This Business Model And Strategic Plan Will Propose A New Division For
This business model and strategic plan will propose a new division for Derricks. It will detail and explain the importance of the new division’s innovation and strategic direction through the division’s mission and vision statements. New Division Derricks is a landscaping and gardening tools company. Derrick’s slogan is Our Tools Made America, their history goes as far back as 1974, Derrick’s shovels broke ground for Ace striping a small local company in 1965. The company has put in place a strategic plan that will allow the organization to respond to the changing environment.
The company’s leaders are proposing new excellent innovative products that will help consumers. The production teams have produced the brand new prototype of Derrick’s heated shovels, multipurpose shovels, and scrapers. The new Winter Tool division has been created to follow through on the company’s strategic plan. With a new division also comes a mission statement to define this division. The mission statement reads: Maintaining our commitment to developing quality and efficient American-made tools that will keep customers working no matter what the weather is outside.
New Products the winter tool division first new product will be the heated shovels. The winter tool line was first thought of during the winter season. Due to the increasing amount of snowfall; the company started to work on a strategic plan to launch winter tools. The leadership team compiled the requests from the customers who were inquiring about winter tools. After a substantial amount of demand, the leadership team felt there was a need to come up with the technology suitable for helping ease the pain of shoveling snow.
During the winter season Fort Riley, Kansas alone had a record of 108.6 inches of snow (Kansas Breaks Seasonal Snowfall Record, 2015). Shoveling snow with these amounts can be a hard job especially once the snow hardens. With that in mind, the idea to develop a product that will help ease the pain of having to constantly dig and bang against hardened snow and ice come to light. With this product, shoveling snow will become much easier and less stressful. Customers and Competitive Advantage Derricks winter tool division is possible because of their clients.
The customers inquired about the winter tools; therefore, Derricks listens to their customers. Derrick’s headquarters is in Texas, and they are committed to manufacturing their instruments in the United States of America (Derricks). The winter tool division is an expansion of Derricks; therefore, it will provide the same customer service that Derricks is already providing to its loyal customers. Due to the new section, the
customer service department will be extended to assist with orders and any concerns customers may have. The customer service employees will train on how the new products work, the limited warranties, and the extended warranties.
The customer service team will ensure customer questions are answered, researched, and documented. The team will record all calls to track issues and positive reactions to the product so the company can improve on what works and change what does not. Derrick’s expertise in tools will allow them to have a competitive advantage. Their long history of developing tools that have been used to build the United States shows that they have the expertise to develop any landscaping tool. The current snow shovel on the market does not allow for easy shoveling.
The shovels are not made to break down the ice that may be mixed in with the snow. By Derrick’s adding a winter tool line and adding technology to develop heated shovels along with multipurpose shovels, the company will stand out from its competition. Every company should have a vision that states where the company sees itself in the future. Some companies’ mission statement is the same as its vision statement, and this is so for Derricks. Therefore, the Winter Tool division has created its vision statement, and it reads as: To be the world’s premier landscaping tool maker.
The company is a global company that is ready to expand past the typical landscaping tools. Business Model The business model will follow the product pyramid profit model. The product pyramid profit model is the most common model for customer goods, and it is great when offering a variety of styles of a product. The production team has come up with two models of the Heated Shovel. The first model will be battery operated which will require four "C" batteries.
The second model will be electric. The electric model can be used while plugged in or without it being plugged in. There will also be two different styles of these models. The first style will have a plastic pole with a plastic base. The second style will have a metal pole with a metal base.
Both styles will have an easy adjustable pole and a rubber handle which will also heat up. These products will have a switch that indicates the desired temperature, low, medium, high, and off. The base of the shovel will come in four sizes small, medium, large, and extra-large. The shovel will come in an array of colors. Following the heated shovels will be a line of multipurpose shovels, heated scrapers, snow pushers, and roof rakes.
The heated handle and soft grip will help in keeping your hands warm while out in the snow. So even
without wearing gloves one can keep their hands warm while using the product. The heated base will allow for easy shoveling. Once the product is turned on, it will take a few seconds to warm. As customers place their shovels in the snow, they will see the snow starting to melt away.
Even with the thickest ice, the heated shovel will heat the ice quickly, breaking up the ice painlessly. This product is designed to cut shoveling time in half. Company's Mission and Vision Derrick’s mission and vision statement are the same. It is stated as: “Our landscaping and gardening tools are made to tackle your toughest projects and keep right on working, season after season, in all kinds of weather. Just like you” (Derricks).
