Strategic Growth Plan - Ingogo - Case Study Example

STRATEGIC GROWTH PLAN Name University title Introduction The study will be conducted on Ingogo. The organization has been recognized as one of the fastest growing organizations in Australia after reports be Deloitte Technologies placed Ingogo third after Prospa and Cirrus Networks for being among the top fifty fastest growing organizations around Australia. The study was conducted based on the growth in revenues that the organizations recorded for a period of two years. The 2015 report was based on the increase in revenues recorded by the organization from 2013 to 2015. The growth in revenues from the organization was estimated to be about 5571% for the two years. Ingogo is a taxi service p providing company in Australia. Ingogo deals in providing a flexible approach to building, designing and managing IT infrastructure for the Taxi service providers in Australia. The company has its headquarters in Perth, Western Australia. The organization has developed a new product that is an App that helps the owners and directors of the Taxi companies to monitor the movement of all the Taxis in the country and to easily calculate the costs that the customers have to pay for the services being rendered to them. The new innovation is a response to increase the sales and reduce fraudulent activities that may be occurring within the taxi industry. Ingogo is an organization that is driven by the need for innovation and enterprise. It is therefore driven by the vision to create a good idea to promote the quality of goods and services that they provide to other organizations as well as the dedication to implement these ideas and make them a reality. Knowledge management through innovation and entrepreneurial development is the main objective of the venture. It is through this that an assessment can be developed to determine the resourcefulness of the new product in the market. In this way, the organization will design principles that are aimed at managing the available resources in order to venture for the development of growth of the organization through improved resource sustainability for a competitive advantage to be achieved [Phi111]. Customer value logic for the venture The balanced score card determines the resources that are available to the organization and how the product compares to the perspectives that are provided to ensure that the customers enjoy value creation, the business remains stable financially and innovation and learning is encouraged in the organization. Well performing organizations have admitted that there is need to structure their methodology and objectives based on performance which has helped them to set goals and identify where to allocate more resources to meet the success of the set goals. The balanced scorecard could be viewed as a conceptual framework that organizations set and use to translate their objectives into performance. The balanced scorecard provides the organization with indicators on its performances distributed into four key features often termed as perspectives. The key features of the balanced scorecard are; financial perspective, customer perspective, internal business perspective and the innovation and leading perspective [Liz05]. Balanced scorecard for southwest airlines Vision and Strategy Vision Strategy Implementation Time Scale Deliver long term returns to shareholders Provide and maintain quality services Encourage research on how to better the services. Current Increase the market base Provide an online platform for interacting and serving their customers Developing an online platform where customers can have the company’s services offered to them. Current Financial perspective Southwest Airlines Financial perspective GOAL Measures 1 Cash Flow To enable the company to have funds to finance for short term expenses and to strategically identify the activities that result to cash outflow and finance for them according to their priorities. Revenues collected by the company increased from tremendously. The organization was ranked third for being the fastest growing organizations in Australia. For a period of three years, the organization enjoyed growth of about 1494%. 2 Shareholders To ensure that the welfare of the shareholders is safeguarded by maintaining a good balance sheet that ensure competitive returns In August of 2014, the organization forecasted that payments of about $150 million would be recorded. The estimates fell short however but they were equally high since they recorded payments of %140 million. The result of this was an increase in the market share of the organization in line with the welfare of the shareholders to about 11% from 8.5% the previous year. In the financial perspective, the cash flow in the use of the balanced scorecard gives the management a way to finance for the liabilities of the firm by identifying all of them first then finance them according to their agency and according to the availability of cash flows [Key06]. The second financial perspective entails the returns that the organization enjoys from its investing activities. In light of this, the returns determine the dividends to be paid to them in each accounting period. An increase in the dividends per share of the shareholder will attract more investors, therefore, leading to the growth of the company in terms of capital structure. A customer perspective Next PLC Customer perspective GOAL Measures 1 To promote customer loyalty to enhance an increase in the number of customers through improved quality of services and satisfaction of the customers The mission statement of the company revolves around customer satisfaction as they understand that an increase in the volume of customers helps the company work towards achieving its goals. 