Strategic Management

Strategic Management

Strategic Project Management

Introduction

Tribe Stout Company a UK based company that makes components for the automotive industry. In the current year they are facing problems, as there is demand for reduction in cost, increase dividends and better transport. At the present location that is situated near Nottingham it is not possible to decrease the cost of manufacturing because of the high labour rate as direct labour costs currently make up 40% of their overall cost. Another problem is the transport as because of narrow local lanes when heavy Lorries tries to gain access to the site it becomes difficult for them to move goods from one location to another.

Considering companies future it is important to eliminate all these problems and work on the proposal, which is to relocate the site to Western Romania.

Objective of this project is to:

(a) Reduce labour cost

(b) Increase dividends

(c) Improve Supply Chain

(d) Better Transport Facilities

Finally duration of the project and Budget required are mentioned in the conclusion of the Project report.

I have carried out the detailed research on the proposal and divided it in following phases.

Project will be carried out in three phases:

Phases 1-Western Romania

(i) Research on Romania

(ii) Risk involved in Western Romania

(iii) Stakeholders

(iv) Technical aspects

(v) Recruitment

(vi) Training

(vii) Contractual Strategy and control

Phase 2-Shepton Maltravers

(i) Check on Inventory

(ii) Dealing with stake holder's concern

(iii) Contractual Strategy and control

(iv) Bidding of machine parts

Phase 3-Implementation

(i) Balance the work

(ii) Trading

(iii) Responsibilities of key staff

Phase 1

(i) Brief introduction of Romania

Romania is situated in south-eastern Europe, bordering black sea and situated between Bulgaria and Ukraine

It has a total area of: 237,500 sq km

Land: 230,340 sq km

Water: 7,160 sq km

Romania has borders with countries with Bulgaria 608 Km, Hungary 443 Km, Moldova 450 Km, Serbia and Montenegro 476 km, Ukraine (north) 362 Km, Ukraine (east) 169km

Romania's population is 22,355,551(July 2004 est.)

Age structure in Romania:

0-14 years: 16.2% (male 1,861,801; female 1,770,746)

15-64 years: 69.4% (male 7,712,612; female 7,791,900)

65 years and over: 14.4% (male 1,330,994; female 1,887,498) (2004 est.)

Economy in Romania

1 ROL = 0.0000181344 GBP or 1 GBP = 55,143.89 ROL

(as of as of 2005.01.06 16:53:38 GMT)

Romania has a GDP rate of 4.9% (2004 est.), which is good as compare to GDP rate of UK 2.2 %( 2004 est.)

Economic comparison of UK and Romania

Source: http://www.cia.gov/cia/publications/factbook/

So company might have a better growth in Romania.

Another important factor is the industrial production growth rate in Romania is 2.3 %( 2004 est.) compare to that of UK which is -0.7 %( 2004 est.) This clearly states that company can have a better growth in Romania.

Since Western Romania is situated in middle of Europe it is easier for the Tribe Stout Company Fabrications Plc to deliver parts just in time and make the supply chain more effective.

(v) Recruitment

Recruitment will be carried out by advertising in local newspapers and television. Considering their prior experience their contract duration will be defined. For e.g. if a worker have a experience of 10 years in the industry he might be offered a contract for 20years but for the worker who is in start of their career ...