Strategic Management Plan Assignment Help Strategic Goals for PPQ Parts PPQ Parts is US based firm that deals in SUVs and would like to go in the market of Saudi Arabia for expanding its business. So, for its expansion strategy, followings are some strategic goals that would be considered by its management in the making of short-term and long-term strategy for significant business expansion in the automobile industry of Saudi Arabia:
- In next 4 years, to grow number of human capital from 5,000 to 10,000 along with developing their operational skills and productivity levels.
- For increasing its market share from 5% to 9% in next 4 years by business expansion
- To increase the firm’s sales revenues to its shares prices from $10.00 per share to $22 for increasing shareholders’ value
- To reduce the rate of employee turnover from 25% to 17% for achieving 13% industry growth in next 4 years.
- To grow the involvement rate of firm in charities and social activities from 0.5% to 5% within 4 years.
Environment Scanning of Saudi Arabia for PPQ Parts The scanning of environment is valuable for expansion strategy in the context of Saudi Arabia because it would provide the information about the business conditions in market (MarketResearch.com, 2012). As per market research case study assignment help experts, Following is the environment scanning of Saudi Arabian market: Political Environment: The political environment of this country is stable that may influence the long-term goals of the firm positively because the terms of taxation, production policies, and export-import procedures will not be changed (Ali, 2009). So, it would not make any impact over the strategies of PPQ Parts. On the other hand, the political stability would help the firm to set its business in the current market without any political limitation. Economic Environment: The varying economic environment could influence the firm for attainment of its long-term strategic goals positively because of the changes in demand supply principles. But the accelerating economy of Saudi Arabia would facilitate the growth for PPQ parts because of increase in per capita income, GDP and other economic scales in the country that also increase the potentiality and purchasing power of the customers (Laïdi, 2008). Thus, it would facilitate higher growth rate for PPQ Parts along with its success in Saudi Arabian market. Technological Environment: The technology based automobile market of Saudi Arabia would support the PPQ Parts to achieve its long-term goals positively. The growth is also a main concern of firm behind its expansion strategy. The technological environment of Saudi Arabia is beneficial because its automobile industry encourages the selling of SUVs (Leihs, Dahringer & Mühlbacher, 2006). It would help the PPQ Parts to increase its profitability and sales. It would also boost the ability to achieve long-term goals. Social Environment: Social beliefs and values of Saudi Arabia are totally different from other countries in world that could influence the firm’s business strategy for attaining the goals and objectives because the people believe in their traditions and nationality. But the desires of Saudi Arabian people towards SUV are growing due to the fuel efficiency and its comfort related utilities (Pickton & Masterson, 2010). So, due to perceptions, needs and trends for purchasing SUV would provide a better chance for the management of PPQ Parts to get growth in Saudi Arabian market. Competition: Level of competition in Saudi Arabia is growing dramatically as some domestic manufacturers are also entering in automobile industry (Derhally, 2012). It would affect the ability of firm for attaining its short-term and long-term goals. The high level of competition could make strong entry barriers in attaining the business goals (Leihs, Dahringer & Mühlbacher, 2006). On the other hand, it would also make direct impact over the sales and acceptance of the SUV vehicle along with the success of the firm in international market. Through adopting more competitive strategies based on quality and valve of money, PPQ Parts would be able to make significant presence in Saudi Arabia.
Internal Resource Analysis Internal analysis is important for knowing capacity of the firm before the implementation of global expansion strategy to achieve long-term goals (Pickton & Masterson, 2010). Internal analysis based on resources would be useful for the management for making business strategic plan because it will highlight the strength, weakness, opportunity and threat of the firm. These are as follow: Strength: The focus of the firm on a particular segment would work as a main strength. It would help to reduce the impact of competitions for selling its products. It would help to make its positive image with substantial financial condition of the firm (Orlitzky, Schmidt & Rynes, 2003). Thus, the strong position of the firm would help the firm to achieve 13% profit margin in next 4 years. Weakness: The lack of skilled employees and the low involvement of firm in social works are the weak point of the firm. Due to this, the firm could not get the social image that may affect its presence in Saudi Arabian market. Opportunity: The firm has the experience in the concern of SUVs and its huge demand in Saudi Arabia along with proper and effective market segmentation would enhance the chances for growing its business to get huge profitability (Trading Economics, 2012). Threat: The cultural environment of Saudi Arabia is totally different in its nature that would affect the sustainability of the firm in the concern of employees and the entry of domestic player may also pose challenge to the firm (Walid, 2012).
