Business Model and Strategic Plan Essay

For more(prenominal) than four decades, the semiconductor fabrication has distinguished itself by the rapid pace of improvement in its wargons. Tr barricades get obliterate resulted princip all(prenominal)y from the intentnesss ability to exponentially decrease the token(prenominal) feature sizes used to fabricate integrated turns and different products. Of course, the intimately frequently cited dash is in integration level, which is usually expressed as Moores Law (that is, the number of components per chip doubles roughly every 24 months). The most significant trend is the decreasing cost-per-function, which has led to significant improvements in economic productivity and all overall lumber of life throughproliferation of computers, communication, and other industrial and consumer electronics. All of these improvement trends, any(prenominal)(prenominal)times called scaling trends, convey been enabled by large R&D investments. In the depart three decades, the evolution size of the required investments has motivated industry col craunchation and spawned many R&D partnerships, consortia, and other cooperative ventures. To help guide these R&D programs, the semiconductor Industry Association (SIA) initiated The National engineering Roadmap for semiconductor units (NTRS), which had 1992, 1994, and 1997 editions.In 1998, the SIA was get together by corresponding industry associations in Europe, Japan, Korea, and Taiwan to participate in a 1998 update of the Roadmap and to begin work toward the first International applied science Roadmap for Semiconductors (ITRS), published in 1999. Since then, the ITRS has been updated in in time-numbered geezerhood and fully revised in odd-numbered years. The overall objective of the ITRS is to impart industry-wide consensus on the best topical view of the industrys query and development selects out to a 15-year horizon. As such, it provides a guide to the efforts of companies, universities, gover nments, and other research providers or funders. The ITRS has amend the whole tone of R&D investment decisions made at all levels and has helped channel research efforts to argonas that most need research breakthroughs. It is forecasted that by the end of this next decade (2019) it go forth be necessary to augment the capabilities of the CMOS touch by introducing multiple naked devices that testament hopefully realize some properties beyond the ones of CMOS devices.However, it is believed that most desirely these bleak devices lead not declare all the properties of CMOS devices and therefore it is anticipated that heterogeneous integration either at the chip level or at the package level pass on integrate these modern capabilities around a CMOS core. The participation and continued consensus of semiconductor experts from Europe, Japan, Korea, Taiwan, and the U.S.A. ensure that the 2011 ITRS remains the definitive source of guidance for semiconductor research as we striv e to extend the historical advancement of semiconductor technical schoolnology and the integrated circuit market. ON Semiconductor mickle was founded in 1999 and acquired crimson Semiconductor the next year. In the next six years, from 2005 to 2011, the guild receptive seven Solution Engineering Centers in Korea, Oregon, Taiwan, and Germany, California, China, and Japan. In addition, the confederation to a fault acquired tencompanies, namely LSI Logic Gresham, Oregon spirit & Manufacturing Facility, ADI Voltage command & Thermal Management theme, AMI Semiconductor, Catalyst Semiconductor, Pulse tenderness Semiconductor, California Micro Devices, Sound Design Technologies, Cypress Image Sensor task Unit, and SANYO Semiconductor.The Application Products Group offers analog, mixed-signal, and respectable logic application specific integrated circuits (IC) power conversions and interfaces between AC and DC. The Standard Products Group offers discrete and integrated semiconduc tor products, such as power switching, signal conditioning and amplification, circuit protection, and voltage reference. The SANYO Semiconductor Products Group offers microcontrollers, analog and digital tuners and signal serve welling, and memory semiconductors. In 2013, the company introduced the industrys highest resolution optical two-bagger stabilization (OIS) integrated circuit (IC) for smartphone camera modules.strategic Plan Part I Conceptualizing in BusinessA solid strategical analysis is beneficial to shareholders, employees, nodes, and decisions makers within a company. The core of an effective strategic device contains a well-thought and informative committal statement. Using the ON Semiconductor Corporation as a benchmark, a mission statement has been developed to differentiate the companys products from the competition. In addition, the vision statement as plays an important region in communication the ultimate goal of the companys strategic decisions. A madc ap force stinker the mission and vision is the companys determine and ethical principles, which often dictate the choices made during strategic planning. When it is fully applyed, the strategic plan will al broken in ON Semiconductor Corporation to turn a profit a strategic advantage over its accomplished competitors.Mission avermentWe will transform ON Semiconductor Corporation from a conventional broad-line semiconductor company to the leading supplier of programmable solutions in clays everywhere. Semiconductor consolidation is the recent trend of semiconductor companies collaborating in order to come to a practical synergy with the goal of being able to operate in a business model that can sustain profitability. Newly naturalized solutions will be able to write outlocal communities with quality products at emulous prices while simultaneously creating value for shareholders.Vision StatementON Semiconductor Corporation will grow into the largest provider in rising mar kets. The brand will start out an complete presence in Asia, southwesterly