Upload
nuwan-sanjaya-weerasinghe
View
218
Download
0
Embed Size (px)
Citation preview
8/6/2019 Preparation of a Corporate Plan
1/22
1 | P a g e
INTRODUCTION
Sri Lanka manufacturing company is a leading business organization which manufactures
and sells a wide range of consumer products. It became a market leader in the industry byachieving satisfactory level of profits.
The company is consist with several departments such as production, Finance and planning,
Human Resource, Supplies, Marketing and Audit. And the company has two factories, one in
Colombo and other one is Kandy.
During the period of 2006- 2008, the company under gone so many difficulties such as their
profits become decreasing, their market share is reduced 40% to 28%, their cost to income
ratio has increased, staff cost has increased by 20%, staff turnover has increased, theirproduct quality has decreased hence customer complains become high etc
So the company decided to revisit the current strategic plan and prepare a new strategic plan
for next 3 years. This case study discussed about the stake holders expectations of the
company, the objectives based on Balance Score Card and measurements, strategies to be
implemented and ultimately the strategic plan for the company in next 3 years.
This case study reveals the extent to which how the strategic plan contributes the company
to achieve ultimate goal successfully.
8/6/2019 Preparation of a Corporate Plan
2/22
2 | P a g e
PREPARATION OF A CORPORATE PLAN/ STRATEGIC PLAN
1. Identify the stake holder expectations.Stake holders are the parties who can influence towards the organization and influenced by
the organization
The stakeholder concept was first used in a 1963 internal memorandum at the Stanford Research
institute. It defined stakeholders as "those groups without whose support the organization would cease
to exist."
A stakeholder is a party that can affect or be affected by the actions of the business as a whole. They
can be defined as individuals or organizations that stand to gain or lose from the success or failure of
a system. Since, by definition, stakeholders are those who are impacted by (or have an impact on)
the project, their perspectives need to be taken into account in order for a company to be successful.
Stakeholders can have positive or negative views regarding a given project, and often dont agree with
one another, making it a challenge to reconcile their varied viewpoints.
Stakeholders are often in conflict with one another. For example, if we consider the design of a
system for use in a manufacturing plant. Factory workers might value a high degree of autonomy and
personal control over their work practice, while management might value efficiency and
standardization of the factorys workflow.
The needs of stake holders of an organization i.e. basically how do they want to see the
organization performing and growing. It is essential for any company to evaluate stakeholders in order to develop an effective strategic plan.
Key stakeholders in any company are.
Share holders (investors) Customers Employees Regulatory authorities and general public
SHARE HOLDERS (INVESTORS)
y Maximize profitsShare holders or rather investors always expect higher profits from the organization. So their
ultimate expectation is to maximize profits. Hence they can enjoy higher benefits.
8/6/2019 Preparation of a Corporate Plan
3/22
3 | P a g e
y IncreasedividendsAs mentioned above share holders always expect higher profits hence they can get a higher
dividends. High company profits may leads to gain higher dividends.
y Higherreturn on investment.Shareholders expect high return for the amount they invest. Returns needed to be larger than
the money they invest. So the company needs to generate more return or rather gain.
Otherwise share holders will leave the organization and they may stir to the competitors
which is a huge loss for the company. (ROI need to be positive).
y Increasethegoodwillofthe company.
Another major expectation of a share holder is the good name of the company. Investorsalways attract and endow their money to the companies which have a higher status.
