The role of strategic planning in Implementations Essay Example

Planning Necessary?

The strategic planning process is contingent upon the specific needs of the organization and its immediate environment. For example, organizations operating in rapidly changing industries should engage in frequent planning. In such cases, planning can be conducted once or even twice in a comprehensive and detailed manner, taking into account aspects such as mission vision, values, environmental scanning, issues, goals, strategies, objectives, responsibilities, timelines, budgets, etc.

Reasons for Houses Not Conducting Strategic Planning

• Poor wage structures
• Battle fire
• Waste of time
• Excessively expensive
• Indolence
• Content with success
• Fear of failure

Execution Strategy

Strategy execution requires a company to establish annual goals, design policies, motivate employees, and allocate resources to formulate implementable strategies. The execution of the strategy involves the development of a strategy-supportive culture, creating an efficient organizational structure, directing marketing efforts, preparing budgets, developing and using information systems,and linking compensation to employees' organizational performance.This phase represents the action phase of strategic management.

• The most difficult stage Mobilization of workers and managers Interpersonal skills are critical Consensus to pursue goals

The Implications of Implementation Strategy

The implementation strategy directly affects the lives of transmission works division troughs, department managers, product sales managers, project managers managed staff and directors staff supervisorsand all employees.

Selling Issues

The success or failure of strategy execution is influenced by numerous selling variables. This text does not cover all these issues.Market segmentation is essential for strategy execution, and it is widely utilized, particularly by small and specialized companies.

Segmentation involves dividing the market into different groups of customers based on their needs and purchasing habits. Finance and accounting concerns include:

• Acquiring necessary capital
• Creating pro forma financial statements

Acquiring Necessary Capital

Successful implementation of segmentation strategies often requires additional funding. Companies, countries, and continents actively seek investment capital on a global scale.

Financial Budgets

A financial budget outlines how funds should be obtained and spent over a specific time period. Budget durations can range from one day to more than 10 years, although annual budgets are more common.

Evaluating Company Value

Assessing the worth of a business is a major focus in strategic applications, frequently achieved through acquiring other companies using comprehensive, intensive, and diversification strategies.

Deciding Whether to Go Public

The decision to go public involves selling a portion of your business in order to raise funds, but it also means relinquishing some control. Companies with less than $10 million in revenue are generally not advised to go public due to the potentially high initial cost, unless there is sufficient cash flow that justifies it.

Issues with Research and Development (R)

Research and development teams play a crucial role in implementing strategies by creating new products and enhancing existing ones in support of effective strategy execution. R employees and managers undertake tasks such as adapting complex technology, modifying processes for local materials and markets, and aligning products with customer preferences and demands.

MIS Issues in Information Management Systems

Many companies are facing the risk of becoming obsolete because they continue to rely on outdated information systems that have been in use for twenty years. Despite the urgent need for new user applications, these companies prioritize

maintaining their old systems.

Literature Review

In the last five years, Pakistan's automotive industry has experienced significant growth. Currently, there are 21 manufacturers and 400 suppliers involved in producing and assembling various vehicles, including heavy-duty ones. The main sources of assembly equipment consist of Korean and local firms, as well as Japanese sellers.

The main functions of an auto works include printing, welding, electro deposit system painting, engine and transmission, and final assembly and inspection. The total investments made by assembly programs and the marketer are Rs.5.34 billion and Rs.2.86 billion respectively, resulting in a total of 14,000 jobs created. The automotive sector of Pakistan manufactures cars ranging from 800cc to 2000cc. Currently, there are five major Japanese and Korean players who have formed public joint ventures with local companies in the assembly of cars. These players are Toyota, Honda, Farooq Dewan, Nissan, and Suzuki.

These companies are implementing the removal plan according to the timetable and goals set by the Engineering Development Board (EDB), Production Department, Ministry of Trade & Industry, Government of Pakistan. In addition to removing these companies, efforts are being made to improve the quality of products and services to support maximum customer satisfaction and convenience.

Case Study: Organizational Net Incomes

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited of Japan and the Atlas Group of Companies in Pakistan. The construction began on April 17, 1993, and within a record time of 11 months, the construction and installation of machinery were completed.

On May 26, 1994, the first automobile was produced while Sardar Farooq Ahmad Khan Leghari took office as the President of Pakistan. The event was attended by

Mr. Kawamoto, the President of Honda Motor Company Limited from Japan. Auto sales commenced on July 14, 1994, through six representative offices located in Karachi, Lahore, and Islamabad. At present, there are 13 representative offices functioning in seven major cities across Pakistan. As of June 2002, around 40,000 cars had been sold.

