Business Management: Strategic Planning for Tools Corp Corporation

This report provides a comprehensive analysis of Tools Corp Corporation's strategic planning for global expansion, focusing on its entry into the Australian market. The report begins with an executive summary and table of contents, followed by an introduction and background on the company, including its mission statement: "To provide the best possible services to its customers with nominal price at the global level." A SWOT analysis is conducted, identifying the company's strengths, weaknesses, opportunities, and threats. The report then details the company's key operating principles and performs a market analysis of the Australian electronic retail industry, including a five forces analysis. Strategic plans are outlined for one, five, and ten-year timeframes, along with implementation strategies and a feedback mechanism. The report concludes with recommendations for the company's strategic approach, emphasizing the importance of a feedback mechanism to address issues and achieve objectives effectively.

Business management:
Implementation of control
1

EXECUTIVE SUMMARY
Global strategic planning is not the same as domestic strategic planning as an organization
requires considering external as well as internal environment considering global perspectives.
Moreover, external environment analysis is more crucial in comparison to the internal
environment as when an organization operative at an international level the competition is too
high. The present study emphasizes on the strategic planning of Tools Corp Corporation in
detail manner. The mission statement of the company is “To provide the best possible
services to its customers with nominal price at the global level.” Further the diversified range
of products is its main strength but inadequacy in quality of product lead the company
weakens from its competitors. The company has made a significant position in the market of
Canada and the U.S. and now attempting to initiate its operations in Australia. In initial year
company strategy plan has been developed to build adequate brand image so that the
company can be recognized in an appropriate manner. Further, the five-year plan focuses on
opening outlets and stores in other areas of the country. Eventually, in year ten year strategy
plan specifies that company should move on for another country. Lastly, recommendation has
been provided that main emphasis should be made on feedback mechanism in order resolve
existing issues at initiative phase which will eventually lead to attainment of objectives with
an ease.
2

TABLE OF CONTENTS
Introduction................................................................................................................................5
Background................................................................................................................................5
Mission of the Tools Corp Corporation.....................................................................................7
Key operating principles of the company..................................................................................9
Market Analysis.......................................................................................................................11
Five Forces Analysis............................................................................................................11
Strategic Plans for Tools Corp Corporation.............................................................................13
One Year Plan......................................................................................................................13
Five Year Plan......................................................................................................................14
Ten Year Plan.......................................................................................................................14
Implementation and ramification of plans...........................................................................14
Feedback Mechanism of plans.............................................................................................15
Conclusion and recommendation.............................................................................................16
References................................................................................................................................17
3

LIST OF TABLES
Table 1: Goals to be attained in year one.................................................................................14
Table 2: Goals to be attained in year 1-5.................................................................................15
Table 3: Goals to be attained in 10 year...................................................................................15
4

LIST OF FIGURES
Figure 1: Key operating principles of the Tools Corp Corporation....................................9
Figure 2: Five Force Analysis of Australian Electronic Retail Market...................................13
Figure 3: Procedure for implementation of each strategic plan........................................15
5

