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Documente Profesional
Documente Cultură
Strategic Management is wide and encompasses all functions and thus it seeks to integrate the
knowledge and experience gained in various functional areas of management. It enables one to
understand and sense of the complex interaction that takes place between different functional
areas. In real life there are constraints and complexities, which strategic management deals with.
Strategy is about the future. The focus is long term often 5-10 years into the future. It needs
operational effectiveness, tradeoffs and fit. The strategy at different levels needs to be in synergy
and also consistent. Success of any company depends on how well the company has formulated
its strategy. Strategy formulation is not easy, you need to take into account the environment of
the company. The steps in strategic management which starts with the vision mission of the
company forms the foundation. PESTLE and SWOT analysis is important. It is both subjective
and objective.
This assignment revolves around the Logistics Business and AJ Brown & Co Ltd. A futuristic
model which can help the company to form its Strategy. To compete against the global leaders in
the logistics business around the world. A strategy formulation which can make a difference and
become a revolution in the business.
Table of Contents
Executive
Summary
1
1.0 INTRODUCTION............................................................................................................. 3
1.1 The Current Environmental Situation Facing the Organization...3
1.2 The Current Strategic Plan...4
1.3 Management Role within the Organization.....5
1.4 Environmental Analysis of the Organization...5
1.5 Key Services....6
2.0 STRATEGIC OPTIONS...7
2.1 Proposed goal for the strategic options
..7
2.2 Proposed strategic option with the stakeholder ..
...9
2.3 Range of strategic options based on an environment
analysis...10
2.4 Strategic Plans
goals..11
2.5 Strategic option to meet the organizational goals..
12
2.6 The most feasible option for their further consideration.
..14
2.7 The best strategic option in conjunction with the Organizations
stakeholder...15
2.8 Choice of strategic option...
..16
3.0 STRATEGIC PLAN17
3.1 Organization strategic plan with all of the relevant selection....17
3.2 The strategic plan appropriate goals that implement the strategic option..18
3.3 Communicate the receive strategic plan to the organizational stakeholders..19
References...20
Introduction:
A J Brown & Co Ltd started life in 1948, formed by three partners to take over the cartage and
customs business started by Archibald John Brown some decades before. These days the
company is still owned by its Directors who have been with the firm for many years, and
continue to instill in all personnel the highest professional standards which typify the traditional,
yet progressive, culture of our company
A.J. Brown & Co Ltd with over 50 years of expert assistance to New Zealand importers and
exporters, AJ Brown is your choice for smooth, rapid transit of your international consignments
into or out of New Zealand. As professional, experienced Customs Brokers and Freight
Forwarders they competently and reliably handle all aspects of customer international
consignments. From initial discussion of all your available sea freight and air freight options,
through the final clearance and carefully delivery anywhere in New Zealand, and around the
world .
Involving AJ Brown at all stages of the planning and operation of your international
consignments will achieve the lowest possible legitimate import duties and best freight rates for
the most appropriate service. There in-house expertise, developed over more than 50 years of
customs freight industry involvement, has been utilized by a huge number of importers and
exporters, for a massive range of good.
http://www.ajbrown.co.nz/
Independent Freight Forwarding services, to source and arrange for you the
most appropriate and economic methods of international transportation for
your shipments. Documentation of freight as per the country rules.
Companys market position is based on differentiating itself from rivals
through its speed, reliability and provision of services of the highest standard.
Companys strengths are based on Security and Safety of the freight.
Preventing freight from localized thefts, Weather etc. Arranging appropriate
insurance on your international cargo at competitive rate.
Weaknesses
The inherent weakness of the industry are:
Opportunities
Threats
Threats those are prevalent in the industry are applicable to the AJ Brown as well.
The strengths of the organization have been responsible for AJ Brown to be
immune to lots of threats from outside.
Organizational Structure:
Owner
Managing Director
Marketing Manager, Finance Manager
Security Officers and Delivery Management Team
Delivery Centre Executives
J. Brown & Ct
http://www.tnt.com/corporate/en/site/home/about_us/our_business/business_strategy.html
Promising Customers:
Developing Employees:
Right people and Skills to deliver the promises it makes. The business is
committed to staff development.
Promotes around 70% of its managers from within the organization, enabling
people to have long-term careers.
Value to Stakeholders:
Branding:
2.2 Proposed strategic option will be developed in conjunction with the stakeholder
within the existing strategic plan while meeting the organizational needs.
