that the

organization eventually will follow. The analysis and information

gathering below will play a vital role in the first steps needed

to define Second Life Auto Recycling. Second Life Auto Recycling

is a beauty salon with an attached adolescent activities center.

Strategic plan 3

Many states and cities are realizing that most of their

business are streamlined and conducted on the World Wide Web. The

advances in technology allow the process of opening a business

less difficult. There are companies that simplify and package the

necessary information required to start a business, simply put,

the processes are less complicated and often most can be

completed on the World Wide Web. A mission statement, a values

statement, and vision statement will enlighten the reader

regarding why they joined the business industry.

Second Life Auto Recycling

The company is Second Life Auto Recycling; it is a business

that recycles every possible part of a decommissioned automobile.

Strategic plan 4

The primary reason for this business is providing used parts to

the automobile industry or private buyers. The goal is to provide

over-the-counter parts to private individuals and industrials

companies with delivery to local automobile repair facilities.

Second Life Auto Recycling will provide the ultimate reusable

parts service in the industry. Mechanical parts are cleaned and

painted if necessary, cataloged for accountability, and stored

for easy access. Other parts are also be cleaned preserved,

cataloged, and stored for future use and sale.

Mission

Second Life Auto Recycling mission is to provide the

clientele with a satisfied experience with every visit. The

company believes that a satisfied customer is a happy customer

and a returning customer. Parts will be checked for quality prior

to any sale, and a limited warranty will be provided for each

part, depending on the vehicle from which it was removed. Prices

will be pre determined and no price haggling is allowed. The

parts sold at this facility will undergo quality assurance

inspections and only top quality parts will be placed on the

Strategic plan 5

shelves for sale. Beyond the business the company will invest in

the community by providing sponsorship for community activities.

Vision

Second Life Auto Recycling is to become a trusted source of

recycled automobile parts. The service provided by Second Life

Auto Recycling will be above the industry norms and standards.

The facility will maintain a clean welcoming lounge area for the

customers and all other guests. Our vision at Second Life Auto

Recycling is to become the first choice for automobile parts

among businesses and private buyers alike. Our service will

challenge the large dealership for efficiency and will represent

all available makes and models.

Values

There are byproducts generated from the recycling process,

the fluids that would result from recycling a vehicle are

hazardous and city and states permits must be acquired. The

process of collecting the fluids from the recycled automobiles

also can be streamlined and become its own source of income. Used

oils and coolants can be sold to processing companies for reuse

Strategic plan 6

or recycling. Although the idea is not original, there is a

stigma associated with Auto recycling also known as Junk Yards.

Junk Yards are generally dirty and unorganized. Second Life Auto

Recycling will segregate itself by providing the best service to

its customers. The process of recycling is more than selling

parts. Automobiles must be stripped of all its usable components

and Second Life Auto Recycling is designed to have each part of

the vehicle recycled.

Second Life Auto Recycling will also operate a delivery

program for commercial accounts, as it is easier for businesses

to order by phone or on the World Wide Web and have it delivered.

Engines removed from the vehicles are cleaned, and inspected

before selling; the better engines will be sold as complete unit

whereas the poorer ones will be dismantled and sold for its

individual parts. An effectively operated recycling business

Second Life Auto Recycling can be vital to local businesses,

especially in a remote setting such as Hawaii. Parts not carried

on island have to be ordered from other mainland cities and can

take extended periods to arrive on the island.

Strategic plan 7

There is never anyway to predict the reliability of a used

part, for this reason Second Life Auto Recycling will provide to

the customer, upon request, any information needed about the

origin of the purchased part, including year and mileage of the

vehicle from which the part was taken. Warranties may be

available for parts from vehicle with lower mileage, which

generally means it has less wear.

There are many things that set Second Life Auto Recycling

apart from its competitors. First being open and honest with the

customer and gaining his or her trust. The staff will be trained

to understand and complete the mission statement of the company.

The company will provide critique forms to customers either

online or in-house and meet with local businesses to understand

how better to serve them as customers.

Strategic Plan, Part II

An analysis of the strengths, weaknesses, opportunities,

threats, and trends of an organization is called a SWOTT. The

SWOTT analysis is a very important part of the strategic planning

process. Internally a SWATT analysis allows a company to analyze

Strategic plan 8

its strengths and weaknesses providing a way for executives to

make decisions on how to enhance the essential business model.

External factors are normally beyond the control of the company

but by doing an external SWOTT the company will also be able to

make essential decisions. The automobile industry is very

competitive, so Second Life Auto Recycling intends to make its

own mark in the industry by making use of the SWOTT analysis and

acting on the data procured from the process.

