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In today's world, strategic management is critical for companies. Before I start to explain my case study I would like to give brief information about what is strategic management and history of it. Etymological origin of the word strategy is based on ancient Greek. Strategy, Ancient Greek, "Stratos" (army) and "ago" (manage, to give direction) was made by combining the words. In some ways the author's etymological Latin word "stratum" They state derived from the word. Latin word "stratum"; "path, line, the river bed means, ". The strategy of the word dictionary, the "unity of action to reach a goal of providing and organizing the art" can be expressed as.
Strategy especially in a frequently used concept in military terminology. Defence strategy in the field of word used in reference to the name of the old Greek General Strategos's information and tactics in the field, and this represents the general's defence.
According to (THE Oxford University, Press 2005) strategic management is process of development.
The concept of strategy is a concept used extensively in the field of defence but also has been used in the field of management over time. Management science strategy, "the roads to follow to achieve the aim of an organization" used to mean. Management science, especially the strategies of firms or companies against their competitors, before the Strategic Planning and later led to the emergence of a discipline called strategic management. Today, strategic management, management science, is one of the most important research areas.
"Strategic management, eager to reach an organization future, and analyze the process of showing how to achieve that target." (Barry, 1986:10)
2. BACKROUND AND HISTORY OF TOFAS CAR COMPANY
Â After 8 years of market leadership from
Basics of the late Vehbi Koc, founder of the Koç Group in 1968 and taken by the Koç Holding and Fiat SpA is an equal shareholder Tofas, Fiat Auto's today is one of the world-wide three strategic production center. A great value and power of the Turkish Automotive Sector undisputed that expresses Tofas factory in Bursa Minicargo project produced by the Fiat Doblo and branded her face, as well as a compact sedan model, representing the Fiat Fiorino models, such as Koç Holding, our country also exported across the world Linea producing the passenger car being the only provider with a global player in the title.
Tofas in 2009 8 total domestic market sales increased by 8.8 and eight years later, have achieved great success in increasing. 3 automobiles and light commercial vehicle market with a market share leader again seized. such as history, with the highest rate on a year as the leading light commercial vehicle market.
Consumer surveys clearly a significant increase in the Fiat brand's image, both in passenger and light commercial vehicle manufacturer in Turkey is the only company to have high production flexibility with the ability to instantly meet sudden increases in demand, are among the most important reason for this success. Tofas export customs, in line with European markets began to slow in 2009 but the increasing trend of each month following the end of the year has reached pre-crisis monthly customs. Fiat Fiorino in Europe as well as in Turkey, especially due to high acclaim in 2009 to collect CBU (completely built unit-completely-finished products) by 2008 compared to a contraction in exports of vehicles has taken place
Total Number of Employees: 869
Executive: 53 white-collar employees: 191 blue collar workers: 625
Primary and junior high school: 16 %:% 48 Bachelor 31 MBA7%
Average Age of Employees: 34
Average Seniority of employees: 6
Annual Production Capacity
3,600 minibuses and small buses
3600 All-terrain vehicle (4x4 Land Rover tactical vehicles)
650 armored vehicles
1400 trailer and semi-trailer at the level of
3.1 SUPPLY CHAIN:
WHY TOFAS IS USING THIS SYSTEM
According to (Shoshanah Cohen, Joseph Roussel - 2005) The development supply chain does not happen. A conscious effort is needed
Main terms of Industrialists, the supply chain, customer needs at the right time, place, and all at an affordable price to provide the buying, selling, determine consumer trends, such as the supplier of producing all of the activities until the last customer. (Hill, 2008, )A company's supply chain, raw material manufacturers, raw materials and semi-processed products for conversion to the product during the manufacturing process and supply works dealing with it until after the delivery of finished products during the final consumer distribution channels, all the elements that create value. Or if we refer to this definition of consumer in terms of the supply chain for a product or service as required to fulfil the demands is the full value of the constituent phases or elements.
Sources of raw materials and parts procurement, manufacturing and assembly, warehousing and inventory allocation, order entry and order management, all distribution channels, customer delivery and information systems required to observe all these activities, including the distribution of a product to the customer in all stages of raw materials activities, "Supply Chain Management, all of these activities are coordinated and integrated into a process that is all.