America, and Europe with locatings being found within the top 10 major(ip) cities on these continents. By saturating the universes most populous metropolitan cities, ON Semiconductor Corporation will be the most placeable Corporation in the world.Guiding Principles, Values, and CultureON Semiconductor Corporation has several important ethical principles that influence major decisions in the strategic planning process. First, the company is concern about do quality products obtainable to the lowest income groups. Therefore, it is important to keep a wide selection of low cost products available on the market. This becomes an especially important consideration as we expand in markets that experience high levels of economic struggle. Second, the company is committed to delivering exceptional guest service to its patrons. Customer loyalty is a driving factor towards the long-term achievement of the brand. Failing to deliver exceptional client service could seriously hinder the ability to grow into new markets. In order for employees to express ON Semiconductor Corporations guide principles, it is essential to create a corporate favorableization that reflects these principles.Providing ample fortune for advancement within management hierarchy and the ability to participate in supplemental cookery will keep employee motivation high. As a result, employees will be eager to follow the ethical values educate forth in the strategic plan. It is likely that the company will need to make slight modifications to geological formation culture to meet the preferences of various world cultures.Impact on Strategic DirectionThe mission, vision, and values of ON Semiconductor Corporation serve as the foundation for strategic decision making while the company gears up for involution. When an un channeled variable causes a agitate in direction, the company will continue to use its miss ion as a guide for upcoming choices. The primary mission is always to maximize shareholder profits, merely the valuesdetermine the approach the company will take to achieve this goal. Overall, this will help the company cast a corporate culture in these new markets that gains the respect of the community. If the company is considered to be helping the local community, the chances of creating an effective strategic plan are extremely unlikely.Addressing Customer NeedsExpanding into rising markets presents a laughable challenge to cross customers needs. Every country exhibits its own unique culture and it is essential to pander to the preferences of each individual culture. A system that whole works in the United States is not likely to see the same level of success in Bangladesh, unless serious modifications are made to the business model. To switch this challenge, the company will conduct independent research and use paid consultants to determine how to tailor the brands digit for success in vastly different cultures. As time progresses, the company will be able to assess strengths and weaknesses by testing different models in each regional area. Gaining sharpnessful knowledge about each countrys cultural preferences will appropriate the company to attain a competitive advantage.The nature of strategic management today is seen in the environment-goaded strategies of successful firms competing in a diverse market. We must(prenominal) understand that faulty assumptions and false discipline can result in the formulation of poor or even disastrous plans, and change is constant and continuous that yesterdays good plan may not be relevant or of any value today (Pearce & Robinson, 2009). We have to realize that we live in a changing world and business organizations, governmental units and other entities, just like people, have to adjust and adapt to survive.Strategic Plan Part II SWOTT AnalysisSWOTT Analysis of ON Semiconductor Corporation is one of th e most important components. By providing quality products and prices, the corporation has established a global presence. This SWOTT analysis figures the various strengths, weaknesses, opportunities, threats, and trends that will impact the company in the future. With brilliant maturation prospects in emerging markets, the company has implemented an aggressive plan to be establishedthroughout the world. This outline poses several important ventures and opportunities that specify the contents of the SWOTT analysis.Economic TrendsEconomic trends play a major role in the strategic decisions. The brand has an ambitions global growth plan that is warm to economic changes. For example, the company reports that China and India are its main targets for new locations and expects to see significant growth as economic conditions improve. As income levels overture in these countries, it is expected that new owners will be eager to implement proven concepts into the local community. In addition, higher incomes will provide greater opportunity for a loyal customer base. However, if economic conditions start on a downward trend then an aggressive expansion could be threatened by insufficient demand for their product. If franchise owners are not pay backing the locations profitable, it could create irreparable damage to the companys image abroad and force the closure of new locations.Legal and Regulatory Forces apiece new emerging market presents a unique mix of restrictive and legal challenges. For example, the company must adhere to specific regulations. Any major violations could create a major backlash to the brand to that could prevent future growth in the country.Supply Chain OperationsMaintaining a ordered product is key to building customer loyalty for ONs. Customers expect to purchase an identical product each time they make proceedings with their company. In order to make this possible, the company has a sophisticated fork up chain network in place to e nsure every location has products available. This feat is achieved by utilizing regional distribution networks that supply owners with the proper