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While taking into account the world of business, the main/major goals of it is get the optimum level of profitability. Not just by hook or crook theory rather with the effective process regulated envisions the future status. So a prudent businessman or a manager always tries to foresee the future in positive way. Entrepreneurs always have to know in which direction the company is heading towards, so that they could take the necessary action in order to take into right line of achieving the ultimate goals and objectives. He/she always is ready to implement and regulate such plans which support to achieve its short/long term objectives. What s the present situation? What tomorrow will be? Where we will be tomorrow? What s the situation tomorrow? What /where we want to be tomorrow? Though no one can know, foresee and predict the future... a businessman always tries to do the things within which may lead their organization or business towards the future goals. So, the strategic planning is all about this kind of emerged situation to handle and action it now to see the results tomorrow. And the main vitality on ongoing towards the objectives totally depends upon how the plans has been made/formulate. Is it goal oriented or not? Who made it? How it has been made? So an effective and powerful strategic planning only can take a business to its extreme level of success, hence it show following four things
o States the present station of a business
o Influence the involved people towards the transformation of the products and services to targeted market
o Clarifies the conditions to attain the goals
o Stimulates in day to day operation and decision makings
As like future is unpredictable, it doesn t mean that the key players of any organization don t stay idle, thinking so will come and so will happen, rather become pro-active to make it happen it in smooth way. They enthusiastically keep eyes on their competitors and accordingly move on to their way creating the strategic plans so as to achieve its objectives. Strategic can be rapidly implemented as per the need and formulated in a second where there becomes necessary and has to be. We can find out lots of such implementations while even in a simple small offices to operate its day to day operations. So, overall we can say a strategic planning is the process of building the information which contains the directives or the decisions which has to be formulated/followed and implemented in order to achieve its goals by cutting off its drawbacks and weaknesses.
The firm which I have analysed and researched through
I have recently got chance to study about the facts and figures regarding a renown company which produces the most famous watch names Citizens , the manufacturer is Citizen Holding Co., Ltd., Japan. Let s first figure out the mechanism about its structures and mechanism and history.
Introduction and History
Citizen Holding Co., Ltd. was founded by the Shokosha Water research Institute in 1918, Japan, and later was incorporated in about 1930. It is one of the largest manufacturer of the watches, and due to its fame earned in about 1960 s, it started manufacturing the electric devices like chips and led LCD s, Quartz oscillators and view finders, electronic products such as computer peripherals, printers, HDD, electronic-thermometers, robots etc, calculators. Ann while calculating its overall sales report 37% of it is occupied by watches and clocks along with its parts, 33% from electronic devices, 7% from electronic products and 11% from the industrial machinery and remaining from others like jewellery, eyewear, jigs. More than 58% of its revenues are collected from outside Japan. It has begun in Tokyo as a horological research centre named Shokosha Watch research Institute. Pocket watch for the first time was manufactured. Building up the slogan like close to the heart of people everywhere and after six years Mr. Yosaburo Nakajima has been appointed as a president of the company, and in same year manufactured the first timepieces watches. Later in 1963 they built a factory in Tokyo, which became the main manufacturing facility. And in the same year, started to broaden the sales towards Southeast Asia and accordingly towards the rest of the world. Now it s most probably the largest watches selling company throughout the world. It holds and relates to the World War II which printed the stillness in its production, because were forced and have to move towards the fulfilment of the military need for the ware fare. And instead manufacturing the watches and other related products it started producing the weaponry items. As soon as they were defeated by the allied forces in 1945 and was bound to have rebuilding task. After long business period Citizen co., ltd started exporting its products throughout the world and in the 60 s the it was almost collaborated towards the American market and till now it has the same fame and name as most of the consumers prefers and trust in the quality and brand of it.
Diversification was the main strategic issue ever propound by this company in order to achieve their goal and meet the market need. Initially, the company really struggled for almost more than 4 decades to become in some state and then as soon as got the market at large, started diversification on which the trust of the people has been centralised on it. Though, at the hard times of the event like world war two, it diversified in producing the machineries, which was the main part and strategy ever made by it.
