Case Scenario:
Managing Resources & Operations
Consider the following scenario:
You have held conversations with Precision Part's leaders and obtained the following information, which you want to use in the development of a 4-year strategic management plan. PPQ Parts employees now number 5,000, and all are currently employed in the United States. It plans to grow to 10,000 employees in 4 years. New facilities will be needed in international expansion, and PPQ Parts anticipates building most of those (80%) outside the United States. PPQ Parts holds 5% of the world market share on small SUVs, but its goal is 9% in 4 years. Current stock price is $10 per share. The goal is $22 a share. Profit margin 3-year average is 6%. Industry average during this time has also been 6%. The company goal is 13% in 4 years. PPQ Parts has averaged 28% employee turnover during the last 3 years. This is compared to an industry average of 25%. The goal of the company is to increase employee retention by lowering annual turnover to 17%. PPQ Parts contributes to all the local communities in which it is doing business. This is one of its corporate values. Current charity is 0.5% of total profits, but the company would like to raise that to 5% in 4 years.
Assignment:
- A strategic management plan is vital for the company business today.
- Review the company scenario at the beginning of the course for additional information regarding growth goals.
- Create a basic strategic management plan for PPQ Parts including quantifiable goals and measures. Include the following in your report:
- Provide environmental scanning of current conditions in the area of expansion including economy, competition, political stability, and so forth.
- Address internal resource analysis such as managerial and financial strengths and weaknesses.
- Include short-term and long-term strategic goals. Location consideration for implementation is vital.
- Explain the benefits and limitations for expansion in your chosen area.