Strategic Planning and Analysis Essay Example

plant in a high-cost urban area also adds to the burden of paying employee salaries.

The manual operations in the plant require more human labor, resulting in increased expenditure on salaries. Additionally, S&W's weakness can be traced to market confusion between professional and consumer tools, as the company failed to specialize in only one product. Insufficient marketing strategies also contributed to this weakness.

According to Drejer (2002), these strategies would allow the company to research the availability of a ready market for both professional tools and consumer tools, as well as determine the quantity of each to manufacture. Additionally, the company is dealing with negative feedback from its distributors, who perceive the company's dominance in the market as abusive.

Primarily, the S&W competitors feel envious of the company's success and extend this jealousy to its distributors to hinder their operations. This occurs because the competitors do not want the factory to dominate the market and, as such, they aim to ensure poor customer services by demoralizing the company's distributors. Additionally, S&W's weakness includes its absence in the rapidly expanding cordless market segment.

The absence of S;W in the cordless segment has given an opportunity to other competitors to attract customers and dominate the market. If S;W were present, their economic strength in terms of asset possession would have increased along with their competitiveness in the market due to an increase in customer base. However, the company's large size has made it difficult to react to rapid market changes, and implementing change will require thorough research and analysis.

For a large organization like S&W, conducting timely analysis to determine how, when and where changes should be implemented is

challenging and expensive. As a result, market dynamics often remain unchanged. However, it is important to invest in thorough consultation and research when necessary. As a solution, S&W should consider installing new manufacturing plants.

To enhance efficiency and reduce resource consumption, S&W needs to improve plant operations that result in high quality output. This will help in curbing employee compensation and energy usage. Furthermore, new plants should accelerate the processing of products to meet customer needs and preferences. Conducting market research is essential to understand the demand for S&W's products.

It is recommended that the company produces both professional and consumer tools based on the preferences of their customers. This can be achieved by analyzing customer orders and sales records. Products that sell quickly should be produced in larger quantities, while those with slower absorption rates should be produced accordingly. (McWilliams, Van Fleet, ; Wright, 2001).

A well-designed distribution system should be established to incentivize distributors through commissions based on the total volume of products they distribute. By doing so, their motivation and morale will be enhanced, enabling them to continue distributing the company's products despite facing challenges from close competitors.

To increase customer awareness and attract more customers, the company should engage in media coverage and advertisements for their products. Additionally, installation of new plants in the fast growing cordless segment would not only increase the company's asset value but also attract more customers from the large population living in the area. To ensure successful change implementation, a solid structure should be established.

To facilitate analysis, development, and implementation of change, it is advisable to break down structures into manageable units. These units should be established

throughout the organization to simplify the process of change. It is also important to train all personnel responsible for managing these units before carrying out any changes. As the strategic planner for Director Makatume, I have identified a weakness in our high-priced products compared to those in Far East countries.

Makatume's dominance is under threat from the influx of affordable yet high-quality consumer tools. As more customers opt for these cheaper alternatives, Makatume risks losing its market share to Chinese companies unless corrective measures are taken. Moreover, the unfavorable exchange rate may lead to a drop in Makatume's US sales, potentially driving customers towards cheaper options due to an increase in Makatume's prices.

To capture more customers and increase their total asset value and net profit, Makatume should consider opening more plants. However, the company is currently facing the weakness of not advertising their products effectively, resulting in decreased awareness and fewer customers. To effectively compete with other companies and gain a better market share, Makatume should lower their prices compared to competitors, particularly those from the Far East.

Opening more manufacturing plants can increase Makatume's total assets and net profit. Stabilizing the exchange rate in the US will prevent customers from being tempted by cheaper products from China, thereby helping Makatume maintain a favorable market share.

By increasing their customer base, Makatume can gain a competitive advantage against their rivals. To achieve this, advertising their products in the media to highlight their quality and price is recommended. This strategy can result in increased sales and address the higher voltage issue.

The low Voltage battery system is popular in Makatume due to its interchangeability features,

and if I were there, I would continue manufacturing it. Introducing the high voltage option could cause Makatume to lose customers to competitors because customers may be hesitant to switch. Customers may prefer sticking with the low battery system that they are accustomed to rather than trying out high voltage batteries, which they have no experience with. If market competition becomes intense, Makatume should consider diversifying their product line by introducing higher Voltage batteries to attract additional customers.