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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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  • Number of pages: 2

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2. KEY SUCCESS FACTORS

i. Consistent Marketing Strategy: Biokicks Inc. should be consistent with an efficient marketing strategy that constantly adapts to meet its global target market's changing preferences. The global market share of the company has been showing a declining trend which calls for a review of its marketing strategy to keep back on growth level within the industry. The management should tactfully oversee their marketing message and be consistent as they target more clients.  

ii. Volume of Sales: The volume of sales is a strength parameter to the company and therefore will infirm the success the company. The sales volume provides and quantifiable means to justify the strategies adopted by the company. The Global unit sales of the company reveal some fluctuations and lack stability. The company will have to incorporate efficient input-output decisions that will increase the sales volumes for it to maintain its sales position within the industry.

iii. Quality Product or Service: The quality of product and service being offered by Biokicks Inc. has to reflect the pricing strategy of the company. Investing in quality will create customer loyalty and get the company to win a large market share. Besides the company will gain stability in the market. This can be explained by the image rating as demonstrated in the company data. Quality products and services are key to maintaining a good public image.

iv. Assembling the Right Team: The company should also assemble a group of people whose talents, experiences, skills, and personalities mesh. This will be vital in ensuring efficient service delivery, ensuring quality output and achieving a considerable market share.

v. Sound Operations Plan that lays out the company should be run. It will be essential in defining the standard operating procedures (SOP) for all product and service development, client services, and other functions that maintain the company and keep the customers happy.

vi. Effective Communication: This ensures that all the decisions and plans enables the company to reach the various internal units of the company in the right time and form. Effective communication is an internal strength that will help the company actualize its plans and decisions by providing step-by-step action.  

vii. Sound leadership within the company which will see people who are able to focus on the big picture while directing the small picture come in and drive the long-term organizational goals.  

viii. Build investor confidence. As we can see, investors play a tremendous role in the success of this company. The image rating of this company is still below the investor expectations. Addressing this will be a bigger boost to the company.

3. STRATEGIC POSTURE AT THE END OF YR17

A. Vision, Value Statements and Company CSR/Policies

Strategic Vision Statement

To be the most innovative, interactive, efficient and consumer-driven quality shoe company in the world

The operations of Biokicks will be guided and informed by the beliefs of the company and committed to:

• Inclusiveness: The company embraces diversity and equality

• Quality: Continuous product improvement is at the core of the company

• Openness: In communication, ideas and direction

Corporate Policies

1. Child labor: The company is will not employ anyone under the age of 18 years as provide by the International Labor Organization (ILO)

2. Anti-dumping: The company will not at any point dump the products in other global markets as provided by the world trade regulations

3. Environment: The company commits to preserving and conserving the environment while maintaining biodiversity in all its operations. The company will always undertake environmental conservation initiatives as part of its CSR.

4. Dividends: The Shareholders are entitled to the distribution of the profits of the Company for each Shareholder in proportion to the number of Shares that it holds. The Company shall apply profits available for distribution for its further development and expansion prior to making any distributions to Shareholders (Law insider, 2018).

5. Bribery: It is in the interest of the company to conduct its business and operations ethically and honestly. Biokicks Inc. adopts a zero-tolerance approach to bribery and any other form of corruption.  

B. Investor Expectations

For the Yrs 18-20 the investors should expect the following performance objectives:

i. A higher credit rating in Yr 20 that is above that in the Yrs 18 and 19.

ii. An improvement in image rating from the past few years. In Yr 12, the image rating of the company was above the expectations of the investor. Therefore, the company will do its best to push the current low image rating to 60 and above in the coming years starting from Yr 20.

iii. A higher earnings per share of not less than $5. This will be an improvement from that of Yr 19 of $4.5.

iv. The investors should also expect a stock price of not less than $60 for the coming years. The company seeks to compete favorably to maintain the trend of its stock price.

v. The company also seeks to ensure a return on equity (ROE) of 15% and above. This is the level that is commensurate with the current investor expectations

C. Strategic Objectives

The company has outlined the following strategic objectives for Yrs 18-20:

1. Financial Growth

• Grow gross revenue to $200 million by Yr 20

• Increase net margin by 15% by Yr 18

• Reduce net costs by $50 million by Yr 20

• Produce three periods of monthly recurring revenue (MRR) of $150 million by Yr 19 consecutively

• Build $100 million of reserve working capital by Yr 19

2. Customer Satisfaction

• Deliver an overall customer satisfaction score of above 80% by Yr 18 through a survey

• Reduce the rate of customer loss per year to not more than two

• Reduce the time taken to deliver online sales by 2 days and processing refunds in 2 days

• Win an industry award of being the best customer service provider by Yr 19.

• Secure at least four major customers in Yr 19

3. Innovation / Product Growth

• Introduce and launch 1 new product I Yr 18 and 2 more in Yr 19.

• Establish three new massive partnerships for product distribution by Yr 20

• Develop a customer database in Yr 18 to help make projections

D. Adopted Strategies for Growth and Profits

The company will seek to increase growth and profits through the following strategies:

i. Increase the volume of sales and the overall global unit sales for the next years. This includes both the wholesale sales, internet sales and private label sales. Increased volume of sales is meant to increase profits to the company.

ii. Adoption of modern technologies that will optimize the input-output ratio and ensure efficient production to minimize costs and increase profits.

iii. The company will also invest in quality human resource that will aid in efficient operations within the company to steer the company towards a sustained growth path.

iv. The company will conduct market research that will help to find out what should be done on the current products to improve quality and meet the dynamic consumers tastes and preferences. This will lead to growth in the company's market share.

5. BALANCED SCORECARD FOR BIOKICKS COMPANY

In order to achieve financial growth, the company will focus on sales volumes and profits as the main driver. This will be closely managed through finding an optimal mix of the products and revenues. Similarly, the company will optimize distribution channels to maximize sales and therefore revenues.

Additionally, as the company seeks to increase revenues to $200 by Yr 18 and growth by Yr 19, the company seeks to lower costs of production through employing quality personnel and employing sophisticated technologies in production that will further lower production costs.

Efficient environmental and safety management is vital for the company to increase its approval and improve its image in the public domain. We seek as a company to be a driver of environmental conservation and preservation. Bioclicks Inc. seeks to integrate sustainable production technologies that will have a lesser impact on the natural environment.

Maintaining a sound internal transparency and communication of information is vital in achieving the company's strategic objectives of growth, customer satisfaction and innovation leadership. This ensures that all the decisions and plans enables the company to reach the various internal units of the company in the right time and form. Effective communication is an internal strength that will help the company actualize its plans and decisions by providing step-by-step action.  

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