Running Head: STRATEGIC MANAGEMENT PLAN-FINAL 1
STRATEGIC MANAGEMENT PLAN-FINAL 2
Week 10 Strategic Management Plan-Final
Dawnelle Schmidt
Rasmussen College
Author Note
This assignment for Week 10 Strategic Management Plan-Final is being submitted on December 10, 2017, for Christopher Zombas’ B460/MAN4720 Section 01 Strategic Management Fall 2017 course.
Hormel’s strategic objectives should be aligned with the organization’s mission and vision. How can Hormel become successful in implementing its strategic objectives (once those are determined)? Implementing a business’ strategic objectives requires knowing where the company currently stands and where it wants to be (projecting a specific purpose and desired results).
Strategic objectives and successful implementation of Hormel Foods:
For Hormel Foods to be successful in and accomplish financial growth (to exceed a certain monetary amount in the next 5 or 10 years or to increase revenues by a certain percentage annually), the company needs to do market research and find what part of the market that they are not currently selling to. They must also, research what consumers are looking to purchase, is there a void that the company can fill to gain a new consumer base? Can the company lower prices and have more repeat purchases, more frequently?
To decrease expenses by a certain percentage, Hormel Foods can maintain strong partnerships and collaborate with local farmers to get the best prices on pork and other essential ingredients needed to produce their product lines. Helping the farmers to prevent wide-spread disease throughout their livestock can, in turn, help Hormel in the long run. Hormel’s R&D department is always looking into ways to help prevention of diseases in their livestock pool; this will help to keep supply and demand on an even keel.
To increase net profit by a certain percentage annually Hormel wants to formulate a constant and consistent focus on the consumer. The company would want to maintain their strong purpose and be able to portray that to their consumers. Creating long-term value for their consumers will be important because any company could come in and challenge Hormel for a portion of the market. The company would want to create strong emotional engagement within the company and its customers and partners. To gain new consumers, Hormel would want to introduce existing products into new markets that they do not currently serve. They would also want to introduce new products to new and existing markets and to expand sales in the global marketplace.
To expand sales to existing customers by a certain amount or percentage Hormel Foods would want to maintain a high focus on quality products at a reasonable price. Consumers are willing to pay a premium for premium quality products. Hormel would want to avoid any adverse publicity such as food recalls which would cause consumer confidence to deteriorate. The company would want to continue to expand their product lines to include more products that are quick and easy to prepare for the time-crunched consumers; which is now more the norm than ever before.
To increase customer retention, Hormel Foods wants to pay particular attention to their current customer base. Those customers have gotten the company where they are today. The company still has to look out for the little guys (the company’s roots). The company would also want to hire enthusiastic sales and marketing employees to “pitch” new products to the consumers. Keeping those employees engaged and compensated for their hard work and efforts will pay off and reward the company in the long run.
To achieve and maintain outstanding customer service Hormel would want to hire employees who share the company’s vision and exhibit flexible and adaptive leadership skills. Having employees who use and love the products that they are selling really shines through in their jobs. Hormel should focus on their sales staff and provide them with the training and tools necessary to make each employee successful and feel that they are adding value to the Hormel team. The employees should be made to feel useful and appreciated; they will always try harder to better themselves and help the company. The focus should be on improving their service approach for new and existing customers.
To develop and use a customer database Hormel would want to create a database of their existing customers and create a way to market to the specific customer. If a customer orders a specific product frequently, then the company could email or send them coupons or offer them discounts for that specific product and possibly get the consumer to purchase other products to complement their frequently order merchandise.
For a business to prosper, they must determine how to accomplish the financial goals set in front of them. Hormel must create long-term value for their consumers to stay at the top of their industry. Strategic management focuses on how the business can cope with changes in their external environment and still survive and continue to grow.
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