Before writing about the Strategic Management Process, we have to understand about the Able Corporation and its scope. We should know that the Corporation is suffering from the inadequate strategic objectives. As per the directions, we will discuss about hierarchy of strategic intent under the heading of the strategic management process. This part mainly explains the four strategic intents i.e. creating and communicating a vision, designing a mission statement, defining the business and setting objectives. \ Strategic Management Process:-
? Establishing the hierarchy of strategic intent
(i) Creating and communicating a vision: To be the leader in the US power tool market and provide the best services and make innovative products especially in the cordless product market where it has the core competence. To establish itself strongly in the manufacturing ,of circular saws. (ii) Designing a mission statement: To achieve our objectives along with delivering satisfaction to our customers in an environment of fairness, honesty and courtesy. "Meeting needs profitably" is the main concern. The values that drive the organization are pursuit of excellence. It commits to strive persistently to improve itself, their team, products and services. (iii) Defining the business: The Company is involved in the manufacturing of full range of portable electric power tools. (PEPT) Power tools consist of products such as drills, circular saws, routers, planes, reciprocating saws and hammer drills. 805 of the power tools are corded while the remaining 20 % are cordless. It manufactures professional and consumer quality power tools and caters both consumer and industrial channels. The power tool market is divided in professional and consumer products, consumer and industrial channels, consumer and professional end users. A professional tool is characterized by high reliability, durability and better features. They are built to resist the rigidity and roughness of daily use by such tradesmen as carpenters, electricians, wood-workers and plumbers in the performance of their jobs. While a consumer tool is defined by lower reliability, durability and less features and are mainly used by individuals who do occasional jobs on their own at home. (iv) Setting objectives: Objectives are precise and concrete and can be validated. Objectives are more specific and narrow while goals are broader and represent general intentions. They are abstract and can not be validated. 1. To establish competitive and technology enabled plants that facilitate smooth and cost-efficient production of the power tools. 2. To capture greater market share in cordless products and consumer channels. 3. To become a leader in the market of cordless products within a period of 5 to 6 years. 4. To allocate resources to marketing and sales department since this is the most important department and it can generate more sales. 5. To launch an effective training and development programs and introduce rigorous efforts to solve conflicts and disputes especially among the senior management by effective expenditure on the training program. 6. To introduce motivation programs and put in efforts for retention of the effective employees and expertise important for the organization for the time being and also for at least 3 to 4 years. 7. To strengthen the in house research and development department in order to conduct a competitor's analysis and be well informed about its market share, market size, relative product cost position and about the factors that stimulate the market. //The next part of instructions asks us to write about the strategies formulation. This is very crucial to formulate the effective strategy, in order to meet out the business goal. In this part, we will explain the various steps under this heading.// ? Formulation of strategies
(i) Performing environmental appraisal: The Company needs to analyze its opportunities and threats. This could be done through an...
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