Purchase Solution

Developing a Plan

Not what you're looking for?

Ask Custom Question

Consider the following scenario:

You have held conversations with Precision Part's leaders and obtained the following information which you want to use in the development of a 4-year strategic management plan.

- PPQ Parts employees now number 5,000, all of whom are currently employed in the United States. It plans to grow to 10,000 employees in 4 years.
- New facilities will be needed in international expansion, and PPQ Parts anticipates building most of those (80%) outside the United States.
- PPQ Parts holds 5% of the world market share on small SUVs, but its goal is 9% in 4 years.
- Current stock price is $10 per share. The goal is $22 a share.
- Profit margin 3-year average is 6%. Industry average during this time has also been 6%. The company goal is 13% in 4 years.
- PPQ Parts has averaged 28% employee turnover during the last 3 years. This is compared to an industry average of 25%. The company's goal is to increase employee retention by lowering annual turnover to 17%.
- PPQ Parts contributes to all the local communities in which it is doing business. This is one of its corporate values. Current charity is 0.5% of total profits, but the company would like to raise that to 5% in 4 years.

In developing a basic strategic management plan for PPQ Parts, what are you thoughts on the following:

- Environmental scanning of current conditions in the area of expansion including economy, competition, political stability,
- Internal resource analysis such as managerial and financial strengths and weaknesses.
- Possible short-term and long-term strategic goals.
- Location consideration for implementation. What may be some of the benefits and/or limitations for expansion in any given area?

Purchase this Solution
Solution Summary

This answer offers cogent arguments relating to Developing a Plan

Solution Preview

Step 1

The environment scanning: The current conditions in United States are that the economy is poised for an expansion. There is likely to be an increase in GDP growth within a year's time. This expansion in economy means higher demand for PPQ Parts. Currently, the competitors of parts suppliers for SUVs are dedicated to different manufacturers. There are suppliers of parts that are attached to specific SUV producers; the competition of these firms is directly related to specific manufacturers. These competitors are small firms. There is political stability in the country, the taxation rate is reasonable, and the labor laws are fair. The trade regulations and tariffs favor PPQ Parts. The stage of the business cycle is such that an expansion is inevitable and an expansion will mean an increase in the demand for PPQ Parts products. The society however, looks down on SUVs and considers such vehicles to be gas guzzlers. Such attitudes may reduce the demand for SUVs. A steep increase in oil prices can dampen the demand for SUVs. A technological innovation say the development of electric SUVs or SUVs that run on alternate fuel will increase the demand for PPQ Parts products (Philip R. Walsh, 2005).

Step 2

The managerial strength of PPQ Parts is 45 managers. PPQ Parts is a vertical organization that has been designed to produce large volumes. If PPQ Parts expands in the same location, the number of production lines can be increased and economies of scale will be ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

View More Free Quizzes
Related BrainMass Solutions

  • Proactive crisis management plan

    135342 Proactive crisis management plan What are the benefits of an organization developing a proactive crisis management plan? Explain. What are the benefits of an organization developing a proactive crisis management plan? Explain.

  • This post addresses challenges in human resource operations.

    Two of the most important pieces of information that management needs when developing a strategic HR plan are the company's mission statement and the company's goals and objectives.

  • Strategic Planning

    When developing a strategic plan, a company should remember to follow their ethical duties. Ethics plays a large role when developing a strategic plan, even when considering a stakeholders needs.

  • IMC Plan: Role of Consumer Behavior & Ethics

    71470 Integrated Marketing Communications Plan: Role of Consumer Behavior & Ethics Assess the role consumer behavior plays in developing an Integrated Marketing Communications (IMC) plan.

  • Brainstorm a learning plan's advantages

    610299 Brainstorm a learning plan's advantages Discuss the advantages and disadvantages of developing a learning plan for an exceptional learner. Include the perspective of an educator as well as a family member. Welcome!

  • Help developing an outline of an E-Business Plan for the United States postal service.

    492963 Help developing an outline of an E-Business PlanDeveloping an Outline of an E-Business Plan for the United States postal service.

  • CIS Risk Management

    180818 CIS Risk Management What types of risks exist outside the organization that must be considered in developing a business continuity plan?

  • Ben and Jerry's Ice Cream

    255719 Ben and Jerry's Ice Cream With the idea of Developing a communications plan for marketing Ben and Jerry's icecream in Australia (Domestic) and Guam (internationally): o Evaluate factors involved in developing and managing an effective marketing

  • Developing a new marketing plan

    25770 An organization is developing a new marketing plan. In what ways could the findings from marketing research impact the plan? Why? An organization is developing a new marketing plan.

  • Professional Development Plan PowerPoint

    Due to the limited information available within your posting, I can only assume you are developing a plan to be used in an organization and not just an individual plan.

View More Related Solutions