The role of strategic planning in Implementations

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Strategic planning determines where an organization goes beyond the next year or more, how you are going and how to find out if you got there or not. The focus of the strategic plan is usually for the entire body While the focus of the business plan is usually a specific

product, service or program. There are a variety of perspectives, models and approaches used strategically design. The way that a strategic plan is developed depends on nature leadership of the organization, the culture of the organization, complexity of

environment of the organization, size of organization, the experience of planners, etc. For example, several models of strategic planning including objectives based, issues-based, organic, scenario (some would argue that the scenario Planning is more than one technique from the model), etc. Objectives based design

perhaps the most common and starts with an emphasis on agency mission (Vision and / or values) that aims to work toward the

mission strategies objectives and action plans (who will do what and by when). Issues-based strategic planning often starts by examining the problems facing organization, strategies for addressing these issues and projects action. Organically

strategic planning might start by making the vision of body and

values and then action plans to achieve the vision of while complying with the values. Large differences in how organizations conduct various stages related activities in the strategic process is

more a matter the size of the organization for-profit/nonprofits the situation. Small nonprofits and small profits tend to conduct somewhat similar design activities differ from those occurring at large organizations. On the other hand, large nonprofits and big profits for the have- tend to make something similar to design activities that are different from those held small organizations.

When Should Strategic Planning Be Done

Strategic planning process depends on nature needs of the organization and its immediate surroundings. For example, planning should be conducted frequently in an organization which products and services in a rapidly changing industry. In this state planning can be done once or even twice time and place in a very comprehensive and detailed manner (i.e., with attention to mission vision, values, environmental scanning, issues, goals, strategies, objectives, responsibilities, time lines, budgets, etc.).

Why do some firms Do Not Strategic Planning

The companies do strategic planning for the following reasons:

Poor reward structures

fight fire

Waste of time

Too expensive

Laziness

Content with success

Fear of failure

Implementation Strategy

Strategy implementation requires a firm to establish annual goals,

has designed policies, motivate employees and allocate resources

to formulate strategies can be implemented; implementation of the strategy include development of a strategy-supportive culture, creating an efficient organizational structure redirecting marketing efforts, preparing budgets, development and utilization

information systems and linking compensation to employees organizational performance.

This is an action stage of strategic management:

The most difficult phase

Mobilization of workers and managers

Interpersonal skills are critical

Consensus to pursue goals

The Nature of Implementation Strategy

Implementation strategy that directly affects the lives of transmission plant division mangers, department managers, directors of sales of products managers, project managers, staff managed, managers, staff, supervisors and all employees.

Marketing Issues

Countless marketing variables influence the success or failure of

Strategy implementation and the scope of this text does not allow

in all these issues. However, the two variables are central to the strategy implementation, market segmentation.

Segmentation

Market segmentation is widely used in the implementation of strategies especially for small and specialized companies. Segmentation can be defined as the dividing the market into different subsets of customers according to needs and purchasing habits.

Finance / Accounting Issues Includes:

Acquiring needed capital

Develop pro forma financial statements

Preparing financial budgets

Assessment of the value of a company

Acquiring Needed Capital

Obtain funds needed Successful implementation of the strategy often requires additional capital. As refers to the global perspective, countries and continents such as companies are actively seeking to attract investment capital.

Financial Budgets

The financial budget is a document that details how the funds should be obtained and spent for a specific period. The annual budgets more frequent, though period for a budget can vary from day to more than 10 years.

Evaluating Worth of Business

Assessing the value of a business is the focus of strategy

applications comprehensive, intensive, and diversification strategies are often achieved by acquiring other companies.

Decide whether to go public

Going public means selling a share of your company to others,

order to raise capital: therefore dilutes control of the owner

company. Going public is not recommended for businesses with less

$ 10 million in sales because the initial cost may be too high

the firm generate sufficient cash flow to go public deserves.

Research and development (R & D) Issues

Research and development personnel can play a decisive role in

strategy application. These individuals are usually responsible for developing new products and improving old products in a manner that will allow effective implementing the strategy. R & D employees and managers perform their tasks include transforming complex technology, adapting procedures to local raw materials

procedures to adapt to local markets, and deterioration of concrete products tastes and requirements.