All statements made follow the criteria set by Honda worldwide. The proportion of local parts adheres to the company's policy. Local sellers consistently support the development of the local industry. The quality of local parts is rigorously examined using international criteria.

Main Products

CIVIC

The VTEC model is exceptionally attractive, with a lot of love for its dependable, economical, and impressive fuel efficiency. It now features new lights, bumpers, and grille, making it difficult to focus on anything else due to its sleek appearance.

Extreme Perfection

The new Honda City demonstrates extreme perfection by incorporating advanced techniques and innovations, such as the I-DSI engine and unique platform structure.

Vision and Mission Statement

Our goal is to lead the industry and become a dynamic, profitable, and growth-oriented company. We are dedicated to delivering exceptional quality and service while adding value to our customers and maximizing our exports. Our objective is to provide attractive returns to our business partners, fair returns to farmers based on market value, and offer employees opportunities that align with their capabilities and performance. Additionally, we strive to fulfill our social responsibilities as a responsible corporate citizen.

Data Aggregation Procedure

The data aggregation procedure involves collecting information from the site of Pakistan Automotive Industry Association (Puma) and other influential sources. The data is gathered through internet research.

The Results of QSPM Analysis

The

QSPM analysis reveals the findings for Honda.

Here we compare two different schemes identified in the analysis of deuces. The sum of 6.17 indicates that pudding stone is the most effectual scheme so the development of the merchandise 5.32 units.

Quantitative Strategic Planning Matrix

It is the lone technique designed to find the comparative attraction of executable alternate actions. These stairss include the building of a QSPM matrix are: Tool for nonsubjective rating of alternate schemes Based on identified external and internal factors important success Requires good intuitive crisis List cardinal external concern chances and menaces A List Company key internal strengths and failings Assign weights to all external and internal critical factor Success.

Execution Schemes

Management

The diagram of the direction issues are the undermentioned:

Annual Mark

Annual aims are short-run mileposts that organisations must win reach long term objectives. And long term aims one-year marks should be measurable, quantitative, ambitious, realistic, consistent and precedence.

Policies

Policies are the agencies by which the one-year ends will be achieved.

Policies are guidelines, regulations and processes established to support efforts in achieving stated objectives. They serve as guides for decision-making and address repetitive or recurring situations.

Resource Allocation

Availability of resources is a key activity of management for the implementation of the strategy. Strategic management allows management to allocate resources according to the priorities identified in the annual plan.

External Evaluation Factor Matrix

The EFE Matrix below is presented for the evaluation of external opportunities and threats in Honda Pakistan Ltd industry.

Opportunities

• Changes in demand for products/services
• Import/export data
• Attitudes towards business
• Special duties
• Government subsidies level

Threats

• Fluctuations
• Inflation rates
• Per capita income
• Intense competition in the sector
• Demand exceeding supply of experienced
  

workers
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The most important factor for the company is the demand displacements for goods/services, while price fluctuations are a significant threat. Honda Pakistan Ltd has an overall weighted score of 2.74, indicating an average effort to pursue strategies that capitalize on external opportunities and mitigate threats.

The Competitive Profile Matrix

Below is the competitive profile matrix:

• Critical Success Factors
• Honda
• Toyota
• Suzuki
• Weight
• Rating
• Mark
• Rating
• Mark
• Rating
• Mark

The CPM for Honda Pakistan is shown above. Market share and advertising are given the highest importance with a weight of 0.15, followed by global expansion with a weight of 0.12.

Honda Pakistan, Toyota Pakistan, and Suzuki all have a customer loyalty rating of 4. Honda's overall rating is 2.79, Toyota's overall rating is 2.70, and Suzuki's overall rating is 2.77.

Introduction to the Significant Benefits

Customer Service Centers

All authorized dealerships in Pakistan provide outstanding after-sales services, including excellent customer satisfaction and the availability of competitively priced spare parts for their specific car models.

Free Services

HACPL is a customer service company that is always looking for ways to strengthen relationships with clients who

have already purchased cars. This includes maintaining good relations with clients in the automotive market.

Repair and Care

HACPL offers regular training sessions with technical representatives. The training covers all aspects of cars, including routine maintenance procedures, troubleshooting, and repairs in accordance with HONDA standards.

Honda Genuine Parts

Only Genuine Honda parts are made according to Honda's specifications to ensure quality, reliability, and performance - so you can easily choose them whenever needed.

When Genuine Parts are installed, Honda provides a warranty that cannot be obtained elsewhere. Honda Motor vehicles are equipped with unique auto systems that require special attention to maintain high levels of performance and reliability. To meet this need, we have created a range of genuine fluids and lubricants specifically for your Honda. Each of these products is designed to perform a specific task critical to the performance of your Honda, and you can be confident in their superior quality because they bear the Honda logo. Our strengths include customer service centers, Honda genuine parts, an environmental policy, a guarantee, a good relationship with suppliers, and a well-known name. However, we also have vulnerabilities, such as not having a niche market, high running costs, a low return on assets ratio, and a lack of cash flow due to consecutive losses.

