Tips For Developing An Effective Action Plan And Strategy

Tips for Developing an Effective Action Plan and Strategic

Tips for Developing an Effective Action Plan and Strategic

I wanted to share a few tips that will help you to be successful on the action plan. These tips are based on issues that I commonly see: 1. Make sure the action plan is a table. You are not given a page count for a reason. 2. The action plan should start at the beginning of the project all the way to the end. This means your first action, for every project, should be drafting the plan and getting it approved. You also want some kind of closing activity. 3. Think small when thinking actions. For example, "conduct training" is too broad to be an action. This is an entire category which can include things like "recruit the trainer," "approve the training schedule," etc. It is not uncommon for an action plan to be 20-30 actions. In this activity, you will be developing your action plan. Please review the resources in the reading section as they provide specific instructions on how to develop your action plan.

The information you will be using to develop your action plan (the budget, the resources, the goals, the time needed, etc.) should come from your previous submissions, with the feedback from your instructor incorporated. At a minimum, your action plan should address:

  • What steps are needed in order to complete the plan.
  • Who is needed to implement these changes.
  • When each step will be completed and when the project will be completed.
  • What resources (i.e., money, staff) are needed to carry out these changes.
  • How communication will be accomplished (consider your audience, communication channels, legal and ethical considerations, etc.).

Consider using this template from Entrepreneur Media [PDF, 61.91 KB] for your action plan.

Things to Remember!

  • Include justification from your research for each part of your marketing plan.
  • Incorporate graphics such as tables, graphs, charts, etc., to justify your claims.
  • Format following APA guidelines. Compose your work using a word processor (or other software as appropriate) and save it frequently. Be sure to check your work and correct spelling or grammatical errors before uploading.
  • When ready, upload your file, ensure it appears under the attached files, and click "Submit".

This assignment is worth 3.75% of your overall course grade. It will be evaluated according to the M7A1 rubric. For more details, review the SBT M7A1 Rubric or the course information.

For context, Under Armour is experiencing challenging times. Shares are down 46% after multiple guidance cuts, partly due to the exit of a major retail partner (Bowman, 2017). To regain previous stock value and investor trust, a strategic five-year plan focusing on growth and development is proposed. This plan incorporates milestones and tiers, utilizing Max Weber’s Management Theory to address resistance to change and establish control. The first year involves inventory assessment, establishing new retail partners, and online sales channels. The second year targets endorsement deals with prominent artists like Kanye West and Pharrell, leading to a fashion line launch. Subsequent tiers focus on re-establishing Under Armour as a leader in athleticwear, developing a new slogan, and restoring stock value to new heights. Each phase must be completed sequentially to ensure success (Bowman, 2017; Caramela, 2018; Darwin, 2015).

Implementing the Process Improvement Plan

The plan necessitates significant investment, including software, hardware, real estate, staff training, and labor costs, distributed over five years with annual budgeting. The initial software cost is estimated at $500,000; hardware to support warehouse operations across the U.S. costs approximately $1.1 billion annually. Real estate expenses amount to $3.1 million yearly, subject to decline with online sales growth. Staff training costs are projected at $480,000 annually, based on $1,200 per employee for approximately 400 employees per facility, totaling around 400 facilities. Labor costs are estimated at $18 million annually, assuming 400 employees earning $40,000 per year. Effective resource management and strategic investments aim to restore Under Armour's stock value to pre-crisis levels and beyond. Financial discipline and resource allocation are critical to this effort (Linn, 2015; Under Armour Inc, 2018).

Risk Assessment and Strategic Challenges

External risks include competition from Nike and Adidas, industry giants who have historically replicated innovations like ColdGear and Climalite. Nike, accounting for a significant market share, is particularly vigilant and capable of countering Under Armour’s strategies by maintaining high-quality standards and innovation. Adidas, the leading European sportswear manufacturer, also presents competitive pressure. To mitigate risks, Max Weber’s authority-based management and Operational Risk Management principles will be employed. Weber’s theory emphasizes strict rules and clear command, ensuring organizational discipline, while Operational Risk Management assesses potential surprises like economic shifts, new product launches by competitors, and policy changes (Caramela, 2018; Duncan, 2018; Duncan, n.d.).

Embracing risk while maintaining quality and innovation is crucial for Under Armour. The company's history of bold decisions, such as Kevin Plank’s entrepreneurial journey, exemplifies the importance of strategic risk-taking for future growth. Learning from industry leaders like Nike and Adidas will be integral to navigating competitive threats and emerging industry trends.

Conclusion: Strategic Growth and Competitive Edge

In conclusion, a structured, resource-informed five-year action plan, grounded in established management theories and risk mitigation strategies, is essential for Under Armour to regain its market position. The plan’s success depends on disciplined execution, strategic investments, and adaptive risk management. By remaining innovative, quality-focused, and learning from industry leaders, Under Armour can revitalize its brand, restore stock value, and secure its future as a formidable player in the athletic and fashion industries.

References

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