Information Management Systems (MIS) Issues

Although no company will use the same marketing approach or

management 20 years, many companies have 20-year-old information systems computer threaten its very existence. The development of new user application often gets a back seat to keep an old system running.

Review of literature

In the automotive sector in Pakistan has increased considerably in

the past five years. Currently, there are 21 manufacturers and 400 suppliers involved in production and assembly of different cars ranging from cycles for heavy duty vehicles. The main sources of equipment for assemblers & Japanese vendors are Korean and local concerns. The main function a car plant entails printing, welding, painting (Electro Deposit System), Engine & transmission, and final assembly & Inspection. Total investments by assemblers and the seller is Rs.5.34 Bn and Rs. 2,86 Bn respectively, and have created a total of 14,000 jobs.

Automobile sector of Pakistan produces cars ranging from 800cc

to 2000cc. today; There are five major Japanese and Korean players to shape the public joint ventures with local companies involved in the assembly cars. These are Toyota, Honda, Farooq Dewan, Nissan and Suzuki. These companies are working the removal program in accordance with the timetable and objectives set Engineering Development Board (EDB), Production Department, Ministry of Trade & Industry, Government of Pakistan. In addition to the program delete these companies Also, efforts to quality products and services Support maximum customer satisfaction and convenience.

Case study organization Earnings

Honda Atlas Cars Pakistan Limited is a joint venture between

Honda Motor Company Limited of Japan and the Atlas Group of Companies, the Pakistan. The construction works started on April 17, 1993 and on record time of 11 months, the construction and erection of machinery was completed. The first car rolled off the production line on May 26, 1994. Official opening was became the President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited of Japan were also present.  On July 14, 1994, car bookings started at six

Representations in Karachi, Lahore, and Islamabad. Now the distribution network comprises 13 delegations 7 large The cities of Pakistan and nearly 40,000 cars sold by in June 2002. All representations made in accordance with standards set

Honda worldwide. Proportion of local parts is consistent with

government policy. Local vendors constantly patronized the development of local industry. The quality of local parts is under scrutiny with stringent international standards.

Major Products

CIVIC 

The tip VTEC distractingly good looking There are a lot of love for the Civic: reliable, economic and impressive fuel. It is now equipped with new lights, bumpers and mask, so you'll have a hard time concentrating on anything else except sleek good looks.

 

Extreme Perfection

The future takes shape with the new Honda City. Honda's affirmative be revolutionary new municipality, through innovative techniques and leading advances such as I-DSI engine and exclusive platform chassis.

Vision and Mission Statement

To be a dynamic, profitable and growth oriented company through the purchase leadership, excellence in quality and service adding value shares and maximizing exports. To provide attractive returns to partners business, shares farmers as per their expectations and the market value and workers in accordance with

capabilities and performance, and be good corporate citizen

meet social responsibilities.

Data collection process

Data collected from the site of Pakistan Automotive

Industry Association (Puma). This information is collected and other information influence left. Data were collected through an internet search.

Data Analysis

PASSENGER CARS

 

 

 

 

 

 

1300 and Above cc

 

Jul'09

Aug'09

Sep'09

Cumulative

 

 

 

 

 

 

 

 

Honda Civic

 Prod. 

      554

      533

      405

        1,492

 

 Sale 

      418

      630

      305

        1,353

 

 

 

 

 

 

 

 

Honda City

 Prod. 

    1,046

      960

    1,035

        3,041

 

 Sale 

      611

    1,506

      497

        2,614

 

 

 

 

 

 

 

 

Suzuki Liana

 Prod. 

      353

      199

      514

        1,066

 

 Sale 

      318

      613

      386

        1,317

 

 

 

 

 

 

 

 

Toyota Corolla

 Prod. 

    3,745

    3,404

    2,826

        9,975

 

 Sale 

    3,414

    3,711

    2,546

        9,671

 

 

 

 

 

 

 

 

Sub-Total

 Prod. 

