Está en la página 1de 14

Strategic Plan for 2015-2016

Prepared by:
Dana Gleason & Lauren Vahldick

March 30, 2015

Table of Contents
Page
Executive Summary ...................................................................................................................... 3
Introductory Summary ................................................................................................................... 3
1.0 Organization Background ..................................................................................................... 4-5
1.1 Business definition ..................................................................................................... 4
1.2 Vision .......................................................................................................................... 4
1.3 Mission ........................................................................................................................ 4
1.4 Value Proposition ........................................................................................................ 4
1.5 Organization Structure ............................................................................................. 4-5
1.6 History & Culture .................................................................................................... 5-8
2.0 Situation Analysis.................................................................................................................. 5-6
2.1 Definition & Scope of Situation ............................................................................... 5-6
2.2 Marketing Positioning ................................................................................................ 6
2.3 Stakeholders Affected ............................................................................................. 6-7
2.4 Competition ................................................................................................................ 7
2.5 SWOT Analysis ........................................................................................................ 7-8
3.0 Plan ..................................................................................................................................... 8-11
3.1 Objectives, Strategies, and Tactics ........................................................................... 8-9
3.2 Critical Success Factors ......................................................................................... 9-10
3.3 Key Performance Indicators ..................................................................................... 10
3.4 Budget & Resource Allocations ................................................................................ 10
3.5 Timeline .................................................................................................................... 11
3.6 Evaluation Method & Anticipated Results ................................................................ 11
Appendices ............................................................................................................................. 12-13
A. Budget ........................................................................................................................ 12
B. Timeline ...................................................................................................................... 13
References .................................................................................................................................... 14

Page 2 of 14

Executive Summary

Elfco is an electrical fasteners supplier in the south Chicagoland area and is dedicated to
delivering its clients the best quality products in a timely and efficient manner. Elfco
aims to expand and update its business while maintaining its positive reputation.
This document presents an eight month plan to assist Elfco in improving their internal
and external operations to ensure long-term success. This includes:
A plan to better connect with Elfcos customers on a long-term basis and overall increase
customer service by 20% through positive feedback by January 1, 2016.
A plan to improve internal communication through monthly internal employee reviews
by January 1, 2016.
Install an updated computer system to alleviate the flow of unnecessary paperwork by
January 1, 2016.
A plan to build a stronger online presence by 30% through unique clicks by January 1,
2016.

As final recommendations, we suggest returning to the plan June 1, 2016 to determine


which objectives can be improved throughout the course of the next year.
This plan should prove instrumental in the decisions Elfcos owners make to achieve
these objectives by the start of 2016. The continued maintenance and ongoing success of
Elfco is the overall goal laid out by these objectives.

Page 3 of 14

1.0 Organization Background


This section contains the preliminary information about Elfco. This includes the business
definition, vision, mission, value proposition, organization structure, and history and culture. The
organization background provides vital information in order to better understand and utilize the
rest of the plan.
1.1 Business Definition
Elfco is an electrical fasteners supplier dedicated to service. Elfco is a construction supplier to the
electrical and mechanical trades in the Chicagoland area. Elfco is a wholesaler that buys
electrical fasteners from vendors and sells them to contractors. Elfco is essentially the middleman
of the electrical and mechanical trade business.
Elfco wants to be known as a genuinely trustworthy company to work with, living by its motto,
Service is our most important product.
1.2 Vision

