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The British Electrical and Manufacturing Company Limited (Bemco), was established in 1893. Rapid growth provided many chances to develop the company. To expand regionally, with branches in Glasgow, Leeds, London, Newcastle, and Sunderland and across the South East Bemco used all major business chances. With the introduction of switch and fuse gear manufacture in theÂ Glasgow Manufacturing DivisionÂ in 1902, the company has gone from strength to strength, forging impressive regional links and embracing technological developments and innovation, while maintaining its original business ethos. As a major company in this industry quality assured company, it renowned for supplying a wide range of quality electrical products at competitive prices from all major manufacturers. It also manufacture industry standard switch and fuse gear at manufacturing division in Glasgow. Mindful of the Internet and its progressively-realized potential, it recognized as the best company that promoted the world of trade in electric business and commerce is embracing the opportunities presented by recent advances in Information Technology and electric industry.
In general terms provide examples (3 to 5) and briefly explain them of theories and principles that underlie strategic planning?
Strategic Planning is the process of deciding future course of actions related to a business task. Strategic planning enables an organization to frame necessary actions, goals, objectives, for the development of the organization. Future cannot be control, future is uncertain, to run the business towards the mission and vision of the organization strategic planning. All major corporate levels strategic decisions are implemented in actions based on the policies through strategic planning. This planning process is done at the corporate level. There are several types of plans that a company frames and implements in a routine business management. Planning is done for specific period of time. Normally for every year strategic planning is announce by the management of the company to the lower level management of the organization to work a per the action plan in the strategic planning reports. These tools are essential to make the future course of business actions as per the changes in the industry.
Strategic planning tools and techniques are defined in strategic management. It is the only of the core activity and concept in strategic management.
Principles of strategic planning:
Planning the strategic objectives of the organizations over a period a time.
After analyzing the internal and external business conditions, for the sake of organization growth and development strategic planning is essential to define and frame the actions to manage and control in every business event.
All the business policies, procedures, activities, operations are framed keeping objectives of the Strategic planning in mind. Strategic planning is not only useful for defining a action plan for managing the organization activities, it is also useful for monitoring controlling the organization activities as per the plans.
Strategic planning is useful to formulate business level or functional level objectives to achieve the objectives and goals of the corporate level strategies.
All corporate level strategies are framed based on the strategic plan of the organization.
It explains the actions plan for achieving the objectives of the organization.
Provide in outline form, using a diagram a framework which would enable your chosen organization to develop its strategy in general terms
British Electrical and Manufacturing Company Limited (Bemco)
Vision and mission Statement
Functional level or divisional level strategies
Regional level or location wise strategies
Objectives and Goals
Action plan to achieve the goals and objectives
Corporate strategic management
For to develop strategies in British Electrical and Manufacturing Company Limited (Bemco)
Entire organization strategies are based on the Vision and mission Statement of the organization, because these two statements are the ultimate objectives of the organization. Based on these two statements and values and principle of the organization strategic planning process is performed. Corporate strategic management is very essential to fix the business level Strategic objectives of the firm. Functional level or divisional level strategies of the organization are essential to frame bottom level plans and actions. Sometimes based on the area of operations strategies are framed based on the Regional level or location wise. For every certain period of time Objectives and Goals of the company changes its path and models, Action plan to achieve the goals and objectives decides the processes and operations to perform the series of actions.
Describe and critically evaluate a small range (3 to 5) of models, tools and techniques that could be used to develop a marketing plan for your chosen organization
There are several tools and techniques that could be used to develop a marketing plan for the company Bemco. Since it is operating in electric industry, it has huge customer base across the country. It is doing business in only UK. Though it is doing business in this industry from nearly 100 years all its activities are limited to only United Kingdom. With the huge experience in this industry, this company has good knowledge about the market very well. According to the changes in the electric industry, Bemco also tried to make changes in making suitable products for the customers to satisfy electricity need. Most of the people in the world directly depended on the electricity. It is very difficult to imagine world without electricity. Entire life in this plant depended on the energy. Since because of the big drawback in the industry, electricity cannot be stored when it is produced, it can only be useful while generate. The other from of electricity cannot give good results, like natural and generated electricity using various forms.
