Strategic Plan - Assignment Essays

Throughout this course, you have been using different analysis strategies to determine best practices for developing your business plan. It’s time to develop a strategic plan that will help you determine where your business is now, where you want to take it, and how you will get there. Your strategic plan will help you implement and manage the strategic direction of your company. Additionally, you will communicate the direction of your company to stakeholders.

Develop a strategic plan for the company you have used throughout this course and share it with stakeholders.

Create a 10- to 15-slide presentation for key stakeholders to solicit their approval of your strategic plan. Address the following in your presentation:

An introduction with mission and vision statements
Core values, ethics, and social responsibility principles
Analysis of the company’s:
Internal environment (e.g. strengths and weaknesses related to resources, trademarks, patents, copyrights, or current processes)
External environment (e.g. opportunities and threats related to market trends, economic trends, demographics, or regulations)
An evaluation of the internal and external environment’s impact on achieving the company strategy
Create a strategic objective for the company.
Create short- and long-term goals for achieving the company’s strategic plan.
Determine methods for collecting data and measuring the success of the strategic plan.

Include APA-formatted in-text citations and a reference page.

Cite at least 3 peer-reviewed documents. Note: You may include your textbook as 1 of the sources.

Submit your assignment.

Strategic Analysis (Talen Energy Supply)

Damascus Johnson

Evaluate the company’s current financial plan, including charts and/or graphs showing financial data from the struggling company, and make recommendations for improvement.

Talen Energy Supply LLC is a power generation company that owns and operates a diverse portfolio of power plants in the United States. The company’s operations are divided into two segments: merchant generation and regulated generation. The merchant generation segment sells electricity to wholesale customers, while the regulated generation segment sells electricity to retail customers under long-term contracts. An examination of Talen Energy’s financial statements reveals that the company has been struggling financially in recent years. The company has reported losses in the past three years, and its revenue has been declining. The company’s revenue for the year 2020 was $2.48 billion, which is a decline of $0.24 billion from the previous year (Financier Worldwide, 2022). This decline in revenue can be attributed to a decrease in the average wholesale electricity prices and a decrease in the volume of electricity sold. Additionally, the company’s gross profit margin has also been declining, which is a sign of financial difficulties.

The company’s debt levels are also high, and its liquidity position is weak. As of December 2020, the company’s total debt was $3.57 billion, while its cash and cash equivalents were only $0.21 billion (Knauth, 2022). This implies that the company has a high debt-to-equity ratio, which is a sign of financial distress. Moreover, the company’s debt maturity profile is heavily concentrated in the short-term, which increases the company’s vulnerability to interest rate fluctuations and refinancing risks.

On May 10, 2022, Talen Energy Corp. submitted its petition to the bankruptcy court (Chutchian, 2022). The corporation has the intention of raising a total of 1.65 billion dollars in fresh equity from a variety of stakeholders. This would assist the corporation lessen the burden of its debt, which is currently $4.5 billion. The holders of the firm’s unsecured debts have further resolved to convert $1.4 billion of their liabilities into equity in the hope that this will ease the financial load that the company is currently facing financially (Chutchian, 2022). In addition to this, the corporation has also secured debtor-in-possession financing in the amount of $1.76 billion. This financing comes in the form of a $458 letter of credit facility, $300 million on the credit agreement, and $1 billion on a term loan. The monies will be used to assist in making the company’s day-to-day operations more manageable.

The corporation is still having significant financial difficulties, as the figure above demonstrates. As long as it continues to fall behind on payments for loans and other commitments, it cannot be considered to have reached its full potential in terms of its financial capacity.

In order to improve its financial performance, Talen Energy should focus on reducing its debt levels and increasing its revenue. The company should develop a debt reduction plan that includes debt restructuring and the sale of non-core assets. This will reduce the company’s debt levels and improve its liquidity position. Additionally, the company should focus on extending the maturity profile of its debt to reduce its vulnerability to interest rate fluctuations and refinancing risks. The company should focus on expanding its customer base and increasing the prices of its products. This can be achieved through market penetration strategies such as entering new markets and increasing its market share in existing markets. Additionally, the company should focus on diversifying its revenue streams by investing in new technologies and diversifying its product offerings.

