The company aims and objectives

The c every last(predicate)er-up leases and objectives1 Introduction strategicalalalalalal caution is the way a barter allow formulate, apparatus and try its decisions across the de fictional characterments in order to help the club to hand its objectives. It operator utilise the corporation aims and objectives to develop policies and plans, allocate resources in order to utilize the plans and accordingly evaluate whether this has been triple-cr have. strategic Planning ensures that an organization is doing the right things. If a business necessarily to budge the way it runs its business operations thence a strategic plan explains what the physical com locating is changing to. Once it has laid the right things to do, it devolves account big businessman for doing them right to one or more business plans (Guest 1989). Every constitution has a complaint statement panorama come to the fore its aims and objectives and scheme advise be defined as The de sti pulationination of the introductory long-term goals and objective of an enterprise and the adoption of courses of action and the allocation of resources indispens fit for carrying out these goals (Alfred Chandler, 1963). Johnson and Scholes (2002 p13) suggested that a familiarity indispens opennesss a mission and mission statements a visual sense or strategic intent goals objectives unique resources and onus competences, strategies and control. schema was the direction and cooking stove of an physical composition over the long term sublimely which matches its resources to its changing purlieu, and in particular to its foodstuffs, clients or clients, so as to meet s compensateoffholder expectations. To continue in business and be productive all(prenominal) business ingest a dodging and according to McGee et al (2005) outline is the ability of a comp all to thrive and survive. The spread abroad bequeath outline the stages, stairs and procedures that should be impl emented to carryout a strategic outline as part of the strategic c be process. The untested(a) vintage simple machine fellowship is a medical specialist organisation which has a bitty niche in the specialist car mart place and a mission statement, objectives and strategic intent.1.1 Aims and Objectives of the reportThe aim of the report is write a report about a elect firm within the automotive persistence (real or invented) indicating the stages, steps and processes intricate in the proviso and analysis, conceptualization and effectuation and evaluation of the strategic guidance process.1.2 Objectives To transform the importance and characteristics of strategic management to all forms of organisation To wonder a verify of strategic management models and their strengths and weaknesses To consider the relevance for strategic management of organisational culture and ethics To analyse and evaluate a celestial orbit of strategic management models To apply and to tail or models of strategic management as appropriate2 pose One strategic analysis in the primary(prenominal) there argon two main approaches to strategic management the organisational approach dealing with hawkish emolument, resource allocation and economies or scale and the the clement approach. According to Arieu (2007), there is strategic consistency when the actions of an organization argon ordered with the expectations of management, and these in turn ar with the market and the context. strategical management can be bottom-up, top-down, or cooperative processes which kernel that in the bottom up approach employees send in proposals to their managers who choose the best ideas which argon assessed through and through capital budgeting processes much(prenominal) as redress on investment or cost benefit whilst the top-down approach is where the CEO and the planning team up up make the decisions. Johnson (1999 p154) advised that strategic planning was the process of dr awing up long-term, wide ranging plans in accordance with the organisations main aims and forget involve analysing customer expectations, competitive pressures and overall changes in the market. Operational planning on the some early(a) hand was the festering of plans for a specific operation within the organisation whether it was for a product or a service. He added that although organisations lend oneselfd schooling from analysis, quantified objectives which became the organisations targets for a planned period of quantify, could be establish on guesswork. Strategic management is an ongoing process that evaluates and controls the business and the industries in which the play along is gnarled assesses its competitors and raiments goals and strategies to meet all existing and potential competitors and then reassesses each schema annually or quarterly i.e. regularly to determine how it has been implemented and whether it has succeeded or contends replacement by a virgin scheme to meet changed circumstances, refreshful technology, raw competitors, a brand-new economic environment., or a new social, fiscal, or political environment. (Lamb, 1984ix). As the New Vintage elevator car party is a small specialist business it is very much a very collaborative direction of strategic management with the 10 main employees taking part in management decisions.2.1 Strategic management theoriesStrategic management was a concept which was developed in the 1950s and mid-sixties which theorised that gathering all the functions under one strategy and coordinating the diametric departments. Chandler (1962) showed that a long-term coordinated strategy was necessary to give a comp either structure, direction, and focus stating that structure follows strategy. Selznick theorised that an organisations internal functions should be matched to whatever away environmental circumstances through wad analysis which was developed by the Harvard wrinkle School General Management Group. Anscoff developed a strategy grid to comp ar market penetration strategies, product culture strategies, market development strategies, horizontal and vertical integration and diversification strategies and a disturbance analysis. Druckers (1969) management by objectives (MBO) meant that companies set objectives and then monitored if they had been achieved and suggested the spend of team work. lean strategies include marketing strategies such as new product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information technology management strategies dealing with short and medium term plans. However, Mintzberg (1988) thought of strategy as a process or pattern of behaviour which has evolved over time and necessitated fluidity and the realization that there were unpredictable issues which could arise. 