SCOPE
DIFFERENTIATION
Organisation
Main Management roles are envisioning future strategy, aligning the Organization to
deliver that strategy and embodying change.
In AJ Brown stake holders are Owner, Managing Director of the company, Marketing
Manager, Finance Manager. They have played the large role in making the strategies for
the company growth in future coming five years. Like how much market share they want
to grab in next five year, want to become Largest Logistics Company of the New
Zealand. They discuss for what all they need how is going to be completed. Finance
Manager tells how much finance is required for all. Marketing Manager is discussed what
marketing tricks is require for the above stated plan for the future.
http://www.logisticstoday.com/sNO/7869/LT/displayStory.asp
http://www.businessweek.com/magazine/content/04_48/b3910115_mz017.
htm
Economic:
Creating Jobs
Capturing Emerging Markets
Taxation Policies
Social:
Technological:
Mobile Platform
IT development
Adapting new Technology
Legal:
Environmental:
2.4 Strategic options are consistent with the organisations purpose, directions and
values as expressed in the organisations mission statement and strategic plans
goals.
Current
Freight
Forwarding
Services
Freight
Security and
Safety
Custom
Tariff
Classificatio
n
Custom
Clearance
Services
Proposed
Promising
Customers
E
economic
methods of
international
transportatio
n
L
Documentation
of freight as
per the country
rules
Preventing
Localized
thefts
To assist importers to
minimize their legitimate
Duty
liabilities,
and
minimize their exposure
to legislative penalties
P
S
Cost
Improve
effective and Customer
Highly
Satisfaction
Competitive
Services
Safety
freight
weather
Legal Advices
to customer as
well
as
organization so
as
to
get
maximum tax
benefits
T
L
of
from
E
Best in class
services which
are reliable and
efficient
Right
Promotes
Developing
people
around 70% of
Employees
and Skills
its managers
to deliver
the
promises
Valued
Creating more business
Stakeholders Increasing the Value of
company
Branding
Getting a
Brand
Ambassador
Creating Brand
World wide
for the
Company.
2.5 For each of the strategic option present feasibility study which assesses the
option in term of their ability to meet the organisational goals
POLITICAL
COST
BENEFITS
Government
RISK
Government
may
25 K
not
give
market companies
Built global network
15K
Organization.
Expand
OPTIONS
Industrial Regulations
NIL
Standards
grant.
the Always risk to
business network
Always pressure in
Creating Jobs
Capturing Emerging
NIL
20k
Markets
Taxation polices
Market.
There is always
improve the
not constant
company
If it will be in
economy situation.
Trends also not
stable.
outsources can
25k
increases
less charge it will
Taxes
reduce burden on
company as well
reduce.
as Customers.
SOCIAL
If in our favor it
Consumer satisfaction
always
15K
will help to
now
days
Consumer
satisfaction doesn't
20K
will help to
Negative work to
capture
our business.
the market.
If in our favor it
May not be
always in our
different regions.
Nil
IT development
business
TECHNOLOGY
30K
It will increase by
Mobile Platform
NIL
business scale.
Help us for
changing
Expensive
40K
networking.
Improve for New
Should be suitable
technology
LEGAL
10K
Help to increase
Labor laws
15K
Consumer laws
NIL
favor
Always keep
for business
Keep changing
Can be opposite
to our business
Sometimes reduce
business scale
some activities of
business due to such
law.
ENVIRONMENT
It will be positive
It will never be
NIL
and it make
same.
10K
coordination
Can increase
keep changing
scale of business.
2.6 Recommend to the organization the most feasible option for their further
consideration.
Consumers Law
2.7 The best strategic option in conjunction with the Organizations stakeholder
advantage. Size of market is limited but there are still gaps and opportunities
for logistics companies in Emerging markets. Emerging markets have the
potential of high economy growth and despite the influence of economic crisis
the growth has slowed down but has not stopped. Therefore it is important for
AJ Brown to be present in those countries and invest in active Sales &
Marketing. The aim is to continue and expand AJ Brown presence and
continuously work on brand and image recognition. The offer of product
portfolio cannot be full because AJ Brown would not be profitable if it offers
the full range.