Case Study: Non-Profit Organization

World Call Payphones Limited was established in 1995 as a limited company and commenced commercial operations in August 1996.

The company is responsible for the installation, operation, and maintenance of a sophisticated web of smart payphones, offering local, national, and international call services to customers. Customers purchase a prepaid card and use it later. Sometimes,

the entire card is used at once, while other times it may be used gradually over time. Additionally, the company has established regional and satellite offices in smaller cities and towns to ensure timely service for its clientele.

Strength

The company is supported by First Capital Securities Corporation Limited, a major investment and financial services company in Pakistan. First Capital Securities Corporation Limited owns 24% equity in First Capital ABN AMRO Equities Ltd., a joint venture with ABN AMCRO Bank. The company is also involved in other Telecom and IT projects, including World Call Phone cards Limited, World Call Dot Com ( Pvt ) Ltd., World Call Wireless Limited, and World Call Telecommunications Lanka ( Pvt. ) Limited. Despite a challenging economic situation, they have displayed growth in revenue, with a net profit of Rs. 53 million (99) and Rs. 8.2 million (98) after tax.

Vulnerabilities

There are 10 independently-operated payphone companies supervised by PTA, including Telips and Telecommunications, Supertel, etc., which have been licensed for an initial period of 15 years but may be extended further based on their performance.

Opportunities

Pakistan has a significant untapped demand for services.

Telecommunications would greatly benefit from the available market opportunity. The lack of telecommunications infrastructure in Pakistan presents an attractive opportunity for business operation of the payphone ( Teledensity is 2 telephones per 100 people ) ( In other Asian countries, it is 10 to 20 phones per 100 people )

Menace

Natural disasters and other disruptions in the country. Enforcement / improvement of customs duties, taxes, and other charges from time to time. The devaluation of Pak Rupee.

Regulatory guidance from PTA to unfavorable changes in call charges. Competition between operators' payphones. Hooliganism.

Managing Opposition to Change in Implementation Strategy

Resistance to change can be seen as the biggest threat to the successful implementation of the strategy. Resistance in the form of sabotaging production machines, absenteeism, filing baseless grievances, and unwillingness to work regularly can appear in organizations.

People often resist the scheme because they do not understand what is happening or the changes taking place. In this case, employees simply need accurate information. The successful implementation of the strategy depends on the ability of managers to create an organizational climate for change. The change should be seen as an opportunity rather than a threat by both administrators and employees.

Who Implements Strategy?

Depending on the organizational structure of the company, the group of people implementing the corporate strategy may be different from those involved in shaping it. In large, multi-industry companies, the implementers will include everyone in the organization except for officers and managers of the Board.

Vice president, chairpersons of functional countries, and directors of subdivisions within the Subs will collaborate with their subsidiaries to establish comprehensive programs. From these initiatives, directors of workss, project managers, and unit heads will devise plans for individual sites, sections, and units. Thus, every operational director, including first-line supervisors, will contribute in some way to the realization of corporate, divisional, and functional strategies. It is important to acknowledge that the majority of individuals in the company who are crucial for the successful implementation of the strategy likely played a limited role, if any, in its development.

Problems with Scheme Execution

Maintaining the functionality of a scheme in Scheme

Execution is similar to managing a large company. It requires the development and utilization of action-oriented plans, budgets, and procedures. Resources need to be organized effectively and efficiently to ensure that work is completed successfully. The selection of qualified individuals for key positions is crucial, as is directing and coordinating the efforts of workers to achieve company objectives and fulfill its mission. The implementation of the scheme is the primary distinction between small and large companies.

In large companies, the practitioners are often different from the ones who created the strategy. In small companies, the Strategy Implementers are usually the ones who will carry it out. This is why the distinction between strategy and execution is often unclear in many small businesses. Two key execution issues in small company are organization and staffing of the growing company and transferring ownership to the company's next generation.

Problems arise when adapting the application to accommodate the company's growth and changes over time, particularly in terms of decision-making processes for business plans. These differences are seen in the management systems of small companies compared to large established ones, and are influenced by the stage of development.

Budget

The company has implemented a comprehensive Network Management System for remote monitoring and management. This online Center software allows for the recording of call traffic from each payphone, enabling alerts for damage and activation or deactivation of payphones. A well-trained sales force is also in place for maintenance throughout the coverage area of the network.

With successful implementation, the company has achieved fruitful consequences, including a 2.5 times higher subscription rate.