BUSN460 – Senior Project
In 1996, a young college student name Elizabeth decided to start a company. This company was born from her love of music and reading. Liz started her business out of a spare bedroom in her apartment. CanGo initially started selling books. After some time, CanGo expanded its operations to include CDs, DVDs, and audio and video tapes and customized MP3 players. (Kingston, 1999). CanGo target customers who enjoy online entertainment and games with the majority of their customers being Gen-Xers and Gen-Yers. CanGo values its employees and customers and strive to keep employees involved in the decision making policies. CanGo motto is to keep the employees motivated and working hard in order for customers to reap the rewards.
* Market leader
* Quality of service
* Understanding and knowledge of technology
* No clear vision or mission statement
* No clear goals or priorities
* Organization skills
* Did not use MBO approach
* Current layout
* Use of brainstorming with supporting historical data
* Become market leader in CD and book industry
* Use new technology to improve service
* Expansion in international market
* Do not have an organized approach to their opportunities * Competition
Individual Analysis Report
In week 1 video episode 1, Liz received a call from Julian, the President of the Hudson Valley Business Association informing her that she has been nominated for the Business Leader of the Year and is expected to deliver a speech at the next association meeting addressing the success of CanGo. Julian wants Liz to address the “How’s and why’s of CanGo’s success.” Of course Liz is ecstatic about the nomination. Liz realizes that her hard work is paying off. Liz sits at her computer to work on writing her speech in preparation for the Business Association meeting. Liz asks herself “How did I plan this and how did we plan this?” Liz states “It was an accident, we started a business and it became a success.” During this self-talk to with herself, Liz becomes frustrated and says, “I can’t do this, I won’t do this.” In my analysis, Liz initially started CanGo in an Entrepreneurial stage. She had no clear vision or mission statement. She only provided services that people needed or wanted. Now that the company has started to grow, her haphazard approach to vision and mission statement is no longer working. One problem that Liz faces is her use of an emergent rather than a deliberate strategy. This approach has no formal training process and realizes on the social interaction with members of the company. Liz realizes that much of CanGo success has had little to do with planning and more to do with luck and being at the right place at the right time. In developing a strategic plan, Liz should first develop a precise vision of what CanGo is all about. Secondly, CanGo will need a concise mission statement that defines who its customers are, what products and services it supplies, how these products and services are provided. In order for Liz to lead her company CanGo, she needs to follow these steps in developing a strategic management plan: * CanGo’s strategic management process begins with a vision statement. * CanGo’s next step is to write a mission statement that identifies the firm’s target market, products, services, processes and philosophy. * Liz and her staff need to conduct a SWOT analysis of CanGo’s strengths, its environmental opportunities and external challenges in order to minimize their exposure to threats. * Liz needs to develop long term goals for CanGo.
* A strategic choice has to be made that reflects the mission, follows the SWOT analysis and has the potential to achieve long term goals. * Liz and her...