    5,698

    5,096

    4,780

      15,574

 

 Sale 

    4,761

    6,460

    3,734

      14,955

 

 

 

 

 

 

 

 

The Quantitative Strategic Planning Matrix (QSPM)

The QSPM for the Honda is given below

Key Factors

Product Development

Conglomerate Diversification

Opportunities

Weights

AS

TAS

AS

TAS

Demand shifts for goods/services

0.15

3

0.45

3

0.45

Import/export factors

0.08

2

0.16

2

0.16

Attitudes toward business

0.10

3

0.30

3

0.30

Special tariffs

0.08

2

0.16

3

0.24

Level of government subsidies

0.12

2

0.24

3

0.36

Threats

Price fluctuations

0.15

4

0.60

3

0.45

Inflation rates

0.10

2

0.20

2

0.20

Per capita income

0.10

4

0.40

4

0.40

Intense rivalry in industry

0.07

3

0.21

4

0.28

Demand exceeds supply of experienced workers

0.05

2

0.10

3

0.15

Total

1.00

Strengths

Customer Service Centers

0.15

2

0.30

3

0.45

Honda Genuine Parts

0.20

4

0.80

4

0.80

Environment Policy

0.10

1

0.10

2

0.20

Warranty

0.15

2

0.30

3

0.45

Good relationship with its suppliers

0.08

3

0.24

4

0.32

Well-known brand name

0.10

3

0.30

4

0.40

Weaknesses

No niche market

0.05

1

0.05

2

0.10

High operating expense

0.05

2

0.10

3

0.15

Low return on assets ratio

0.05

2

0.10

2

0.10

Shortage of cash due to successive losses

0.07

3

0.21

3

0.21

Total

1.00

5.32

6.17

The results showed QSPM

The QSPM for Honda shown. Here we compare two different

strategies identified in the analysis of deuces. The amount of 6.17 indicates that conglomerate is the most effective strategy then the development of the product 5.32 units.

Quantitative Strategic Planning Matrix

It is the only technique designed to determine the

relative attractiveness of feasible alternative actions.

These steps include the construction of a QSPM matrix are:

Tool for objective evaluation of alternative strategies

Based on identified external and internal factors

crucial success

Requires good intuitive crisis

List key external business opportunities and threats

 List Company key internal strengths and weaknesses

Assign weights to all external and internal critical factor Success

Implementation strategies

Management

The diagram of the management issues are the following:

Annual target

Annual objectives are short-term milestones that organizations must succeeded reach long term objectives. And long term objectives annual targets should be measurable, quantitative, challenging, realistic, consistent and priority.

Policies

Policies are the means by which the annual goals will be achieved.

Policies includes guidelines, rules and procedures established to support efforts to achieve the stated objectives. Policies are guides to decision making and address repetitive or recurring conditions.

Resource Allocation

Availability of resources is a central activity of management for

implementation of the strategy. Strategic management enables management to allocate resources according to the priorities identified in the annual target.

External Evaluation Factor Matrix

For the evaluation of external opportunities and threats in Honda

Pakistan Ltd manufacture the EFE Matrix is presented below.

Opportunities

Opportunities are:

changes in demand for products / services

Import / export data

Attitudes to business

Special tariffs

Level of government subsidies

Threat

Threats include:

fluctuations

Inflation rates

Per capita income

Intense competition in the sector

Demand exceeds supply of experienced workers

External Factor Evaluation matrix

Key External Factors

Weight

Rating

Weighted Score

Opportunities

Demand shifts for goods/services

0.15

4

0.60

Import/export factors

0.08

2

0.16

Attitudes toward business

0.10

3

0.30

Special tariffs

0.08

1

0.08

Level of government subsidies

0.12

2

0.24

Threats

Price fluctuations

0.15

4

0.60

Inflation rates

0.10

3

0.30

Per capita income

0.10

2

0.20

Intense rivalry in industry

0.07

3

0.21

Demand exceeds supply of experienced workers

0.05

1

0.05

Total

1.00

2.74

The EFE for Honda Pakistan Ltd is shown in the table above. The Demand shifts for goods/services are the most important factor and price fluctuation are the important threat for the company. The total weighted score of 2.74 indicates Honda Pakistan Ltd is average in its effort to pursue strategies that capitalize on external opportunities and avoid threats.