Derrick’s mission, vision, and values are aligned with the goals of the Winter Tool division. They both aim to produce durable, high-quality tools capable of handling year-round demanding projects. Derrick’s vision is to become a global leader in landscaping tools, emphasizing manufacturing in the United States and community involvement. The Winter Tool division shares these values, aiming to build upon Derricks’ legacy while fostering a purpose-driven, innovative, and ethically grounded culture.
Paper For Above instruction
The development and introduction of a new division within Derrick’s company—specifically, the Winter Tool division—serves as a strategic response to evolving customer needs, environmental challenges, and market opportunities. This paper explores the strategic importance of this new division, its mission and vision, product innovation, competitive advantages, and alignment with overall corporate values and goals.
Strategic Importance and Innovation
The core rationale for establishing the Winter Tool division lies in the increasing demand for advanced snow and ice removal tools, driven by record snowfall and harsher winter conditions. For instance, Kansas experienced a record 108.6 inches of snow in one winter (Kansas Breaks Seasonal Snowfall Record, 2015), a statistic that underscores the necessity for more efficient and user-friendly snow management tools. Derrick’s strategic plan recognizes this market shift and aims to fill the gap with innovative products such as heated shovels and multipurpose snow removal tools.
Innovation is central to this division’s mission—particularly, integrating heating technology into traditional tools to provide relief from physically demanding snow removal tasks. The prototypes for heated shovels, featuring both battery-operated and electric models, exemplify this innovative thrust. By
embedding heating elements into ergonomic designs, Derrick’s offers solutions that reduce physical strain, save time, and improve safety and comfort for users in challenging winter conditions.
Product Lines and Competitive Advantages
The product line introduces two design models: one powered by four "C" batteries, and an electric version that can operate both while plugged in and wirelessly. The inclusion of adjustable poles, ergonomic rubber handles, and multiple sizes and colors caters to diverse customer preferences and needs. These features not only enhance usability but also distinguish Derrick’s from existing market competitors, many of whom lack integrated heating technology or ergonomic design.
The heated shovels are designed to melt snow and ice rapidly, transforming the labor-intensive task into a manageable process. This technological enhancement aligns with Derrick’s goal of creating durable, American-made tools capable of tackling the toughest projects regardless of weather conditions. Additionally, the division’s extension into multipurpose tools, heated scrapers, snow pushers, and roof rakes consolidates Derrick’s position as an innovator in winter outdoor tools.
Customer-Centric Approach and Market Expansion
Derrick’s emphasis on listening to customer inquiries sustains its competitive edge. Feedback from consumers requesting winter-specific tools catalyzed the division’s development. Furthermore, the extension of customer service to support new products—training, warranties, and troubleshooting—ensures a seamless integration into Derrick’s existing service framework. This approach reinforces customer loyalty and satisfaction, vital for expanding into International markets. By manufacturing in the United States, Derrick’s maintains a commitment to quality and social responsibility, instilling confidence among customers and bolstering its brand reputation. These values are reflected in the division’s mission: to develop high-quality, American-made tools essential for year-round utility in varying weather conditions. As Derrick’s aspires to become a global leader, strategic partnerships and international expansion efforts will be integral to realizing this vision.
Alignment with Corporate Mission and Values
The division’s mission—to develop tools that enable customers to work efficiently in any weather—mirrors Derrick’s overarching goal of providing durable, reliable tools. The shared vision to be “the world’s premier landscaping tool maker” demonstrates an aspirational target aligned with innovation,
quality, and global outreach (Derricks, 2013). Ethical practices, community involvement, and cultural integrity are the guiding principles that ensure ethical manufacturing and operational transparency.
The strategic directions focus on building global alliances, leveraging cutting-edge technology, and fostering a purpose-driven culture rooted in social responsibility. These directions reinforce Derrick’s fundamental values of integrity, accountability, and respect, which are essential for sustainable growth and brand differentiation in competitive markets.
Conclusion
In conclusion, the creation of the Winter Tool division exemplifies Derrick’s strategic agility, customer-centric innovation, and unwavering commitment to quality. Through the development of heated snow removal tools integrated with advanced technology, the division not only addresses a pressing market need but also reinforces Derrick’s long-standing legacy of American craftsmanship. Its alignment with the company’s mission, vision, and core values positions Derrick’s to achieve its goal of becoming a global leader in landscaping and winter tools, ultimately fostering community engagement and sustainable growth.
References
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