BSA/510 V6 Title ABC/123 VX Arctic Inc. Strategic Plan ✓ Solved

BSA/510 v6 Title ABC/123 vX Arctic Inc. Strategic Plan

Arctic Inc. is an online retail company that has adopted the model of other online businesses and built a following of customers by providing a cross section of merchandise that fits their mission statement: Something for Everyone. Because of changing national and international economic issues, the last year has seen tremendous growth in retail sales in all areas of the company.

The board of directors has charged the management group with developing a five-year strategic plan that will direct the company in growing the company nationally by increasing the following:

• Expanded locations for warehousing inventory for faster delivery of customer orders
• Better inventory control to reduce out of stock situations
• More efficient operations to handle orders from order to ship
• More robust web presence, with the ability to prompt the customer for like items
• Implement control policies and procedures to satisfy government regulations

The board of directors also wants a plan for moving the company into the international market, accounting for compliance with all regulations and laws of each country that products are sold into.

The company will need to consider the following in its international plan:

• Each country requires a different set of controls to satisfy the laws and regulations
• Warehousing locations in major areas of retail sales
• Expanded internet presence in major countries

The management group presented the board of directors with a finished plan that will provide for 10 new warehouse locations in the United States and five warehouse locations spread across Europe, Great Britain, Africa, and Mexico. The company plans to purchase a new inventory management system that uses robotics for 60% of the inventory control (stocking and pulling) retail items for shipment to the customer. Investments will also be made in increased web technology with emphasis on the customer experience.

Control and governance will be needed to make sure the projects are running within scope and change management decisions will be made that will have a positive effect on the operations, regulatory controls, and auditors. The current technology group was not involved in the creation of the strategic plan. All technology processing is currently being handled in a central location, housed in a data center next to the corporate office.

Paper For Above Instructions

Arctic Inc. is positioned strategically to grow through a comprehensive five-year plan targeting both domestic and international markets. The focus on enhancing warehousing, maximizing inventory control, optimizing operations, and strengthening the web presence is designed to meet the demands of a changing retail landscape. This paper will delve deeper into the strategic components, explore operational efficiencies, assess compliance considerations for international expansion, and suggest measures to ensure effective governance.

Strategic Overview

The foundation of Arctic Inc.’s strategic plan hinges on addressing the immediate operational challenges and preparing for future growth. With a growth in retail sales, the decision to expand warehousing capabilities will directly affect customer satisfaction through faster delivery times. Research indicates that supply chain efficiency can elevate customer loyalty and return rates (Chopra & Meindl, 2016). Thus, the plan to establish ten new warehouse locations solely in the U.S. market is paramount.

Warehouse Location Strategy

The choice of warehouse locations should be informed by market data analyzing consumer demand, shipping costs, and regional sales trends. Moreover, Arctic Inc. must also consider proximity to major transportation hubs to streamline logistics (Ballou, 2004). The deployment of advanced robotics in warehousing can drastically cut down labor costs and improve inventory accuracy. Case studies show that companies integrating such technologies have reduced operational costs by up to 30% (Gunasekaran et al., 2017).

International Expansion Feasibility

While domestic growth is crucial, expanding internationally provides avenues for diversification and risk mitigation. Arctic Inc. plans to establish five warehouse locations across Europe, Great Britain, Africa, and Mexico. Each region has different regulatory requirements, thus necessitating a nuanced understanding of compliance (Cavusgil et al., 2014). A thorough analysis of local laws is required to avoid potential legal pitfalls, which could halt progress. Additionally, factors such as tariff implications, import regulations, and regional marketing legislation need consideration.

Robust Technology and Inventory Management

The investment in a new inventory management system that leverages robotics for 60% of inventory control reflects a keen understanding of modern retail dynamics. In the increasingly digital marketplace, an agile system allows Arctic Inc. to reduce out-of-stock situations and adapt to fluctuating consumer demands (Kumar & Singh, 2019). Hence, implementing an advanced inventory management system could synergize with the company's online platform, fulfilling desires for prompt and efficient customer service.

Enhanced Web Presence and Customer Experience

In an age where e-commerce reigns supreme, Arctic Inc. must cultivate a robust online presence. Significant investments in web technology are essential to elevate customer experiences. Research reveals that personalized online engagement can boost conversion rates by over 25% (Lemon & Verhoef, 2016). Adopting web technologies that predict customer preferences enhances user satisfaction and can increase repeat business significantly.

Control and Governance Strategy

With extensive plans scheduled for implementation, ensuring effective governance and control mechanisms is vital. A structured approach can facilitate successful project execution while mitigating risks associated with deviation from the planned scope. Implementing a governance framework that includes regular oversight by the board will enable Arctic Inc. to react promptly to changes in regulatory environments or operational challenges (PMI, 2017).

Change Management and Organizational Alignment

A fundamental element of strategic management is change management. As Arctic Inc. introduces new technologies and expands operational capacities, aligning the entire organization with these changes will solidify support and enhance the implementation process. Training programs and effective communication strategies are crucial for minimizing resistance and fostering a culture that embraces innovation (Kotter, 1996).

Conclusion

Arctic Inc. is embarking on an invigorating journey of strategic growth aimed at both domestic and international expansion. Through enhanced warehousing capabilities, superior inventory management, a vigorous online presence, and meticulous governance, the company is equipped to leverage current industry trends efficiently. As Arctic Inc. fosters its growth trajectory, maintaining agility and adaptability will be key to its long-term success.

References

• Ballou, R. H. (2004). Business Logistics/Supply Chain Management. Pearson Education.
• Cavusgil, S. T., Knight, G., Riesenberger, J., & Türk, T. (2014). International Business. Pearson.
• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
• Gunasekaran, A., Ngai, E. W. T., & Elahee, M. Z. (2017). Insights into New Technology: Robotics and Automation in Supply Chain Management. Journal of Operations Management.
• Kotter, J. P. (1996). Leading Change. Harvard Business Press.
• Kumar, A., & Singh, R. P. (2019). A Review on Smart Inventory Management Techniques Using Internet of Things. International Journal of Computer Applications.
• Lemon, K. N., & Verhoef, P. C. (2016). Understanding Customer Experience Throughout the Customer Journey. Journal of Marketing.
• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Project Management Institute.
• Russell, R. S., & Taylor, B. W. (2016). Operations and Supply Chain Management. Wiley.
• Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.