Essay Develop a Strategic Business Plan for a New Venture – Management Assignment Help

Assignment Task

 

Develop a Strategic Business Plan for a New Venture
This Strategic Management Process should contain whatever is necessary to start-up a company from scratch, including the new company’s philosophy, mission, objectives, strategies and tactics, CSR, an analysis of the firm’s internal and external environment, organizational structure, leadership and, and one-page financial report justifying the firm’s survival for at least a year. You should justify your choices in terms of the chosen industry/sector on the grounds of innovation, competitive advantage and, company’s sustained growth and survival. Your budget is $150,000 (US).

Note: This business plan is based on a hypothetical case. The company XY Poly Ltd. and its parent XY Investments Inc. are hypothetical. The names of the executives used in the profile are made up even though reference has been made to real corporate entities. They do not in any way have business dealings with XY Poly Ltd. or XY Investments Inc. The profile is for academic purposes only.
February 2019

1.0 STRATEGIC RATIONALE

1.1 Introduction This strategic business plan details a structured plan of an investment in an African country, Zambia for the manufacture of plastic lumber from recycled plastic waste. The plan is in line with the strategy of XY Investments Inc. to diversify into untapped areas offshore without XY Investments Inc. footprint. This will ensure continued enhancements of human capital development, corporate social responsibility (CSR), enhanced robust risk management platform, treasury and accounting function. In this regard, a subsidiary company XY Poly Ltd. has been incorporated in Zambia as a vehicle through which the holding company, XY Investments Inc. will spread its corporate footprint into Africa as part of its grand strategy to meet long term objectives and a generic strategy to meet strategy in the short term.
1.2 Strategic ResolveXY Investments Inc. has recognized the need to diversify through investments into offshore companies as a means to remain competitive, sustainable and profitable in operations. XY Poly Ltd. is incorporated from a backdrop of an autonomous entity with mission, vision, strategic objective, policies and procedures.

This business plan is prepared for the purpose of providing a strategic plan and direction of XY Poly Ltd. over a five-year strategic business cycle of XY Investments Inc. with strategic objectives and resources for growth and sustainability. XY Poly Ltd. will require an initial capital injection of $150,000 (US).
It is imperative that any company that desires sustenance in the medium to long term and maintain competitive advantage should dedicate time to planning, defining the spirit and purpose of its existence and how it will interact and react to its environment at both a micro and macro level (Hill, n.d. p.23).

2.0 OVERVIEW
2.1 BackgroundXY Poly Ltd is an entity incorporated in Zambia and a wholly owned subsidiary of XY Investments Inc. incorporated in the United States of America (USA).

2.2 Vision and Mission
The mission of XY Poly Ltd. is to attain zero poly waste in Zambia and the rest of Africa through technological innovative recycling of poly solid waste and become the supplier of choice for recycled plastic lumber. Contribute to the economic development of the country and provide a product that is a customer’s only choice.
The vision statement is to command market share by offering unrivalled innovative lumber and other recycled plastic products.

2.3 Core Values
The core values of the company include excellence, innovation, teamwork, integrity, and customer responsiveness.
These values are important because they support vision, define organization culture and reflect exactly what the organization values.

2.4 Governance The company will be incorporated in Zambia and will operate as a wholly owned subsidiary of the holding company XY Investment Inc. in the USA.
XY Poly Ltd is therefore governed by the Companies Act cap 388 of the laws of Zambia. In this regard, it is duly registered with the Patents and Companies Registration Agency (PACRA). It will abide by all relevant laws and regulation and as such is registered with the Zambia Revenue Authority (ZRA) for Taxpayer Identification Number (TPIN), Value Added Tax (VAT) and corporate Tax. XY Poly Ltd is also registered with Zambia Public Procurement Authority (ZPPA). This is because XY Poly Ltd has strict policy to adhere to laws and regulations and applicable international standards such as the ISOs.
It will be governed by a board of directors that will set the strategic direction of the company by formulating corporate strategies and policies. The board of directors will delegate to the executive senior management that will ensure that the company’s mission and vision is broken down into medium to long term objectives. These medium to long term objectives will flow down to operational and line managers to translate into operational goals that will be attainable in the short term and ensure that individual key performance indicators are aligned to meet the strategic objectives and ultimately vision of the company. Nonetheless, the company will heavily adopt the emergent strategy formulation technique to allow for collective participation and convergent behavior in strategy formulation (Messori, 2016).

3.0 Micro and Macro environmental analysis

3.1 SWOT Analysis
3.1.1 StrengthsThe strategic objectives of XY Poly Ltd. are impacted upon by its core competencies, positioning in the industry and its internal environment. In analyzing its internal environment XY Poly Ltd has done a SWOT analysis that highlights the following Strengths it can harness to maintain a competitive edge and ensure sustenance and continuity of the company: backing of a financially sound international holding company with good reputation; only company in Zambia producing recycled lumber products and serving customers in this market niche; low overhead and manufacturing costs and therefore able to achieve high productivity; qualified and well trained staff; ability to grow production without major investment and very low cost of production.