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Strategic Planning- Automobile manufacturer

Analyze how these strategies can be used to map out a thorough implementation plan on how to effectively manage people as well as develop the plan in an executive memo format for automotive industry. The business plan should provide the strategy to implement the solution you have developed.

This should include:
• Introduction/ background
• Problem analysis or situation analysis - Conduct a situation analysis of the problems in your company. Formulate a plan on the possible solutions
• Summary of key findings as bullet points - Construct a summary of the key findings of the situation analysis based on the information
• Conclusion(s) - why the strategy will be effective
• Recommendations for action - individually summarize the key ideas on the implementation of your strategy. Analyze how these strategies can be used to map out a thorough implementation plan on how to effectively manage people
- Supporting references and sources to justify the solution formulated

Known problem of the automobile industry: Globalization, Increasing Competition, Safety requirements and environmental commitments.

Solution Preview


The hypothetical organization selected for this assignment is a US based automobile manufacturer of sedans, SUV's and pickup trucks. The company has manufacturing facilities located in USA and majority of the sales of the company's products is in North America, Latin America and Western Europe.

The recession in major developed markets and increasing competition from Asian manufacturers has resulted in significant loss of market share and sales decline in the last few years. The company's vehicles are considered fuel guzzlers and hence, the rising oil prices has resulted in consumers opting for more efficient models from other manufacturers. The facilities of the organization face issues related to quality and inefficiencies and operating costs are high. The Asian counterparts are able to offer high quality, fuel efficient vehicles at lower prices due to better operating efficiency.

The organization has no presence in the emerging markets and relies on developed markets for most of its sales. Further, the company does not focuses on high growth and emerging segments such as small cars and hybrid automobiles. The company is on the verge of bankruptcy and seriously needs a turnaround.

Problem Analysis/Situation Analysis:

As mentioned above, the organization is facing numerous issues. The increasing globalization and rising competition has resulted in significant loss of market share and revenues for the organization. The organization's outdated manufacturing practices and corporate culture makes it highly inefficient against its efficient Asian counterparts. The manufacturing practices are obsolete and thus, the organization's operating margins are quite low. In today's recessionary times, consumers are looking for price cuts and discounts and thus, Asian manufacturers are able to offer better deal to customers.

The organization also lacks a strong product mix as per current trend and market is situation. The rising fuel prices have forced customers to opt for fuel efficient, smaller vehicles. The market ...

Solution Summary

The expert discusses the various solutions/strategies to address issues faced by an automobile manufacturer.