Able Corporation: Strategic Management Process
Strategic Management Process:-
• Establishing the hierarchy of strategic intent
i) Creating and communicating a vision: To be the leader in the US power tool market and provide the best services and make innovative products especially in the cordless product market where it has the core competence. To establish itself strongly in the manufacture of circular saws.
ii) Designing a mission statement: To achieve our objectives along with delivering satisfaction to our customers in an environment of fairness, honesty and courtesy. “Meeting needs profitably” is the main concern. The values that drive the organization ...view middle of the document...
Objectives are more specific and narrow while goals are broader and represent general intentions. They are abstract and can not be validated.
1. To establish competitive and technology enabled plants that facilitate smooth and cost-efficient production of the power tools.
2. To capture greater market share in cordless products and consumer channels.
3. To become a leader in the market of cordless products within a period of 5 to 6 years.
4. To allocate resources to marketing and sales department since this is the most important department and it can generate more sales.
5. To launch an effective training and development programs and introduce rigorous efforts to solve conflicts and disputes especially among the senior management by effective expenditure on the training program.
6. To introduce motivation programs and put in efforts for retention of the effective employees and expertise important for the organization for the time being and also for at least 3 to 4 years.
7. To strengthen the in house research and development department in order to conduct a competitor’s analysis and be well informed about its market share, market size, relative product cost position and about the factors that stimulate the market.
• Formulation of strategies
i) Performing environmental appraisal: The Company needs to analyze its opportunities and threats. This could be done through an analysis of the external environment facing the business at the macro and micro level. No competitive analysis has been performed in the past years, though it is extremely important for a company. Since the competitors are copying its product and have been using their marketing power to displace the products in the retail. Thus, it needs to undertake a competition analysis. Industry analysis is also important (the Michael Porter’s 5 forces model- bargaining power of buyers, bargaining power of suppliers, rivalry among the competitors, threat of new entrants, threat of substitute products. The external environment includes the PESTEL. (Political, economic, social, technological, environmental, legal). For example, the environmental and the protection laws in the US are strict and thus it affects the business in the sense that the damage to the environment is a serious crime and the wastes from the plant of the business may prove harmful to the environment. As advances in technology increase battery life, capacity and output and decrease battery size, the pace of the growth of the cordless segment will increase.
ii) Doing organizational appraisal: The internal environment of the business consists of the competitive advantage, core competence, the internal strengths and weaknesses, the marketing, financial, technological capabilities of the company. The company needs to strengthen its marketing skills and its research and development department. The relations within the company, that is, among the senior...