Now let s take a look at the present status analysis of this company which is as follows
Citizen Holding Company limited
Web Address http://www.citizen.co.jpFinancial Year End March
Number of Employees 22,127
Employee Growth 15%
Sales and its Growth $3,390.80 m, 18.9% (2008/03)
Net Income & Its Growth $112.8.m, 102.60%
Source: - Data available in the company s website, updated 2005
As I have gone through its history and profile, as its researching company and hence converted as manufacturer, I found that they are preparing to launch their new slogan as Micro-Human-Tech which is pinpointing towards the Miniaturizing the citizens needs and expectations with the technology and research. The company has been ongoing with a ethics to develop the mentality of being concern about their safety, quality and the environment. It is conducting every of its transaction building up the sound relations ships with its stakeholders. Transparency in its business report is highly appreciative. Is being able to attain the trust and it has traced out the perfect environment for the employees to operate their day to day operation within. The marketing situation in fact shows whatever known about the size and growth trends of its market, facing competitors and the critical matters that directly impacts in your marketing phases. Let s make a point wise analysis of this CHC ltd.
Customers/Buyers are of all aged and throughout the world
CHC Ltd. Manufactures/supplies the products as per the country s ability to afford for.
Companies selling to consumers may segment customers by gender, age, income, location, or buying pattern
Growth in revenues is about 102.6% and the sales and its growth is app. 18.9%, means tending towards the objectives achievement
Diversification of the low priced and high priced watch made easy to be adopted among all.
These points shows that how its market started growing and faming itself to be among the best one.
So, now let s have a pinpoint view towards its overall status.
Globally taking part
Focused on research and experiments
Oldest and renowned watch maker
Good financial status
Flexibility in manufacturing
Precision high-tech products
Staffs are in quantity and dedicated
Good promoting issues
Aware of investment returns
Financially achieving objectives
New innovative technologies used
Micro Human Tech highly appreciative
Eco-drive gaining much sales Weaknesses
Hit by the newly fashionable houses
Recession in home country hits badly
Key staffs are from home country only
Seasonally and culturally not prioritised
Home economy fluctuation
Publicity has not been prioritised towards the low standard citizens
Technology further launching
Fashionable watched to be manufactured
Market has to be placed to meet every households
Seasonal products can be launched
Further diversification can be done by research
Threats easily be eliminated by appropriate steps
Extra features/attraction can be added
Perfect competition with The Swatch Group Ltd.; Casio Computer Co., Ltd.; Seiko Corporation; Timex Corporation; Fossil, Inc.; Bulova Corporation; Montres Rolex S.A.; Movado Group, Inc
IT development created high challenges
Couldn t reach every household
Losing the low earning customers throughout the world
Taking over by the fashion houses (Calvin Clein, Hugo Boss, Armani)
Sales declined (2003,2005) because of a slump in the firm's electronic device business
So, the SWOT analysis gives the key challenges to be face and accordingly take actions for further attaining the goals and objectives of the company, though publicly it s been not understandable. Now, the main strategies to undertake these actions to make some amendments become really very significant factor. What that can be?
En route for prioritise the market to face the day by day challenging risen close competition with the highly fashioned products throughout the market, has to be met.
Launching emerging demanding of high technologic products
The Citizen Group endeavours to improve business value and contribute to society through sustained corporate activities in harmony with the local community and the global environment, under the business philosophy of "Contributing to and striving to be respected by the Citizens of the World."
In the continued pursuit of this business philosophy, the Group works to strengthen corporate governance toward ensuring management transparency and achieving the optimal allocation of management resources in its multi-faceted businesses. Through newly launching new products with the extra features, Citizen hoped to stay on the technological cutting edge and retain its place as one of the world's watch leaders, while continuing to augment its position in electronic devices and products.
Citizen Holdings formulates management policy and makes investment decisions from the perspective of optimizing group wide management, and oversees and supervises subsidiaries by monitoring whether their business activities adhere to the management policy and whether their management is transparent.
Internal control project launching to ensure management transparencies
Source: - The Citizen Group Corporate Governance Structure (as of April 1, 2009), The flowchart shows the internal control system and procedures
In order to project and scan the prospective ongoing goals to be achieved can be analysed as follows. To foresee the positive and positive profitability, I would prefer to prioritise upon the strategy which is focused on eliminating the close competition by launching the new innovative and fashionable products, which can occupy at least the 80 percent of whole market. Increasing sales in volume can determine the ratio in return on investment and accordingly the profits as well. Cost maintenance plays the vital role in accordance with it.