Strategies For entering in the market of Saudi Arabia, PPQ Parts could make strategic partnership with domestic players of Saudi Arabia for giving the nationality approach to its products. This strategy could be effective for the firm because this type of entering strategy will be beneficial in the terms of gaining information that would help to cover huge area of related market (Shapiro, 2012). The method of strategic partnership would enhance the share of firm in related market. So, it would be easy to reduce the chances of being failure that would help to sustain competitive position in Saudi Arabian market. As per the environment of Saudi, the demographic segmentation strategy should be used by the management to focus on the selling of its product because this strategy would also focus on size of family, standards of living, level of income, along with occupation (Joher, 2006). The high class families and businessmen of Saudi Arabia would like to use SUV that could be target customers for the firm (Trading Economics, 2012). This situation would provide financial advantages to PPQ in terms of customers who will have the potentiality to purchase SUVs. By this, the firm would get significant position among the segment of comfort and style. For increasing internal strength and significant utilization of firm’s resources, PPQ Part could use McKinsey Seven S Model. This model provides the framework related with skills, style, shared value, staff, structure and strategy and system that will be profitable for the firm in the development of internal cooperation at workplace (Egner, 2009). It will also help to improve overall performance of the firm in the market of Saudi Arabia. It has some limitations also as like the ignorance of its products by target customers may affect its business strategy by decreasing sales and profitability of the firm. On the other hand, the entering of domestic player in market may also work as limitation (Brown, 2009). But, the management of PPQ Parts could eliminate all these limitations by employing competitive pricing strategies and taking the services of skilled employees. References Ali, A.J. (2009). Business and Management Environment in Saudi Arabia: Challenges and Opportunities for Multinational Corporations. Taylor & Francis. Brown, T.L. (2009). Imperfect Oracle: The Epistemic and Moral Authority of Science. USA: Penn State Press. Derhally, M.A. (2012). Economic growth in Saudi Arabia: This is our golden opportunity. Retrieved from http://www.arabianbusiness.com/economic-growth-in-saudi-arabia-this-is-our-golden-opportunity-458223.html Egner, T. (2009). McKinsey Seven S Model. GRIN Verlag. Joher, J.M. (2006). The State of the Union and Our Democracy?: How the Two Parties Have Failed Us. USA: Author House. Laïdi, A. (2008). Currency Trading and Intermarket Analysis: How to Profit from the Shifting Currents in Global Markets. USA: John Wiley & Sons. Leihs, H., Dahringer, L. & Mühlbacher, H. (2006). International Marketing: A Global Perspective (3rd ed.). Cengage Learning EMEA. MarketResearch.com. (2012). Saudi Arabia Autos Report Q4 2012. Retrieved from http://www.marketresearch.com/Business-Monitor-International-v304/Saudi-Arabia-Autos-Q4-7179509/ Orlitzky, M., Schmidt, F.L. & Rynes, S.L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, 24(3), 403–441. Pickton, D. & Masterson, R. (2010). Marketing: An Introduction (2nd ed.). Great Britain: SAGE. Shapiro, I.S. (2012). The Last Great Senate: Courage and Statesmanship in Times of Crisis. USA: PublicAffairs. Trading Economics. (2012). Saudi Arabia GDP Growth Rate. Retrieved from http://www.tradingeconomics.com/saudi-arabia/gdp-growth Walid, T. (2012). Saudi Arabia Ghazal Defies Camels as SUV for Desert User. Retrieved from http://www.bloomberg.com/news/2012-07-15/saudi-arabia-ghazal-defies-camels-as-suv-for-desert-market-cars.html Avail 100% original strategic management plan Assignment Help with us.We ensure you that your business assignment help content would be authentic, original and according the assignment guidelines. So, hurry up and please e-mail us your any assignment help at email@example.com