So the companys responsibility towards share holders is to preserve their goodwill and not to
engage in activities which affix a blemish to the company. If the company performs well,
their goodwill will involuntarily increase and at the same time share holders expectations
will moreover fulfilled.
y TransparencyAnother crucial aspect of share holder is transparency of the company. Company may need to
maintain reliable policies and procedures and also they should be capable of point out the
evidences to the required parties in whatever circumstances. The concept of transparency
should be there in every decision they made, or every action they took. Otherwise share
holders will leave the organization where they invest.
y Expansion / Diversification ofthe business.They expect diversified business. Products and markets needed to be expand. Company
needed to be implement strategies particularly for corporate level and the business level. If
the company will diversified their business the risk of gaining losses can be minimized and if
the company will expand their business, higher profits can be achieved
So share holders always expect the expansion of business and the diversification
8/6/2019 Preparation of a Corporate Plan
4/22
4 | P a g e
y TechnologicalgrowthShare holders expect the companys growth in terms of the technological aspect. They expect
the company to be in line with the new technological advances, new IT developments,
innovations, etc. So the company needs to be update with the external world and they need to
get the advantage which the competitors do not obtain. Lately methods need to be introduced
in order to increase the productivity, profitability and quality.
If the company performs as such, the investors will magnetize the company as well as share
holders expectations may fulfill.
y To bethe benchmarkin theindustry.Not only the profits, productivity, but also they expect the company to be the bench mark in
the industry. They expect the company to perform at their paramount. Hence they can thrash
the competitors effectively. They need the company to become top of the industry since the
other companies in the industry may follow the company as a bench mark.
y SustainablegrowthShare holders expect the growth of the company. But it needs to be sustainable growth.
Company need to maintain their growth within a long period of time. Just a growth may not
lead the company to survive. The competitors always try to imitate others, so the company
needs to introduce strategies which are in line with the top companies in the industry. This
will lead to attain the sustainable growth in the industry.
y Share priceto beatthetruemarketvalueCUSTOMERS
y ValueformoneyCustomers expect certain value for what they ready to pay. Value need to be in terms of the
product quality, reliability, durability, serviceability, etc. So the company needs to realize the
customer expectations and what they expects as values in certain products. And then they
need to offer it to the market in order to fulfill customer expectations.
8/6/2019 Preparation of a Corporate Plan
5/22
5 | P a g e
y Affordable price (Competitive price)Customer expects the price to become affordable. It needs not to turn out to be low. But it
should be competitive. Customers expects lower price to the higher quality. They always
compare products with the other companies. So the prices needed to be competitive.
Otherwise they do not purchase products and shift to the other competitors. Company need to
accomplish the customer expectations towards the price.
y Excellencein quality in products.Customers expect the company to offer quality products. They expect the company to
differentiate the product in terms of quality. So the company need to increase the quality,
hence the company enable to fulfill the customer expectations.
y Excellencein service quality.Not only the product quality, but also customers expected high service quality, such as after
sales services, guaranteed period, delivery time and techniques, repairing service etc. So
company needs to provide higher service quality to attract the customers to the company.
y Safety.Customers expect higher safety facilities from the product that the company may offer.
Proper guidelines, structure of the product, design need to be there. Otherwise customers mayleave the company and shift to the competitors. So safety facilities should be provided to
fulfill the customer expectations.
y Brandimage.Customers expects good brand image from the company for the products. Customers
sometimes admire the brand rather than the products. So brand image is a crucial factor for
the company to achieve the success. Company need to implement branding strategies such as
multi brand, co-brand, brand extension etc. to fulfill the customer expectations.
y Modern technologyCustomers always expect company to make the products which is in line with the modern
technology. Today the business environment is volatile and companies need to equip for this
8/6/2019 Preparation of a Corporate Plan
6/22
6 | P a g e
situation. So they need to adjust their technology to modern techniques. Otherwise the
expectations of customers cannot fulfill.
y InnovationCompany needed to do innovations to fulfill the customer wants which is unlimited. Theyalways expect to consume newer products and innovative products since their needs are vary
with time to time. So company need to invent them in order to fulfill the customer
expectations
EMPLOYEES
y Job securityEmployees expect job security from company in terms of financial benefits such as
retirement benefit, medical scheme salaries, allowances etc. as well as non financial benefits
such as health and safety, etc. So the company needs to be able to provide them. Otherwise
employees will leave the organization.
