Business Model and Strategic Plan Part I: Conceptualizing a New Product or Service
Write a 1,400- to 1,750-word paper in which you explain the importance of innovation in your selected business'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 that 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.
Format your paper consistent with APA guidelines.
Division of an Existing Business
Innovation is a key to any successful business model and strategic planning. Conceptualization of a new product or service division of an existing business is very critical to any business operation. By introducing new products and services in the market, companies stand to gain a lot. They benefit from new customer base, increased profit, efficient publicity and their revenues grow exponentially. The conceptualization process has to be in line with the company’s mission and vision for it to be successful.
Allegheny technologies incorporation (ATI) is undoubtedly Americas and the world’s largest specialty materials and components producer in the universe. The publicly traded company under the New York stocks exchange market serves a variety of industries. ATI’s market base and clients include gas and gas processing companies, aerospace and defense, food equipment and appliances, construction, automotive, electrical energy providers and the medical fraternity. Their range of products include nickel base alloys and super alloys, titanium and titanium based alloys, grain oriented electrical steel,hafnium, engineered forging and casting, niobium alloys and stainless and specialty steels. From its range of products and its market niche, ATI enjoys an enormous revenue base making it the world’s most sought after specialty materials and component Producer Company.
New product or service
The new product for ATI is anultra-pure equipment for the pharmaceutical and biotechnical industries. The product is designed to meet the requirements of ultra-pure applications for biotechnical and pharmaceutical industries. The ultra-pure equipment custom tanks are precisely engineered with the higher market quality to enhance top notch performance. The dedicated engineering team at ATI, has specifically designed the ultra-pure custom tanks using the latest market specification designs. Unlike the other ultra-pure equipment, this particular ultra-pure custom tank for use in biotechnical and pharmaceutical industries is in full compliance with the QA/QC specification procedures; the bioreactor tank also uses the latest fabrication technology and is tailored to suit customer needs in terms of budget, size and convenience. Differentiation of this ultra-pure equipment is enhanced by an optic clean filter housing that uses advanced technology and unique patented designs that substantially eliminates hold up volumes and is CIP to ensure compliance with environmental observance regulations. The custom tank is also specifically crafted to reduce maintenance costs as no spare parts are needed in the future. In further differentiating of the ultra-pure equipment for use in biotechnical and pharmaceutical industries, the reactor tank has a stainless steel coating and tube heat exchangers to ensure a longer life span of the custom tanks.
In the conceptualization of the ultra-pure equipment for use in pharmaceuticals and biotechnical plants, ATI has instituted stringent measure the design and engineering process to ensure that the product is customer focused with an innovative mission statement. ATI seeks to manufacture a customer tailored ultra-pure reactor that is pocket friendly and enhances convenience and efficiency to the user by delivering the product in various sizes and shapes that suit the users application needs. The company also has an innovative mission statement that is to deliver high quality and durable ultra-pure equipment for use in pharmaceutical and biotechnical industries at pocket friendly prices.
Addressing customer needs and competitive advantage.
Customers are the number priority to any business. Organizations need to perfectly study and comprehend their clients tastes and preferences and also any changes in the perceived customer tastes and preferences and achieve a competitive advantage. In anticipation to addressing customer needs, ATI has instituted various procedures and systems in the manufacturing of the ultra-pure equipment for use in the pharmaceuticals and biotechnical industries to ensure that the desired clients specifications and needs are ultimately met.
The ultra-pure equipment is value added enhanced. The product is engineered using the beat quality components available to the industry. The components include the finest filter housings, own heating exchangers and vessels. To further improve the value addition process, ATI has an in house fabrication and testing of key product elements to ensure that the desired specifications and intended performance are achieved in accordance with the set quality standard outline. In further addressing to the customers’ needs and enhancing a competitive advantage, the product arrives at the customer pre assemble in order to suit their required installation desires and also reducing the manufacturing span time and cost therefore saving on costs.
ATI also offers an array of universal filter housings made of the finest stainless steel. These universal filter housings are custom tailored to meet the housing specifications of the consumer. The ultra-pure equipment has different shapes design to enable connection to most manufacturers ‘cartridges.
The products are designed using cost effective engineering techniques using ATIs own manufactured components. This drastically cuts down the cost of manufacturing hence ensuring that the final retail price is pocket friendly.
ATI has sale stores strategically located at the company’s plant to enable customers to buy directly from the manufacturer thereby enabling convenience and in the process satisfying customer needs and achieving a competitive advantage.
Vision and business model
A vision statement presents the firm’s strategic intent that focuses the energies and resources of the company on achieving a desirable future” (Pearce & Robinson; 2009, p37).ATI new product conceptualization visions is to make the ultra-pure equipment a must want equipment for all manufacturing companies in the pharmaceuticals and biotechnical industry and double the products profits and revenues margin over a period of five years. This vision will be accomplished by continuous product improvement, globalization and acquiring a motivated customer oriented workforce.
In realization of this vision, ATI seeks to adopt a crucial business model. This business model will include core growth strategy of customer intimacy, new product innovations and taking advantage of emerging marketing. The business model also will encourage a lead continuous improvement program based on excellence, growth innovation, aim and engagement coupled up in the business ATI’s business model is a capital deployment mechanism whereby capital expenditures and share repurchase are of key emphasis. All the proceedings from the business model of cash flow, earnings and returns on invested capital will be ploughed back in the manufacturing process of the business model.
ATIs new product mission of delivering a high quality ultra-pure equipment at pocket friendly prices and its vision of making the product a must have equipment for companies in the pharmaceutical and biotechnical industries and its guiding values of growing customer centric innovations, continuous improvement execution and safety and engaging in teamwork integrity are in line with ATIs mission and vision statements.ATI mission and vision: Building the World's Best Specialty Materials Company® Our Commitment: Creating Value Thru Relentless Innovation®.Allegheny Technologies Incorporated (ATI) is Building the World's Best Specialty Metals Company®. The cornerstones of our value system are based on achieving the highest ethical standards, maintaining strong customer focus and providing challenging and rewarding opportunities for our employees. The new product division in this mission and statement as it advocates for a customer oriented focus, engaging in teamwork and team work integrity and growing the products market base.
ATI mission and vision statement
ATI values, mission and vision statement give the new production line a strategic direction. The principles outline in the values, mission and vision statements go a long way in enhancing the success of the ultra-pure equipment. They streamline the customer needs in terms of tastes and preferences, outline the required specifications and procedures to be followed in manufacturing and also provide a contingent strategic plan for adoption to achieve the desired market goal of achieving a competitive advantage.
Guiding principles and values
To fully ensure success in the conceptualization of the ATI ultra-pureequipment, certain guiding principles and values in context of culture, social responsibility and ethics need to be adopted. In the cultural context, the new division might be required to adopt strong principles and values upholding the organizational culture. Organizational cultural values such as teamwork integrity should be adopted in the new division.
In light of enforcing social responsibility, the new division plant can limit its emissions. Use environmental friendly waste disposal and management techniques and also by contributing part of their revenue towards improving the economic and social development of the community within its operation base.
In the ethical context, the engineering team needs to ensure that due procedures and recommended parts are used in the manufacture of the ultra-pure equipment. No substandard components may be used in the manufacture of the new product.
Pearce, J. (2009).Strategic management: Formulation, implementation, and control (11th Ed.).
New York, NY. McGraw Hill.
Mintzberg, Henry and, Quinn, James Brian (1996). The Strategy Process:Concepts, Contexts, Cases. Prentice Hall