Introduction
Global strategic planning is a procedure applied by organizations which operate at an
international level, i.e. in different countries. The procedure comprises evaluation of internal
and external environment by multinational organization in order to make an adequate
decision regarding attainment of long term and short term objectives. Considering the above
statement assessment has been done regarding strategies for Toolscorp Corporation to go
forward with the next step into the global market place. The company has a thriving business
in Canada and the United States. Thus, the new market in which the company is extending is
Australia. The report initiates with a SWOT analysis of the company. Further, mission and
key operating principals have been discussed in order to provide details regarding the manner
in which company operation. A detailed assessment of the market in which the company is
going to initiate its operations, i.e. Australia has also been provided. Lastly, one, five and ten-
year strategic objectives of the company have been discussed for each time frame along with
potential ramifications and feedback mechanism.
Background
Toolscorp Corporation is situated in Tennessee. It deals in various products such as power
tools, lawn furniture, lawn mowers, microwaves and different home appliances. The
company has already developed a reputed image in Canada and the United States through its
products. Toolscorp Company now is planning to expand its business in Australia as there is
a greater opportunity to grow business.
As per the current research, Australia is providing boosting advantage in the electronic retail
industry they are producing ultra-thin and flexible electronic devices. They will very soon
realize extremely thin electronic devices which can be bend and wrap around their arms and
kitchen products which will make more eco- friendly (Bloom, Sadun, and Van Reenen,
2015). Their major focus is on developing flexible electronics that can be shaped, coloured,
formed in a manner that put up little similarity with present inflexible devices. In accordance
with the available possibilities huge demand of customers can be expected an in the world of
technology, everyone needs products with the latest technology with a concern towards
component: being eco-friendly in nature. It has been assumed that predictable growth from
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A$16 billion last year to A$77 billion in 2023. Australian electronic retail industries are
working hard to make a partnership with different companies for bringing end users,
component manufacturer and producers together to build a flexible electronics network and
products in accordance with requirements of the consumer. Therefore it can be said that in
Australia there is a high possibility that products of the company will be acceptable by the
customer which can lead the company to huge success.
SWOT Analysis of the company
Strength
 Strong brand
 Diversified business
 Popular, profitable products
 Experience
 Wide range of products
Weaknesses
 Imitation of products
 To large product diversity and low
on quality
 Lack of trust
 Lower quality in few products
Opportunities
 Further business diversification
 New product development
 Rapid innovation
 Move- towards the eco- friendly
technique
Threat
 Competition
 Chinese manufacturer
 Technology
 Pricing
 Existing brands
Strength
Toolscorp Corporation is a leading company in the business industry. Its trusted products and
services as well as new offerings to attract the customers towards them. Company has a
diversified business as it includes various types of kitchen equipment, lawn furniture, and
electronics with a diversified range. Due to its diversification, it reduces the market–based
threat and enhances its stability. It provides various profitable products which further assures
the profits in spite of competitive rivalry (Govindan, and Soleimani, 2017).
Weaknesses
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The biggest weakness of the company is imitability of its various products. Significant
products are a copy of the products of other companies providing similar designs of furniture
which seems as exact copy provided by the brand. Another weakness that comes into view
while surveying is too large diversified range of products but not in adequate quality. The
same develops a lack of trust and interest within the customers when the needs of the
customers in terms of quality don’t get fulfilled (Venkatesh, Rathi, and Patwa, 2015).
Opportunities
Tools Corp Corporation has various opportunities in order to develop its business. They have
opportunities various sectors like entertainment, home appliances, electronics by which they
can further diversify their business, develop a new and innovative product, and provide a
steady innovation. Growth of the company can be increased by the diversification; for
instance, working on its present competencies various opportunities can be explored by them
in the connected industries. For generating a high income, the company can also build its new
products. Moreover advanced technologies can increase the competitive advantage of the
company particularly when there is a high level of competitive rivalry in the businesses
(Donate, and de Pablo, 2015).
Threats
There is a huge competition in the markets as various companies are entering into the market,
and they are providing the similar products in terms of technology with a discounted price,
due to which people are shifting for the low price products. Pricing strategy of the companies
are changing on a continuous basis and due to competition opponent charge the fewer prices
on their product to attract the customers. However, it is not very easy to survive in the
industry in the same position. Another threat that the company is facing is innovation and
technology variant. To make the technical changes in the short period is not that easy
because as huge funds are required by the company and it is not necessary that required
amount is available at that phase (Lodhia, Martin, and Rice, 2017).
The mission of the Tools Corp Corporation
Statements of the mission are not already set for the companies; however is it planned
according to the size, purpose, guidelines and objectives of the company. The aspect that is
considered while making the statement is that the audience should not be confused as it
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declines the reason to communicate about the existence of business (Caldera, Desha, and
Dawes, 2017). Tools Corp Corporation believes in the allocation of the techniques and
human resources for generating advanced services and products; their major objective is to
serve the global society. The mission statement of the company is mission statement is “To
provide the best possible services to its customers with nominal price at the global level.”
Major sectors are covered by the company which helps the company to grow globally, that
are electronics, semiconductors, and various connected technologies (Gibson, and Warren,
2018). The nine components that are commonly used by the company for effective mission
statement it provides a structure under which company, creates its a statement and offers all
the terms and reason of operations of the company. The specified nine variants are being
short in the specification, unique to the business, develop expectation, realistic, memorable,
active, positive, adaptable and targeted (Yigitcanlar, and Teriman, 2015).
According to the operations of the company and its present global business positioning,
Toolscorp Corporation considers the following elements in its mission:
 Inclusion of advanced technology in products and services,
 Adequate use of human resources and technological resources,
 Development of global society
In the mission statement of the company, it has been declared that two important assets that
are human resources and technology are importantly used to follow its idea as well as in
achieving strategic objectives in the worldwide industries. The component of the business
mission needs that company should uphold extreme competitive compensation packages and
associated human resource management and development plan (Roos, and O'Connor,2015.).
It helps to draw attention towards sufficient talent while challenging against huge technology.
By understanding the importance of human resource management and determining it, the
company is focusing on fulfilling the company’s mission. The above statement signifies that
the mission provided by the ToolsCorp Corporation is real; it doesn’t mention pretentious and
theoretical things that mislead the consumers. At the Present moment what company is
serving to its customers is mentioned in the mission statement (O’Neill, Sohal, and Teng,
2016).
Another essential factor that plays a significant role in fulfilling the business mission is the
superiority of services and products. Superiority of services and products highlights the
significance of strategic management which leads decision towards the head office of the
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Toolscrop Corporation (Fayezi, Zutshi, and O'Loughlin, 2015). It further performs its
functions effectively to produce high-quality managerial outputs in different technical market
places. The major purpose of the company is to ensure an effective value chain and attain its
valuable plans like useful and superior quality electronics for the consumer. For providing the
high-quality products the company use to follow, Toolscrops generic strategy, strategic goals
as well as intensive growth strategies. The company deals the electronic products, home
appliances, phones, laptops and others. The mission statement of the company is developed
after considering specification provided by various marketing and product development team
and also used for motivating the audiences for acquiring the product which represents the
character of a component of being realistic (Govindan, and Soleimani, 2017).
Key operating principles of the company
Figure 1: Key operating principles of the Tools Corp Corporation
The company fulfils all the legal and ethical standards-
Toolscrop Company always values the basic human rights of the workers and never make a
difference against its associates, employees and other connected parties in terms of
nationality, religion, race, physical disability, gender or any other personality that is
protected by law. The dealings are continuing fairly and without any restraints in all over the
10
WecomplywithlawsandethicalstandardsWemaintainacleanorganizationalcultureWerespectcustomers,shareholdersandemployeesWecarefortheenvironment,health,andsafetyWeareasociallyresponsiblecorporatecitizen