The Competitive Profile Matrix

The competitive profile matrix is given below:

Critical Success

Factors

Honda

Toyota

Suzuki

Weight

Rating

Score

Rating

Score

Rating

Score

Market Share

0.15

2

0.30

2

0.30

3

0.45

Product Quality

0.08

3

0.24

3

0.24

2

0.16

Sales Distributor

0.10

2

0.20

3

0.30

2

0.20

Product Capacity

0.08

2

0.16

2

0.16

3

0.24

Price competitive

0.10

3

0.30

3

0.30

4

0.40

Advertising

0.15

3

0.45

4

0.60

2

0.30

Customer Loyalty

0.12

4

0.48

3

0.36

4

0.48

Global Expansion

0.12

3

0.36

2

0.24

2

0.24

Management

0.10

3

0.30

2

0.20

3

0.30

Total

1.00

2.79

2.70

2.77

The CPM for Honda Pakistan is given above. Here market share and advertising are given the most importance as indicated by a weight of 0.15. Next global expansion comes with 0.12. Honda Pakistan gives the priority to customer loyalty with the score of 4; Toyota Pakistan gives the importance to advertising while Suzuki gives importance to Price competitive with the 4 point. Overall Honda has 2.79 score, Toyota 2.70, and Suzuki has 2.77 score.

Introduction to some of the major advantages

Customer Service Centres

All approved delegations in Pakistan are a source of client

satisfaction. The after sales supported by impeccable service and availability of spare parts at competitive prices for all sold

car.

Free Services

HACPL is an informed customer service company, which

always looking ways to further develop relationships with clients who have already bought cars. Consider the automotive market, such as the principle of relations with customers.

Repair and Maintenance

HACPL provides regular training sessions with technical representatives. The training covers all aspects of cars, including

Regular maintenance diagnostics, trouble shooting and repairs in accordance with the standards HONDA.

Honda Genuine Parts

Only Genuine Honda parts made Honda's specifications to maintain of Quality, reliability and performance - so you can easily select any time. When we installed Genuine Parts Honda will have a Honda Warranty that you You will not get anywhere else. The Honda Motor vehicles equipped with many unique cars

system, require special care to maintain high levels of performance and Reliability, which is why we have created a range of genuine and Fluids Lubricants especially for your Honda. Each of the original cash and Lubricants are designed to perform a specific task, which is vital for good

Honda's is you. Where has the logo of the Honda can be

sure is Superior quality.

Strengths are:

Customer Service Centres

Honda Genuine Parts

Environmental policy

Warranty

Good relationship with suppliers

well-known name

Vulnerabilities

No niche market

High running cost

Low return on assets ratio

Lack of cash due to successive losses

Case study Non profit organization

World Call Payphones Limited was founded in 1995 as a limited

company. It began commercial operations in August 1996. The

company is dealing with the installation, operation and maintenance of a country smart payphone network and provides local, national and international calls facilities to customers. The customer buys the card first and uses later. Sometimes, the entire card is used concurrently with other card Used over the years.

In addition, the company has also created a series of area and

satellite offices in smaller cities and towns for the timely services

threshold of the company's customers.

STRENGTHS

First Capital Securities Corporation Limited is the main sponsor of the company. FCSC is a leading investment and financial services company in Pakistan. Its shareholders include Al-Fay Sal Investment Bank and a number of other domestic financial institutions. FCSC holds 24% equity in First Capital ABN AMRO Equities Ltd. (a joint venture of ABN AMCRO Bank).

Involved in other Telecom and IT projects:

World Call Phone cards Limited

World Call Dot Com (Pvt) Ltd.

World Call Wireless Limited

World Call Telecommunications Lanka (Pvt.) Limited

Operating experience 3 years and displayed growth in revenue: Profit after tax Rs. 53 million (99) and Rs. 8.2 million (98) in the background of depressed economic scenario.

