Discussion Board

Discussion Board

1. Current Situation

The organization I used to work for has collapsed, thus rendering me jobless.

2. Vision

Establish a stable business, which will keep me active, as well as enable me to have a steady income. Notably, setting up a vision is the first and most critical aspect of strategic management (Hiriyappa, 2018). This understanding justifies the need to create a vision for the strategy.

3. Mission

To empower myself financially

4. Strategic and Financial Objectives

To increase revenue by 20% annually

5. Driving Forces

The need to cushion myself from the instability of employment

6. Assumptions

Starting my business will create self-employment.

The business will be profitable.

7. SWOT Analysis

• Strengths

Adequate capital from my savings to start a business

• Weaknesses

Lack of experience in the automotive parts industry

• Opportunities

The growing number of vehicles on the roads has increased the market for car spare parts.

• Threats

High competition from players in the industry, especially large automotive parts shops, which enjoy economies of scale, and are able to offer large discounts to customers.

8. Analysis of Strategic Issues

The main strategic issue is how to penetrate the market for spare parts. A majority of customers in the industry shop for parts in established automotive parts shops. They exhibit strong customer loyalty. Attracting these clients requires a comprehensive strategic approach.

9. Strategic Alternatives (w/ pros and cons)

Offer products at lower prices than existing players in the market. This approach is likely to attract a significant number of buyers. However, rivals may respond by reducing their costs, thus eradicating this competitive advantage. The second strategic alternative is to look for a business premise in a location where spare part shops are concentrated. This location is likely to attract a high number of customers. However, the downside of this option is the high rent prices for business premises in this location.

10. Recommended Strategy

The recommended strategy is to offer lower prices. Before competitors respond, the business would have established loyal clients.

11. Implementation of Strategy

The execution strategy entails the identification of suppliers who can offer products at lower prices. This model will be supported by the practice of buying goods in bulk. Adherence to this strategy will enable the business to acquire goods at lower costs. Subsequently, the organization will be able to offer lower prices.

12. Evaluation and Control

The evaluation process will involve analyzing the outcomes of offering automotive parts at lower prices. The expected outgrowth of the recommended strategy is an increase in customers. Any contrary result will call for the re-evaluation of the selected business approach.

Reference

Hiriyappa, B. (2018). Strategic management and business policy: For managers and consultant. New York, NY: PublishDrive.