Elfcos vision is to become the sought-after electrical fasteners supplier throughout the
Chicago southland area due to its reputation for great customer service.
1.3 Mission
Elfcos mission is to maintain service with customers through fast and efficient product delivery.
Elfco strives to have ultimate customer service by having an always-stocked inventory to always
accommodate its customers. Elfco believes if it doesnt have it, the customer will go somewhere
else to get it, which is inconvenient for the customer and loses business from Elfco.
1.4 Value Proposition
To differentiate itself from its competitors, Elfco aims to create long-lasting relationships with
customers through incredible service. Our value proposition consists of two parts that intertwine:
Thesis: Elfco prides itself on excellent service.
Proof points:
o Elfco maintains long-term relationships with its customers.
o Elfco aims to remain fully stocked at all times with a variety to products to
satisfy all its customers.
o Elfco guarantees on-time deliveries to customers.
o Elfco aims to always have open and easy communication lines with real people
dedicated to excellent customer service.
1.5 Organization Structure
Elfco is made up of three main sections: office, warehouse, and drivers. Michael Gleason is the
chief executive officer of Elfco and the president of Elfco is Thomas Gleason. Michael and
Thomas split owning 75% of the company. The remaining 25% ownership is split between four
salary employees. Under the owners, there are three managers representing the three sections of
Elfco: office, warehouse, and drivers. There are 43 employees split up between the different job
titles. In total, Elfco has 52 employees.
See the chart on page five for a visual representation of the organizational structure.

Page 4 of 14

1.6 History & Culture


John Gleason created Elfco in 1970 because he had an overwhelming knowledge and interest in
the field of electrical fasteners after working for construction suppliers as a teen and young adult.
He effectively transformed Elfco from a one-man business into a successful company with more
than 50 employees. After Johns passing in 2007, his sons, Michael and Thomas, carried on the
company by relocating from Bridgeview, Ill. to Mokena, Ill. This move was an expansion of the
company to accommodate more business and inventory.
Today, Elfco has a friendly and casual work environment with a focus on maintaining business
relationships and providing the best service possible to its customers. Elfco incorporates a more
modern work environment by establishing casual Fridays, where employees are encouraged to
wear jeans and their favorite sports team shirt. The office has a 70:30 ratio of men to women,
making it a more masculine office. Elfco has season tickets to all major Chicago sports teams and
the office has a heavy focus on Chicago sports. The office is always buzzing with chatter and
employees prefer to communicate in-person rather than electronically. The business is built on an
entrepreneurial spirit carried out through its dedicated employees work ethic.
2.0. Situation Analysis
When considering the strategic plan project, it is crucial to examine all business aspects Elfco
deals with on a daily basis. The section includes an analysis of Elfcos strengths, weaknesses,
opportunities, and threats.
2.1 Definition & Scope of Situation
Last year, Elfco had its highest sales ever. As a member of both the Mokena Chamber of
Commerce and the Specialty Tools & Fasteners Distributers Association, Elfco is very involved
and well-received by the business community. Elfco has been operational since 1970 and re-

Page 5 of 14

located to a bigger facility in 2007 to keep up with inventory demands. Elfco would like to
continue growing and expanding their business, improving its sales each year.
Delivery of available products is the key to Elfcos success. This is why drivers and Elfco
vehicles are so crucial to everyday business operations. External factors such as unexpected
vehicle problems, weather, and a shortage of supplies are threats to the continued success of the
company.
Since Elfco is a small company, it has more expensive prices than large hardware companies. To
compensate, Elfco prides itself on its customer service. Since this is its biggest selling point, we
think Elfco needs to focus and enhance this aspect of its business.
The layout of the building combined with the vastly different roles of the sales, drivers, and
warehouse employees could hinder the success of Elfco. With employee roles split between
drivers, warehouse workers, and salesmen, the tasks and focuses of these positions are also split.
The communication between these three groups is, therefore, slim. Having all the employees on
the same page would be beneficial for the internal communication of the company and can
prevent possible miscommunication.
With modern technology and everyone going digital, Elfco needs to follow this trend to stay
relevant. Elfco currently has a paper filing system, as opposed to an electronic one. The risks of a
paper filing system are larger percentage of human error, environmental concerns, and overall
slower processing. With competition going digital, Elfco needs to follow suit to keep up.
2.2 Market Positioning
Because a key component of Elfcos success is its customer service, the company can position
itself in the market as the company that cares. It may be more expensive, but Elfco is made of
genuinely friendly people that are loyal to their customers. Elfco is a niche occupier, because the
company targets a particular audience (contractors) with a specific product (electrical
fasteners/hardware). To stand out in the narrow electrical fasteners market segment, Elfco sells
more than just its productsit promotes the strong and supportive relationship and benefits of
being a customer. Elfco demonstrates this approach through its excellent customer service,
always being available and offering perks such as all-expense paid weekend trips to Arizona.
Elfco must remain as focused on high-quality customer service as possible to maintain business
relationships. Elfco is in constant competition with larger corporations that lack the close-knit,
customer service-oriented, community-focused feel of Elfco, but have cheaper prices and a larger
inventory. Elfco strives to stand out to its customers by creating lasting, personal relationships
with clients to ensure continued business and strong word-of-mouth marketing. Since Elfco does
not budget for advertising, word-of-mouth marketing is key to obtaining new clients.
2.3 Stakeholders Affected
The stakeholders affected by Elfcos internal problems are primarily its employees and its
customers. Potential customers are also stakeholders and can be anyone who would need Elfcos
services for any reason in the future. However, they can be dismissed quickly if they hear
negative things about Elfco and chose to do business with a larger, more well-known company.
If Elfco does not address and correct the problems facing the company, many stakeholders would
be affected. First and foremost, the two owners of Elfco would be the most affected because they
adhere to Elfcos day-to-day business operations and have the most to lose by the business
capsizing. With that, the employees, everyone from manager of sales to the newest hired driver
Page 6 of 14