3.2 5 Forces Model Of Porter's
Their businesses operate and make a plan to analyze the conditions of competition in the sector, according to the results of this analysis strategies, business protection, and the market share of existing market share is very important to developed by Professor Michael Porter of Harvard University's world-famous "Five Power Analysis - Five Force Analysis", describing the conditions of competition in a sector is one of the important models. Porter (1980) competitive conditions in a sector that plays an important role on the business strategies and a detailed five-power analysis to determine the structure of competition in the sector should be emphasized. Sector analysis, especially in the Situation Analysis Strategic Marketing Planning stages of the process used in one of the important tools of analysis. (Arnoldo C. Hax, Dean L. Wilde - 2001)
The purpose of this study, Tofas'sTurkey and the conditions of competition in the world sectors, "Five-Power Analysis," according to the present, not only to evaluate and determine the factors that explain the formation of the level of competition in the sector in the future. This will be an analysis of enterprises, the level of competition faced in the future, the structure, causes, consequences and management strategies to more effectively identify the more successful will be possible to prepare.
3.3 JUST IN TIME
According to (David C. Hutchins - 1999) all purchases wherever is possible should be just in time
At the point of need to have the necessary material needed for production and zero inventories aimed at providing a materials management system.
At least resource utilization, as soon as possible, the cheapest and error-free production, to meet customer demands at least israfla and all factors of production using the most flexible way to take advantage of all the potentials
WHY TOFAS IS USING JIT
By using Jit, Tofas is having numerous benefits. The main ones are
Just in time production is the main strategy to increase production speed, reducing the duration of flow, quality, cost and delivery performance to improve at the same time.
JIT aims to reduce the wastes of the following:
2. More production
3. Unnecessary transport of materials
4. Semi-finished and finished product inventories
5. Unnecessary, creating value-added operations
6. Machine time to wait in the worker
7. Unnecessary movements of workers
3.4 TOTAL QUALITY MANAGEMENT
Knowledge of information beyond the age of the institutions no longer survive in the new millennium we have entered the age, citizenship or have a customer-oriented management approach, and it will be possible with this approach can enact. The concept of globalization in terms of private sector competition in a landslide with it, in terms of citizen-oriented public sector management approach should be developed.
In other words, this new understanding of management or a new philosophy that, first of all human beings, then the investments in technology may have the opportunity to children were living. Therefore, investing in the new millennium, but in the field of management and technology institutions, the dizzying speed of change can provide harmony.
Information age, more flexible, dynamic and innovative to achieve a structure, communication, being aware of the competition and cooperation to become more responsible, more managerial and organizational job satisfaction and job enthusiasm wants.
A society, the people of that community "quality of goods and services, and timely submission of a sufficient number of" accepted as a criterion. Of course, this presentation, it was established for this purpose in society together is responsible for public and private sector organizations.
Goods and services, the people of the country enough for this purpose, re-established organizations and their functioning should be evaluated. In other words, quality of goods and service delivery is expected by the society has fallen back in the era of development criteria; it is lagging behind society organizations and governments.
4.1 SWOT ANALYSIS
The following SWOT analysis of strengths and weaknesses and opportunities and threats in the parts has been given.
(Sheran Eastwood, 2005) insist Swot analysis provides another framework for the exemption of the business environment.
.Production and design technologies, introduction of foreign capital in Turkey and abroad, thanks to find suppliers with the opportunity to practice in Turkey at the same time produce the vehicle models.
