Australian Hardware Expansion Plan

The assignment provides a business plan for expanding Australian Hardware, including strategies for success, an operation plan, and recommendations for a new outlet. The report highlights the importance of employee training and quality maintenance, as well as the need to reduce unnecessary expenses such as packaging. With a focus on utility and environmental friendliness, the company aims to become a household name through its expansion efforts.

Running Head: DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS1
Developing Strategic Management and Leadership Skills
Name
Institutional Affiliation

DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS 2
Developing Strategic Management and Leadership Skills
Task 1, Detailed Operation plan
The Australian hardware company is a highly competitive company that has been
renowned for its superior quality of good that are sourced from both local and international
sources. The whole purpose of the business is to provide consumers in different areas of the
country with affordable and good quality home improvement appliances and hardware. Our
selection of consumers varies from the do-it-yourself people who make up about 29% of the
customer base, home improvisers who make up 43% and medium sized businesses, and
individual contractors who make up the remaining 28% (Alam, 2013).
Strategy
1. Community engagement and human resource management- there is a moderate risk of
there being a difficulty in hiring and training new personnel. This would have a
disastrous impact on the business as these same employees whose services we would be
having a hard time acquiring is in the pool for acquisition by the competition. To counter
this issue and ensure that our company always has the best qualifies and innovative
employees, better starting salaries that those being offered by the competition can be
offered as is allowable within the budgetary constraints (Chen, Yao, & Kotha, 2009). The
lure of company funded additional training to help employees improve their skills would
also help maintain the current excellent employees as well as inspire applications from
brilliant people in future job offers. Staff unaware of the Australian hardware strategic
direction with respect to economic and social responsibility will need additional training.

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This would be the responsibility of human resource managers, store general managers
and general operation managers.
A survey of consumer concerns can be carried out on social media platforms like
Facebook as a part of market research. Opinions on packaging, environmental impact,
pricing and quality and arising can be handled in this way.
Risks to the community due to company operations, which should be minimal as
several precautions are taken to prevent this, can be discovered, and handled by
community consultation, and discussions for the company to sponsor a social event
(Jacobs, Chase & Lummus, 2014).. The cfo, legal team, store general managers, and
general operations managers should always be in touch with legislative policies and
procedures to avoid not complying with the law.
2. expansion and advertisement- the company’s expansion plan is to expand existing stores
and to set up new stores in areas whose population has grown to be large enough to
provide a market for the particular products being dealt in. environmental and social
impact is important to consider when planning to set up shop at a new location . Active
promotion will be done through magazines and social media, and handing out
questionnaires to the target market.
As part of advertisement to attract more customers, the company advertises
through business magazines, newspapers, television, and radio.
3. Monthly environmental audit and review; there could be an environmental risk arising
from the operations of Australian hardware (Sachs & MacArthur, 2005). Frequent

DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS 4
employee training should be carried out to champion more environmentally sustainable
practices. Environment training should be part of the induction. These would include
reducing water consumption by harvesting rainwater in tanks and reducing energy
consumption by installing solar arrays on the roof (Strande & Brdjanovic, 2014). Yearly
audits at the stores to ensure that goals set as far as the environment is concerned were
met. Customer concerns can be analyzed for environmental issues.
4. Maintenance of set quality standards; both suppliers and employees should be made to
understand the importance of quality as a principle that this company stands by. The
suppliers should be audited at least monthly to ensure that the set standards are being
maintained (Wang, yang & Zhang, 2007). The storage facilities must be such that they do
not interfere with the quality of the product in them.
Quality is an important aspect that has influenced the success of this company and
should be maintained. Daily contact is also kept with the suppliers by the coo, marketing
general manager, and general operations managers so that there is no wastage by
unsalable stock by poor inventory maintenance (Jung, Lee, Song, Han, Han, & Jang,
2013). Audits should be carried out at least quarterly to ensure that the high quality
standards set by the company are maintained by the suppliers. The company actively
seeks Australian and international suppliers who can fulfill a consistency in quality and
great innovations. This is also a move that would help in dealing with the competition
who mainly deals in tried and true goods and though some customers are willing to
compromise on quality where the prices are low, those who value quality and
innovativeness recognize the uniqueness of Australian hardware goods (Mossolly, Ghali
& Ghaddar, 2009). The risk of new competition interfering with the current market base