2.2 AnalysisPart of the planning process for a company would be to analyse the current market place and the companys position in it. This could be done through versatile analysis techniques such as bloke, rig out, Gap analysis, ostiariuss generic strategy analysis.2.2.1 PEST analysisThe PEST analysis could be used by the organisation to look into market growth or decline whilst investigating the position of the company, its potential for future growth and the direction the business should take. PEST stands for Political, Economic, friendly and Technological factors, and can be used in conjunction with jampack which are the Strengths, Weaknesses, Opportunities and Threats analysis. PEST can be extended to PESTLE by adding Environmental and Legal or even adding any Political and demographic issues as STEEPLED (Grundy 2006).2.2.2 SWOT analysis In order to see where the company is in the market place, a SWOT analysis depart guide to be undertaken. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Strengths would be the type of business and whether is ha s been wholesome schematic in the area and has a loyal customer base Weaknesses are anything which may hinder the company in achieving its objectives and which may need to be changed such as financial constraints. Opportunities are the things a companies can use to progress Threats are the issues which imprint a company and could potentially endanger the companys futuresuch as thecredit crunch with suppliers closing down, transport costs rising and banks non lending money (Armstrong 1982 p198 Hill Westbrook 1997).2.2.3 Gap analysisThe company will need to judge where there is a gap in the market, every a place for their product or where the company is at the fleck and where they would like to be and so the difference is the gap. After this analyis the company ineluctably to decide how to bridge the gap both through a strategic approach or a tactical/ functional approach. The tactical operational approach would make use of the Marketing Mix Product, Place, Price, Promoti on2.2.4 The cheer chainPorter (1998) to a fault theorized that a company could be successful if it contri just nowed to the industry it was in via a value chain which meant that everything a company does should be questioned in terms of what value it adds in the eyes of the nett customer. In 1993,John Kay stated that adding value is the central purpose of business activity.2.3 competitor analysisA company needs to analyse what its competitors are doing, how strong they are doing it and whether they are a real threat.2.3.1 militant advantage and Porters 5 Forces theoryPorters 5 Forces Model New entrants, effort competitors, Suppliers, buyers and substitutes is a helpful theory can help for an organisation to formulate the appropriate strategies to be successful in their market (Thurlby, 1998). Porters theory takes 5 elements which can crook a business such as New Entrants to the market and Industry competitors are there any new or similar companies setting up in business w hich could be a threat and which customers will choose instead of the original company Suppliers who may be stringy enough to put up prices which the company has to pay or even refusing to do business with the company Buyers how customers can put pressure on the company to lower prices or alter product lines Substitutes customers changing to substitute(a) products from a nonher company if there is a product price affix the use of price cutting and aggressive marketing by other similar rival companies (Porter 1998).2.4 The Competitive-positioning approachCompanies need to be conscious of the ambitions own strategies at all times. A competitive advantage can be attained by organisations if the current strategy is value-creating, and not currently be used or activated by competitors or future competitors (Barney, 1991, p102). Choosing the moderate market level is important as too high will lose customers and too low may see to some competitors. Porter (1995) thought that ther e were three routes to competitive advantage. A firm either (1) focused on a particular customer group (2) specialised in skills competitors cannot match or (3) became the lowest cost producer. Having the competitive advantage means that a company must outperform its competitors by delivering outstanding value to customers and, in doing so, earn an above average financial return for the company and its stakeholders. Doing this successfully over a long period is sustainable competitive advantage which requires that they outperform their competitors for a long period in a way that customers are prepared to purchase at a sufficiently high price. Campbell et al (2007) argued that there were 8 areas which need to be considered for competitive and sustainable competitive advantage to continue for a company. They need to have a strategic intent to stretch the organisation in the future and be willing to work at continuous betterment which includes inputs, processes and outputs of product s and services. They would need to work in a different way to their competitors and importantly they need to be perceived to be better by their customers who need to believe that they are the main reason for the company being in business to serve their customers. The company must build on their center of attention competences by continuous internal review and keep communication transmit open both internally and externally. Its core competency is the restoring of unequivocal cars and all the skills which go with this. The management must be aware that the business environment is constantly changing and they must be prepared to change with it specially during the current recession They need to be aware of their competitors but also chouse when collaboration and co-operation with competitors through strategic alliances is a necessity. 