Second Life Auto Recycling is implementing a strategy of

rapid progression in its segment of the industry by proving a new

type of service with the customer in mind. Carving a new path in

the industry is the mission of Second Life Auto Recycling. The

company aspires to build an exclusive client experience with no

direct competitors currently, Second Life Auto Recycling intends

to focus on setting itself a part in such a way that it would be

difficult to emulate.

External Forces and Trends

Changes in the automobile industry, foreign or domestic can

impact the business at Second Life Auto Recycling. A successful

Strategic plan 9

SWOTT means that the company must have a solid understanding of

the external and internal parts of the business atmosphere. If

the United States domestic economy is doing well, it can bring

new business, as more people would be buying new automobiles and

more inexpensive used cars will be available for sale thereby

providing for more available parts for sale. A declining economy

can also mean a windfall for parts sales at Second Life Auto, as

the economy declines more people show up at the automobile parts

recycling outlets for parts as they try to keep an older vehicle

operational.

As of late, the new environmental laws are quickly becoming

a problem and financial burden to the traditional junkyard.

Unlike the junkyard, Second Life Auto Recycling has streamlined

its process to tackle the requirement while also finding a way to

benefit from the sale of recyclable material, which naturally

reduces the waste of automobile parts. The company will assign an

employee as the environmental rules coordinator; their

responsibilities will include ensuring compliance of the laws and

provide the necessary training to other employees.

Strategic plan 10

Internal Forces and TrendsThe internal forces are the forces that transpire within a

company because of the relations between fellow employees,

customers, and even management. A pleasant working environment is

very important; it makes working at Second Life Auto Recycling a

desirable and pleasant one. It is important to have a principal

management voice on the job at all times. They are there to

infuse a sense of confidence at the work site. A pleasant working

environment with contented workers provides a more productive

workplace and less mistakes or rework. Mistakes such as

mislabeled parts, incorrect inventories, and dissatisfactory

customer care are some of the internal issues that need this

pleasant atmosphere naturally would discourage, which is a huge

benefit for the company.

Adapting to Change

The business of automobile recycling has been always slow to

evolve. Changes are needed to improve the industry that generally

has a dirty and greasy atmosphere. The change made by Second Life

Auto Recycling is intended to drastically changing the industry

image. It is for that reason that employees only will be allowed

Strategic plan 11

in the vehicle-recycling compound, this would be a deviation from

industry norms because in most cases customers are required to

remove their own parts from a salvaged vehicle. Taking this

approach will enforce customer safety and allow the customers to

relax when the employee tending to the customer searches for the

part in question. There are a great deal of potential Second Life

Auto Recycling customers, hobbyist, and perspective customers who

would browse not knowing exactly what it is that they are

shopping for; they purchase parts and accessories by visualizing

a part and making a determination whether or not a part can be

used. Second Life Auto Recycling does not allow patrons to browse

the compound.

Supply Chain Operations

Despite all the countermeasures that law enforcement has

taken, some parts of the auto theft industry can easily be

disguised as a legitimate business and Second Life Auto Recycling

does not want to be misidentified as a chop shop. For this

reason, the city and, state vehicular laws must be thoroughly

understood and explained in detail by all employees. Also working

Strategic plan 12

hand-in-hand with this preventative measure is a dedicated staff

member who will be responsible for the acquisitions; they must be

well versed in the rules and regulations related to purchasing of

vehicles for salvage. If no such staff member is put in place or

is a little less than responsible, violations, even accidental

ones, can lead to stiff penalties, such as prison and even the

possibility of ruining the company that the staff member is

representing.

The purchase of inexpensive used vehicles, donated vehicles,

or other such vehicles, which are considered a total write-off or

destroyed by the insurance, will be the primary source of supply

for Second Life Auto Recycling. Then there will be the parts

supply from Second Life Auto Recycling will be assigned an

identification tag that can be electronically scanned for

inventory purposes. Naturally, parts will be stocked depending of

rate of sales. For example, parts sold more frequently will be

placed up-front so they will be easily accessible to customers

while bulkier parts, depending on their size will be placed other

Strategic plan 13

storage areas that will either be shown on the request of the

customer or placed in the front on the lower shelves.

Issues and Opportunities

The information collected by the SWOTT must be acted on, as

there is a vast amount of information collected in this report.

In theory this SWOTT analysis will afford an effective strategy

to fine-tune this business model. By using this SWOTT analysis,

Second Life Auto Recycling’s will demonstrate the ability and

desire to distinguish themselves from the junkyards and any

would-be competitors. Although patron may associate Second Life

Auto Recycling with similar services, they quickly will be able

to distinguish the differences between the provided services. The

strategic plan implemented by Second Life Auto Recycling will

empower the company’s ability to strategize using the data

collected by the SWOTT.

