My Summary

I have created this blog so that the students get an idea about strategic plan when they make it as an assignment. I did not make any changes and uploaded it as it is. I wrote this plan during my MBA. Kindly do not copy paste this material.
I hope it will help quite a few out there. If you want to read it from the start you have to start from the bottom.
For any further help you can always leave a comment or send me an email on jawadghani@gmail.com. I would love to help students. 

19.0 Executive Summary

Touch-Free Automatic car wash is a new facility to the people of this Region. The area of KPK has certainly lots of opportunities. As we are starting from Mardan, it is the second largest city in the province. The competition in this region are not that fierce as no one provides automatic car washing facility, but still the existing manual car washing bays (competitors) can not be ignored. As the number of cars is increasing at high rate and most of the middle class families are having cars and the awareness of importance of time and quality customer service is increasing, therefore these customers can be targeted easily to capture good market share and increase it rapidly.

This strategic plan should be implemented effectively to make this project successful and profitable in this competitive 

18.0 Contingency Planning

The contingency plan will be followed if the original plan does not work according to the expectations and changes are required.

ü  If the plant is not working properly and is having problems more often, service will be stopped and expertise will be called. Services will not be restarted till it is made sure that such problems do not occur. Such problems can make a bad label on the industry and the business.

ü  If touch-free automatic car wash initially fails to attract good numbers of customers with existing strategies, the price that is charged for each wash will be decreased and will be advertised heavily to attract customers, once the customers start coming they will be retained by high quality of service, saving of time, good customer relation by quality customer service.

ü  If the customers are coming more rapidly and most of customers want to have full service i.e. interior/exterior cleaning, for that purpose new car cleaners will be hired for rush hours and wedges will be given on per car basis.

17.0 Strategy Evaluation

Strategy evaluation is a very important process to check whether the strategies are implemented properly or not. For that purpose the balance scorecard of our strategies is;

Touch-Free Car Washing’s Balance Scoreboard
Financial		Actual	Target*	Responsibility
1.	Captured Market Share		2%	Owner/OM
2.	%age increase in the no. of cars serviced		0.5%	Owner/OM
3.	Total revenue		Rs. 650,000	Owner/OM
4.	Revenue growth		2%	Owner/OM
Customers
1.	Retaining Existing Customers		20%	Operation Manager
2.	Customer satisfaction with the quality of service		95%	Operation Manager
3.	Customer satisfaction with the convince		98%	Operation Manager
4.	Customer satisfaction with the customer service		95%	Operation Manager
Managers/Employees
1.	Employees Absenteeism		2%	Operation Manager
2.	Employees satisfaction and performance to pay criteria		90%	Owner
3.	Decrease employees turnover		5%	Operation Manager
Operation/Process
1.	Number of Plant Accidents		3	Plant Incharge
2.	Decrease the waiting time of customers		5%	Operation Manager
3.	Improvement in service quality		5%	Operation Manager
4.	Increase employee productivity		2%	Owner
Social Responsibility
1.	Decrease wastage of water		2%	Plant Incharge

* The target figures are given for the first three months. These targets will change for every quarter.

The strategy implementation will be checked every three months (Quarterly). Targets will be set before the period starts and it will be made sure that the targets are achieved in every quarter.  

Customer satisfaction will be measured by the forms those will be filled by the customers randomly. That will include questions about their satisfaction level about quality of service, convince and customer service.

Employees will be observed and asked about their work and performance to pay criteria. 

16.0 Positioning

We are the first automatic car washing providers in the area and that will be used to position our self in the market along side other qualities of our services that we provide. People will be made aware of the time saving factor, as their car will be washed in less than five (5) minutes of time if they need a simple car wash only. Customers will be given convenience, as they will be given the facility to book their turn by making just a phone call to save their precious time.

We will also provide high quality of services to our customers by using quality products to clean their cars.

As the customer service provided in this locality is not of that good quality, therefore customers will be provided with exemplary customer service and care.   

15.0 Market Segmentation

Our customers are all car owners in the locality. But as the city is a big city and its not easy for all the customers to reach one car washing bay easily. Another problem is that all the customers do not need same kind of service. Therefore we will be targeting different segments. That will be done on two basis, those are:

15.1     Geographic Segmentation

The population of the city is round about 1800 thousands having 86 thousand cars. Therefore we will try to establish automatic car washing bays in every locality that is ten different locations.