would be at risk. With 52 employees contributing to the day-to-day operations, Elfco has the most
stakeholders to consider.
The building is owned by Midwest National Bank in Mokena, Ill. This includes Midwest
National Bank as a substantial stakeholder in the company. Elfco pays a monthly mortgage
towards the end goal of owning the property and building outright. Until that day comes, Elfco is
owned, in part, by Midwest National Bank.
Since Elfco is a member of the Mokena Chamber of Commerce, the Mokena Chamber of
Commerce has a stake in the company as well. If Elfco fails, the Mokena Chamber of Commerce
loses funds and reputation, as businesses included in the Mokena Chamber of Commerce are
supposed to exemplify the best and brightest of the village of Mokena. People take into
consideration the businesses worthy enough to be in the Mokena Chamber of Commerce, and if
one of them was to go under, it would discredit the Mokena Chamber of Commerce as a whole.
2.4 Competition
In the fastener supply industry, there arent very many businesses as specifically specified to
fastener supplies as Elfco. However, Elfco does still have some competition in the Chicagoland
area that can be understood as major, minor, and miscellaneous.
Grainger Industrial Supply is Elfcos major competition in the industrial supply market. Grainger
employs roughly the same number of people as Elfco and is another electrical fasteners supply
company in the Chicagoland area aimed towards the same customers.
Minor competition would be independent salesmen. They are considered minor competition
because Elfco is more situated and trustworthy than a one-man operation. Elfco is also more wellknown, able to get more products, and has more substantial business contacts than an independent
salesman.
Miscellaneous competition includes large corporations such as Lowes, Home Depot, Ace
Hardware, and other hardware supply companies. These stores are not as specialized as Elfco or
Grainger Industrial Supply, but they do offer some of the same products as Elfco, and are able to
sell them for a cheaper price.
2.5 SWOT Analysis
The SWOT Analysis of Elfco will determine the Strengths, Weaknesses, Opportunities and
Threats of the company while looking simultaneously at the Aspects, Implications and Possible
Actions for each category. A SWOT Analysis is crucial to a company to ensure all risks are
being considered. After examining and taking into account Elfcos strengths, weaknesses,
opportunities, and threats, Elfco can begin to determine the actions that should be taken. The
possible actions column are the suggested ideas to ensure the continued success of Elfco in the
long run.
Aspects

Strengths

Dedicated customer
service
Small business, real
people
Strong sales
department

Implications
Dedicated customer
base
High customer approval
rating
Consistent sales

Page 7 of 14

Possible Actions
Continue to keep building
strong client relationships
Small businesses allow for
the chance to work closely
with customers
Increasing annual sales

