You will have the opportunity to research a company and industry to conceptualize forming a new division of an existing company based on a new product or service.
Develop a proposal in which you explain the importance of innovation in your selected division s vision, mission. and values. and determine your business model for this new division.
Include the following:
• Propose a new product or service for the new company division. The division should be customer-focused with an innovative mission statement. Ensure you are differentiating your product or service.
• Describe how the division addresses customer needs and achieves competitive advantage.
• Create a vision and a business model for this new division that clearly demonstrates your decision on what you want your business to become in the future.
• Explain how the vision. mission, and value of the new division align with the company's mission and vision.
• Summarize how the vision. mission, and values guide the division's strategic direction
• Define your guiding principles and values for your division in the context of culture. social responsibility. and ethics.
Importance of Innovation for Small-Scale Businesses
With technology advancements the organizations have realized the value of innovation. It is important that organizations should focus on effective strategic planning so that it can achieve its goals and objective. It is interesting to analyse the importance of innovation for small scale businesses. Unlike the large businesses, the small-scale businesses do not have the budgets and therefore, innovation is the key for small businesses to flourish (Wolf & Floyd, 2017). The objective of this paper is to discuss the use of innovation for a new division of an existing company. In recent times, hospitality industry has grown rapidly. Many marketplaces create product and services to attract different customer segments based on price points and product mix. Therefore, it would be interesting to analyze the new division for a restaurant.
This paper is focused on a new division of an Indian restaurant in New York. The selected restaurant is Curry Heights and the new division is contemporary snacks made from frozen food. The frozen snacks are established food for American consumers. However, the Indian restaurants in USA have not fully concentrated on frozen snacks. The mission of this division is to provide best quality contemporary frozen snacks like fish chilly (rare fishes that are not easily found), rare meats to the consumers (Wolf & Floyd, 2017). People can usually find the rare meat when they are on vacation. With this division, consumers would have access to rare meat at the restaurant itself. The division would focus on customer acquisition through online channels. The restaurant, Curry Heights, has already made significant impact in terms of brand recognition and brand recall. However, for untapped customers online website will do its work. Online offline retailing would not work. Blick is the new criteria. The digital marketing strategy will help this divison of Curry Heights to increase traffic to brand’s website and conversions. It will help in generating brand loyalty at the restaurant. Digital marketing for Curry Heights would involves SEO i.e. Search Engine Optimization, SEM i.e. Search Engine Marketing, blogs, content building, promotional campaigns and Social networking sites.
The access to food is the basic need of consumers. The division of frozen food would address the basic need of customers through an innovative way. The idea is to source the rare meat from different parts of the world, process the meat to keep it fresh in frozen conditions, and then transport to Curry Heights. The organization would be able to achieve competitive through product differentiation strategy. This product differentiation is achieved through the use of innovation. Papke-Shields & Boyer-Wright (2017) argued that the concept of innovation allows the business to measure the speed of learning, and measurement of speed of learning is important to make future step for an established business, as it may help to improve business decisions. Suarez, Calvo-Mora & Roldán (2016), mentioned that innovation is vital for a start-up business, as they do not have any previous data to compare their success rate, but the measurement of innovation against the market need and financial structure of the business helps the new business to make effective business decision in terms of innovation in product and business process. On the other Wolf & Floyd (2017) argued that innovation demands more cost from the business and makes negative effect on financial stability of a start-up business. Therefore innovation is not the beneficial management practice for the new business. In the case of new division of Curry Heights, innovation is the key for their competitive advantage strategy of product differentiation as it helps them to offer unique product in the market.
The New Division of an Existing Company
The objective of the business is to provide rare food to people that they cannot have otherwise. For example, Indian King fish is not available in American market. With the concept of frozen food, people can actually have the Indian fish at Curry Heights. The specific vision and business model of this new division can be discussed as:
The vision of this division is to evolve as the best solution across New York to satisfy the snacking food preferences of consumers.
The business model of this division is establish a snacking arm of Curry Heights. In the long term, this division would have its own branches across the country. It can happen only when the business model accounts for all the money flow in the eco-system. Thus, innovation accounting effects on financial policies of the organisation to by measuring all the positive and negative outcomes of innovation. As per the literature review innovation accounting is useful for the start-up business, as all the businesses have to be innovative to make the desire image on customers or other stakeholders. Some of authors have different views as they think innovation effects negatively on new business, but Johnsen (2015), observed that innovation accounting helps the new business to make their business effective in terms of financial functions by providing data based decision.Similarly, Jette, Breck & Johns (2015), on his research study of “Disruptive innovation” it is viewed that food and beverage industry has increased their liquidity by more than 42.3% due to application of innovation accounting.
The organization has a mission to expand across the country with multiple branches of Curry Heights where people can enjoy Indian food. The organization, Curry Heights has a simple vision to be the best Indian restaurant of choice for consumers who like Indian food in United States of America. Dibrell, Craig & Neubaum (2014) suggested that precise mission and vision is the process of making the business effective against the market demand. As per the collected data by secondary research work, there are different effects of mission and vision on financial performance of the company. The mission of the new division is also based on increased penetration in the country and the vision is also based on preferred choice for consumers. Therefore, it would be correct to say that mission and vision of the division aligns with the mission and vision of the company.
The new division has the objective to establish product differentiation in the market. The division wants that it should be able to target new consumers with its unique product positioning. The strategic direction of division is in line with the overall strategy of organization to achieve revenue growth. Ultimately, the organization and the division have the same objective of profit maximization. Abdallah & Langley (2014) argued that a business can make desire profit and other positive outcomes such as customer satisfaction, customer attraction, and customer loyalty by fulfilling the market demand. It helps the business to earn revenues against the investment. The innovative accounting monitors all the process and requirements while implementing innovation in business process or new products. It also takes care of financial requirements that are associated with innovation. Hence, innovation accounting and financial management has the positive relation to run the business process for both restaurant and the new division.
New division in context of culture, CSR and ethics
The focus on CSR (Corporate Social Responsibility) is a big thing for the new division as the objective is to emerge as a sustainable business player in long term. The idea of the new division is to have a flexible culture in place wherein the employees of this division can work effectively and efficiently with the employees of the restaurant. The division would imbibe the same values so that the friction among the employees is minimal.
Conclusion
The above paper discusses the strategic direction of a new division of Curry Heights, an Indian restaurant in New York. With the above discussion it can be said that the new division as a good idea of providing rare frozen food to consumers. The paper also discussed the mission and vision of the new division and its alignment with the mission and vision of the restaurant.
References
Abdallah, C., & Langley, A. (2014). The double edge of ambiguity in strategic planning. Journal of Management Studies, 51(2), 235-264.
Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 67(9), 2000-2007.
Jette, A., Breck, A., & Johns, R. (2015). Integrating balanced scorecard performance management with crowdsourced strategic planning. In Proceedings of the Transportation Research Board Annual Meeting (Washington DC).
Johnsen, Å. (2015). Strategic management thinking and practice in the public sector: A strategic planning for all seasons?. Financial Accountability & Management, 31(3), 243-268.
Papke-Shields, K. E., & Boyer-Wright, K. M. (2017). Strategic planning characteristics applied to project management. International Journal of Project Management, 35(2), 169-179.
Suarez, E., Calvo-Mora, A., & Roldán, J. L. (2016). The role of strategic planning in excellence management systems. European Journal of Operational Research, 248(2), 532-542.
Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda. Journal of Management, 43(6), 1754-1788.