3 set up Two Strategic conceptualisationThe New Vintage Car Company has formulated a strategy through the planning and analysis of companys SWO T and the gap analysis as well as having looked at the competition which is a few other similar small businesses. Strategy formulation is the process of determining appropriate courses of action for achieving organizational objectives and staying a profitable business. Johnson and Scholes (2002 p11) theorised that there were different levels of strategy (1) corporate dealing with the overall purpose and scope of an organisation and how value can be added to the business areas of the company and when a company has decided on its products and the market it should compete in (2) business unit strategy deals with how a company can achieve an advantage over its competitors and what opportunities can be identified or created and competitive strategy which is when the company sets out the framework for success in the market it has chosen with goal setting, commitment of resources and the monitoring or strategies and (3) operational strategy is how the different areas of a company deliver t he corporate strategies with reference to resources, slew and processes. Once the strategy has been formulated, the company needs a mission statement, set the aims and objectives and conduct the internal and external analyis of the niche in the market. The company would then implement the strategy by undertaking certain steps such as entering into a partnership or expanding distribution outlets. The strategy will then need to be reviewed. The strategy formulated by a company should reflect an environmental analysis as well as the organisaitonal vision, mission statement and organisational objectives. The way to formulate strategic plans is to use three steps which find out where the company is now, determine where the company wants to go, and then determines how to get there. This may require to take certain precautionary measures or even to change the entire strategy. Johnson and Scholes (2002) strategic model looks at three criteria suitability and whether it will work feasibi lity and whether it is possible to make it work and acceptability and whether the strategies will be successful.3.1 SuitabilityThe strategies for the company need to be suitable for that company and its current and future position in the market. The question to ask is is it economical to pursue the strategies and would there be any cost advantages for the business due expansion (economies of scale) referring to efficiencies associated with supply-side changes, such as change magnitude or decreasing the scale of production, of a single product type? The company needs to also address the question of economies of scope which means efficiencies primarily associated with demand-side changes, such as increasing or decreasing the scope of marketing or distribution. A company which sells many product lines, sells the equivalent product in many countries, or sells many product lines in many countries will benefit from reduced risk levels as a result of its economies of scope. If one of it s product lines falls out of fashion or one country has an economic slowdown, the company will, most likely, be able to continue trading. Thinking of its customers the company needs to look at the hump economy and what their customers will get and how they will feel they receive not only value for money but are getting something excess and feel part of the company experience. This encourages company loyalty. The New Vintage Car Company has a loyal customer base in the UK and has overseas customers in countries where the current financial downturn has not had such as great impact. The company would make use of decision tree analysis and what if analysis.3.2 FeasibilityFeasibility is concerned with the resources required to implement the strategy and whether they are available now or need to be developed or obtained. The resources which would need to be looked at would be (1) finance and funding and whether the company would have enough capital without taking on a loan or issuing more shares (2) people and whether there would need to be a recruitment drive to employ more skilled craftspeople or even take on apprentices (3) time and whether the length of time it would take would be prohibitive or whether the time scales involved would be unimpeachable and (4) information and whether the company has enough expertise and doledge to expand using the strategies. For this the New Vintage Car Company would need to undertake a cash flow analysis and forecast as well as a break even analysis and a deployment analysis.3.3 acceptableness Acceptability deals with how the main stakeholders of a company will accept any new strategies. The stakeholders in a company are the shareholders, employees and customers. They will need to know the expected performance outcomes and whether there are risks and what the consequences of a failed strategy would be for the company. The shareholders would want to know that there would be returns on their investments either financial or non financial and the employees would expect improved pay or life story prospects and customers would be concerned that they would still get the quality they were used to. An ideal tool for this would be stakeholder mapping.Therefore the formulation of a good practicable strategy for the New Vintage Car Company is essential. Strategic formulation allows the company to plan its capital budgeting especially where there are hold funds and capital funds need to be invested where they can be most effective for all the stakeholders. The next stage is implementation. Implementing any strategies will mean a change of some kind. Strategic Planning ensures that an organisation is doing the right things and then doing them right but the strategic plan explains what the organisation is changing to. The unified plan would be at the head of the strategic planning with departmental strategic plans and functional strategic plans for other part of management. What goes into a strategic plan mu st take into account the needs of the stakeholders, any environmental risks and threats plus the competencies, resources and values that the company has. (http//www.changeperform.com.au/strategic_plan_process.html)4 Stage Three Strategic implementation and evaluationIn order to implement the plans made, there will need to be an allocation of resources including money, people, time and estimator support and establishing a chain of command with specific responsibilities given to individuals or groups. This also includes the right training for employees. Strategic management can oftentimes be planned or unplanned in that there are unpredictable circumstances as well as those