How does an organization translate a business plan into an action plan? Everything looks good on paper; a vision, mission statement, values, objectives, and a SWOTT analysis outline what an organization wants to do. Now all that needs to be done is to put the plans to action. Several strategies exist for implementing a business plan aimed at achieving the organizations vision. The balanced scorecard is one approach that many organizations find beneficial. The objectives listed in the balanced score card are derived from the organizations mission, vision, and results of the SWOTT analysis (Pearce and Robinson, 2005). South West Louisiana (SWLA) Real Estate is working towards the development of a business plan that will assist the organization in achieving its goals and objectives. SWLA Real Estate has gone through the process of defining the business, creating a vision, mission statement, and listed values and principles important to the organization. The next step in the process is to develop an action plan that is consistent with these concepts and derived from the results of the SWOTT analysis. A balanced scorecard approach to implementing the business plan is an effective means of putting plans to action. The quadrants of the balanced scorecard require realistic objectives that can be quantified and set against accurate targets. Financial Perspective
SWLA Real Estate has considered market share, revenues, and profitability based on current industry information to formulate a measurable action plan aligned with the organizations concept thus far.
Using current market share information, SWLA Real estate has set goals for attaining a portion of the market share for operational years one, five, 10. The current market analysis (Table 1.1) shows the standings for the current real estate service providers in the area.
American 1 Realty (21)17858,0001.43
Area Wide Realty (22)9519,9000.87
Caldwell Housing Corp. (08)1235,0000.39
Century 21-Steve Delia & Associates, Ltd. (02)12612,955,98021.61 Coldwell Banker ELITE (15)15117,191,92728.68
Coldwell Banker Fertitta R.E. (19)362,016,8503.36
ERA Sarver Real Estate (18)7110,334,59717.24
Magnolia Realty Group (17)312,566,9004.28
RE/MAX EXCEL (23)324,531,8007.56
RE/MAX PREMIERE, Morris Team Realty, LLC (20)151,332,3952.22 Town & Country R. E. (16)6999,9001.67
United Country Timber Ridge Realty (uctr)104,689,0007.82
Wayne O.Hall Real Estate & Deve. (woh1)71,197,0002
Wingate Real Estate (06)4439,0000.73
All Offices Total51659,868,24999.87
MLS total: All Property Types51759,947,749100
(FBS Data Systems, October 14, 2008)
According to this table, the top three organizations hold close to 70% of the total market. The organizations have been in operation from 10 to 15 years each. Other organizations listed in the table range in age from 1 to 35 years. Businesses that are in their first five years of operations, hold anywhere between 1.5 and 9% of the market share, and firms 15 years and older are in the 0.7 to 4% market share range. Based on this information it is not unrealistic for SWLA to set incremental goals listed in the balanced scorecard found in the Appendix. In the first year of operation SWLA Real Estate will obtain 2% of the market share and by the fifth year should have 10% of the market share. The goal set for the 10th year of operations is to have secured 25% of the market share making SWLA Real Estate one of the top producing firms in the local industry.
Monitoring the total sales volume for the office is the measurement for which the organization will use as a guide. In the first year of business SWLA Real Estate will need to have $1,235,193 in total sales volume. This figure is based on the average market growth rate of 1.5% for the last three years gives the projected total market volume...