For success in business, its foundation and pillar is a business strategy. A business strategy determines the health conditions of a business (success in terms of profits, market share, and performance). Though the company which imports and sells motor vehicles makes profits, there is much more to be done so as to improve on its profitability and general performance (Burkhart & Reuss, 1993).
From what the owner of the business or company told me during the interview, the company has strategies that have helped it achieve its profit targets each year and they have been able to maintain it for the last five years. Having heard and seen the organization of the company, I found out that, the marketing strategy is giving a better hand to the profitability and market domineering. Business strategic models used by the company must be concern about the future and should have concrete management but it should be like a political speech that is meant to influence people for the sake of other people’s political mileage (Allison & Kaye, 2005).
The most important business strategies are the ones that propel a course between the demands of the rapidly changing world and the internal pressure that is inevitable for business continuity through revolutionary business strategies. The company has its priorities right on what is important and what should be handled first for the success of the company. The company management knows exactly where the company should be by use of the business development strategy. The owner of the business shared all these with me and I found that the business is profitable and it is worthy to be expanded (Haines, 2004).
A strategic plan determines where the company will be over the next two or more years. It plans on how to get there, how it will know whether it is getting there or not, and how to correct deviations incase they arise. Strategic plans usually focus on the entire business for the products the company provides to its clients. The business owner has implemented the company’s strategic plan because it has every project and item listed on when, who and what should be done. The owner has some strategic planning models in place such as issue based, goal based, scenario and organic models (Allison & Kaye, 2005).
Goal-based planning is the most common strategic plan in the company has adopted. The company has started focusing on the mission and the vision so as to achieve its goals and action planning (on who will do what, where, when and how). The owner has assigned all employees their roles and tasks that they should achieved within a certain periods of time. This will ensure that, everybody will accountable for his or her deeds so as to avoid blame game and conflicts arising (Burkhart & Reuss, 1993).
The owner has too implemented issue-based strategic plan. This is where the owner has examined issues and major challenges facing the organization and strategizes on how to address those issues through the possible action plans (Burkhart & Reuss, 1993). These issues according to the owner and my own analysis have been of great importance to the organization’s success. The company’s reputation and image has improved not only locally but also internationally. The organic strategic planning has been utilized in the company by the owner who is also the Chief Executive Officer (CEO). It articulates on the organization’s vision, principles, values and core business ethics and conduct. The owner has ensured all the structures and cultures in the organization are up to date for its success. The leadership, culture and structures of the organization are well developed so as to avoid complexities (Haines, 2004).
The business or the company is strategically placed to compete favorably with others in the same industry (Burkhart & Reuss, 1993). The company imports vehicles from many foreign countries and the company has strategized and expanded its market share to many countries in Africa and Asia. The company has gained competitive advantage over its rivals in the market globally due to improved management, communication, coordination and organization. I have no doubt that the company is a threat to many motor vehicle selling companies in the world. This information is based interview from the owner of the company who is also the Chief Executive Officer (CEO) and other information is from the journals and its customers (Lorenzen, 2006).
The sales and marketing department have what it takes to maintain the company’s image and to increase the sales so that the profit margins can double every year. This business can be said to be better than other businesses in the same industry because it has been able to increase its Market share by 25% every year and its customers are more than ten (10) million all over the world. It is considered as a market leader in the industry all over the world. It manufactures and sells high quality motor vehicles in accordance to what customers want and in line with the technological advancement (Allison & Kaye, 2005).
The company complies with the entire local and international laws governing the business; hence there are no much complications when transacting business. This is has made it to dominate in the market and many countries are willing to accept their motor vehicles (Lorenzen, 2006). For these reasons therefore, the business can compete favorably in the market due to its flexibility and adaptability to various market environmental conditions and situations. The company has expanded its operations to more than 50 countries as its closer rival has only expanded its operations to 34 countries. This is an added advantage to the company to dominate and influence the market before its rivals penetrate (Haines, 2004).
The business owner has many other opportunities with the advancement of technology. The owner can take advantage of the e-commerce so that it can transact (buying and selling) business through online (Lorenzen, 2006). This is an opportunity because it will cut on the cost of traveling and saves time; hence increased profit margins. The owner can have new branches in some countries in the Middle East because there are more customers and a few motor vehicle selling firms in the region. The countries in Middle East have friendly terms and conditions of trade that can easily be adopted due to favorable legal conditions concerning international trade (Haines, 2004).
Recommendations to the Owner
I recommend that the owner should focus on improving the marketing strategies so as to remain relevant in the market (Haines, 2004). The must be strategies that focus on specific regions and markets due to difference in market requirements and expectations. The company through the owner should improve diplomatic relations which sometimes goes sour with some countries especially in Asia. The owner should improve the delivery of goods to the customers. The mode or the channel of distribution should be faster and meets all the expectations. The owner should build a strong relationship with other nations by engaging in social responsibility so as to build the trust and loyalty with the citizens (Burkhart & Reuss, 1993).