Strategic Planning for E Company: A Market Analysis and Financial Targets

This report analyzes the market situation of E Company and forms a strategic plan to reach a better rank in the market. It includes a vision, mission, financial aims and objectives, general approach to strategic planning, market analysis, competitor profiling, and intended strategy. The financial targets and forecasts are also described.

Running head: STRATEGIC PLANNING
Strategic Planning
Name of the Student:
Name of the University:
Author Note:

1STRATEGIC PLANNING
Introduction
Strategic Planning of any firm is the systematic and informed decision making of any
firm in order to reach particular objectives or goals in a particular year or as a whole (Bryson,
2018). The mission and vision of the firm are also usually aligned in this respect. It is very
important for the firm to carry out a strategic planning in order to steer ahead in the market and
secure a rank that is higher than the existing rank and helps the company to occupy a secure
position in terms of the competitors and their respective ranks in the market (Bryson, 2018). It
also involves an analysis of the previous financial aspects of the firms and improving of the same
using business models (Dibrell, Craig and Neubaum, 2014). Better disruptive business models
are also used to improve the efficiency and implication of the latest forms of technology and
innovation used to improve the market ranking of the firm (Slack, 2015). In this report the
existing market situation of the firm called the E Company is analyzed and a strategic plan is
formed to reach a better rank in the market.
Vision
The vision of E Company is not only to reach a higher rank in the market but also
globally and expand and evolve each day with the help of the best possible disruptive business
models and technological innovation. The firm aims to ease the lives of its customers and better
their living standard with the help of its products and services.
Mission
The firm increasingly aims at achieving a global level of networking and recognition. It
attempts to reduce the performance gap it currently is faced with and generate higher revenues

2STRATEGIC PLANNING
and profits. The firm also tends to improvise and customize its products of a regular basis
depending on the changing demand patterns and tastes and preferences of the customers.
Financial aims and objectives:
E Company increasingly aims and targets to achieve the following objectives in the
upcoming financial year:
 To increase its market ranking with the use of disruptive business models and smart
technological products
 To increase its Investor Expectation score and Best-In-Industry score and reach a level of
overall score that is higher than the current score of its competitor Hummingbird
 To increase the financial growth of the company by 50% of its current financial growth
and instill the concept of repeat sales in its operations
General Approach to Strategic Planning:
The general approach that firms follow for strategic planning depends upon a number of
factors including the kind and amount of information the firm has about its competitors, the
modes of communication it uses for both internal as well as external communication, the number
of alternatives available with respect to the strategies formed during planning, the
implementation techniques that the firm wants to follow and the learning the firm obtains from
the past researches and strategic planning and the learning it wants to use in this strategic plan. In
this case the information of the competitors are readily available with the firm - E Company and
the firm also has an idea of its rank compared to the rank of its competitors in the market and so
it will be able to use the administrative method as a general approach to strategic planning in
order to garner a larger market share (Verhoef et al., 2017). This approach uses the already

3STRATEGIC PLANNING
existing data and information to build a framework of activities and initiatives and objectives that
will help the firm to reach its goals as a whole.
Market Analysis
The market analysis of the E company is done with respect to the strengths, weaknesses,
opportunities and threats it is exposed to depending on the external environmental operations f
the firm.
Strength
As the firm has access and exposure to the data and the performance levels of all the
competitors it can effectively and efficiently use this data to increase its production with the help
of customization of the products and services it is currently providing depending on the changing
demands of the customers. The financial data also suggests that it has high earnings per share
and it should diversify its investments and increasingly invest in different stocks so that the
entire level of revenue generation can be increased along with the brand equity.
Weaknesses
The data suggests that the firm needs to improve the methods of managing the employees
and resources in terms of both sustainability and change management. The firm needs to
strengthen the relations it has with the stakeholders and the investors as well as with customers.
It needs to apply the concepts of corporate social responsibility and business ethics and change
management in order to better its rank in the market and build long term relations with the part of
the community involved.
Opportunities

4STRATEGIC PLANNING
The amount and the magnitude of opportunities of the firm is huge with respect to the
ranking it holds in the market and the availability of data. The firm should in fact increase its use
of smart products to improve the connectivity issues and gather, store, secure, process and
analyze information gathered from its competitors to face the challenges and use this data for
improving the sales and investor relations. This will help the firm to gradually reach a better best
in the industry score and overall growth score.
Threats
Even though the information about the competing firms is present, it is not enough for the
firm to develop an effective strategy or achieve the goals based on the same. Building a capacity
that is equivalent to or more than the capacity if the over performing competitors will be very
difficult for the firm with the existing level of investment and technological innovation. Also,
even if the capacity and is built and used the firm will initially not be able to reach production
levels that are equivalent to those of the competitors or fully utilize the capacity it has already
built. In this aspect, the firm will constantly be under the threat of competition and rivalry.
Competitor profiling
The competitors are basically notches higher than E company and have high scores as
compared to his firm. They have high levels of infrastructure and technological capacity due to
the high investor scores and the high ranking scores in terms of the industry ranking. This
propels the firms to engage more employees and utilize capacity to the fullest extent.
Details of intended strategy

5STRATEGIC PLANNING
The entire strategy used will be focused on using the data available and even more data
gathered by the implementation of smart products to predict ways by which a greater market
share can be included by pushing the limits of the industry as a whole (Porter and Heppelmann,
2015). It also involves the use of disruptive business models so that the changing demands and
expectations of the customers can be met on regular basis and higher revenues can be generated
(Sorkin, 2017).
Financial targets and Forecasts
Company Name - E Company
Net Revenues($000s)- 100,000
EPS ($/Share)($/Share)- 9.05
ROE (%)- 60
Stock Price- 200
Credit Rating- A+
Image Rating- 10
The financial targets and forecasts that the firm aims to achieve in described above and is
aimed at for achieving by the firm. The firm expects to increase its revenue by 50% and take it a
level of $100,000 and increase its equity per share value to a ratio as high as 9.05. It expects that
the improvement of these scores using this strategy will help to reach a credit rank as high as A+
and an image rating of 10 points.

6STRATEGIC PLANNING
References:
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Dibrell, C., Craig, J.B. and Neubaum, D.O., 2014. Linking the formal strategic planning process,
planning flexibility, and innovativeness to firm performance. Journal of Business
Research, 67(9), pp.2000-2007.
Porter, M.E. and Heppelmann, J.E., 2015. How smart, connected products are transforming
companies. Harvard Business Review, 93(10), pp.96-114.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Sorkin, I., 2017. Ranking firms using revealed preference. The Quarterly Journal of Economics.
Verhoef, P.C., Stephen, A.T., Kannan, P.K., Luo, X., Abhishek, V., Andrews, M., Bart, Y.,
Datta, H., Fong, N., Hoffman, D.L. and Hu, M.M., 2017. Consumer connectivity in a complex,
technology-enabled, and mobile-oriented world with smart products. Journal of Interactive
Marketing, 40, pp.1-8.