There are several tools and techniques to define and formulate a strategic marketing plan to the organization.
EPISTEL analysis (Environment, political, informatic, Social, technological, economical, and legal environment analysis):
For framing a correct strategic marketing plan based on the strategic planning of the organization is possible by scanning and analyzing these environments.
Business Environment: Demand for the electrical parts and equipments depend on the factor in external environment. If all business environmental conditions are in favor to the business growth and development, then Bemco can expect good demand for the products in the target market. Since demand for the Bemco comes from both industrial houses and household requirements, BAMCO should frame separate marketing plans to market its product to each target customers.
Political Environment: This environmental factor affects the business operation than any other environments. If ideology of the political parties are in favors of new industrial growth and development, demand or the electrical equipments will also increases, it decreases when the attitude of the political parties and governments are against to the industrial growth. Industrial units and organizations buy electrical products in bulk quantity for various purposes to use them in the organization. Demand for the household electrical equipments always remains same. Companies don't expect a long leap in demand.
Information Environment: For taking any business decision based on the past and present information generally companies try to forecast the future trends. Entire decision making process depends on the quality and quantity of information. Along with the internal organization information, BEMCO need external market information to project the trends and to forecast the demand and supply of electrical equipments in various markets.
Social Environment: Except people in rural area, customers don't face any social barrier for buying electrical equipments and products. Social status and self esteem factors may influence the customers' decision making while buying consumer durables and industrial and household electrical equipments. But for most of the industrial organizations, electrical equipments are ordered and procured from a company like BEMCO which can be useful to control cost and protect the electric usage levels.
Technological environment: Technical upgradation and updating in technology always affects the companies in many ways. Since upgradation in technology reduces cost for manufacturing, reduces power bill to the customers, increase to capacity to supply the power to the industrial and households.
Economical Environment: Economic system of the country impact the growth of industries in the country. If the growth is positive then demand for the BEMCO products increases, if the growth is in negative term, demand falls suddenly or slowly.
Legal environment: If legal system of a country is strong then companies need to produce the goods according to the laws of the land or country or should work according to the laws. If, any rules are crossed and if BEMCO damage the customers or organization interest then legal system may punish.
SWOT analysis: This analysis is useful to analyze the internal and external business operations and to make useful strategies for the company.
Strengths: If strengths of the organization are know then management of BEMCO can develop a right strategy to improve business opportunities, to increase market share and to increase sales size for more revenue generation from the market.
Weaknesses: Before doing any major business activity if the weaknesses are identified, then with new kind of activities and policies management can try to reduce or eliminate the weaknesses permanently. Based on the weaknesses in the internal organization, management can formulate actions to remove the weaknesses with required action plans for achieving business plans.
Opportunities: Using this analysis BECOM can explore the available business opportunities before the company in various markets to increase the market share, business growth, sales, performance, and productivity. This opportunities exploring can also be applied on weaknesses to overcome the weaknesses to make them all right for the company to achieve goals and objectives of the firm.
Threats: If a company is fails to face a major external threat it impact the business very badly. So threat analysis helps to find the alternate idea to face and resist and also to avoid threat to the company. This analysis helps to manage the threat effectively using a right and correct strategy.
Like this type of analysis tools there are several tools and techniques to take correct marketing plans. Some them are PEST analysis, Porters market analysis, BCG matrix, GE model matrix etc
State a variety (7 to 10) of general and marketing strategic options which have been used or are available to the organization of your choice and evaluate the advantages and disadvantages of four of these
BEMCO can expand the sales growth and income growth by concentrating on making electric equipments that reduces electricity expenses to the customers. Because most of the customers give importance to the sources to control the heavy expenditure. If electricity equipments are useful to are energy and also expenditure to both industrial and household customers, then chance to attract the customers can be increased in every market it is operating and conducting business practices.
BEMCO has to frame separate strategies for marketing for both industrial and household customers.
