This report is focusing on projecting Bossini's long-term prospect by identifying and evaluating the company's competitive strategy. The results from the analysis would then serve as the output for the development of the 5-year strategy with the implementation of balanced scorecard.
The analysis of Bossini reveals that Bossini does a great job in controlling product costs. However, the net profit margin is far less than expected due to its customer intimacy competitive strategy. With this strategy, Bossini will inevitably incur high amount of staff and rental costs. Direct reduction in number of staff and relocation of outlets also seems infeasible since this may deteriorate customer’s satisfaction.
Gathered the insights from the investigation, suggestion has been made on boosting the sales revenue and indirectly reducing the costs. Our strategy includes rapid expansion of outlets into China market, diversifying the products to provide better customization, optimizing the supply chain to reduce the inventory and enhancing employee satisfaction to reduce employee turnover costs. All these measure would be stated clearly in the balanced scorecard and put in Bossini Strategic map. It is believed that Bossini would yield a higher net income, at the same time, upholding its positive energy image to customers after implementing the scorecard.
In the following content, a detailed analysis would be performed and Bossini future prospect would be commented. Next, suggestions directing to the problems indentified would be given. Finally the whole sets of suggestions would be consolidated by the measures listed in the Balanced scorecard. A strategic map is also provided for an overview of the future 5-year strategy.
Objective of Proposal
To project Bossini's long-term prospect by identifying and evaluating the company's competitive strategy. Hence, a 5-year competitive strategy is presented with a balanced scorecard.