.Fact that the technological infrastructure of the industry in general at the international level
.Exports to EU countries experience
.Distribution / marketing network prevalence
.Proximity to markets in developed and developing strategic geographical location
.Have the possibility of free movement of goods for export to EU countries
.Dependent on raw materials and intermediate inputs in domestic market due to the .Customs Union obfuscator
.Customs Union Free Trade Agreement signed with countries within the scope of the emergence of new export opportunities
.Competitive labour costs
.Defence industry underpin
.Low capacity utilization and high costs resulting from this
.Insufficient domestic demand and unstable
.Customs Union legislation and the EU harmonization process, GATS agreements and .non-tariff barriers applied to the wrong import policies Integration with the EU, during the multinational companies, faced mass production, intense competition, low cost production, high quality product, entry into the market each year and uses different models created by technological innovations adversely affecting the advantages of domestic companies
.Lack of cooperation between the main and sub-industry
R & D efforts and investments to remain well below the world average
.The height of Taxes
.Economic and political instability
.National technology policies, lack of production
.Due to the inadequate and ambiguous definition of the SME sub-industry organizations, the real and Lack of regular support
.High real interest rates and the basic input costs
.Savings rates low and the need for foreign capital
.R & D technologies, integration with the world
.Potential demand is high because of low per capita number of vehicles
.The future potential of young people purchasing power to create
.Potential export markets in nearby areas
.Urbanization and changing consumption pattern
.The quality of being the only candidate country to an international production centre for region
.Turkey, construction, road transport and tourism sectors, the development potential
.Developments in the process of integration with the EU
.Excessive taxes arising from the inability to effectively demand
.Orientation of foreign capital markets in other developing
.As a result of the globalization process of the implementation of global procurement policies adversely affected the local industry
.After the increase in imports, the Customs Union Decision
.Lack of sustainable economic growth because of economic instability
.Unbalanced structure of income distribution
.Used vehicle imports from the EU, especially the release of
.The old and the old technology, low-tax policy instruments
.Lack of coordination between government institutions to continue
.Status to become a product of using foreign (cultural deformation)
TOFAS AND PEST ANALIYSIS
WHAT IS PEST ANALIYSIS AND HOW IT WORK IN TOFAS
According to (John Wiley and Sons, 2006) All businesses operate within a broad economic and social environment.
Pest analysis of political, economic, Social and Technological Analysis" stands for the process of strategic management and the external environmental analysis, analysis of macro-level environmental factors for the Tofas. The organization must take into account reveals a picture of the macro-level environmental factors.
4.2 PEST analysis:
Usually an organization or product and which is at the point where the inside is going to happen after a while to determine which will affect the developments in the external environment is a tool used for.
In Turkey there are many risks and Tofas is aware of them. Tofas needs to make this kind of analysis in order to prevent risks.
The big picture and the environment surrounding the organization of activity is seen as a threat and an opportunity to identify the factors perceived to be a very useful analysis tool to help you. External environment of the organization or department can translate good advantage in analyzing the opportunities, threats can be minimized.
Especially with the market growing or shrinking in the face of emerging risks and those risks are a very useful tool for the organization's position is to be understood.
Before Tofas enters the market by making pest analysis is having advantage of
Contained within a company's market review
Examination of the market within a product
Contained in a trademark on the market situation
Business unit of a local business or a department
Entering a new market or a new brand is a strategic decision, such as extraction
A possible purchase
A possible partnership
An investment opportunity
Organization of external environmental factors that affect the organization's control and influence of the outside, but in product development, business plans, strategic plans put forward to predict or know the phase is very important. PEST analysis and forecast for this review process is seen as a very important analysis tool.
PEST analysis is important to consider the following reasons:
PEST analysis and the steps you take with an active decision to change the work to make sure that you are pushing the line with a strong positive influence of external factors. Resistance to change may be more successful by taking advantage of change.
PEST analysis will fail due to factors outside your control with the use of good decisions and initiatives that will avoid.
PEST analysis is very useful when you submit a new product or service. PEST analysis, assumptions and get rid of the new realities in your market will help you adapt more quickly
TOFAS'S PEST ANALYSIS
In the process of harmonization with the EU regulations which came into force (the number of passengers carried, etc.)
Expansion of public transport rail system
Strengthening of export channels, due to contraction in the domestic market obligation
The negative effects of exchange rates to export low
Towards a more comfortable public transport vehicles
In the process of harmonization with the EU regulations which came into force (on emissions requirements)
Configuring the new vehicle types and designs within the scope of the defeated army
4.3 Competitive advantages
Defence industry to use its own technologies
Tactical vehicles, Land Rover, working with famous brands such as trailer Fruehauf production.
Loaded with high production capacity to meet the military procurement as soon as possible.
Make private production.
To have high market experience.
With the new R & D center has the potential to offer the market a short-term product.
To have the advantages of product differentiation and variety.