which can be planned for. Once the strategy has been implemented, it will need to be evaluated as to its success or failure once again through SWOT analysis for company strengths, weaknesses, opportunities and threats both internal and external. The changes that could affect an organisation are any Political Ch anges such as a change in government, legislation, taxation, any Economic Changes such as inflation, interest rates, unemployment Social Changes such as population trends Technological Changes such as breakthroughs, new products and technologies, Implementing any strategies will need time and effort but they should not be imposed. The management of change is an important part of strategic implementation. Change cannot be forced on employees or implemented too quickly or there will be industrial problems. The idea of change is remote for many reasons including job insecurity fear of loss of status pay cuts and job losses breaks in routine learning new skills and methods change of work site and work colleagues. As the New Vintage Car Company is a small business it may be able to weather any of the changes which could affect the business. As the business uses a collaborative approach to management, the employees are part of the decision making process and the strategies which would a ffect them would be discussed collectively The Paton-Johnson model (2007 p109) can be used, as it suggests ensuant stages for the management of change through initial conversations about change diagnosing of what needs to be changes, how and why the development of a new vision for the organisation and its employees which is shared and a plan to implement the changes. A effective addition to strategic strategies is Warrs Vitamin Model (1987) which considers the well being of company module and the changes made in the organisation as vitamins to help the health of the company. ample minded employees work well and increase production which benefits the company. Employees need to know they are valued and respected within an organisation and if they do not feel this way they are discontent. 5 ConclusionsThere are many reasons why strategies fail and companies fail with them. Companies need to understand their market and their competition both now and in the future, know their own s trengths and weaknesses and be aware of any opportunities which may come and any threats which are looming. The New Vintage Car Company will need to be confident of their employees competence in handling the new strategy and to introduce the changes gradually and with communication, cooperation and participation. Although strategic management is a complex process it can be handled efficiently although too much constraint may be limiting any future visions for the company. As a collaborative company there are just as many pitfalls as for those with top-down management style too many cooks as well as dictatorships. Strategic management consists of interpreting, and continuously reinterpreting, the possibilities presented by changing circumstances for achieving an organizations objectives. Strategic management processes are essential for an organisations success but they need to be paced and not locomote as this is where mistakes are made. The aim of the report was write a report a bout a chosen firm within the automotive industry (real or invented) indicating the stages, steps and processes involved in the planning and analysis, formulation and implementation and evaluation of the strategic management process. This was achieved through a brief investigating into the strategic levels associated with the New Vintage Car Company. The objectives of the report were o understand the importance and characteristics of strategic management to all forms of organisation and this was achieved through a review of the levels of the strategic management process and the theories and models with strengths and weaknesses.ReferencesAnsoff, I (1965) Corporate Strategy New York McGraw Hill, Argyle, M. (1972, p.201) The Social Psychology of work, Penguin UK Armstrong J S (1982). The Value of ball Planning for Strategic Decisions Strategic Management Journal 3 197-211. Axelrod, R. and Cohen, M. (1999) Harnessing complexness Organizational implications of a scientific frontier Ne w York The Free Press, Chandler A (1962) Strategy and Structure Chapters in the history of industrial enterprise, New York Doubleday, charter Institute Of Personnel And Development. 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Warr P (1987) Work, Unemployment and Mental Health Oxford Oxford Unviersity Press http//www.cipd.co.uk/subjects/ corpstrtgy/changemmt/chngmgmt.htm accessed 10 May 09 Harvard Business School (2002) Toward Continuous Change Staying Competitive Through Change Harvard Business School Press (http//harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?referral=3035id=7188BC) accessed 12 May 09 extension AThe New Vintage Car Company is a small specialist car making company which restores old classic cars but it looking to branch out into making new build cars based on the classic models of previous decades through a partnership with another(prenominal) small car company which produces self build car make kits for classic cars such as the MG. The company employs a skilled team of class ic car body builders, wheelers, panel beaters, wing makers, and fender manufacturers who are skilled in working aluminium, steel, stainless steel, copper, brass and magnesium alloy as well as restoring ash frames from old cars or fabricating new wooden frames. The company has experience as vintage car coachbuilders has helped with classic car projects, from manufacturers including Alvis Amilcar Auto Union AC Alfa Romeo Aston Martin Allard Austro Daimler Bentley Bugatti Bristol BMW Cadillac Cisitalia Cooper Daimler Delahaye Delage Invicta Jaguar white lotus Lancia Lagonda Lamborghini Maserati Mercedes Morgan Porcshe Riley Rolls-Royce Railton Sunbeam Tojeiro Vauxhall Veritas. The company has successfully completed a wide range of car commissions, from simple body repairs on existing bodywork to complete restorations and new bodies, sometimes from the most basic of plans. Commissions are from the whole of world drive history, from fantastic exotica such as the 1938 Alfa Romeo Bimotor e and two 1930s Grand Prix Auto-Unions, to a Mercedes-Benz 300 SLR Gull-Wing Magnesium Coup. (adapted from http//www.rodjolley.com/flash/flashed.html)