The Los Angeles Tribune is a large newspaper publisher with distribution all over Los Angeles region. The company is currently facing several problems that need to be addressed. Key among them include rising costs of paper, increasing distribution costs, low circulation revenues, declining advertising revenues as a result of online listing by Craigslist and other online advertising services, an aging customer base and shrinking incomes that cannot support current employees. In response to the identified issues, there is need to construct a goal setting framework that addresses three challenges that face the company. A goal statement for each of the three items will be included. Additionally, similar strategies, tactics, activities, measures of success and goal measurement are included in the goal setting framework. The three issues that are of importance include; rising costs of paper, increasing costs of distribution and shrinking revenues that cannot support current employee.
Issue 1: Rising cost of paper
Goal Statement: by sourcing for alternative sources of paper, the company can reduce the price by 10%
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Strategy 1
The company needs to source for alternative cheaper papers from other suppliers in the domestic and global market. The company is determined to search for more affordable quality papers from reliable overseas suppliers. A long-term relationship will be established to ensure continued supply of the papers for a designated period. In this case, the company would be able to plan and eliminate any sourcing costs likely to affect the overall price of the paper (Mukherjee, 2016; Morana, 2013).
Tactics
Some of the tactics include identifying cheaper suppliers of paper in the local and international market. Evaluation of the recognized suppliers will be the next step. Potential suppliers will be engaged, and long-term agreements entered into. Where possible the company can also establish a strategic partnership with the identified suppliers (David, 2013).
Activities to support tactic for the strategy
Determine whether to use single or multiple sourcing
Develop a list of potential suppliers
Evaluate and select the suppliers based on their performance, prices and ability to deliver
Determine the quality, costs, delivery time, services offered, supplier profile, reliability, responsiveness, technology, risk factor, annual demand, and availability and supplier willingness.
Determine any challenges that might undermine the success of any long-term agreements
Establish the quantities desired in a period
Select the best supplier
Enter into long-term agreement (Mukherjee, 2016; Morana, 2013).
Measures of success
Drawing a long-term agreement for the supply of cheaper paper at the required destination and on time will be one of the benchmarks of success. Obtaining more affordable sources of paper locally or internationally without striking a long-term goal will also be used as a measure of success as long as such materials can be obtained when needed at a lower price and in the required quantity and agreed upon destination (Mukherjee, 2016; Morana, 2013).
Recommended Goal Measurement
The company will measure the goal every three months by summing the total cost of paper for three months and comparing to the previous three months. It will establish a tracking system of the total cost of paper.
Issue 2: increasing costs of distribution
Goal statement: reduce the distribution cost by 10% in two years time
Strategy
Develop cheaper distribution alternatives for the newspaper. The company should establish affordable and reliable distribution networks to reach the target market at the right time and in the required form (David, 2013).
Tactics
The company should develop distribution networks that are cost-effective and affordable. Such distribution should ensure that the delivery time is not compromised. The company can invest in transportation means that are fuel efficient and economical to maintain. The fleet should be optimized, and if possible, some of the routes can be combined and served by one distributor. The payments to the distributors should be performance based (David, 2013).
Activities to Support Tactic for Strategy
Identify alternative distribution networks
Evaluate the identified options based on costs, delivery time, reliability, flexibility, complexity applicability and market coverage.
Identify appropriate distribution
Combine some of the routes to reduce the overall cost
Select cheaper means of transport without compromising delivery time
Remunerate according to the volume of distributed newspapers
Measure progress and take corrective actions if needed
Measures of Success
Obtaining more economical means of transportation and the combination of some of the routes to one will also be deemed as a measure of success.
Recommended Goal Measurement
The company will periodically measure the goal every three months by computing the total distribution cost for three months and comparing it to the previous three months. It will also establish a tracking system of the total cost of paper.
Issue 3: shrinking revenues that cannot support current employee
Goal Statement: increase revenues by 10% in two years
Strategy
Increase the revenue streams by investing in alternative sources like online newspapers. The company will also invest in a millennial magazine to tap more income from the rising disposable income of this group (David, 2013).
Tactics
An online subscription newspaper will help increase revenues from the internet lovers. Due to the rising disposable income of the millennial, a magazine targeting the group can tap additional revenues from this segment which is not served by the newspaper. The company can also reduce its costs by investing in technology (London, M., & Mone, 2012).
Activities to Support Tactic for Strategy
Develop an e-paper where customers can subscribe and read the newspaper online.
The company can invest in a millennial magazine that is appealing to a target market like fashion industry
Invest in modern technology to reduce operating cost and improve the revenues of the companies (London, M., & Mone, 2012).
Measures of Success
Obtaining alternative revenue sources and establishing an online e-paper will form the basis of as a measure of success. Increase in the revenues of the company and a decline in the operating cost will also be used as a measure of success (London, M., & Mone, 2012).
Recommended Goal Measurement
The company will periodically measure the goal every three months by computing the total revenues obtained from the alternative sources in three months and comparing it to the previous three months (London, M., & Mone, 2012).
Reference
David, F. R. (2013). Strategic management concepts and cases: a competitive advantage approach . Boston: Pearson.
London, M., & Mone, E. (2012). Leadership for today and the future (1st ed.). San Diego, CA: Bridgepoint Education, Inc.
Morana, J. (2013). Sustainable Supply Chain Management. doi:10.1002/9781118604069
Mukherjee, K. (2016). Supplier selection criteria and methods: past, present and future. International Journal of Operational Research, 27 (1/2), 356. doi:10.1504/ijor.2016.10000076
