Create a basic strategic management plan for PPQ Parts including quantifiable goals and measures

Abstract

Strategic planning is a critical activity that begins with the process of issuing the statement of the vision of the company, defining the objectives, and undertaking SWOT analysis to define the strengths and weaknesses of the business. This is important because it helps to identify the available opportunities that can be scoped by the business as well as avoid possible threats to the business.

A strategic business plan must clearly outline the objectives upon which the activities of the business are based. The analysis of macro and microenvironment underscores ecological, technological, political, social and economic factors that pose threats opportunities, strength and weaknesses. Additionally, the paper undertakes to analyze the operating environment within which PPQ will carry out its business activities.

Keywords: strategic planning, financial strengths, environmental scanning, strategic goals

Managing Resources and Operations

Strategic planning is an elusive asset to an organization or business because it helps to achieve short and long-term goals. Additionally, strategic planning sets a framework in which values, growth, cohesive vision among other things are defined. PPQ has plans to expand its operations to a new production facility that will require it to increase its pool of employees to five thousand in the next four years. Besides, financial capital will also be needed to facilitate and sustain its activities. Consequently, the company focuses to escalate is overall turn-over through increasing its employees return and its share through its stock. Effective implementation of these aspects requires management to use a well thought off strategic planning as focused in this paper.   

Plan Overview

Vision:  To become one of the central players in the global market within the next five years, through extensive expansion of business operations.   

Mission: To expand the company’s market shares in the global market, increasing productivity and profitability through verifiable, legal, and ethical ways. 

Objectives

• To increase employee retention by reducing the rate of employee turnover to 17% within the next four years in order to minimize cost-to-hire expenses.
• To escalate its three years average profit margin from six percent to thirteen percent within the next four years.
• To increase the company’s stock value from ten percent per share to 22 percent per share in a timeline of five years.
• To improve PPQ market share from five percent to nine percent within the next four years.

Macro/Remote Environment

According to Shields et al. (2015), remote or microenvironment is a business environment in which a company has no or little control over demand or supply of goods and services. Regardless of the fact that business has minimal control, it is worth noting that these aspects have a considerable effect on the business operations. These factors include; ecological, technological, political, social, and economical.

Ecological Factors

One of the factors that the business is likely to battle against is that of ecology. However, it is important to note that the U.S. is an environmentally stable economy which has favorable legislations and policies that protects the business in its environment. Therefore, the ecological condition of this country will pose minimal problems for PPQ operations.

Economic Factors

This is a term that is used to refer to the prevailing economic conditions within which the company is expanding (Kim & Mauborgne, 2014). Because PPQ expansion runs both international and local plants, its operations will be influenced by diverse economic factors.  Currency exchange is one of such economic factors that will affect the operations of the business because it will be holding assets and transactions in different currencies. Consequently, the variation in these exchange rates will have a direct effect on the company’s economic resources. PPQ will also be paying its operations in different currencies depending on where it receives its revenues.  Though there are likely losses associated with currency volatility, nevertheless, the United States has proved a major stability in relation to other major currencies for the past five years (Hill, Jones & Schilling, 2014). Most importantly, interest rates have the ability to affect the financial operations of the company. However, the United States interest rates are kept at a favorable level. Finally, the company needs to handle inflation rate with care. This is because the inflation rate is on the verge of increasing which is likely to affect the cost of commodities and that of labor.   

Political Factors

The political environment is one of the critical factors that have a significant impact on the operations of the business. Unstable political environment increases the business risks and is likely to lead to high cost of operations. More so, political environment interferes with the productivity levels of the business (Bennett & Sharpe, 2014). Besides the insecurity caused by potential terror attacks, the U.S political environment is stable for business operations. 

Social Factors The U.S. demography is characterized by the presence of people from diverse racial and ethical backgrounds including; whites, Hispanic, African Americans among others. The diverse population is fairly educated at affair rat