world. All the resources of the corporation such as manpower, economic resources, and
services don’t fulfil any political reasons (Chau et al. 2019). Information that is used by the
corporation that is connected to business, individuals, customers which are attained by the
general business procedure is only used for the purpose of business, and all such information
is protected.
The company focus on clean organizational culture
Illegal proceedings don’t take place in the company for fulfilling personal needs like uneven
conduct of expenses, misuse of companies assets and using other positions for personal
growth. It is assured by the company that private information, as well as internal intellectual
possessions, will be protected from the third parties through its workers without its former
consent and permission. Equal opportunity is provided to all the workers at the workplace
and does not allow the formation of any personal group in the corporation that causes risk
with its commitments (Stephan et al. 2016).
Customers, Employees and shareholders are respected
A major priority is given to the needs of the customers. Further, the proposals provided by
the company are considered in order to enhance the design of products, services and
distribution are considered. Equal opportunity is provided to the workers or staff and apart
from this treatment is given to them according to their ability and attainments.
Environment, safety and health aspects are considered
Company is effectively working for eliminating the effects of harmful material and makes the
utilization of resources appropriately. They use to recycle waste material to support the
environment. Health and safety measures of the customers are mainly considered it clearly
demonstrate them about the safe use and operation of the services or products (Küpers, 2016).
It operates as a socially responsible corporate citizen.
The company makes its efforts for stable employment and authentically meets its tax
obligations. By fulfilling their duties and liabilities, employees made efforts to create truth in
the local community. Laws, values and cultures of the local community are respected by the
corporation and further which add to the development of the quality of life, of local populace
(Moeller, and Maley, 2018).
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Market Analysis
Five Forces Analysis
Worldwide Australia is one of the most urbanized societies, and approximately 24 million
people reside in the urban areas of Sydney, Perth, Adelaide, Melbourne, and Brisbane,
additionally in smaller towns and cities inside 100 miles of ocean. In Australia the future of
business is mostly based on the disruptive forces like choice alterations of consumers, the
difference in the way of spending as well as invasion of foreign business that majorly
concentrate on devising new approaches in retailing (Hon, and Lui, 2016). By making the
five forces analysis actual status of the industry is analyzed as it comprises assessment of
factors like a threat, competitors, bargaining power of buyers and suppliers and the threat of
new entrants (Fleischmann, Daniel, and Welters, 2017).
Threat of Substitutes
The threat of substitute is comparatively high in Australia, as there are various indirect
competitors, for example, other retail outlets, other brands and wholesales as well as
convenience stores. In conclusion, it can be said that indirect competitors are practical
substitutes of retailers and in future can be the biggest threat. Retailers can make the
expansion in its products by offering various choices and compete directly with supermarkets
regarding a wide range of products and choice handiness. As there is an extended alternative
coming into view, the competition is also increasing. Other eco-friendly products provided by
reputed brands that also poses a possible future risk. Moreover, threats due to speciality stores
are supposed to be less with the rise of increasingly time-poor customers (Rowley,
Nankervis, and Salleh, 2016).
Rivalry amongst Existing Competitors:
In Australian there is a high degree of rivalry exists as there is a large number of small
players are available in the market. Moreover, there is a lack of perceivable separation as
common services and products are provided by them. Thus mostly competition is based on its
level of price, as well as other competitive factors like stores location and choice of product.
The most important because of which future rivalry can be increased is the performance,
private retailer IGA in addition to Woolworths that in the most important position (Lloyd,
and MacLaren, 2015).
Bargaining Power of Suppliers:
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The bargaining power of supplier is very low. Moreover, various local Australian
manufacturers operate with limited intermediaries to select. There are huge numbers of the
supplier in the industry because of which suppliers are not able to keep high margins on the
product. As there was a tough competition between the availability of supplies and the
supplier, make it hard for them to have an effect on the industry (Nankervis, Rowley, and
Salleh, 2016).
Bargaining Power of Buyers:
As there is a large number of buyers and have strong forces, and purchasing amount of
individual is very less; however, that is a less force that purchasers can inflict in industry.