SWOTT Matrix External Forces

Factor Strengths Weaknesses Opportunities Threats Trends

Legal andRegulatory

State andcity

environme

Strategic plan 14

ntalcompliance issueswhen

dealingwithoils,

ethyleneglycols

and otherhazardousmaterials

.

Global

Economicfactorsthat

determine the

purchasing powerof theaverageconsumer

Economic

The statusof the

domesticeconomywill

determinethe

purchasepower of

theconsumer

Technological

The newest tools and technology

Strategic plan 15

will allow the companyto stay ahead of any would-be competitors.

Innovation

Newinnovativ

etechnolog

y andprocessfrom

would-becompetitors cancreate

unwantedcompetiti

on

Social

Continue tobe

visibilityin the

communityand providepositivecommunitysupport.

Environmental

Trainemployeesabout thestate and

cityEnvironme

Strategic plan 16

ntalpolicies

andrequireall

employeesto follow

theregulatio

ns

Competitive Analysis

The abilityto test

some partson stationbefore salegeneratesgreater

confidenceto ward offwould-be

competitors.

SWOTT Matrix Internal Forces

FACTOR STRENGTHS WEAKNESSES OPPORTUNITIES THREATS TRENDS

Strategies

Continue toprovide the

bestcustomer

service todiscouragewould-be

competitors.

Strategic plan 17

Structures

The structure differs from the original junkyard system unmonitoredthe traditionalbusiness had free reign in most things. Newstrict environmental laws Second LifeAuto Recycling has streamlineda process to make theHazmat a profitable venture

Processesand

Systems

Most Second Life AutoRecyclingcustomersand perspective customersshop not

Strategic plan 18

knowing exactly what theyseek. They purchase parts andaccessories by look. Second Life AutoRecyclingdoes not allow patrons to browsethe compound.

Resources

Alignmentwith insurancecompaniesfor access tomore carsand parts.

Goals

Beingrealisticwith thestated

goals willbetter

prepare thecompany forsuccess.

Strategic plan 19

StrategicCapabiliti

es

Inventoryand saleson theWorld

Wide Weband a

brick andmortarstorewill

boost theaccess to

thecustomer.

Culture

A people-oriented

atmospherewill

provide apositivecorporateculture andaffording a

happycustomers

andemployeesenvironment

.

Technology

Use thelatest

technology to

assist inparts

identification and

Strategic plan 20

inventory,

contributing to

superiorquality

ofservice

Innovations

Exploiting and usethe mostrecent

industrytrends toassist incompanygrowth

Intellectual

Property

With theadvancement of

technology thecompany

will worktowardbuildinga very

recognizable namebrand

Leadership Theleadershipteam at thecompany isposses bothindustry

and

Strategic plan 21

businessknowledge.They canlead the

company togreat

success.

Strategic Plan, Part III: Balanced Scorecard

By analyzing the goals and objectives of the strategic plan,

a balanced scorecard has been created for Second Life Auto

Recycling. The different areas of the balanced scorecard have

created specific strategies for the affected areas. The primary

strategic perspective of the balanced scorecard comprises of

customer value, shareholder value, and financial, internal

processes as well a studying the evolution of the company.

Shareholder Value and Financial Perspective

The intention of Second Life Auto Recycling’s strategic plan

is to create a steady and maintainable growth rate. One of the

contingencies of the company is to have cash on hand for any

unforeseen setbacks. The company will seek to always have cash on

hand to ensure that the financial resources will be enough to

support a positive or negative deviation from the original plan.

Strategic plan 22

Also, as a growing company the plan is to have the funds divided

for each segment of growth. As a part of that growth, expansion

will naturally come with the growing business, however, only with

funds generated from the business. The capital will be carefully

set aside for marketing and promotions for the company.

Customer Value Perspective

Second Life Auto Recycling sets out to be different in an

established business genre. The company will design a remarkable

consumer experience in a community not known for customer

satisfaction. The main goal in this endeavor is to create an

exceptional customer relationship with Second Life Auto Recycling

in an effort to encourage a returning customers and to encourage

those customers to spread the word about Second Life Auto

Recycling. Customer satisfaction is paramount and through

surveys, the customer will believe that they have an opinion in

the business development.

