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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 companyâ??s goal 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.

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.
Please include short-term and long-term strategic goals.
Location consideration for implementation is vital. Please explain the benefits and limitations for expansion in your chosen area.

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Precision Part's is discussed very comprehensively in this explanation..

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â?¢Provide environmental scanning of current conditions in the area of expansion including economy, competition, political stability, and so forth.
The economy of the world is presently affected by the global economic weakness. PPQ has to face the overall economic pressures because of low demand and relatively low production of SUVs. There is some government in free market by way of tariff and non-tariff barriers. In other words the governments tend to favor local industries. The exchange rate fluctuations are moderate, the labor costs in the emerging markets are relatively low, and the business cycle in a large number of countries is in a recession. On the positive side, the financial markets are efficient, the inflation rate is under control and infrastructure quality all over the world is better than ever.
There is strong competition from other auto parts makers in the USA with the reduction in production of the large three auto makers there are several ancillary industries that are making SUV parts and are seeking new markets. That apart, there is strong competition from part manufacturers in Europe;
When seeking to expand abroad there is political stability in most parts of the world. There are few risks of military invasion and contract enforcement is reasonably reliable. The affect of WTO is experienced in most countries, the trade barriers have officially receded. and even tariffs are coming down. The wage legislation in emerging ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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