The purchase of every purchaser is as well expanded that cannot put force on the firms under
the retail industry. The purchasing power of customers can be set to increase in future.
Moreover driving the increase of buyers bargaining power would be the increase of price
contrast to websites for example ‘grocery.bestpricedirectory.com.au’ that allows consumers
to evaluate the cost and decide the cheapest option. Such factors are set to bring customers
future bargaining to a more “reasonable” stage (Sablok et al. 2017).
Threat of New Entrants:
In the Australian electronic retail industry, the threat of new entrants is very high, and it
usually remains unchanged. The forces are strong because new retail firms can enter the
market easily because most of running a business is low as well as Capital cost is also
reasonable. Smaller retailers have the capability to compete with the huge businesses
available industry in terms of convenience, speciality as well as locality (Howlett and Del
Rio, 2015). For continuing the retail business not many resources, investments and facilities
are required; therefore it is easy for the individual to enter into the retail industry; however,
the threat of new entrant is high.
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Threat of Substitutes
Rivalry among existing Competitors
Bargaining Power of SupplierBargaining Power of Customer
Threat of new entrants
0
5
Percentile of specified variants of five
force analysis
Percentile of specified
variants of five force analysis
Figure 2: Five Force Analysis of the Australian Electronic Retail Market
Strategic Plans for Tools Corp Corporation
One Year Plan
The strategic plan for year one comprises the accomplishment of following goals along with
specifications:
Table 1: Goals to be attained in year one
Particular Specification
Development of compelling
value proposition
The management will make a prominent effort in
developing a compelling value proposition for sponsors as
well as consumers
Developing Strong industry
relationship
A strong bond will be developed with the suppliers and
other stakeholders so that operations could be conducted
with ease as well as in a smooth manner.
Leveraging Technology
investment
The adequate investment will be made in technology in
order to develop the required measurable marketing and e-
commerce platform which will assist in enhancing
integration with important customers and suppliers.
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Five Year Plan
The strategic plan for five years comprises the accomplishment of following goals along with
specifications:
Table 2: Goals to be attained in year 1-5
Particular Specification
Opening stores and other
outlets in Australia
Tools Corp Corporation will open stores in different areas
of Australia in order to expand its business operations in a
significant manner.
Constructing Brand
Recognition
An attempt will be made to develop strong brand
recognition through the application of creative marketing
strategies to build awareness regarding the brand.
Inclusion of innovation
through providing new
products
An efficient attempt will be made by the company to add
on products in accordance with the requirement of
customers as well as changes in trend.
Ten Year Plan
The strategic plan for ten years comprises the accomplishment of following goals along with
specifications:
Table 3: Goals to be attained in 10 year
Particular Specification
Extension to another country The company will make an attempt to make a substantial
move in order to enter another market to expand globally.
Enhancing the existing level
of attained brand image
Marketing strategies will be implemented in order to build
a brand image at a global level.
Attempt to attain
sustainability
It is appropriate to stage where the company can make an
attempt to attain sustainability as it has developed a
required place in the market as well as industry.
Implementation and ramification of plans
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Figure 3: Procedure for implementation of each strategic plan
Implementation can be referred to as the procedure of turning strategies into an action plan in
order to attain strategic objectives. The senior management committee will play a significant
role in the implementation of the above strategies of each plan. Assessment of customer
requirement will be done in detail manner in order to ascertain their requirement in
accordance with which new products can be added to the existing product list of the company
(Albrecht et al. 2015).
International marketing comprises recognizing the requirements of consumers into global
markets and taking marketing mix conclusions regarding the product, pricing, place and
promotion keeping in mind the different customers and market behaviour across diverse
countries, on the one hand, firms’ objective towards globalization of others. Thus, all the
variants will be assessed by the marketing department before drafting marketing policy in
order to enhance brand recognition at every stage. In addition to this, it also includes incisive
into the international market using different means of entrance. After considering all these
things, the next is taking decision along with keeping in mind lively international marketing
surroundings (Reiche, Stahl, Mendenhall, and Oddou 2016).
16
Strategic plan
Annual
budget
Financail and
programme
reporting
Annual
team
workplan
Individual
objectives