Weaknesses

Internal communication
Dated filing system

Less efficiency
Less efficiency

Opportunities

Centrally located in the


Chicago-land area
Expansion opportunity

Guarantee timely
deliveries
Increase inventory and
potential customers

Threats

Competitors
Monopoly corporations

Lose business
Customers can find
products cheaper at
bigger companies

Instate meetings to
collaborate openly with
employees in charge of each
department
Budget in for a new filing
system
Continue to guarantee timely
deliveries and strive to better
the deliveries even more so
Moving Elfco to a larger
location would allow more
products to be made and
services, build a larger
customer base, and increase
room for inventory
Could lose business to
competitors
Quicker service with cheaper
products may send
customers away

3.0 Plan
This section includes a plan dedicated to improving Elfco as a business by January 1, 2016. It
includes objectives, strategies, tactics, critical success factors, key performance indicators, budget
and resource allocations, timeline, and evaluation method and anticipated results.
3.1 Objectives, Strategies, and Tactics
Based on our research of Elfco, we have put together a strategic plan to improve its business and
increase its reputation. This is the core of the document and the ideas that Elfcos future success
hinges on. Included in this plan are objectives, strategies, and tactics, described below:
Objectives include a desired effect, a measurable goal for that effect, an audience, and a
deadline.
Strategies build on the objective as categories of ways to achieve the objective.
Tactics are the actual ways to execute the objectives in tune with the stated strategy.
Additional information, such as benchmarks and key performance indicators, are located in the
section 3.3.
Objectives
1. Increase customer service
by 20% through positive
feedback by January 1,
2016.

Strategies
Engage with customers and
gauge feedback on customer
service of Elfco.

Tactics
Media monitoring
Phone call script
Customer surveys

2. Improve internal
communication through
monthly internal employee
reviews by January 1,

Inform employees on current


and relevant information
pertaining to Elfco.

Monthly meetings
Meeting minutes

Page 8 of 14

2016.
3. Completely update filing
system by January 1,
2016.

Update filing system and


educate Elfco employees on
new system.

4. Build stronger online


presence by 30% through
unique site clicks of
Elfco.com by January 1,
2016.

Build stronger online


presence.

Research filing systems


Switch from paper to
electronic
Employee training day
Online ordering
Social media (Facebook
and Twitter)
Update website

3.2 Critical Success Factors


Below is a chart to showcase, in four separate categories, the potential factors that could arise by
implementing the suggested objectives into Elfcos daily operations. Each objective is looked at
in relation to:
Opportunities: the positive situations including potential for new business and room for
expansion
Barriers: include anything that could hinder business or already-established support for
the company
Environment: keeping in consideration both internal and external factors that determine
the success of Elfco on a day-to-day basis.
Resources: include any and all materials that go into the functionality of Elfco on any
given day.
Objectives
Increase
customer service
by 20% through
positive feedback
by January 1,
2016.

Opportunities
Hire more
people
Develop better
relationships
Gain sales

Barriers
Takes time
away from
other tasks

Environment
Strengthen
community
and customer
relationships

Resources
Surveys
Call scripts to
customers

Improve internal
communication
through monthly
internal
employee
reviews by
January 1, 2016.

Stay up-to-date
with internal
functions
Bridge the gap
between
departments
Opportunities
to speak up

Meetings are a
time
commitment
Scheduling

Open door
policy
Improve work
culture

Completely
update filing
system by
January 1, 2016.

Speed up
ordering
process
Keep up with
competitors

Expensive
Time
commitment
Training

Electronic
based
company

Board room
for meetings
Agendas
Department
representatives
Appointed
secretary
Meeting
minutes
Filing system
Training for
employees
Installation
facilitator

Build stronger

Improve

Potential of

Build

Page 9 of 14

Tech employee

online presence
by 30% through
unique site clicks
of Elfco.com by
January 1, 2016.

corporate
responsibility
Be more
legitimate

shipping
products
farther away

reputation
Increase brand
awareness

Computer
Web design

3.3 Key Performance Indicators (KPIs)


This section includes more specific information on how to reach the plans objectives. Included in
this section are a benchmark, which will help to measure the success of the plan by having a base
to start from, and key performance indicators (KIPs), which will provide ways to ensure Elfco is
moving towards its objectives.
Objective
Increase customer service by
20% through positive
feedback by January 1, 2016.
Improve internal
communication through
monthly internal employee
reviews by January 1, 2016.
Completely update filing
system by January 1, 2016.

