STRATEGIC MANAGEMENT PLAN

Strategic Management Plan



Strategic Management Plan

After meeting the management leaders of Precision Part and obtaining information of current performance and future expectation,, a strategic management plan has been developed for future growth and global expansion. The strategic marketing plan consists mainly of the goals, objectives, strategies and tactics and which gives direction for the company. Objectives must be measurable and include specific, quantifiable end results with dates assigned. Strategies identify how the company will achieve its objectives. Tactics indicate specifically what the company will do (Richards, 2011).

Environmental Scanning of Current Condition

Economic Factor

With globalization come augmented opportunities. Furthermore, globalization pilots the construction of the worldwide consumer, someone who is familiar with the brand and anticipates the same superiority of merchandises and services despite their location. Also suppleness in corporate spending, inflation or deflation, or the global recession could affect demand which could negatively influence investments and profit margins. PPQ Parts would need to examine the economic issues directly concerning their company and have strategies in place to thwart off any economic factors which could directly affect their organization (Smith & Doyle, 2002).

Financial Factor

The exchange rate may influence financing and cash flow causing the company to take risks, based on the fluctuating rates.

Political Factor

Political fluctuations can have an adverse influence on PPQ Parts. Political instability among singular markets can be very demanding. Managing federal, state and local legislation while running internationally dispersed personnel could pose to be a threat to PPQ Parts. Furthermore terrorist attacks and political volatility would also negatively influence investments and profit margins. PPQ Parts is also subject to at home and at broad competition, piracy, laws and regulations. Again, PPQ Parts would need to have strategies in place to deal with the management of political factors; in addition, they would need a crisis management team in place in the event of political volatility or terrorist attacks (Smith & Doyle, 2002).

Internal Resource Analysis

Brand recognition is a key factor when determining the price of a service or product. If a company is known to customers then the company has a better chance of keeping a loyal customer. The benefits of using a psychological pricing strategy is that a product can be sold for a price under the competition's price point. This can assist a company in keeping cost down and passing the savings onto the customer. The negative aspects of this pricing strategy are that a company ...