BEMCO has to identify new markets in UK to increase sales and business growth.
It has to enter new markets other than UK in Europe to use the chances and opportunities in the external market.
Instead of entering and investing huge investments in developing markets, it can setup subsidiary companies, or it can hire or appoint a similar company as marketing partners.
It has to expand the distribution channels thorough out the country to reach every corner of the markets.
BEMCO huge to improve its marketing teams to get business from the current and new markets.
Should recruit more number of experiences sales force teams.
Who are the stakeholders in the organization of your choice and state the three major ones of these
BEMOC is operating only in few parts in Europe and majorly limited it business operations in only few parts of UK. BEMCO is having very good history in producing good electrical equipments and products in various units of it as per the requirement of the customers.
Stakeholders are the business partners or associate who directly or indirectly provides support or assist BEMCO in generating business and in conducting smooth business operations. BEMCO is having several stakeholders. All these stakeholders are the major decision makers in taking a right strategy for running the business towards vision and mission statements objectives and goals. BEMCO is having its arms only in UK market
Some of the major stakeholders of BEMCO are
All its employees in the organization.
Raw material, spare parts suppliers
Industrial and household customers
Electricity power producers
Owners of the organization
Promoters of the organization
What affect have or could the three major stakeholders have on the strategy that the organization has or could introduce. What considerations should be taken into account to ensure that the three major stakeholders can contribute to the development of the organization's strategy through some form of participation?
Owners of the organization: From 100 years BEMCO is running by the group of persons belong to same family. From the years of business operations all the major business decisions are taken by the owners with the consent of the board of directors. Every strategy that is framed by the executive members or by the strategic mangers of the organization should be first approved and supported by the owners of the organization. As per the vision and attitude of the owners of the organization company's expansion, diversification and every strategy fro the growth and development need support and guidance of owners of the organization. Owners are the primary stakeholders of the organization. All the major strategic management activities are managed, formulated, designed, developed, implemented, monitored, and controlled by them based on the complexity and importance of the owners of the organization. Because of the tendency and other reasons company limited its operations to only UK from several years. This is showing the ideology and strategic action plan of the company.
Supplier of the organization: For manufacturing a good product as per the needs and wants of the customers, suppliers need to provide quality spare parts in times as per the delivery terms and conditions. As per the payments terms during the purchasing agreement creation time, BEMCO should pay the amount as per the working capital management requirements, cash flow and funds flow analysis. BEMCO should maintain a good relation with its supplier to obtain the delivery in a right time to avoid last minute problems to the company. Supplier may impact the business of BEMCO business because, BEMCO Company's product production, assembling, quality, quality of production depends on the quality of inputs and quality of the input raw materials. Suppliers' management and suppliers performance assessment is require to make a good business relationship with the BEMCO suppliers.
Customers: they are the real influencing stakeholders of the BEMCO business activities. If, all products of the BEMCO are not good and if BMECO customer relationships are not good especially for industrial customers then it is highly difficult to get good sales to BEMCO.
Investors: They are the most impacting stakeholders. If the new strategies neglect interests of the interests they oppose the strategy implementation.
These threes stakeholders impact the business strategies' of BEMCO at a high level. If the business decisions are not good and if the policies are not good for the growth and development of the organization, then anyone of the stakeholders may oppose or resist new strategy implementation. If the benefits that the stakeholders are going to get and the company is going to get are know to all the stakeholders then they may not oppose the new strategies' for the growth and development of the organization.
How should the senior management of an organization gain commitment to its strategies and the implementation of these from its employees at all levels?
Top or senior management are the responsible persons or teams to frame a good strategy for the growth and development of the company. As senior professionals in their regards and skills, they also should guide, lead, motivate and manage the employees at every business level for better results.
In a layman's language define the terms: vision, mission statement, objectives and values and go on to provide 'professional' definitions of these giving the sources of these.
Vision statement: Vision statement describes the overall future goals and objectives of the organization. It tells what the organization would like to be in a future period of time. Vision statement gives the details of fundamental enterprise objectives and decisions' in future. It tells the purpose of existence in the world.
