BUS475 Week 2 Business Model And Strategic Plan Part I

Topics: Strategic management, Mission statement, Management Pages: 8 (1620 words) Published: March 30, 2015


Business Model and Strategic Plan Part I:
Conceptualizing a New Product or Service Division of an Existing Business

BUS/475

Business Model and Strategic Plan Part I:
Conceptualizing a New Product or Service Division of an Existing Business The company that will be used for purposes of this essay is Micron Technology Inc. Any company that is in the technology sector is hinged on innovation. Its ability to do so or lack thereof is a key factor in its growth and success. Consequently, its core focus is on resources that continuously ensure its ability to create and innovate as this is a huge determinant of its relevance in the market. Mission, Vision, and Values

Micron Technology Inc. has a rich history of over thirty years in the semiconductors and other electronics components industry. Micron’s mission is to be the preferred provider of semiconductor solutions globally (Micron, 2015). Its vision is centered on its ability to redefine innovation and consistently development the world’s most advanced technologies in the semiconductor and memory industry. Its values include: integrity, innovations, and equal employment opportunities. These values have been used to coin the company slogan which states that one’s innovation is Micron’s memory (Micron, 2015). The company’s values are best described in the following statements: • Leadership based on accountability, teamwork and trust

• Embracing business volatility
• Decisions are reached through metrics, data and processes • As a company, the core focus is on the needs of the customer • Innovating to meet market demands
• Efficiency in operations and service delivery
(Micron, 2015)
Business Model for New Division
A business model provides a simple explanation of how a company makes money. Considering that Micron’s core business is in the semiconductor industry, the business model will revolve around innovation. New ideas on semiconductor technology is what the division relies on. As such, the lack of the same will lead to the division becoming redundant. Consequently, it is necessary to ensure that the division is staffed with the right resources. These will largely consist of researchers, scientists and visionaries who will be tasked with consistently coming up with new innovation and technology that will help the company meet market demands while at the same time set it apart from its competitors as it will always produce technology that is ahead of its time. The division’s mission statement is innovation to make life easier. As such, new technology developed will focus on the memory and semiconductor industry (Micron, 2015). As Micron controls over twenty percent of the global market in this industry, the division has a competitive advantage owing to market share. The diagram below is an illustration of the division’s businessplan. Business model

Identifying Customer Needs and Achieving Competitive Advantage
The success of a product is largely dependent on its ability to meet a customer’s needs (Power, 2013). Where this is lacking, it becomes difficult to convince customers that they need your product. A company would be running a high risk of failure of it chooses to base its operations on the premise that innovation reveals what the customer needs and not the other way round. The challenge comes in the fact that customer needs are dynamic. As such, an organization needs to have a strong grasp of what’s hot and what’s not. The only way to achieve this is to communicate with the customer. Get to know what they have to say and this will make it possible for you to not only innovate but also have business success (Power, 2013).

An element that determines business success is competitive edge. The division’s competitive edge is hinged on its ability to offer products that are unique and that appeal to a need in the market (Balanced Scorecard Institute, 2014). This can be achieved by launching new products in their niche market in...

References: Balanced Scorecard Institute. (2014). Strategic Planning Basics. Retrieved from balancedscorecard: http://balancedscorecard.org/Resources/Strategic-Planning-Basics
Lavinsky, D. (2013, October 18). Strategic Plan Template: What To Include In Yours. Retrieved from Forbes: http://www.forbes.com/sites/davelavinsky/2013/10/18/strategic-plan-template-what-to-include/
Micron. (2015). Jobs at Micron. Retrieved from micron.com: http://www.micron.com/jobs
Micron. (2015). Our Company. Retrieved from micron.com: http://www.micron.com/about/our-company
Power, D. (2013, February 19). Customer needs should drivve innovation. Retrieved from harvard.edu: http://www.dce.harvard.edu/professional/blog/customer-needs-should-drive-innovation
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