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that the company brags, though low, can be combated by more advertisement and more
interaction with customers through means like personal mail. Marketing would be based
on highlighting differences between our products and those of the competitors, based on
monitoring done on competitors campaigns. Frequent promotional campaign and
selective discounting are other effective ways to increase our popularity with the market.
5. Improving the packaging; it is usually difficult to develop good packaging that does not
cost too much and this is one issue that the marketers have to focus on, as the packaging
is unsustainably hard to make. This would enable the profit forecast in the business plan,
where the net profits are approximately half of the gross profits, to be reached. As a
company, which does not produce its own products, the packaging is the only way to
differentiate us.
The company’s goal as given by the employer, were;
1. To be the first choice for buyers looking to buy hardware, timber, tools, paint, house
ware, outdoors and garden equipment.
2. To expand its operations in existing locations and spread tentacles into new markets by
2-3 shops per year.
3. To have highly trained employees, with this training reflecting in day to day work.
4. To introduce new products into the product range by doing excellent market research and
learning market preferences.
5. Establish a reputation as a socially and environmentally responsible organization.

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Task 1, Recruitment policy attached
The company offers new employment opportunities each time an employee resigns or
retires or when expansion creates a need for more employees (Shi, Deng & Huo, 2007). Limited
paid internship chances are offered each year with the best performing interns being offered
employment chances.
Advertisement for jobs is made in trade magazines and employment seeking sites. This
includes complete job description and pay being offered. Positions are advertised two weeks
before an interview is scheduled. Group interviews are done to better do comparisons and
eliminations. People with no criminal record are preferred. Candidate feedback is given by email
and newspaper.
Task 1, intellectual property policy
Australian hardware focuses on training and growth opportunities for its staff. We
attempt to create an environment where creativity and innovation is encouraged.
Intellectual property created or originated by an employee to benefit the company is to be bought
by the company so that the company has exclusive rights to it unless the innovator intends to
transfer it to a third part.
Task 1, Resource policy attached
Human resource;
- We investigate salaries offered by the competition and attempt to match or exceed them as is
allowable by the budget.
- Maximum number of work hours in a day are eight with an annual holiday of three weeks.
-Employees are allowed to leave employ at will.
-There will be awards for employee of the year as well as an end of year package.

DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS 7
-A dress code is the face of professionalism in a company. A strict dress code of shirts with the
company’s logo and flat shoes to be followed by salespeople. Sports footwear is allowed.
-No type of non-medicinal drugs are allowed within the premises of the company.
-A detailed asset register for plant and equipment owned and maintained by each warehouse is
maintained by the general operations manager and the store general manager.
Task 1, Assessor questions asked
1. Which are the most preferred regions to effect expansion?
2. How much would it cost to establish a new shop and market it? What time would it take
for the investment to be gained back and for a profit to be made?
3. How significant is the environmental impact of our operation that we need to take all
these measures?
4. How many employees on estimate would need to be acquired for the expansion process?
5. What would be the cost of training all the employees as is suggested in the operation
plan?
Task 1, assessor observation checklist
Handouts and copies of documentation provided to employees.
Sales and marketing objectives
●To position Australian Hardware as a provider of top quality, brand name
hardware and expert service at attractive price points
.
●Increase foot traffic to 1,000 people per day per store (from 800)
.
●Increase brand recognition and awareness of value proposition
.
●Establish good will within our target market so that seven out of ten people rate Australian
Hardware as socially and environmentally responsible.

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The future
Vision statement
Within five years, Australian hardware will lead the hardware and home improvement market in
Australia.
Mission statement
Australian hardware provides the best quality hardware, home wares, garden supplies, and
building materials from Australia and the world. Australian Hardware is committed to providing
customers and tradespeople with value through everyday low prices, product quality, expert
service, community engagement, and environmental responsibility.
Strategic direction
●Increase sales revenue and gross profit
●Maintain or increase market share
●Control direct and indirect operational costs
●Maintain superior product and service quality standards
●Establish reputation of Australian hardware as socially and environmentally responsible
company
ACTION PLAN
Activity Timeline Person responsible
Increase sales revenue and gross profit
Determination of staffing
requirements and sales skills
assessment for stores
Quarterly or as needed Store general manager
Employee product and sales
training
Quarterly or as needed Store general manger, HR
general manager
Recruitment of skilled staff Quarterly or as needed Store general managers, HR
general manager
Research innovative, exciting
products and suppliers to drive
costume
weekly Marketing general manager
Control direct and indirect operational costs
Review of store budgets and
quarterly financial
management reports
quarterly Store general managers,
FARM team
Review of national budgetary
performance and quarterly
financial management reports
quarterly CEO,CFO, board of directors

DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS 9
Review of preferred suppliers
to negotiate price reductions
quarterly COO
Review of local suppliers to
negotiate price reductions
Quarterly or as needed General store managers
Maintain superior product and service quality standards
Audit of preferred supplier
product quality
quarterly COO
Audit of local supplier product
quality
quarterly Store general managers
Performance management of
staff
Twice per year Store general managers
Task 2, Meeting plan
The meeting will involve the coo and the marketing general manager. since the fastest
changing aspects of this business have something to do with marketing and market preferences,
quality standards and a quickly changing competitive spectrum (Sachs & McArthur, 2005).
There is a need to have a strong market base that will not change tastes or preferences even when
the competition offers cheaper alternatives. It is important that not just the product but also the
packaging it comes in is sustainable both financially and environmentally (Jung et al., 2013). It is
also important that the company find other suppliers who can provide the same quality of
products so that any customer with specific preferences will find their preferred pick at our
outlets, this being due to a larger variety.
The roles of a chief operations officer include;
- Harnessing resources, however limited, so that whatever they produce is of higher
volumes than before.
- Developing the firm’s strategy and passing it on to the junior employees. They also plan
rewards.
- Planning by prioritizing the organization’s, employees, and customer needs.

DEVELOPING STRATEGIC MANAGEMENT AND LEADERSHIP SKILLS 10
- Maintains staff levels, expectations, and motivation to fulfill the firm’s goals.
- Drives performance strategies including deciding between efficiency and effectiveness.
With these roles, the coo is expected to take up the part of the operation plan involving
suppliers and employees. This includes working with the human resource department to enforce
training for the employees.
The roles of the marketing manager are;
- Identify the market’s trends and report to the marketing analysis.
- Conduct market research.
- Marketing the company’s products and all activities within the department.
- Coordinate advertisements and market campaign and oversees the budget for the
aforementioned activities.
- Develop marketing strategies that is suited to the customer’s needs.
The marketing manager is expected to work with junior employees on packaging design,
creating vibrant social media accounts and a website through which to interact with customers.
He or she is also the one to ensure the company is in an amicable coexistence with the
surrounding community.
These coo as expected should question economic viability of the strategies such as training
programs, which, as beneficial as they would be, are an expense to the company (Kaplan, 2008).
The major questions should be how to make each positive step taken economical and how
reliably better would new methods be as compared to old ones.

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Task 3, Updated operation plan
The following conclusions were arrived at after a meeting with the employer to discuss
financial impact, pros and cons. the first strategy, though well meaning, is more beneficial to
employees than to the company because employment contracts are not eternally binding (Umble,
Haft & Umbel, 2003).. A better proposal has been given that the seminars and training will be for
senior employees whose knowledge can be implemented on junior employees. The financial
impact of an environmentally friendly operation such as the solar is evidently positive. A
company whose main business is sales does not need much energy, and installation of solar
panels has the potentially eliminating the need for purchasing electricity (Kaplan & Norton,
2008)..
Quality is the company’s trademark. Loyal customers are willing to pay the higher prices
we charge because there is a confidence in our quality and efficiency with deliveries. The audits
to ensure maintenance of quality standards are therefore deemed necessary. Packaging has been
noted a recurring unnecessarily high expense which should be reduced. It is recommended that
focus should be more on utility and environmental friendliness than quality.
Task 3, implementation plan
Expansion is the goal of every business and for a new outlet to succeed; employees with
a good record of accomplishment are sent out to them (Stevenson & Hojati, 2007). Plans
therefore have to be made to acquire new employees and train some existing ones to take up
higher managerial positions at the new outlet. Human resource and store managers should write
down expectations for each employee by turnover so that the company can get maximum utility
from all its resources.

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Task 3, written report
An operation plan was agreed on based on the strategies set out and the handout of the
action plan taken from the business plan. Because of the plan to expand, the expenditure will be
comparatively larger but this step is expected to be fruitful with time. With 138 outlets already
countrywide and a plan to expand, Australian hardware is well on its way to become a household
name, which is one of its visions. This is also reinforced by the fact that a study has shown that
Australians are doing more home renovations than ever.

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