Mission statement: It describes about what it wants to achieve and also describes the why the origination exist in the business world. Mission statements are helpful to frame the strategic decisions of the organization in every business activity.
Values: They give the information about the priority and importance and also the organization culture in running the organization activities. Values of the organization give basic guidelines for the management members while taking a major business strategic decision.
Provide the vision and mission statements and strategy of your chosen organization and explain how the effectiveness of these can be measured.
Vision statement of the BEMCO is to provide a safe, secure, quality, affordable, cheaper electrical equipments to the country and also to be the biggest electric equipment manufacturer in the country.
Mission statement of BEMCO is to provide cheaper and innovative services and also to develop environmental friendly electrical products to the nation.
Define the terms organizational cultural and ethical values and explain the culture and ethical value of the organization of your choice.
Organizational culture: The habit of making decisions, policies, procedures, employee satisfaction, and core values of an organization are the treated as the organizational culture. Organization culture shows the reflection of ideology of the management and functioning in every course of action. It reflects the internal organization culture towards employees, customers, supplier, and business partners. Success of the company also depends on the internal organizational practices. If employees, customers, shareholders, debtors, creditors are satisfied with the organization then that type of firm can excel in all business aspects by achieving good performance through quality performance and productivity.
Organizational ethical values: A business entity should also follow ethical values in conducting business practices. A business organization should not harm external world in any means. Ethical values are the principles that organization follows in serving people through products and services. Ethical values are the fundamental rules that an enterprise should follow in conducting internal and external business process operations in the environment.
BEMCO follows strict ethical values during providing quality products and service to its customers. It provides true and correct information to the regulatory authority whenever necessary for SMART activities.
SMART: - SECURE, MORALE, ACCOUNTABLE, RELIABLE, TRANSPARENT activities.
As a major business house in UK, with a good and long history in conducting business operations BEMCO had got good image in the industry in providing good quality products t its customers and running business operations with trading partners.
Explain the terms core competencies and critical success factors and state whether these are necessary to the success of the organization of your choice.
Core competencies: After years of experience and expertise in conducting business operation in the industry, companies can build few important parts or processes or activities or resources as core competencies. Core competencies are essential and important two identify the abilities and capabilities of an organization in running the business successfully. With the core competencies organization can able to perform the business operation in easy and productive format. If a company is having qualified, productive, skilled employees, then that company project employees as core competencies in acquiring new business projects or contracts from the markets. Generally companies showcase or project core competencies as main advantages or benefits in acquiring a major business opportunity from the clients.
Critical success factors: In few business operations or during the assessing the performance of an organization sometimes experts identify the reasons for the good performance or success, that type of important and crucial resources or abilities or capabilities are called as critical success factors. These critical success factors are helpful in completing the business work with less effort, time, less resources. Sometimes critical success factors are useful to add extra values and to synergy to the business organization during performing business operations execution time or after the implementation.
Core competencies and critical success factors are essential for BEMCO. Because these resources are helpful to achieve the organization objectives in a short time, with less resources, to get extra values in achieving in benefit. BEMCO require these both to attract the outside investors to invest in the company, to seek financial assistance from the money lenders, to generate more performance, to increase productivity and also to acquire more business opportunities.
Has the organization of your choice amended its strategy in response to changes in the current business and economic climate?
BEMCO has utilized the changes in the business environment, so it has been operating in UK from 100 years. This history is showing the capacity and capability of the company in changing its business policies, procedures, processes, and operations as per the changes in the market place. BEMCO has been developing its marketing strategies as per the requirements in the market. It has been changing its product features and product models as per the developments in the electrical industry in the world. To provide products and services to the target customers, BEMCO had changed is production and operation activities to make new product models and product features that suits current customer requirements and industries. Slowly as per the changes in the market, BEMCO added few more new electrical products to its product line to facilitate its customers and to attract new customers in the markets. From the day of business inception BEMCO expanded its market share with new kind of product to satisfy daily needs of the customers. Impact of economic environment is very low on this industry. If the economic system of country is attractive, stable and strong then business units run throughout the year with good business chances. If the business environment is not in favor of for doing business then business demand for ancillary and other related industry that depended on the major industry may not look attractive. BEMCO tried to reduce the operating and production costs to control excess expenditure to be in a safer zone in economic down turn period.
