Pontrelli Recycling, Inc. is a recycling company whose mission is twofold: 1. Increase the efficiency of recycling usable materials in order to create a better environment for all. 2. Create value and a fair return on investments for the shareholders.
Market research has shown that both municipalities and companies are interested in using the recycling services of a company who provides: 1. a cut in recycling costs and 2. Could increase the range of recycled materials that could be processed.
I. Decrease cost of recycling.
a. Pass savings on to client.
b. Would make Pontrelli more competitive.
II. Increase the range of recycled materials.
a. Increase revenue for both company and shareholders.
III. Competition in the market place.
a. Must consider
i. Can Pontrelli afford to make the changes?
ii. What are the risks?
iii. What are the consequences if ...view middle of the document...
3 - Assess the situation - internally and externally. Assess the current situation inside the organization, locally and corporate-wide. Assess the external situation by studying the companies customers, competitors, economy (locally and nationally), etc. Use the SWOT technique: Determine your organization's Strengths, Weaknesses, Opportunities, and Threats (challenges).
4 - Develop goals. Goal statements must be complementary to, and take off from, the mission and value statements. The goals in the strategic plan provide general direction and guidance for developing specific objectives and actions.
5 - Develop objectives. Objectives are specific steps that must be taken to implement the strategy. Objectives should state explicitly, in writing, what is to be accomplished, by whom, and by when. Objectives should be realistic with respect to the abilities and the potential of the people involved and to the environment in which the objectives will be met.
6 - Develop an implementation plan. Implementation is where most organizations fail in doing their strategic planning. Implementation must address anything and anyone affected by a strategic plan, and takes into account anyone who must contribute to the accomplishment of specific objectives. An easy way to accomplish this is by using stands for time, training, equipment, evaluation, money, materials, people, policies & procedures, systems, and schedule.
7. Implement the plan.
On the financial side, the company had a return on equity of 43.2%. The company also had a return on capital of 29.5, with a net profit of 4.5% in its current configuration. If the plan is to be implemented, it would be difficult to control the value of the stock; however it can control its ability to produce earnings in the future. Therefore the projects execution, efficiency and alignment with the company’s financial strategy will be a good investment.
Project control is essential to help mitigate risks. The use of a Gantt chart and other types of project management tools in order to keep the project on schedule and within budget.