Implementation, Strategic Controls, and Contingency Plans Essay

DRAKEN needs new growth methods, product development and new revenue sources. The implementation plan below will identify the course of do best suited for the company along with the objectives, functional tactics, action items, milestones, task ownership, and resource alposition. Also, the plan includes financial information including financial projections and a break-even analysis map that will be mathematical functiond as the basis for moving the contrast forward.Strategy and ImplementationThe key strategy for DRAKEN is to build their operations and marketing approximately buildings and retail stores that argon large enough to dumbfound permanent, on-site tribute needs, but not so large that they can save significant currency by developing protection staff in-house. To procure this strategy, DRAKEN will Train resistances well for permanent check-in, patrol, and surveillance positions Use advertising and targeted lists to locate and market to these guest markets Focus sp ecific completelyy on guard services and high-level consulting audits, while bug outsourcing or referring to vendors for security equipment and system needs (ADT)ObjectivesAccording to Pearce, R., (2013), Objectives or short-term objectives are measureable outcomes achievable or intended to be achieved in one year or less. DRAKEN will base its success on spieling the side by side(p) objectives 1. lend oneself additional 25 full-time equivalent security guards by the end of the year 2015. 2. Supply security guards to 15 more buildings on a full-time basis by the end the year 2015. 3. Earn $2 million in revenue with net profit over $300,000 by the end of 2015. operating(a) TacticsAccording to Pearce, R., (2013), functional tactics are detailed statements of the means or activities that will be used by a company to achieve short-term objectives and establish competitive advantage. DRAKEN will built a competitive edge through high levels of customer service and assurance. The compan y will gain to not be a broker between clients and contracted security guards, as some security guard providers frame, but instead be a partner in the security and protection of clients as peg downs, with security guards as a major tool in that protection. This strategy will take up DRAKEN to carefully audit a clients security situation and to work with them on plans to upgrade and maintain that security. DRAKEN supervisors will continually check in with clients and with the guards sent to client sites to learn about the challenges they are facing.Action itemsTo r individually its target markets of building management companies and large retail businesses, DRAKEN will use the following tactics Improvement of a the basic brochure website, adding additional services, including corporate training, event planners, careers at DRAKEN, testimonials, and an open blog site. Advertising in trade publications understand by managers in these two industries Advertising online with Google AdW ords around keywords for security services and security guards, especially associated with these two types of customers New, more professional looking business cards and brochures for management and agents to distribute on appointments and while networking with Los Angeles business networking groups taper selling work based on purchasing or developing target lists Direct mail of brochures and letters to these target lists of potential clients in the greater Los Angeles area.Milestones and a deadlineThe budgets for all marketing and personal relations (PR), and creating the brochure/stationery and website come out of the operating budget as they glide by. The Chief Operating Officer will manage all marketing and sales activities while the CEO will set up accounting and operating systems and interview potential guards.These bullet points keep DRAKEN on track in its important milestones and deadlines. This helps DRAKEN management and everyone within the company to have a sense of ur gency about what needs to be done. Tasks and task ownershipThe CEO and the COO are the primary salespersons for DRAKEN. They meet with clients at their location to perform an initial consultation and will create proposals for security services based on the clients needs. DRAKEN management is tracking sales prospects and clients with ACT, a client management database system. The owners sales strategy is to listen carefully to the needs of the client and to provide assurance through stories of their experience and an quick understanding of their needs and concerns. While DRAKEN proposals may not be the lowest cost bids a potential client receives, DRAKEN management will follow up with care and the same personal attention that clients will receive if they move forward with using DRAKENs services.Resource allocationResources will be allocated to all functional units in the business according to their needs. Functional units will be required to prepare annual budget for the finances the y need to make units operative throughout the financial year. More resources will be committed to activities that generate more income to the business. Some of the profit generated from DRAKEN operations will be used in corporate social responsibility activities of the business.Key success factorsDRAKEN believes the keys to success in its industry include 1. Listening carefully to client concerns and objectives to create customized security guard packages 2. Knowing what the client does not know (bringing deep security expertise as well as knowledge of legal regulations and liability to the table) 3. Training security guards carefully and maintaining their training and certifications (e.g. to carry firearms) 4. Monitoring thequality of security guard service to offer quality assurance Budget, and forecasted financials, including a break-even chart DRAKEN expects to produce bare cash after a lean year of operation in 2015, which can finance its expansion to an office space along wi th a 5 year home equity loan to support significant growth of its employee base in 2016 and 2017 to 25 FTE security guards (which can be estimated as 10 full-time guards and 30 part-time guards). Future growth will be financed by the business and will include launching operations in otherwise cities out of state and launching a line of security products.BudgetThe balance of start-up funding for 2015 will be provided from DRAKENSs working capital of $56000.Sales ForecastSecurity guard sales will be recurring. Assuming a client retention rate of 90% annually, based on DRAKEN CEOs track record in the business, total sales will escalate quickly. Sales will be a combination of clients requiring 24/7 coverage and those with only daytime coverage. 40% of sales in dollars are expected from 24/7 clients. Sales are expected to meet the objective of $1.75 million in the third year. Direct costs of sales consist of supplies specific to each line, such as uniforms which must be purchased. und ifferentiated may be a branded DRAKEN uniform, or contain the customers branding to provide the visible presence of security at the job site. Additional sets of uniforms must be purchased by the guards from the designated uniform provider. Suits for executive protection assignments, laundry, and cleaning of uniforms is the responsibility of the guards as well. Job supplies will include materials related to security audits and specific equipment purchases for a job as well.Break-even AnalysisMonthly Revenue Break-even $24,475Average Percent Variable equal 4%Estimated Monthly Fixed Cost $23,407The monthly break-even is low due to the cost savings by operating the office out of the CEOs home in 2015. This allows for the business to become profitable quickly.Projected Profit and LossSecurity guard labor is estimated at 55% of sales in 2015, dropping slightly to 53% by the 2017 as prices increase and cheaper labor becomes available due to the range of employees. Marketing includes ongoi ng Web hosting and maintenance fees, continued revisions and reprinting of the brochure and stationery, additional count mail campaigns, ongoing advertising in trade publications, and online advertising for the website. Rent, utilities, and depreciation will be expenses beginning in 2016 when an office space is required. Training requires the use of larger meeting rooms for groups of guards which will have to be rented separately.Training cost will be reduced once an office is rented, as the business will choose a space with a conference room or table to hold employee training at the office. Training will be an ongoing expense both due to turnover and due to continued training and check-ins with employees. Licenses and permits will include licenses for new guards to carry firearms and to operate, and continued renewals of licensing and permits for the business each year. Net profit will swing to a net loss in 2016 due to the opening of an office space. Net profit will occur in 2017 again as the business scales up to cover these additional costs.