equipment. mental synthesis a distribution network in overseas markets is significantly more risky than the United. Unknown distributer and freight companies must be chosen by the company to handle these important operational tasks. In the future, ONs will be able to establish a rigid supply network to minimize the threatsfaced in international supply chain operations.Opportunities Based on SWOTT AnalysisThe greatest opportunities for ONs can be achieved by differentiating the brand from its main competitors. Primary competitors to ONs market share include Intel Corp, Texas Instruments, Altera Corp and Xilinx Inc., which have established a dominating presence in international markets over the last several decades. ONs has the ability to demonstrate value to their customers by delivering a product that is completely unique from most othe r companies. A marketing plan that outlines their unique experience that ONs offers will help penetrate markets that are already occupied by competing companies. ONs similarly has a great opportunity to achieve new innovations that can reduce labor be.By implementing technology that can automatize the duties of employees, the company can increase its operational efficiency. The company can also reduce operational costs within the supply chain by drawing on experiences in the US market. Building a new supply chain in an emerging market will allow the company to design it in the most cost effective manner. all(prenominal) of these opportunities will play an important role in strategic success of the brand.SWOTT Table External FactorsFactorStrengthsWeaknessesOpportunitiesThreatsTrends world(prenominal)ONs has an established image in overseas marketsSupply Chain management requires extra investment to establish in global marketsMassive new markets in Asia, especially China and Indi aPolitical unrest in African and plaza East MarketsGrowing markets overseas will provide exception growth opportunities Economic alterd economic conditions will provide suitable owners. great disposable income will prompt some subverts to seek more expensive alternatives. Commercial real estate recovery will provide more restaurantlocations domestically. Economic collapse and rising materials costs could impact prices. Global economic recovery is remaining consistentLegal and Regulatory satisfying safety recordNew global markets present new regulatory challengesEstablish strong human affinitys with foreign business partners Legal costs for happy chance foreign regulations additiond regulation in the USA could raise labor costs.EnvironmentalStrong history of supporting clean environment practicesincrease public disapproval in the USAShow a perpetration to environmental friendly initiativesEnvironmental infractions could create media backlashConsumers place greater importance on environmental initiatives. Competitive AnalysisONs unique product line separates it from the competition Stronger brands, such as NXP have more overseas locationsDifferentiate from competing brandsClosely related brands establishing locations in emerging markets. Most major brands and expanding globallySWOTT Table intragroup FactorsFactorStrengthsWeaknessesOpportunitiesThreatsTrends strategyAggressive strategy will provide rapid growthspeedy growth could cause investment in new innovations to lag behindContinue to build presence in emerging markets.Aggressive strategy may be rejected by some culturesAsian countries are showing increasing demand for electronicsTechnologiesOptimized efficiency for product processingTechnology still requires significant human capitalAutomation to cut down on manual labor needsCompetitors may develop tech at a faster paceTechnology is decreasing in cost overallInnovationsSocial media marketing in place to build customer loyaltyCompetitors are offering items that appeal to higher qualityAutomate payment processing for rapid orderingNegative media reportage could spread on social mediaCustomers prefer products that efficientIntellectual billetONs brand is recognizable worldwideBrand is associated with low quality budget oriented products Increase awareness of high quality itemsUse of IP by foreign competitors without legal recourse net profit makes it possible to market the product rapidlySummaryONs faces a complex set of challenges as they conduct their aggressive expansion into emerging markets. Ahead of all, the global economic climate poses the greatest risk to the company, as major changes could have a significant impact on the strategys effectiveness. However, competitive pressure dictates that ONs must establish its presence in overseas markets as soon as possible. If the company waits to establish new locations, it many lose the opportunities provided by the current trend of global economic growth. The SWOTT analysis abov e provides insight that will help the brand mitigate risk as it continues to move previous with the strategy.Strategic Plan Part III Balanced ScorecardAs a method of further analyzing the strategic goals of ON Semiconductor Corporation, the equilibrate scorecard provides valuable insight into vision, mission, and values of the company. An analysis from the perspective of shareholders, customer, managers, and employees allows the company to gain astronger understanding of how strategic initiatives will affect these relationships. individually strategic initiative can have a differing impact, depending on the relationship a person has with the company. A strategic initiative aimed at impose costs might be beneficial to shareholders in the short term, but could have a negative impact on customer and employee values. The balance scorecard attempts to organize strategic objectives based on their specific relationship to ON Semiconductor Corporation.Shareholder Value or Financial vie wObjectivesTargetsMeasuresRisk MitigationIncrease customer base by expanding product varietyIncrease domestic receipts by 10% with a new product line over 5 years A trend of 0.5% growth in domestic gross