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.
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.
- 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.
Be sure to reference all sources using APA style.
|Deliverable requirements addressed; understanding of material and writer’s message and intent are clear.||35%|
|Scholarly research which supports writer’s position properly acknowledged and cited direct quotations may not exceed 10% of the word count of the body of the assignment deliverable (excluded title page, abstract or table of contents if used, tables, exhibits, appendices, and reference page(s). Inclusion of plagiarized content will not be tolerated and may result in adverse academic consequences.||20%|
|Critical thinking: Position is well-justified; logical flow; examples provided where appropriate.||20%|
|Structure: Includes introduction and conclusion; proper paragraph format; reads as a polished academic paper or professional presentation, as appropriate for the required assignment deliverable.||10%|
|Mechanical: No spelling, grammatical, or punctuation errors.||10%|
|APA: Deliverable is cited properly according to the APA Publication Manual (6th ed.).||5%|