MCKINSEY'S 7S MODEL IN THE WORLD
WHY 7S IS SO IMPORTANT FOR TOFAS?
7s is estimated on the basis of a change of strategy by finding the shared values of the business advantages and represents a change in the required. Many new sources of competitive advantage and competitive environment, defined as factors that increase the level of competition. These elements, quality, speed, high degree of innovation and creativity are strongly focused on.
4.4 Tofas Automative and Power Analysis
According to Michael Porter developed the Five-Power Analysis to analyze the conditions for competition in the sector has 5 power should be examined. As shown in Figure 1, five power that should be analyzed;
1. Business Competition between the existing competitors in the industry, the business operates, the current competitive structure of the sector,
2. Potential Threat of Entry, the sector has the potential to enter new businesses created by the threats,
3. Threat of substitution of goods, operating in sectors other than the current created by the threats of substitute products business,
4. Bargaining Power of Buyers; business customers through its bargaining power and the pressure on the business sector, the routing capability,
5. Bargaining power of suppliers, the business is the need for equipment, raw materials, semi finished goods, business equipment and so on. supplies purchased by suppliers, the impact on business and industry can be listed as power steering.
Â· Should work to develop high value-added automotive and apparel products and P & D efforts in this direction (product development) should give importance to continuously must offer new models and a wide variety of products, non-combustible, technical automotive and apparel products, and thus more competitive significant differences across businesses to create a work,
Â· Short-term, short working customers, competitive advantage to a certain extent with differences in service to be provided,
Â° Scale using most out of their economies, further increasing the productivity of enterprises and employees according to China should work to reduce the cost disadvantages,
Â· Good a cost system (cost accounting) should be ensured by establishing better management of costs,
Â· Production follow-up software and a more agile organization structure to be provided,
Â· Existing market countries deployed to establish a good network of marketing, sales and marketing work,
â€¢ Latest in a very good relationship with customers even in this situation should be established and the level of friendship and partnership seams.
As a result, a large number of factors that affect conditions of competition between enterprises is available. Competition between existing businesses in the automotive sector in particular, have excess supply and excess capacity in the sector, the automotive sector to be an easy entry into new businesses and the recipient countries and enterprises and the enterprises have to be very strong distribution channel, present and future competition in the automotive sector will increase even more. Automotive enterprises according to these factors by analyzing the competitive strategies determine the competitive conditions.
Military affairs by making use of the geographical proximity of the Iraqi market to be a serious
You can see other countries using the other Gulf states as a live show to increase sales
Minibus market stability as an alternative to overcome the weight to give the public bus type, sales of minibuses,
Rapidly raise the sales figures for the European market, the purchase of the existing distribution network
Defense industry supplies the Land Rover vehicles by producing civilian versions of the creation of new market
As a result, the company's high goals of the Strategic Marketing Plan, in line with the demands and needs of customers by considering, new product development or positioning of the available products and services requires the most efficient way. All the while the company's strengths and weaknesses analysis should be targeted in a position to provide competitive advantage. Action plans before the company's own abilities to recognize, be aware of the threats and opportunities surrounding them is of great importance..
Strategic planning stage and compete against SÄ°B'S the market to determine the location of resources allocated to get there and continue the company's life is of great importance in terms of fro. Sib's action plans must be compatible with the company's vision and mission. From time to time SIB managers can invest in areas where they think is most important to them, a positive return of these areas, even if taken effect this result the company will not actually wasted major goal will be a resource. Therefore, marketing managers need to demonstrate due diligence to the coordination between Strategic management.
Automotive sector to invest in marketing to date in Turkey, namely the lower-hanging fruit to meet the need of collecting has become the preferred method. Instead of money and technology-oriented features such as technology purchase decision because of this approach to a subject that requires a high knowledge of this subject so far focused company executives. How to approach the subject of this work had to be strategic marketing information industry, its marketing on the following business units in what way that aims to bring the proposal can. This method, if followed Gartner survey of 2003 households and 7% of the companies will be able to withdraw up to 23% of the rate of computerization. Black & Decker, General Manager of a Pierson said: "People do not want to drill quickly and cleanly without damaging the walls of the hole they want to open. For this reason we are selling to people hole, the drill is not, "he said.