The vision of the management
A company where people thrive is the main vision of the company, which means the people involving with its consumption, production, promotion and all the activities has to exercise their mind and body with their pleasure and being of course liberal, creating mentality being surviving with their own potentiality and being rewarded for what they do and performing. Going forward, the key person think there will be great demand for management to find creative ways to harmonize this goal with stakeholders' diverse needs. Prospectively, it has been developed the vision for 2025 A.D as "Contributing to and Striving to be respected by the Citizens of the World" which is developed to empower current vision, meaning along the slogan Micro Human tech totally devoted towards Citizens of the world. They vision contributing to a citizen-based sustainable society in which people can enjoy life with a sense of security and fulfilment. Citizen offers products that are always close at hand and are good for people and the world.
The Mission Statement
Citizen's mission is to supply better products and services to citizens all over the world. Citizen offers a wide variety of watches and precision high-tech products that fulfil the diversified needs of users worldwide. Creating products "Close to the Hearts of People Everywhere" is Citizen's corporate philosophy.
The Aims, Goals and Objectives
Providing the products to our valued customers with safety, quality and the environment
Building up the transparency and open day to day operation with our stakeholders
Perform the job involving publicly and openly of financial status and data management
Eco-friendly mentality helps us to be friend with the customers, and we will go on.
Establish the good familiarity with the local community and latter world at large
Making sure of being safe and guarded to our people in order to create their efficiency, as of well being
Quick action in anti social activities, formally
Prioritise the different cultures, values and tradition to eliminate racial discrimination
Leaders will give full attention of tentative issues
We are attentive towards the individual labour to make them untiring in working environment
Increasing revenues by formal means and transparency in each and every action/transaction.
Following U.N Global Compact which principled on
? Human Rights
? Not complicit in human rights abuse
? Against extortion and bribery
? Labour Standard
? Freedom associated
? Wipe out forced labour
? Abolition of child Labour
? Elimination of overall discrimination
? Pre-caution on environment issues
? Initiative to environmental challenges
? Ec0-friendly technology development
Internal Reporting System
Establishing internal and external hotlines will disseminate the internal reporting system within the Group; we provide contact information and precautions for reporting on the Group's Intranet. The intent and significance of the system is also explained in detail at training sessions for new recruits and newly appointed management staff.
Accepting Potential External labour
In taking in external labour, Citizen Holdings transmits to each Group company the approach to compliance to keep in mind when hiring temporary employees and outsourcing, to ensure proper operations in line with employment contracts. The Company also monitors each Group Company once a year to ascertain the status of temporary labour and outsourcing and encourages self-checks on the appropriateness of using external labour.
Effort at Each Group Company
? Utilizing CRS Activity Checklists
In fiscal 2007, Citizen Watch began checking compliance status by using CSR checklists. The items checked are reported and confirmed at the CSR Promotion Committee, which is managed by the CSR Promotion Department. From fiscal 2008, the items will be reflected in the audit plan for internal auditing purposes.
? Setting Up a dedicated webpage in the intranet
In fiscal 2007, Citizen Electronics set up and launched a webpage dedicated to CSR compliance on the Citizen Electronics Group's corporate Intranet. We intend to establish a full-time organization aimed at planning the implementation of regular education and building an educational system.
Compliance Promotion structure and Education
? Compliance and risk management activities
As a priority of its CSR activities, the Group advances compliance-related risk management based on the Citizen Group Code of Conduct.
In conducting its activities, the Group emphasizes educational training and dialogue with the central aims of raising awareness and improving the understanding of management and employees. We approach these efforts from socioeconomic aspects and ethical and aesthetic ones, striving to foster a corporate culture that enables lively debate and free discussion on compliance.
? Considering clarification of standard
As in the event of accidents or disasters, any compliance violations must be reported to the CSR Department at Citizen Holdings. We plan to clarify standards to enable consistent handling of violations at each Group company and to create a mechanism for compliance auditing.
There were no major compliance violations at any of the Group companies in fiscal 2007.