Internal Processes Perspective

Strategic plan 23

In any industry, an efficient business model is vital for

success. In this industry, potential franchise owners will be

searching for a business opportunity that has minimal waste, yet

offers a promising opportunity for future growth. As such,

ineffective internal processes need to be and will be quickly

identified or potential franchisees will seek out better

alternatives. To mitigate the risk of this scenario, the company

plans on implementing an automated reservation system that allows

clients to schedule visits online. This reduces the need for

administrative employees and could reduce, significantly, the

costs of operation. In addition, the system will give clients

greater control over their visits, which inevitably will enhance

their satisfaction. Implementing systems like this, overhead will

be reduced and that will leave additional funding available to

finance the growth of the brand.

Learning and Growth Perspective

The work environment is essential to the level of success a

business will have. A happy team will be more productive and

reliable, and there will most likely be fewer mistakes and less

Strategic plan 24

tardiness. At Second Life Auto Recycling, part of the plan is to

have a high retention rate at the company. The staff will be well

trained and any loss will unfortunately slow progress, as new

employees will require more extensive training. Employee meetings

and forums will assist management with the needs of the staff.

Balanced Scorecard Table

Objectives/Goals Measures Targets

Financial

Secure business partners with the same drive and zeal to complete the process

Secure businesspanthers to use thecompany as sole

source

Enlist one newcommercial

customer eachmonth

See ways to attract additional investment to allow for additionalcash on hand

Reduce overhead costs Show what it takesto reducedoverhead

Minimize operating cost Improve the quickratio to 1. 25.

Ensure debt doesnot exceed revenue

Customer

Provide a cleancomfortable lounge area

Solicit critique tocustomers to receive

feedbacks

Surveys shouldshow satisfaction

grade of AOffer incentives toloyal commercial

customers.

Provide the sameincentives to smallbusiness as largerbusiness accounts.

Provide randomincentive to off-

the-streetshoppers

Create a database withavailable parts online

for customers andinteract with social

media,

Make social mediainteraction a

priority

Make social mediainteraction a

priority and keepinformationupdated

InternalProcesse

s

Streamline onlineaccess to allow for

advance purchase onlinewith pick up t the

compound

Provide incentive foronline account users

Increase in onlinepurchases

Create an incentiveprogram for employeesusing overhead cost

Show monthly salesimprovement

Sales growth of 2%per quarter forthe next two

Strategic plan 25

saving funds years.Use market research to

improve theeffectiveness of

marketing campaigns.

Show an improvedmarketing sales by

monthly

Show an improvedmarketing sales by

monthly

Learningand

Growth

Maintain a pleasantwork environment to

encourage retention ofthe trained staff.

Train and support thestaff to maximize

retention.

Maximizeretention.

Sponsor local eventsand programs to get thecompany face out front

Charitable donations to nonprofits

Support the localnonprofit

organizationsShape a team with

diverse well trainedemployees

Create recruitmentpolicies thatencourage equalopportunity and

diversity.

Support an equalopportunityworkforce

Customer satisfaction is always very important in any

business. It is imperative for any business dealing with customer

service to provide the best service and encourage returning

clients. Second Life Auto Recycling staff is charged with the

following the company mission statement. Regardless to the

financial status of the customer each will be equally respected.

It is the mission of Second Life Auto Recycling to ensure that

each customer leaves satisfied with the service received.

Second Life Auto Recycling will assist customers locating

parts from other sources if not readily available. These simple

Strategic plan 26

gestures assure the customer of the type of service Second Life

Auto Recycling promise it will deliver. This is one way of

ensuring customer satisfaction and the likelihood of a returning

customer.

Conclusion

The paper presented an idea of which the wheel was not

reinvented, but instead the processes from existing businesses

were modified and improved to create a better operating process.

The Mission and Vision were clearly defined and each clearly

spelled out to each employee, including management. Knowing the

mission, the vision and creating the values you would

implemented place Second Life Auto Recycling in an enhanced

position above and beyond the others in the industry.

Second Life Auto Recycling showed that its strategic

perspectives allowed the company to have distinct and organized

goals. The company made the policies to keep the employees and

managers focused on achieving the stated goals. Knowing the

objectives and constantly working to achieve the targets is

without doubt the main function of Second Life Auto Recycling.

Strategic plan 27

The stated business format is new in an established industry, and

the company must set itself apart from any potential competitors.

So, Second Life Auto Recycling set out practicing a strategy of

growth with honesty and integrity in what has become, in some

places, a less than transparent industry. The aid of a balanced

scorecard as a guide, the company will be able to determine the

effectiveness of the original goals.

Strategic plan 28

Reference

Pearce, J. A., & Robinson, R. B. (2009). Strategic Management:

Formulation, implementation, and control. New York, NY: McGraw-Hill.