Vulnerabilities

There are ten companies payphones operate independently,

supervised networks that calling card payphones, Telips and Telecommunications, Supertel, etc. licensed by PTA for an initial period of 15 years, which mayØ extended further if the company performs well.

Opportunities

Pakistan has huge untapped demand for services.

Telecommunications It would therefore benefit most from the opportunity available to market. The lack of telecommunications infrastructure in Pakistan presents a attractive opportunity for business operation of the payphone (Teledensity of 2 telephones per 100 people) (In other Asian countries, 10 to 20 phones per 100

people)

Threat

Natural disasters and other disruptions in the country.

Enforcement / improvement of customs duties, taxes and other charges from time toØtime. The devaluation of Pak Rupee.

Regulatory guidance from PTA to un-favourable changes in the callØcharges Competition between operators payphones.

vandalism

Strategy:

 

To extend the coverage of the payphone network in order to 

include the city and towns  do not contain sufficient number of payphones to meet  local demand. 

Policies: 

Plan for the 8000 purchase and installation of payphones in theØ 

this year 30% alone and 70% supervised.  Meet the spending by increasing public offer of paidØ

STRATEGY IMPLEMENTATION

PROGRAMME

Subscription list opened in the following manner:

No. of shares

Present issue

Total Rupees

500,000

Employees:

(Ordinary shares Rs.10/- plus Rs. 5/- premium)

Rs.7,500,000

9,500,000

General Public:

(Ordinary shares Rs. 10/- plus Rs. 5/- premium)

142,500,000

10,000,000

Total present issue

150,000,000

30,000,000

Total previous capital

365,000,000

Managing resistance to change in implementation strategy

Resistance to change may be regarded as the greatest threat to

successful implementation of the strategy. Resistance in the form of sabotage production machines, absenteeism, filing unfounded grievances, and unwillingness to work regularly appears in organizations. People often resisted the strategy because they do not understand what occurs either because the changes taking place. In this case, employees can simply need accurate information. The successful implementation of strategy depends on

the ability of managers to develop an organizational

climate for change. The change must be viewed as an opportunity than a threat from Administrators and employees.

Who Implements Strategy?

Depending on how the company is organized, those who implement the Corporate strategy may be a different group of people from those who shape. In most large, multi industry companies, the implementers will be all the organization, other than officers and directors of the Board. Vice president Chairpersons of the functional areas and managers of sections of the Subs will work with their subordinates to put together large-scale plans. From These projects, managers of plants, project managers, and head unit will be with plans for specific sites, departments and units. Therefore, each operational manager in the first line supervisor will participate some way towards achieving the corporate, divisional, and functional strategies. It is important to note that most of the people company is vital for the successful implementation of the strategy probably had little, if anything to do with the development of corporate strategy.

Issues in strategy implementation

The implementation of the strategy in a small business include many same matters a great company. The programs, budgets

and procedures become action-oriented strategy should be developed and used. Resources must be organized so that work can be done effectively and efficiently; the good people should be selected for key positions; and efforts workers should be

directed tasks to be performed and coordinated, so the company

achieves its objectives and fulfil its mission. The most

significant difference between large and small companies is to implement the strategy. In a large companies, practitioners are often a very different group of people those who formulated the strategy. In a small firm, the Manufacturers of strategy is usually the ones who will implement it. It is for this reason the imaginary line between strategy and implementation is often blurred in several small businesses. Two key implementation issues in small company organization and staffing of the growing company and transfer

ownership of the company's next generation. Problems

application a small change to business as the company grows and evolves time like decision-making process for business plans are different by that the established firms, both the management systems in small companies often differ from those of large companies. These variations are based on the stage of development.

Budget:

EVALUATION AND CONTROL

Network management system - the company has established a comprehensive Network management system for remote monitoring and managed. This It's on-line centre software has the ability to record call traffic generated by each payphone provides alarms

damage and to activate or off payphones. Developed a dedicated and well trained sales force and, Maintenance located throughout the coverage area of the network.

CONCLUSION

The company is successful in implementing the strategy, such as assistance achieved fruitful results (2.5 times higher subscription).

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