Strategic Management Plan for SUV Company
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Can you help me with the development of a 4 year strategic management plan with quantifiable goals and measures? Please provide environmental scanning of current conditions in the area of expansion including economy, competition, political stability. etc. Please address internal resource analysis such as managerial and financial strenths and weaknesses, including short-term and long-term strategic goals. Also please explain the benefits and limitations for expansion in any chosen area, as location is a vital component.
Here is the following information to help with this problem:
Employees number 5,000 and plan to grow to 10,000 in 4 years. New facilities will be needed in international expansion and anticipates building 80% outside the US. The company PPQ holds 5% of the world market share on small SUV's but its goal is 9% in 4 years. The current stock price is $10.00 per share, and the goal is $22 a share. Profit margin 3-year average is 6%. Industry average has been 6%, and the company goal is 13% in 4 years. PPQ has averaged 28% employee turnover last 3 years, compared to an industry average of 25%. The goal is is to increase employee retention by lowering annual turnover to 17%. PPQ contributes to local communities with current donations to charity of 0.5% from total profits, but the goal is to raise that to 5% in 4 years.
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Solution Summary
Strategic management plan for an SUV Company is determined.
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Strategic Goals for PPQ
PPQ is a US-based firm, which deals in SUVs and wants to expand its business in the international market. The strategic goals for the company that would be considered for international expansion of the business are as follows:
? To increase number of human resources from 5,000 to 10,000 in the next 4 years along with increasing their knowledge and skills.
? To increase market share of the firm 5% to 9% by next 4 years outside the US market.
? To increase the sales of the organization to increase price of its shares from $10.00 per share to $22 per share.
? To achieve 13% industry growth in next 4 years from 6% along with decreasing employee turnover rate from 25% to 17%.
? To increase involvement in charities from 0.5% to 5% within 4 years.
Environmental Scanning
To develop knowledge about the environment in the host country, environmental scanning is conducted that is as follow:
Political Environment: Changes in political parties and rules may influence to the long-term goals of the firm negatively in terms of changing taxation, production, export, and import policies that have impact over organizational strategies. It is because political stability or instability in a particular country is responsible for setting the organizational business in that country (Burgemeister, 2003).
Economic Environment: Changes in economic environment also influence to the attainment of long-term strategic goals of the firm in terms of influencing pricing, marketing and other strategies. It is because of changes in per capita income, GDP, and other economic scale influence to the purchasing power of the customer that they have direct impact over organizational growth and success (Evans, Stonehouse & Campbell, 2012).
Technological Environment: Alignment or compatibility ...
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