The company should focus on reducing its operating costs by implementing cost-saving measures such as energy efficiency programs and automation (Ehmke, 2018). By reducing its costs, the company can offer more competitive prices to its customers, which will help increase its revenue. Talen Energy should invest in research and development to develop new technologies and products that will differentiate it from its competitors. This will give the company a competitive edge in the marketplace and help increase its revenue.

Determine strategies for achieving a sustainable competitive advantage in the marketplace and increasing financial performance.

Achieving a sustainable competitive advantage in the marketplace and increasing financial performance are key goals for any company. Talen Energy Supply LLC can implement several strategies to achieve these goals. One strategy that Talen Energy can implement to achieve a sustainable competitive advantage is diversification (Ehmke, 2018). The company should diversify its revenue streams by investing in new technologies and diversifying its product offerings. For example, the company could invest in renewable energy sources such as wind and solar power, which have a growing market demand. This would help the company reduce its dependence on a single product or market, which would make it less vulnerable to market fluctuations. Additionally, this would also help the company to increase its revenue and improve its financial performance.

Another strategy that Talen Energy can implement to achieve a sustainable competitive advantage is cost leadership. The company should focus on reducing its operating costs by implementing cost-saving measures such as energy efficiency programs and automation. By reducing its costs, the company can offer more competitive prices to its customers, which will help increase its revenue and improve its financial performance. Additionally, by reducing its costs, the company will be able to increase its profit margins and improve its overall financial performance (Knauth, 2022). The company should invest in research and development to develop new technologies and products that will differentiate it from its competitors. This will give the company a competitive edge in the marketplace and help increase its revenue and improve its financial performance. Additionally, by investing in research and development, the company will be able to stay ahead of its competitors in terms of product offerings and technology, which will help it to maintain a sustainable competitive advantage in the marketplace.

A final strategy that Talen Energy can implement to achieve a sustainable competitive advantage is market penetration. The company should focus on expanding its customer base by entering new markets and increasing its market share in existing markets (Knauth, 2022). This will help the company to increase its revenue and improve its financial performance. Additionally, by expanding its customer base, the company will be able to reduce its dependence on a single customer or market, which will make it less vulnerable to market fluctuations.

Create a plan to implement the strategies you selected.

To implement the diversification strategy, the company should first conduct a thorough analysis of potential new technologies and product offerings. This analysis should include an assessment of market demand, potential revenue streams, and the costs associated with the new technologies and product offerings. Based on this analysis, the company should prioritize the new technologies and product offerings that are most likely to be successful and develop a plan for investing in these areas. Additionally, the company should also establish a budget for the research and development needed to develop new technologies and product offerings (Ehmke, 2018). To implement the cost leadership strategy, the company should first conduct a thorough analysis of its current operating costs. This analysis should include an assessment of the costs associated with energy efficiency programs and automation (Ehmke, 2018). Based on this analysis, the company should prioritize the cost-saving measures that are most likely to be successful and develop a plan for implementing these measures. Additionally, the company should establish a budget for the implementation of these cost-saving measures.

To implement the innovation strategy, the company should first conduct a thorough analysis of potential new technologies and product offerings. This analysis should include an assessment of market demand, potential revenue streams, and the costs associated with the new technologies and product offerings (Ehmke, 2018). Based on this analysis, the company should prioritize the new technologies and product offerings that are most likely to be successful and develop a plan for investing in these areas. Additionally, the company should also establish a budget for the research and development needed to develop new technologies and product offerings. To implement the market penetration strategy, the company should first conduct a thorough analysis of potential new markets. This analysis should include an assessment of market size, potential revenue streams, and the costs associated with entering these new markets. Based on this analysis, the company should prioritize the new markets that are most likely to be successful and develop a plan for entering these markets. Additionally, the company should establish a budget for the marketing and sales efforts needed to enter these new markets.