revenue per quarter.Test new items in a limited number of locations to determine nationwide viability. lessening international supply chain costs.Lower supply chain costs in international markets by 5% over 2 years This objective should also result in higher operating margins locate in long-term solutions to supply chain management.Improve price-to-earnings ratio.The current blast ratio sis 9.05 (NASDAQ 2014) and should be increased to 1.50 A quarterly trend of improvement should be seen in the PEG ratio. Expand into international markets that present the highest overall value.Customer Value PerspectiveObjectivesTargetsMeasuresRisk MitigationImprove company image by marketing new productsIncrease customer recognition of new product offerings. appendage of new product sales of 10% relative to traditional products. Conduct custom surveys to gain insight into new product reception. Improveoverall customer serviceIncrease positive feedback from loyal customersImprove customer feedback by 25% over 1 year.Implement an employee training program focused on customer service Implement delivery to large marketsMake ONs products available with rapid delivery.Implement ONs delivery in at least 5 US citiesTest the delivery system in limited markets before mainstream launchProcess or Internal Operations PerspectiveObjectivesTargetsMeasuresRisk MitigationStreamline payments with mobile devicesrent customers to pay with mobile devicesEnable mobile POS systems at 25% of locations watch over customer preferences for mobile paymentsIncrease ordering speed with improved automation. devolve need for full time staff by automating production. Reduce number labor costs by 5% over 2 years. square off long term ROI of investment in automationLearning and Growth (Employee) Perspec tiveObjectivesTargetsMeasuresRisk MitigationOffer new opportunities for advancement within the companyPromote more internal employees to middle manager positions baffle the progression tenured of employees within the management hierarchy. Implement a training program for employees who desire management positions Improve corporate culture with social mediaAllow greater communication at all levels of company25% employee participation on ONs blog conversationsMonitor and deletion system to ensure conversations are beneficialSummaryStrategic initiatives are always associated with a certain level of risk. As an internationally acknowledge brand, it is essential for ON Semiconductor Corporation to make an effort to shelter its image with any new strategic choice. Failing to maintain the image that has been developed could lead to a decreased ability to move frontwards with international growth of the brand. In addition, many of the strategic goals require a significant financial inves tment. Any large financial investment should show promise of delivering long-term value to shareholders. This is especially important in the process and internal operations category because it directly impacts the operational success of the company.A strategic initiative in this category must be intentional for the long-term sustainability of the company. Each perspective on the equilibrize scorecard has unique strategic implications. For example, the strategic goals of the shareholders are significantly different than those of the employees or customers. The managers in charge or implementing a strategic plan must find middle ground between the objectives of each category listed on the fit scorecard. Each category plays an important role in the success of the organization at large and it is essential that every category be considered during the process. Ultimately, the balanced scorecard will ensure the strategy meets the objectives and values of ON Semiconductor Corporation.ONs competition in the semiconductor industry is widely varied. Direct competitors are other established brand manufacturers, such as Intel, Defunct, Sony, Silicon Wafer Producers, metalworks and Qualcomm. The closest competitor in terms of popularity, growth, and product line is the Samsung Electronics. In such a climate, the best investment opportunities will be awarded to companies that have the ingenuity and creativity to meet the customers demands for fashion in an industry driven by economic conditions, demographic trends, and pricing. The industry has moved from a buy now, upgrade later consumer to a buy now, upgrade now consumer. The companys management is confident that the ONs can achieve its aggressive salesforecasts, generating total sales of approximately $20.6 million in years to come.In addition, ONs management has carefully considered its market, potential difference customer base, and its ability to grow its sales average to capture 10% of the semiconductor industry. ONs has the potential to become a highly regarded resource in local, regional, national, and international markets. callable to the companys aggressive marketing strategy, establishment of the company as a unique entity in its industry, careful development of its products coupled with strategic partnerships with some of the industrys headliners, and the companys profitable revenue model, ONs has the potential to provide lucrative returns to potential investors. For ONs to achieve status as an industry leader, it must safe(p) initial capital.This capital will be used for start-up costs, to establish a reputable storefront, and to further develop the business, business infrastructure, internal systems, product development, and capacious marketing and geographic positioning. Providing that the company is able to acquire its funding requirements, ONs should be able to achieve operational success for many years to come.ReferencesPearce, J. A. II, & Robinson, R. B. (2009). Strategic ma nagement Formulation, implementation, and control(11th ed.). New York, NY McGraw-Hill.Thompson, A. A., Gamble, J. E., & Strickland, A. J. (2006). Strategy Winning in the marketplace Core concepts, analytical tools, cases (2nd ed.). New York, NY McGraw-Hill.