Feedback Mechanism of plans
Risk Management is a central part of every corporate strategy. Thus CSR practices should be
involved in the same through developing a genuine culture of ‘doing the right thing’ within
the organization in order to offset the existing risk. Tools Corp Corporation will develop CSR
strategies through organizing meeting with senior executives so that it could entertain the
idea of a positive role for the state in the development and accessibility of CSR practice.
Through this step, they would be able to influence every employee regarding the significance
of corporate social responsibility practices in the organization. It will also assist in assessing
the areas where polices are not followed in an adequate manner (Brewster, 2017).
It is assessed by Prajogo (2016) that practice of management accountability could be adopted
in the manner accepted by the management of Tools Corp Corporation to develop a
sustainability steering committee and enterprise risk committee. The same allows
ascertaining the senior executives who are accountable for sustainability in operations.
Acceptance of disclosure policy relating to activities of corporate social responsibility so that
organization employees, as well as all the stake holders, could know about the same and
required feedback can be provided for improvisation (Marchington, Kynighou, Wilkinson,
and Donnelly, 2016). It will encourage the employees and will put an example for other
organization to do the same so the customers could compare the activities of the entity with
other companies. The substantial practice relating to feedback which will be followed on a
continuous basis is an assessment of operations and manner of accomplishing same at every
stage. It will assist in ascertaining the weak areas or rising of obstacles at the initial stage.
Thus same could be resolved with ease (Hart, 2016).
Conclusion and recommendation
As per the present study, it has been analyzed that there is a huge scope of business expansion
in Australia. The customers or targeted public in Australia is accepting various innovative
and advanced products provided by the company, so the decision of Tools Corp Corporation
of choosing to expand in Australia is correct. The compliance of the above stated strategic
plan will assist the company in the attainment of pre-determined objectives. Apart from this
strong feedback mechanism is required by the management so that appropriate changes can
be made in the strategies at the initial phase of issues. If problems are resolved before they
become critical than there will be no major issue in the attainment of goals and objectives and
work will be completed at the appropriate time.
17

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