15.2     Behavioral Segmentation

Customers need different kinds of services and therefore benefit sought segmentation will be followed and customers will be provided three different kids of services to choose among what they like. Some times the customer needs only a simple car wash and his car is clean from inside, or may be because he is in a hurry for that purposes we will be providing him the Exterior car wash that includes basic car wash, interior vinyl and tire cleaning.

Some customers need Detailing that includes basic car wash, cleaning, and shampooing, it does not include exterior waxing or buffing.

The other kind of service that will be provided is Interior/Exterior Wash that includes basic car wash, vacuuming of inside and trunk, shampooing, inside window cleaning, interior vinyl and tire cleaning. 

14.0 Organization Culture

The organization culture should be very respectful to every one that includes employees of all levels and customers.

Culture should be very customer oriented. Customers will be dealt with great respect, care and polite. In case of any incident and mishap between customers and employees or business, employees will be taught not to speak loudly and give respect to the customers and listen to them. Operation managers should be asked to solve such problems.

The operation managers will be asked to work on perceptive management so that every one in the organization can feel important. Managers will be asked to make a polite and truth based culture in the organization.  A kind of culture will be developed where customers, employees and other people will not be deceived to catch the attraction by unfair means.  

Employees will be given training and development sessions to improve their skills and loyalty to the organization. They will be rewarded for their hard work by giving them increase in their salaries on performance base. 

13.0 Performance and Pay Criteria

Employs will get annual increase in their salaries. 4% increase will be given to every employee while up to 10% increase will be given on performance based. Performance of the employees that includes plant in charge, car cleaners, office boy and security guard will be measured by the Operation Manager, and the performance of operation managers will be measured by the CEO, at end of every year. Employees will be judged under the criteria which matches their work responsibilities. Some the basic judgment criteria will be:

1.      Technical knowledge

2.      Time Management

3.      Planning, budgeting and forecasting

4.      Reporting and administration

5.      Communication skills

6.      Delegation skills

7.      Equipment/machinery skills

8.      Meeting deadlines/commitments

9.      Creativity

10.  Problem-solving and decision-making

11.  Team-working and developing others

12.  Energy, determination and work-rate

13.  Leadership

14.  Adaptability and flexibility

15.  Personal appearance and image

12.0 Policies

12.1    Guideline

1. A vehicle shall only be washed if it is dirty (clumps of mud on vehicle, decal obscured, excessively dusty, etc.).
2. If the car wash is less than 100% satisfactory customer should let the operation manager know while they are at the car wash.
3. Service will be provided on first come first serve basis (FIFO). Booking made by phones calls will be accepted as first come.
4. The customers who make bookings on phone are suppose to reach the bay atleast ten minutes before the time is given to them, or else they might lose their number. It is on the discretion of operation manager. 

12.2    Rates

1. Interior/Exterior cleaning        150 Rs.
2. Detailing                                 120 Rs.                       
3. Exterior Basic Car Wash         100 Rs.

            (Car washing rates can be changed accordingly by the CEO)

12.3    Other Polices:

There are certain other polices which should be followed to accomplish the goals and objectives.

12.3.1 Office Policies:

1.      Touch-Free car wash will open at 7am precisely and will remain open till 8pm. Employees are suppose to reach at 7am and leave at 8pm.

2.      Employees can take 30 minutes break for Prayers and lunch. No more than two employees shall leave the office at once. Employees shall only leave on the permission of Operation Manager.

3.      Every operation manager will be given a separate office. He will be provided with latest computer according to the needs of office.

4.      All the employees have to sign the attendance register as they reach for work and leaving for home.

5.      Employees can make 12 leaves a year. More than 12 leaves will be deducted from their salaries.

6.      Reaching late or going early from office will be considered as half leave.

7.      Three half leaves will be considered as one leave. 

8.      Blue-collar workers will be hired on the basis of skill and attitude.

9.      No female worker will be hired for blue-collar job.

10.  Office supplies should not be consumed for personal use.

11.  No employee should talk against the business to the customers or in general public.

12.  No one should talk in high pitch with any employee of the office.

13.  No harsh and immoral words or phrases should be used inside the office.

14.  Office discipline should be maintained by all the employees.

15.  Employees shall remain loyal to the business.

16.  All the employees should follow all the rules written in the policy and generally accepted rules for offices.

17.  Any misconduct should be communicated to the CEO.

18.  CEO will make a committee of three to take decision against any employee if he/she misconducts or do not follow the rules.