Customer Satisfaction: It educates employees to actively cooperate and by
their attitude interest more customers and work on good relationship with
current customers. Closer cooperation with customers and employees brings
new innovative ideas and identifies gaps. If the company exactly knows what
the customer wants, it helps to work on customization of products and
workflows to satisfy their need. Specialization and customization is definitely
an important and strong opportunity for AJ Brown and it is one of the most
important opportunities I have identified. It also increases dependency that
forces customers to stay with AJ Brown. Productivity of AJ Brown will be
increased by strengthening of standardized systems, processes and workflows
and it will bring the key success factors that customer request: quality,
reliability and speed
IT development and Mobile Platform: IT is the most important technology
factor for logistics business because speed and reliability are equal to success.
However, there is an indisputable constant threat of falling behind.
Investments to the modernist technologies are evitable and in times of
economic crisis are much more important than any time before. Company has
to decide if it runs internal IT organization or if it outsources most of the
services and reduce cost.
2.8 Justify the choice of strategic option in term of its ability to meet the
organization purpose, direction and value of expressed in the organisation mission
statement and /or strategic plans goals.
Strategic programs represent an area that AJ Brown has already initiated, and as prove by
the analysis, they represent important success factors for the organization and it is
valuable and worth to continue them. This is an opportunity for the company to make the
organization more transparent and start with restructuring initiatives like improvement of
Capture Emerging Markets: This will help the company to grow globally and
show their presence in the international market.
Customer Satisfaction: This is the most important factor in the any business to
satisfy the needs of your customer. If the customer is satisfied, company will
definitely grow and bring more business to your company.
IT development and Mobile Platform: Technological advancement is the need
of today business to stay in competition with ever changing market. Moreover to
have a deeper penetration in the mobile age it is important factor for the company
to have its ace technology.
Strategic Plan
1
Present the organization strategic plan with all of the relevant selection not including the strategic option
Strategic Plan
Promising
Customers
Developing
Employees
Value to
Stakeholders
Actions
Improve the
Services
Cost Effective
Serving According
to the needs of
different customer
Hiring Right and
Skilled People
Skill Development
programs for
employees
Promotions at
different levels
Expanding business
globally
Acquiring Small
Businesses in
International
Borders
Resources
Technology
Transportation
Airways
Hard working
Employees
Top Graduates
Colleges
Business
Management
Schools
Separate Fund
Allocation for
Employee
Development
Finance and Legal
support
Hardworking Top
Management
Outcomes
Improved Brand
Value
New Customers
More Market Share
Global Presence
Creating a Brand
Value
Increasing the Size
of Organization
Timeline
Contingency Plan
Development
program every 3
months
Hiring and
Promotions every
year
Hiring Permanent
Mentors for
guidance of the
employees for the
development
2 years in
establishing the
brand globally
As well as Acquiring
The small business
Making
Collaborations in
the other regions
with competitors in
failing case of
strategic plan
Branding
Promising
customers
Add Value to the
company
1 year to establish
company with
biggest rivals in
market
Advertising on
social media and
using internet to
promote
3.2 The strategic plan appropriate goals that implement the strategic option as outlined
CUSTOMER CENTRIC
SUBSTANTIVE GROWTH
COMMUNICATION METHOD
STAKEHOLDER
UNDERSTANDING
COMMITMENT
ENTHUISIASM
Manager
Maintain System
Quality Standard of the
organization.
Provide good services to
the customer
Work satisfaction by
services
Emails, Meetings
Promotions
through CEO.
Staff
Customer
Communicating what is planned is the important part of the Strategic Planning. Each and
every member of the organization should know it. This role involve with clear
communicating the strategy to internal and external party. The internal party includes the
organization and the external party is includes all stakeholders. The next role is aligning
the organization to deliver the strategy. Under this role, it is expected that all people in
the organization be committed to the strategy. These people should be motivated to
follow the strategy and should be empowered to deliver the change. The final role is
embodying change. The strategic implementation is highly involved with the
organizational change. Thus, strategic leader has a major role of following strategic
change process.
Now different methods can be adopted to communicate this strategic plan. Annual
Company brochure, through company meetings which will be bring enthusiasm and
commitment in the employees.
References
http://www.ajbrown.co.nz/
http://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html
http://pestel-analysis.com/
http://www.businessballs.com/swotanalysisfreetemplate.htm
http://www.tnt.com/corporate/en/site/home/about_us/our_business/business_strategy.html
http://www.logisticstoday.com/sNO/7869/LT/displayStory.asp
http://www.businessweek.com/magazine/content/04_48/b3910115_mz017.htm
http://www.ukessays.co.uk/essays/strategic-management/dhl-express-strategic-planning
document.php
http://www.tnt.com/
http://www.dhl.com/