Explain how your organization has responded to changes in its environment and consider whether this response has been effective.
A major down turn in the industrialization hampered new business opportunities and decreased demand for the electrical products in various markets. In that type of conditions BEMCO tried to protect existing clients with customer relationships and also tried to cut down the operating costs buy reducing the excess and unproductive employees and also by reducing operating and excess production costs.
List what you would considered to be the major functional areas in generally and discuss the three major functional areas of the organization of your choice and why this is so.
Production: This is the most important functional area in BEMCO, why because, all the activities relating to quality in making a product, changing production processes, production management based on demand and supply, orders from the customer, major cost control can be done in this functional area only.
Marketing: BEMCO can be successful only while selling its products to the target customer successfully. All the strategies of the business organization generally focused to increase sales, market share, more income, more number of customer base, this can be possible only with this functional area. This functional area of BEMCO interacts with the customers directly to generate more business. So success relies heavily on this department. Marketing staff and executives are like soldier in a war, they fight for the company in the field to generate more business by facing direct competition in the market.
Research and development: This is the most important functional area of business organization. To produce new kind of products that suits to the present market requirements can be developed only by the true and strong contributions made by the BEMCO research and development functional area. If R&D department functions well then BEMCO can add new kind of products for the current market to generate more business. BEMCO's R&D functional area is the major contributor in achieving the goals and objectives of the firm.
How have the three major functional areas in your organization been developed to provide it with a competitive advantage?
These three functional areas are the main functional area of business. If these functional areas work effectively along with the cooperation and coordination of the other functional areas like Human resources, financial departments then BEMCO can run its business operations effectively for the development of the organization in all aspects. If all these departments work with full support and performance then BEMCO can attain the goals and objectives smoothly and also they can be useful as a main divisions to generate more results later all these functional divisions can be projected and useful as a competitive advantage in building image of the company in the market.
Discuss how a timetable for the implementation of a strategy could be developed around key milestones
Implementation of a major business strategy cannot be implemented without a proper process and stages. If all the steps in executing a strategy are clearly defined then strategy can be implemented successfully as designed and planned to achieve the objectives of the strategy.
Provide a sample timetable for your organization which indicates the timings (rather than dates) associated with the key milestones and the resources required for implementing this timetable
Conduct internal SWOT analysis to identify strengths, weaknesses, opportunities, and threats of a company.
Identify the areas for development for better performance and results.
Analyze the reasons for poor performance
Identify the problems in the Organization for producing good results in the identified area or part of the organization.
List out the solutions to resolve the problems.
Choose correct solution for correcting the organization area and part for better performance or productivity.
Formulate a strategy to change improve the conditions in the organization.
Identify the resources to implement the strategy
Plan the process to implement the strategy
Implement the strategy to achieve the objectives.
Manage, monitor and control the strategy implementation process for better results.
When a strategy has been developed and implemented how the effectiveness, efficiency and economy of this can be evaluated?
Strategy's effectiveness and efficiency can be identified only through its performance and results. To check the effectiveness and efficiency of a strategy compare strategy objectives with performance of the system, where strategy is implemented for better results. Economy of the strategy can be identified by comparing the results to estimate and identify the productivity of the process before and after the strategy implementation for better results.
Using examples explain why is it important to continually monitor the implementation of a new strategy?
Business decisions are based mostly on performance of previous decisions and strategies. To implement any type of strategy in an organization, generally organizations contribute large amount of human, financial, technical, marketing and other resources for better results. With so much time and effort several processes and activities are performed to get good results and make the strategy implementation successful. To make the strategic decisions implementation successful with full support, coordination and cooperation of all resources, systems every one work hard. So , management and monitoring is necessary at every stage, every activity, every process, on every action for making the strategy implementation successful.