Strategic planning frameworks and organizational implementation

Strategic Planning

Smith & White

Analyzing the weaknesses of Smith & White is important for us to make the company more profitable. We should "overcome weaknesses to pursue opportunities" (Strategic Management). When we look at the weaknesses of Smith & White, it is seen that it faces high costs due to old manufacturing plants situated in the high labor urban areas. What Smith & White needs to do is to produce newer more efficient manufacturing plants that are situated in places of cheaper labor. This would reduce the costs more and manufacturing would be more efficient thus meeting the high end-user demands. As Smith & White are already able to obtain high prices, minimizing the cost of production with cheaper labor, Smith & White would be able to maximize its profits.

Further Smith & White already spends a lot in the advertisement sector but needs to change the advertising plan. What it needs to do is to give rise to awareness among the public that it makes both professional and consumer goods. This would lessen the market confusion between it power tools and consumer goods and the public will accept it to be a multi-manufacturing company that produces a wide range of products.

In its cordless segment what can be done is that the newer technology can be adopted. Higher voltages have not been tapped by organizations yet and Smith & White should make use of this opportunity. We should start producing higher voltages and dominate the market.

Another important factor that Smith & White should act upon is to improve its communication and flow of information. Because Smith & White is a huge organization, it should make itself efficient in adapting to the changes rapidly occurring. "The broader the range of communication channels, the better the overall information that individuals within the enterprise will receive" (Alan West).

Makatume

The only weakness that Makatume faces is the low priced goods from China. As a preliminary step we should study the media strategy of our competitors.

'A competitor's media strategy reveals budget allocation, segmentation and targeting strategy, and selectivity and focus. From a tactical perspective, it can also be used to help a manager implement his/her own media plan. By knowing the competitor's media buy, media selection, frequency, reach, continuity, schedules, and flights, the manager can arrange his/her own media plan so that they do not coincide." (Wikepedia)

This way Makatume can get an insight on the Chinese competitors and we can plan accordingly. Makatume also needs to make use of cheap labor where cheap labor is available. The principle that Makatume should adopt is to provide cheaper yet good quality products and therefore the cost of manufacturing should be reduced.

Moreover any increase in the prices of raw materials will have a direct impact on the organization. This will result in a rise in the prices which may affect the sales of a product. Hence we at Makatume should practice closer supplier relationships which will ensure competitive and quality products.

Makatume should also allocate a larger budget for its advertising sector and increase awareness in the market via media and maintain brand equity. It should ensure that a positive attention and impression is given on its products through the media. Any negative attention to an organization or its product can lead to diverse effects. Thus controlling the type of attention that its products receive, Makatume would be able to secure its sales throughout the world.

QUESTION 2

Makatume, is trapped in using low voltages due to the type of cordless technology which is adopted at the time of production. Although its technology of interchangeable batteries is widely accepted, it is not long before other competitors adopt newer technologies and put Makatume in a corner where its cordless product would no longer be accepted by the masses. Hence it is essential for Makatume to study the newer technology and create a transition from the previously used technology to the newer one.

China is producing products of high value and low cost. Thus, if the market for higher voltages is tapped by China before any other organization especially Makatume, then China will dominate the market belonging to the cordless segment. It is therefore necessary for Makatume to move on to higher voltages before others do and remain the dominant organization in the cordless segment. Consumers want and prefer an organization that gives them an opportunity at the latest to use newer and better technologies.