Final Paper

Strategic Plan Part 3: Balanced Scorecard and Communication Plan

Company: Johnson & Johnson

Trends, Assumptions, and Risks

With respect to the final business model, the key trends identified involve the increased use of technology. Keeping in mind that Johnson and Johnson operates in the medical, pharmaceutical, and consumer products industry, technology plays a significant role. The major trend, in this case, is the use of technology to boost the quality of its products and services. Technology is a relevant element for business growth and development (Potter, 2008). The assumptions involve that there is a ready market for the products of the company. Given the idea that there is a huge demand for the products and services of the company, it is assumed that the market is ready. The risk involves the idea that investment can be made in a particular area but returns are not as expected. In such a case, the company would have lost. It is necessary for businesses to assess the chances of profitability before making the decision of investing. This enables them to avoid potential risks.

Strategic Objectives

These are the goals that hold the future of the organization. They are goals that should be achieved to make sure that the future of the organization is assured. Whether or not a business will survive depends on the strategic objectives set as well as the efforts put in place in an attempt to achieve the goals. Keeping in mind the importance of strategic goals, businesses need to be effective with respect to setting the objectives as well as the attempts to achieve such objectives. Below is the balanced scorecard for Johnson and Johnson based on the strategic objectives.

	Strategy
Objectives	Measures	Targets	Initiatives
Financial	Increasing revenues	Additional income and profit	25% increase	Improve product quality and marketing
Customer Value	Improve customer service	Increased customer satisfaction	More than 90% positive reviews	Considering customer suggestions
Internal Operations	Improve motivation	Improved performance	95% meeting goals	Provision of needed resources
Learning and Growth	Automation of processes through technology	More efficiency and effectiveness in processes	Increase production by 50%	Acquiring new technology and utilizing it.

Potential Alternatives

As far as the SWOT analysis is concerned, there are various issues and opportunities that were identified. In order to effectively deal with these issues, there are various alternatives that are available. One of the issues identified is the strong competition that the company faces from others that target the same customers. The potential alternative has to this issue is boosting its marketing efforts to ensure that it gets a substantial share of the market. Keeping in mind the relevance of the market share to a business, it is necessary for measures to be put in place to make sure that the business is able to maintain competitiveness in the market. It is necessary to learn from other successful business on the best alternatives to be put in place for the interest of handling stiff competition.

Considering the fact that Johnson and Johnson is an international business organization, it faces the issue of fluctuating markets. The company sells its products to different markets across the globe and instability in any of the markets is a great challenge because it destabilizes the business. For instance, in countries where is political stability, the markets are also not stable and this creates a negative impact on the business. It affects its ability to sell and it implies that the financial condition of the business is threatened. Dealing with this issue involves extensive analysis of potential markets that the business intends to conduct its business. Through this, it is possible to get the assurance of where to invest. Investing in more stable countries is the best alternative as it boosts the chances of a business to survive in the market. It is recommended for businesses to ensure that they understand potential markets before putting their money there.

Strategic Objectives for Balanced Scorecard Areas

Financial Perspective

The strategic objectives in this area include improvements in the following areas; market share, revenues, and profitability. These strategic objectives are central to the chances of a business to survive in the market, addressing them is necessary as it basically improves the business position in the market (Steiner, 2010). The management team of Johnson and Johnson should ensure that relevant measures are put in place to make sure that the strategic objectives are addressed. The potential risks, in this case, are the chance that the organization might not have all necessary resources for this to be achieved. This can be mitigated by acquiring the needed resources and making proper allocations to different objectives.

Customer Value Perspective

With respect to the customer value perspective, strategic objectives involve the following: customer retention, customer satisfaction, and customer value. Customers are important to a business and should be addressed in the right manner. The risk, in this case, is the application of ineffective strategies. It is necessary to apply strategies that are effective for the specific business. Additionally, the customers should be handled in a manner that is ethically acceptable.

Internal Operations Perspectives

The following are the strategic objectives in this area: performance measurement, productivity improvement, and organizational change. These objectives are centralized on the organizational performance. They involve a close engagement with employees and this implies that the organization needs to be ethical enough not to go against the ethical principles.

Learning and Growth Perspective

Johnson and Johnson needs to learn and grow. The following are the strategic objectives in this area of the balanced scorecard: employee satisfaction, employee retention, and technological innovation. An achievement of these strategic objectives will enable the company to grow and be more competitive. Despite the risk of technology being outdated after some time, the company can take care of this by focusing on ensuring that employees are retained and satisfied (Olsen, 2011).

Balanced Scorecard for the Strategic Objectives


Objectives	Metrics	Targets
Financial	Increasing revenues	Additional income and profit	25% increase
Customer Value	Improve customer service	Increased customer satisfaction	More than 90% positive reviews
Internal Operations	Improve motivation	Improved performance	95% meeting goals
Learning and Growth	Automation of processes through technology	More efficiency and effectiveness in processes	Increase production by 50%

Communication Plan

The communication is intended to pass the information to the relevant stakeholders with respect to the strategic objectives. Basically, the audience is made up of the mid and top management of the organization. This is because they are in the best position to make the strategic decisions. The channel to be used is the word of mouth. A meeting will be convened and the communication made.

References

Olsen, E. (2011). Strategic Planning. New York: Wiley.

Potter, L. (2008). The Communication Plan: The Heart of Strategic Communication. San Francisco: IABC.

Steiner, G. (2010). Strategic Planning. New York: The Free Press.