2 To ensure that there is convenience in the provision of services. The development of the new App allows the drivers to easily locate the customers. The App also provides the shorted and fastest routes to the drivers to ensure that the customers enjoy convenience in the quality of service that they receive. Finally, the customer enjoys value for money as they App calculates the total costs with reference to the total distance covered. The customer perspective in the balance score card aims to gain customer loyalty through a transaction and follow-up strategy for the customers. The second goal is to provide quality services that are appealing to the customers. The products set to be sold should be certified by the standards board to ensure that the products meet the required standards [Rob13]. Business perspective Southwest Airlines Internal Business perspective GOAL Measures 1 Promote a planning strategy by the management Increasing the revenue collections of the company should be enhanced by providing means through which they can increase the market base of the organization. 2 Promote an expansion of the company through diversification of both their products and the organizations that the sell their products to The organization currently deals with the development of Apps that only support the taxi industry. If diversification would be encouraged through innovation, then it is possible for the organization to develop new Apps that support more activities to help enhance the quality of services being provided in the taxi service industry. The third balance score card initiative deals with the internal business perspective. The first perspective is to enhance strategic planning by the management team to devise ways to increase their sales revenue and expand their market base to different geographical regions. The second perspective entails network expansion through the diversification of both their products and to the organizations that the sell their products [Kap10]. Innovation and learning perspective Next PLC innovation and learning perspective GOAL Measures 1 To produce better quality services in line with the vision of Ingogo Australia To ensure that they understand all the needs of the customers and increase the features of the Apps that are developed by the organization to ensure that the services provided in the taxi industry remain of good quality as compared to others that may be developed by companies in the same industry. 2 The use of online services such as an online platform for the sale of goods can be used to enhance convenience in services delivery for Ingogo Australia. Ingogo has designed a website to allow for online transactions where they have made it possible for the organizations to download and install the Apps to their systems in order to encourage efficiency in the provision of services in the industry. The fourth business scorecard provides for the innovation and learning process in the company. The first perspective is to provide innovative ways to provide better quality services in line with the mission statement of the company. The second perspective is to provide an online platform to enhance convenience in the installation of the Apps into the customers systems and in the delivery of other services of offered by the company. Intellectual capital resources currently available To determine the intellectual capital currently available to the organization, it is important to understand the type of assets that are available in any given organization. The total assets of an organization are classified into either the tangible or intangible assets. Standards identify the tangible assets to be both the physical assets which consist of the property, plant and equipment and cash items which include money and the debtors in the organization. On the other hand, the intangible assets are subdivided into three classes; the first class is the relationships that exist between the customers, suppliers and partners with the organization. The second classification is the human classification which consists of the employees and the shareholders of the organization. The final classification is the organizational classification which comprises of the systems, brands, processes, image, culture and the intellectual capital. The intellectual capital in an organization usually refers to the intangible value of the business. These consist of the people, its relationships and the structural capital. The term intellectual capital tries to cover the intangible assets that are available in an organization that are not explicitly listed on the books of account by the books of account of the organization. Others have taken the view of the recycling of knowledge through the introduction of the knowledge management system to understand intellectual capital in the organization. However, all these definitions of intellectual capital usually identify that there are four types that are generally occurring in any business structure. These include the human capital, structural capital, relational capital and he strategic alliance capital. The human capital refers to the combination of solving organizations problems. It therefore, refers to the employees of the organization who provide the skills and expertise to improve on the performance of the organization. The structural capital refers to the non-physical infrastructure of the business. This includes the processes and the database that promote the management of information and knowledge within the organization. These include the processes, information