STRATEGIC PLAN

Strategic Plan: Unit-2 Managing Resource and Operations

[Name of the Institute]

Strategic Plan: Unit-2 Managing Resource and Operations

Introduction

In this paper, we will consider the present scenario of PPQ Parts and its expansion plan for the future. Currently the company has a major national and international share in auto parts industry, so much so that it currently holds 5% market share worldwide. However, there are still possibilities of expansion of business in the global market. There are a number of factors which should be considered in this regards and, therefore, it is important to establish an applicable strategic business plan for the development of the business. A factor, which needs to be considered, includes the present human resource of the company, which the management is planning to double in the next four years. For this purpose, it is important to develop recruitment plans for expansion in quality human resource to match the company strategy.

Also, employee turnover is one of the most critical issues currently present in the company. Employee retention is aimed to be lowered from 28% to 13%, in the next four years. The company also plans to expand it profit margin and charity of gross profits to 5%. For this purpose, my task is to develop an applicable strategic business plan for the next four years. I have selected Chinese market for planned international expansion target of the company. China has a lucrative history of developing auto parts, which are distributed worldwide. This plans aim to control a significant market share in auto parts industry of China. However, it is important to first analyze the current industry position, and then incorporate a strategic business plan.

As PPQ Parts planning to start its global operation, it is necessary that the management should devise strategies to exploit the opportunities present in the international market. Following part of the paper discusses competitive strategies for PPQ Parts to enter in the market of China.

The Environmental Analysis

In 2009, China's auto parts industry revenue increased to 1:14 trillion yuan, an increase of 23% compared to 2008, growth in car sales rose by 46% over the preceding year. The report shows that in 2009 the global car market, but the strong growth in the Chinese market is the supply of auto parts products are always in a position of strength. Steel, copper, rubber layers at record levels, low-cost human resources with China to balance the price, only parts business in general, but profit margins remain at 8% to 10%. The profit margin in comparison with the automobile is more than 2 percentage points; the automotive industry in 2009, average profit margin was 6% to 8%. Respondents generally believe that some parts of China in 2010 and 2011, will further the industry's profitability to improve (Chandler, 2002).

Competition

Parts of domestic firms in 2009 the wave of mergers and acquisitions, including the behavior of the primary market was the acquisition of Weifang Diesel Engine manufacturers in France Bowen (MoteursBaudouinSA) began, Universal Group acquired control of the U.S. Global Systems, ...