EXECUTIVE MEMBERSHIP PROGRAMME (EMP)
STRATEGIC PLAN TO POSITION DONALSEA INDUSTRIES AND BEVERAGES LTD FOR OUTSTANDING PERFORMANCE
ADEOYE BABATUNDE ADEOLA
Donalsea Industries and Beverages Ltd Is a company that specializes in the production of variety of Alcoholic and soft drinks. It is situated in Ilorin, Kwara State. The down turn in the economy has affected the industry greatly. The market share of Donalsea Industries and Beverages Ltd is being gradually eroded so much so that if urgent step is not taken to reposition the company it might go down. In order to reverse the trend, there is need for a strategic plan that will assist the company to meet the prevailing economic down-turn.
A business strategy, sometimes termed a competitive strategy or simply strategy, is here defined by six elements or dimensions. The first four apply to any businesses, even if it exists by itself. The remaining two are introduced when the business exists in an organization with other business units. A business strategy specification includes a determination of:
1.The product market in which the business is to compete: The scope of a business is defined by the products it offers and chooses not to offer, by the markets it seeks to serve and not serve, by the competitors with whom it chooses to compete and to avoid, and by its level of vertical integration. 2.Level of investment: Although there are obvious variations and refinements, it is useful to conceptualize the alternatives in terms of: • investing to grow (or enter the product market)
• invest only to maintain the existing position
• milk the business by minimizing investment
• recover as much of the assets as possible by liquidating or divesting the business
3.The functional area strategies needed to compete in the selected product market. The specific way to compete will usually be characterized by one or more functional area strategies such as a: • product line strategy
• positioning strategy
• pricing strategy
• distribution strategy
• manufacturing strategy
• logistical strategy
4.The strategic assets or skills which underlies the strategy providing the sustainable competitive advantage (SCA): A strategic skill or, simply, skill, is something a business unit does exceptionally well, such as manufacturing or promotion, which has strategic importance to that business. A strategic asset or, simply, asset, is a resource, such as a brand name or installed customer base, that is strong relative to competitors. Strategy formulation must consider the cost and feasibility of generating or maintaining assets or skills that will provide the basis for a sustainable competitive advantage.
The Business Mission
What do you want to be when you grow up? This question is posed in various forms to most people in childhood and throughout their careers involving difficult, important decisions, it requires people to address sensitive and introspective questions – building on hard judgments of what they are good at and what they do not do well. Those who are successful at developing well-defined objectives and growth directions avoid the risk of drifting through a career, missing opportunities along the way. Just as an individual needs to make judgments about the kind of personality, activities, and direction to develop and pursue, so does an organization. For an organization, the mission statement will address questions such as: • What business are we in?
• What is the scope of our business?
• What is the essence of our business?
• What growth direction are we pursuing?
One role of the mission statement is to provide employees, customers, and other organization stakeholders with both an identity and an understanding of growth directions. Sometimes a mission...