Benchmark

Initial customer survey with


four intermittent customer
surveys until January 1,
2016 with final survey.
There are currently no
meetings between
departments.
Research and purchase an

online filing program.

Build stronger online presence Measure current unique


by 30% through unique site
visits to website and create
clicks of Elfco.com by January social media sites.
1, 2016.

KPI
Positive feedback should
increase by 5% each survey.

Hold meetings once a


month.

Have everything paperless


and all staff training
completed by January 1,
2016.
Measure unique visits to
website by January 1, 2016.

3.6 Budget & Resource Allocations


Elfco was established in 1970 and since then has increased its annual earnings by 77% compared
to its first full year of business. Elfco relocated to a larger facility in June 2007. Last year, Elfco
had its most profitable year ever, grossing just over 19 million dollars in sales. Taking the growth
of Elfco into consideration, budgeting for some more expensive additions to further business
seemed acceptable and encouraged. The budget (see Appendix B) includes a typical month of
income and expenses for Elfco. The expenses include salaries, products, rent, and other things to
maintain Elfco's business. The budget is focused primarily on finding out exactly how much
money is being allocated to different expenses each month. Furthermore, the budget has room for
improvement within the next two to three years. Elfco is currently not budgeted for marketing,
but pending annual revenue, there is room for potential to advertise within the next few years.
Elfco is in great shape and is in a comfortable-enough financial situation that if Elfco wanted to
consider more serious advertising, doing so within the next few years would be wise and
achievable.

Page 10 of 14

3.7 Timeline (beginning with the proposals acceptance/approval)


In order to ensure the plan is successful and timely, a Gantt chart has been created to show the
timeline of the objectives and tactics. The different colors correspond with the different
objectives. The timeline can be found in Appendix B.
3.8 Evaluation Method & Anticipated Results
In determining whether or not this plan was an overall success, Elfco must eventually evaluate the
objectives of this plan.
Objective 1: Increase customer service by 20% through positive feedback by January 1, 2016.
If customer service reviews are increasing by 3% each month starting on April 1, 2015,
the plan was successful.
If the plan was not successful, ask for ways to improve via customer service feedback and
create a plan to implement changes for the next year.

Objective 2: Improve internal communication through monthly internal employee


reviews by January 1, 2016.
Take initial reviews and determine how many employees are satisfied or
dissatisfied. If we gain two employees a month to in the satisfied column by
December 31, 2015, this plan was a success.
If the plan was not successful, determine what makes unsatisfied employees
unsatisfied and create a plan to correct the changes that can be made.
Objective 3: Complete updated filing system by January 1, 2016.
If Elfco is virtually paperless by January 1, 2016 and all employees who need to
understand the functionality of the online system do understand it, this plan was a
success.
If not all employees understand the system, determine which employees those are
and recommend further training.
Objective 4: Build stronger online presence by 30% through unique site clicks of
Elfco.com by January 1, 2016.
If unique site clicks increase by 3% a month, this plan was a success.
If unique site clicks are not increasing, analytically determine possible causes and
create a plan to increase unique site clicks for the following year.

Page 11 of 14

Appendices
A. Budget.

Organizational Actuals (Monthly) ~ 2015


INCOME
Sales
Power Tools/Ladders/Boxes/Accessories
Hardware/Anchors/Strut
TOTAL
EXPENSES
Salaries

On salary employees

Hourly employees
Cost of goods
Products
Insurance
Health
Dental
Car
Building
Rent
Cleaning service
Cars
Sales and management cars
Car maintenance
Gas
Road tolls (iPass)
Customer relations

Arizona trips
Expense accounts
Employee morale

ACCOUNTABILITY

Monthly Income

Thomas Gleason
Michael Gleason

$916,667.00
$708,333.00
$1,625,000.00

ACCOUNTABILITY
Jennifer Zeiger

Monthly Expense
$234,000.00

Jennifer Zeiger

$186,000.00

Jennifer Zeiger
Hans Orswal
Hans Orswal
Jennifer Zeiger
Jennifer Zeiger
Jennifer Zeiger
Jennifer Zeiger
Jennifer Zeiger
Jennifer Zeiger
Jennifer Zeiger
Mike Fiscal
Mike Fiscal
Mike Fiscal
Mike Fiscal
Mike Fiscal
Michael Gleason

