The mission statement is a crucial aspect of the strategic management of any organization (Taiwo, Lawal, & Agwu, 2016). It is equally important to share the statement with both the employees and the customers to give an understanding of what the company strives to achieve. As David, David and David (2014) stated it is utilized for “communicating its overarching purpose and competitive advantage” (p. 95). In order to create a proper mission statement, an organization should define its values and priorities (David and David, 2015). These essential factors determine what the organization is trying to achieve through its operations. There are nine components of creating a mission statement (David and David, 2015).
Tools Corp Mission Statement
ToolsCorp strives to provide its customers with the most efficient equipment, to do so we listen to our customers and their needs. We design our products with regard for customer’s wishes. Our principal products include power tools, lawn mowers and lawn furniture, microwaves and ranges. The current emphasis of the company is directed towards the local market in the US and Canada. However, the company is looking to expand its operations to the global market. We strive to continually evolve and develop the technology for our products to make them more efficient. We want to perform well to succeed in the market. The philosophy of the company is based on carrying about the employees and the customers. We want to outperform our competitors by leveraging the capabilities of our employees. ToolsCorp’s manufacturing is found in the US, by this, we want to support the economy of our state. We provide benefits and fair employment opportunities to our employees; our goal is to ensure the growth of our workers, which will result in the expansion of the company.
Due to the fact that entering a foreign market is a not an easy task for any company, ToolsCorp should identify what can enhance the process and what will be in the way. Bogdanova, Kozel, Ermolina, and Litvinova (2016) stated that “challenges of global competition complicate the process of management” (p. 269). The review will help identify the correct strategy for entering the global market. As Fazeli and Taherikia (2016) stated, identifying and perusing the proper approach can be crucial to the company’s survival in foreign markets.
- A wide range of products
- Diversified portfolio
- Logistical advantage
- Innovative development division
- High workplace standards
A wide range of products that ToolsCorp manufactures is a competitive advantage for the company that is why it is in the category of strengths. The company produces many different products in a variety of types. In addition, the company’s portfolio of manufactured products is diversified (from laws movers to microwaves). This allows ToolsCorp to choose the categories of products that will be popular in a specific region and focus the sales on that category. Additionally, in case the sales of some products are low, other groups that are more popular can compensate the revenue. That is the reason why the diversified portfolio is a strength of the company.
The manufacturing is located in Tennessee, a major US city with excellent transportation connection. This location provides a logistic advantage to the company, as the question of how to deliver the products to customers is an important one to consider when expanding the operations to the global market. This allows easy access to the North America market, which is why it is a strength of the company.
The company strives to provide its customers with innovative products that is why the research and development division of ToolsCorp is among the best in the industry, which allows responding to customer’s changing habits more quickly. Additionally, ToolsCorp can explore other niches with newly developed products. That is why it is a strength of the company. One of the primary objectives of ToolsCorp’s operation is providing benefits and growth opportunities for the employees. The result is a devoted team of people who work for the success of the company, which is one of the strengths of ToolsCorp.
- Local manufacturing
- US and Canada’s markets
- Seasonal products
- Workplace standards and human rights issues
- Distribution of the products
ToolsCorp’s manufacturing is located in Tennessee, US. This can be a challenge when competing in a global market because it can lead to a higher price of products. The only market that the company is selling its products, apart from the local is Canada. Therefore, the experience of operating as a multinational company is limited. As Alonso et al. (2016) stated, “the situation varies from region to region and that a tailored approach” (p. 3670).
The company offers a variety of seasonal products, which results in different sale patterns throughout a year. If the company chooses to manufacture its products in a different country to cut costs, it will be difficult to ensure that workplace standards and human rights laws that ToolsCorp adheres to are followed. Distribution of the products can be a challenge when exploring European markets as delivering them from the US can be expensive.
- Exploring the niche of premium products
- Expanding to countries with a warmer climate throughout the year
- Acquiring other enterprises
- Increasing the revenue
- Exploring online sales channels
The higher price of the products allows ToolsCorp to examine the niche of premium appliances. Additionally, some of the products that the company offers are seasonal. Therefore, the sales vary depending on the time of the year (e.g., lawn mowers). Expanding to the markets with warmer climate conditions throughout the year will help stabilize the sales in this category of products, which is an opportunity for the company.
The company can acquire other enterprises in the industry in the process of expansion. This is an opportunity as it allows to utilize the developments of the acquired companies. Then, the company can significantly increase its revenue through the global markets. Finally, through this expansion ToolsCorp can explore the online model, which will be an additional channel for sales.
- Established companies
- Established markets
- Internal environments of countries
- Pricing model
- Competitor’s lower prices
The company is entering new markets with established companies, which is the main threat. In addition, some markets are established as well; the customers have specific preferences. Then, there are risks, connected to the internal environments of the countries (e.g., cultural differences, political and legal environment). The pricing model will have to be reconsidered for different markets, and currency volatility can lead to losses in revenue, which is another threat. Then, the manufacturers from Asian markets can offer products at lower prices, which can mean that the demand for ToolsCorp’s products will be limited.
Business Plan Outline
- ToolsCorp’s background
- Industry overview
- Current trends in the industry
- Global market analysis
- Size of the target markets
- Competitors in the target markets
- The positioning of ToolsCorp’s products in the global market
- Marketing plan
- Product mix
- Pricing strateg
- Manufacturing of ToolsCorp’s products
- Managing the operations
- Financial analysis
ToolsCorp plans to enter the global environment to expand the operations. The company has a clear mission statement that is essential for the building a strategy of entering global markets. The SWOT analysis offers a detailed overview of the factors that need to be considered for successful expansion. The outline of the business plan offers an understanding of the main concerns of the company’s strategy.
Alonso, A., Coosemans, T., Perlo, P., Comoglio, M., Otella, M., Reeves, C., … Deix, S. (2016). GO4SEM recommendations to support innovation links for entering global e-Mobility markets. Transportation Research Procedia, 14, 3667 – 3675.
Bogdanova, S. V., Kozel, I. V., Ermolina, E. V., & Litvinova, T. N. (2016). Management of small innovational enterprise under the conditions of global competition: possibilities and threats. European Research Studies, 19(2), 268-275.
David, M. E., David, F. R., & David, F. R. (2014). Mission statement theory and practice: A content analysis and new direction. International Journal of Business, Marketing, and Decision Sciences, 7(1), 95-110.
David, F. R., & David F. R. (2015). Strategic management: A competitive advantage approach, concepts & cases (15th ed.). New Jersey, NY: Pearson
Fazeli, P., & Taherikia, F. (2016). Evaluation, classification, and selection of marketing strategies to enter international markets by using SWOT method. (Case study of Takhte Jamshid Petrochemical company). International Business Management, 10(17), 4042-4049.
Taiwo, A. A., Lawal, F. A., Agwu, M. E. (2016). Vision and Mission in Organization: Myth or Heuristic Device? The International Journal of Business and Management, 4(3), 127-134.