12.3.2 Dress Code Policy

1.      Managers and sales representatives should wear paint, shirt with a tie. On Friday they can wear casual dress.

2.      Blue-Collar workers should wear the uniform that will b provided by the company.

12.3.3 No Smoking Policy

1.      No employee is allowed to smoke in the office.

11.0 Resource Allocation

In the beginning of the business till the SBU’s reach to a good number, company will work on centralized resource allocation.

11.1    Financial Resources

1.      10% of profits will be allocated to the advertisements.

2.      20% of the profits will be invested into new SBUs.

11.2    Human Resources

Number of employees for every car-washing bay:

1.      Operation manager                  1

2.      Plant Incharge                         1

3.      Car cleaners                             3 (can be increased if required)

4.      Office boy                               1

5.      Security guard                         1

11.3    Physical Resources

1.      Resources required for car washing will be provided when the stock limit will reach 25%.

2.      A high voltage generator will be provided to all the bays to run the system smoothly in case of power failure.

3.      Water recycling equipment will be fixed in all the bays to save the water and electricity.

Lands will be rented for long term for making car washing bays at different locations. 

10.0 Action Plan

It will be insured that most of employees participate in the strategy implementation process.

ü  Employees training will be done by the operation manager after their appointment. This training will be a continued process to improve the customer service.

ü  Local TV Cable, local news paper, billboards and radio channel advertisements will be started one week before the starting of business, where as these advertisements will be changed more often, so that customers do not get bored with the old advertisements.

ü  All the new offers and attractive strategies like free car washes etc will be announced on different medias regularly.

ü  After completion of six months the work on new bay will be started which will be completed in 20 to 25 days.

ü  The old operation manager will be moved to the new bay where as a new operation manager will be hired for the already running bay.

ü  The Owner (CEO) will look for better raw material providers and will sign long term agreements with them to ensure quality products and their on time delivery.

9.0 Strategies

Following strategies will be implemented to achieve the annual goals and objectives of the company;

9.1       Attracting New Customers

In order to attract new customers, the following promotional strategies will be implemented.

ü  Local radio channel, local news paper and cable will be used to introduce the automatic car wash in the locality. Such advertisements will show the affordability, time saving, great experience and fun that will be experienced by the people with this new service and facility in their own locality.  

ü  Initially billboards of various sizes at different locations of the city will be used to introduce this facility along side its advantages.

ü  To give a practical experience to the new customers, coupon will be given to each customer, which can be used for once but not for the same car by which customer gets the coupon. Free car wash will be provided by that coupon to any other customer.

ü  Different colours of water will be used during the car wash, which will attract families to come, enjoy and have fun while sitting in the car while it is washed up with coloured water.

9.2       Retaining Existing Customers

In order to retain the customers, the following strategies will be implemented.

ü  One time free car wash facility will be provided after every five car washes for the same car in first six months. 

ü  One time free car wash facility will be provided to those customers who avail the facility of washing the car three times a month.

ü  All the employees will be initially trained initially and will remain under training, to insure that best customer service is provided to the customers. 

ü  It will be insured that the operation manager tell the exact time to the customers for their car wash, to save their precious time. 

9.3       Market Development

On completion of successful six months in the market, another location will be selected for the purpose of market expansion. Work will be started immediately to start a new bay.

  

9.4       Backward Integration

Long term agreements will be signed with those raw martial providers who provide quality products in low prices and ensure the on time delivery of products.

9.5       HR Strategy

Plant incharge will be asked to train the car cleaners about the plant. That will help when new plants will be installed in new geographic locations. These trained employees will be promoted to plant incharge position rather than hiring a new employee for such position. 

8.0 Annual Objectives

8.1       Marketing Objectives

1.      Increase ratio of repeat customers by 8% every 6 months.

2.      Capture 10% market share in the first year.

3.      Develop brand awareness and acceptance by spending 15% of profits on advertisement.

8.2       Financial Objectives

1.      Decrease cost by 2% this year.

2.      Increase revenues by 2% every month for the first year.

8.3       HR Objectives

1.      Develop efficiencies in the delivery of the service through advanced workflow analysis.

2.      Train the employees before putting them on the job.

3.      Make a training team who can train the newly hired employees.

Absenteeism should not exceed 8% this year. 

7.0 Organization Structure

The structure of the Organization will be functional. All activates will be controlled by the owner followed by the Operation Manager. Later on when the company will prosper, different departments will be made for marketing, finance and human resource. All these departments will work under one CEO.  

6.1. Break-even Analysis

6.0 Financial Overview