$48,000.00
$950,000.00
$950,000.00
$31,000.00
$25,000.00
$3,000.00
$3,000.00
$26,600.00
$25,000.00
$1,600.00
$17,000.00
$3,000.00
$2,500.00
$9,000.00
$2,500.00
$19,800.00

Michael Gleason
Michael Gleason
Therese Gleason

$4,800.00
$15,000.00
$10,300.00

Holiday parties

Therese Gleason

$10,000.00

Catering for bdays


Taxes
Membership

Therese Gleason
Albert Dow
Jennifer Zeiger

$300.00
$3,750.00
$48.00

STAFDA
Mokena Chamber of Commerce
TOTAL

Jennifer Zeiger

$33.00

Jennifer Zeiger

$15.00
$1,873,083.00
Month Average
$1,624,985.00

COMPARISONS
Income v. Expense

Page 12 of 14

Notes
Sales are broken up into two categories,
listed below.

There are 32 on salary employees at


Elfco. These employees include
salesmen and managers. Salaries vary
depending on status, job description,
and tenure. This is the average salary
income of a salary-earning employee.
here are 20 hourly employees at Elfco.
These employees include warehouse
workers and drivers.

Eflco owns a house in Phoenix, Arizona


where salesmen are allowed to take
clients for weekend trips as part of its
dedication to customer service.

The holiday party is an annual event in


December, not something that happens
each month.
Once a month, Elfco caters from a local
restaurant to celebrate all of the
birthdays of that month.

Specialty Tools & Fasteners


Distributers Association annaul
membership fee.
Mokena Chamber of Commerce annual
membership fee.

1. Increase customer
service by 20%
through positive
3-May-15 to 1-Jan-16
feedback by January
1, 2016.
Create and distribute
initial customer
3-May-15 to 24-May-15
service survey in the
Mokena area.
Create and distribute
employee phone
25-May-15 to 29-May-15
script.
Media monitor.
3-May-15 to 1-Jan-16
2. Improve internal
communication
through monthly
3-May-15 to 1-Jan-16
internal employee
reviews by January 1,
2016.
Monthly meetings
with department
3-May-15 to 1-Jan-16
representatives.
Intern takes meeting
minutes and send
3-May-15 to 1-Jan-16
them in an email to all
employees.
3. Complete updated
4-May-15 to 14-Aug-15
filing system by
January 1, 2016.
Research and
purchase online filing 4-May-15 to 15-May-15
system.
Hold mandatory
employee training
day.
Transfer data online.
4. Build stronger
online presence by
30% through unique
site clicks of Elfco.com
by January 1, 2016.
Create online
ordering ability.
Create social media
accounts.
Update website.

19-Aug-15
18-May-15 to 14-Aug-15

25-May-15 to 3-Aug-15

25-May-15 to 29-May-15
8-June-15 to 12-June-15
1-June-15 to 3-Aug-15

Page 13 of 14

1-Jan-16

23-Dec-15

14-Dec-15

5-Dec-15

26-Nov-15

17-Nov-15

8-Nov-15

30-Oct-15

21-Oct-15

12-Oct-15

3-Oct-15

24-Sep-15

15-Sep-15

6-Sep-15

28-Aug-15

19-Aug-15

10-Aug-15

1-Aug-15

23-Jul-15

14-Jul-15

5-Jul-15

26-Jun-15

17-Jun-15

8-Jun-15

30-May-15

21-May-15

Specific Dates

12-May-15

Objectives & Tactics

3-May-15

B. Timeline.

References
Elfco (2015). Elfco: Service Is Our Most Important Product. Retrieved from:
http://www.elfco.com/default.php.
Smudde, P. M. (2015). Managing Public Relations: Methods and Tools. New York: Oxford
University Press.

Page 14 of 14