systems, patents, trademarks, organizations image and the proprietary software of the organization. The rational elements consist of such elements as the trade names, supplier relationships and the customer relationships. The worth of this relationships s usually provided as goodwill in the books of account. Finally, the strategic alliance capital takes to focus on the external relationships that exist in the organization to drive and support the operations of the business externally. Principles to guide entrepreneurs to manage the acquisition and growth of key intellectual capital resources In order to manage the acquisition and growth of the key intellectual capital in an organization, analysis of the strengths and weaknesses and the comparison of these strengths and weaknesses to competitors are done on the intellectual capital resources [Orl00]. The internal analysis of the organization helps to determine the capabilities and resources that are available to the organization that are likely to improve their competitive advantage. The analysis will also improve the exploitation of resources to increase their competitive advantage. The exploitation of these resources allows for the transformation of knowledge into business products, products, services, brands and in the long run the good reputation of the organization . Resource based theory In order to achieve a competitive advantage over other companies, the resource usage and capabilities are an important consideration and as a result, they should be bundled together. While determining the resources in the organization, there are two major assumptions that are considered. These are the resource immobility and resource heterogeneity. The resource immobility provides that it may be costly to acquire some of the resources that are currently not available to them and resource heterogeneity provides that the different organizations may have deferent resources available to them. To determine the value of resource available for Ingogo, the VRIO framework will be adopted. The framework provides for analytic techniques for resources in the organization as well as for the competitors. The VRIO analysis considers the value, rareness, imitability and organization of the resource. The idea of value determines how expensive it is for the organization to obtain resources from the market. Value determines whether a resource is to be purchased, leased or rented. Rareness determines the limitation of the resource in the market. Imitability is the ease or difficulty that exists for the resource in the market. Finally, the organization refers to support that the resources obtain from the existing arrangements within the organization. If the resources in Ingogo are not valuable, then the organization should consider outsourcing for other resources. In any case that the resources are valuable but not rare, then it means that Ingogo is in conformity with its competition. A short term competitive advantage in the organization is determined by the ability of the resource to be valuable, rare but imitable. In this case, the competitors may try to imitate the resources in future and the organization may end up losing their competitive advantage. When the other issues in the organization are available to the organization except for the adaptability of the resource in the organization, then it means that the organization would have incurred unused costs in the acquisition of the resources. Finally if all the four issues on the resources are available to Ingogo, then it means that the organization will enjoy a permanent competitive advantage. Long term resource based strategy for the venture The long term resource based strategy for Ingogo should consider innovation and entrepreneurship adoption in the organization. In this means, they organization will have the ability to create opportunities through the selection and de-selection of all the opportunities available to them. The venture will also pursue for an increase in sales level for the profitability of the organization. In line with the scope and scale of the products and services, the venture allow for product and market penetration through the development of different options. The development of an organizations innovation culture influences the growth in knowledge and influences the sales growth. Innovation also helps to develop the management of human resources and reorganization to better improve the performance of the organization. The concept of innovation also helps to develop new opportunities in the changing environments [Tho141]. Finally, the innovation of the resources available to the organization is also achieved through co-operation, risk-taking ventures, adaptive behaviours and flexibility. The development of entrepreneurial culture also influences the level of growth, the profits as well as the performance of the organization. It venture also helps in the management support of Ingogo to help develop time, boundaries and reinforcements to improve in the long term management of the resources available to the organization [Fan08]. Participative decision making, risk-taking and performance objectives are other issues that are supported by the development of an entrepreneurial culture within the organization. Finally, the entrepreneurial culture usually disrupts the market equilibrium and as a result, the owners enjoy wealth maximization within the organization. REFERENCES Phi111: , (Philipp & Jens, 2011), Liz05: , (Liz & Stathis, 2005), Key06: , (Keyes, 2006, p. 83), Rob13: , (Robert Kaplan, 2013), Kap10: , (Kaplan, 2010), Orl00: , (Richard, 2000), Tho141: , (Thomas & Christopher, 2014), Fan08: , (Fang, 2008), Read More