References

Chutchian, M. (2022, May 10). Talen Energy Unit Files for bankruptcy and looks to slash $4.5 bln debt. Reuters. Retrieved November 18, 2022, from

https://www.reuters.com/legal/litigation/talen-energy-unit-files-bankruptcy-looks-slash45-bln-debt-2022-05-10/

Ehmke, C. (2018). Strategies for competitive advantage. Western Extension Marketing Committee, 5, 1-8.

Financier Worldwide. (2022). Talen Energy files for Chapter 11. Financier Worldwide. Retrieved November 18, 2022, from

https://www.financierworldwide.com/talen-energyfiles-for-chapter-11#.Y3d3EHZBzIU

Knauth, D. (2022, October 26). Talen energy supply cleared to solicit creditor votes on bankruptcy plan. Reuters. Retrieved November 18, 2022, from https://www.reuters.com/legal/litigation/talen-energy-supply-cleared-solicit-creditorvotes-bankruptcy-plan-2022-10- 26/#:~:text=The%20company%20was%20driven%20to,2021%2C%20according%20to% 20court%20papers.

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Case Study Analysis

Damascus Johnson

Case Study Analysis

Airbnb is a leading company in the accommodations market, providing an alternative to

traditional hotels and vacation rentals. The company has been a disruptive force in the hospitality

industry and has revolutionized how travelers find affordable and convenient accommodation

(Dogru et al., 2019). While Airbnb has had significant success, it must also be mindful of the

regulations that can affect its business operations. This paper proposes a business strategy that

will allow Airbnb to meet these regulatory requirements while motivating its users to benefit

from participating in the accommodations market, including the efforts to ensure the ethical

treatment of consumers and the adoption of flexible policies that are tailored to local, state, and

international regulations.

Airbnb is responsible for ensuring that its users receive ethical treatment from its

platform. To do this, Airbnb should create a detailed set of policies and procedures to protect its

users’ rights. These policies and procedures should include measures to ensure that users are

given accurate and truthful information about the services they use and measures to protect their

personal data. It should prioritize consumer safety, fair prices, and consumer privacy to maintain

the trust of its customers and the public. The price caps should be set dispute resolution process

should be implemented, and consumer privacy should be protected. For instance, developing a

secure system for storing consumer data and providing clear terms of service for consumers.

Airbnb should also create a system to monitor user complaints and resolve any issues that arise

quickly and efficiently.

Flexible Policies should be developed that are tailored to local, state, and international

regulations. These policies should be designed to ensure compliance with all applicable laws and

should be regularly reviewed and updated to reflect changes in the legal landscape. All

accommodations meet local and state safety standards, including implementing a vetting process

for properties or requiring all properties to have smoke and carbon monoxide detectors. A system

created to allow users to easily access and understand the relevant regulations in the jurisdictions

in which they are conducting business.

Finally, Airbnb should consider how to motivate individuals to benefit from participating

in the accommodations market.

The company can incentivize users to benefit from participating

in the accommodations market. These incentives could include discounts for frequent users,

loyalty programs for long-term customers, and special offers for referrals. Airbnb should also

provide access to expertise and resources to help users better understand the regulations and

maximize their earnings.

In conclusion, Airbnb should create a business strategy that includes ensuring consumers’

ethical treatment and adopting flexible policies tailored to local, state, and international

regulations. Additionally, Airbnb should create incentives for users to benefit from participating

in the accommodations market. By following this strategy, Airbnb can ensure compliance with

local, state, and international regulations while motivating its users to benefit from participating

in the accommodations market.

References

Dogru, T., Mody, M., & Suess, C. (2019). Adding evidence to the debate: Quantifying Airbnb’s

disruptive impact on ten key hotel markets. Tourism Management, 72, 27–38.

https://doi.org/10.1016/j.tourman.2018.11.008