y ChallengingworkThe work need to be challengeable. If not the employees feel bored and they dissatisfy
towards the work. So company needs to provide work which is challenging and management
needs to give more responsible work to the employees in order to achieve greater
productivity.
y Marketratesofpay and benefits.Rates of pay need to be match with the market rates. External equity and internal equity is an
essential factor. It needs to be aligning with the market and the industry. Otherwise the
employee will leave the organization. So their ultimate expectation is to gain the rates which
is in line with the industry as well as with the market.
y Worklife balance.Employees expect to maintain a proper balance between personal life, work life and the
social life. So the company need to give them work which is balanced with their personal life.
Hence the employee can perform their responsibilities towards the organization at their best.
Mental stability can maintain which is a crucial issue for perform well in the organization.
8/6/2019 Preparation of a Corporate Plan
7/22
7 | P a g e
y Carrier progressionEmployees expect carrier progression in their work life. So the company needs to provide
carrier opportunities to the employees to develop their carrier ladder. Promotions need to be
given according to the performances. (I.e. performance base progress need to be given rather
than seniority)
y Job satisfactionSatisfaction can be defined as the positive feelings that employee gain towards the job
and drive to work enthusiastically. Job satisfaction is a crucial issue for the employee as
well as the company since it leads to achieve the ultimate objective of the organization.
Hence the company responsibility is
REGULATORY AUTHORITIESAND GENERALPUBLIC
y Corporate Social ResponsibilityRegulatory authorities and general public specially the government expect the organizations
to conduct CSR programs. So the companies need to allocate certain amount of money from
their profits to implement such programs. Some companies use this issue to enhance the good
name of the company and to make more profits, which is not correct. They need do fatally
implement such programs with the purpose of increase the welfare of the society.
y ProvideemploymentGovernment expects the company to provide employment opportunities to the public. Hence
their standard of living increases and on the other hand welfare of the society also increased.
y Pay taxesandotherreliabilitiesduemanner
Other aspect they expect is to pay taxes and other payments without any delay. Otherwisethey impose penalty to the delay. So the company need to pay taxes with the due date,
otherwise government wont fulfill their expectations.
y Comply withthelabourstandardsandlaws
8/6/2019 Preparation of a Corporate Plan
8/22
8 | P a g e
Government imposes various labour laws that the company need to act in accordance with.
So the company needs to obey them and treat workers in an equitable manner. They need to
provide the benefits to the employees as law permitted and all the leave facilities,
reimbursement, EPF,ETF and retirement amenities need to be given.
If the company doesnt offer aforesaid employees can arise their voices and they can get the
support from legislation.
2. Carry out a SWOT and PEST analysis and determined the strategic direction of thecompany
SWOT ANALYSIS
SWOT analysis is a tool for companies to assess the industry and to develop strategies to
remain competitive. This is a simple way to focus aspects of the company to organize the
findings to evaluate the current status of the business, future prospects and the economic
climate. A SWOT analysis promotes critical and specific thinking to enhance strategic plans
and objectives.
SWOT analysis is a key component in strategic planning. The analysis subjectively evaluates
the impact of internal and external factors for a business objective. Internal processes and
resources are considered strengths and weaknesses (S and W, respectively).E
xternal factorsaffecting the business and industry are considered opportunities and threats (O and T,
respectively). An evaluation of these factors develops a strategic perspective that includes the
competitive current market conditions
STRENGTHS
According to this case this is a leading business organization which manufactures and sells a
wide range of consumer products. They are the market leader with a satisfactory level of
profits.
y MarketleadersIf we conduct a SWOT analysis becoming market leader is the biggest strength of their
company. To become market leaders in the industry is not an easy task for any company. All
8/6/2019 Preparation of a Corporate Plan
9/22
9 | P a g e
the parties of the company needed to perform up to their maximum level and it is a collective
activity rather than individual. As far as their market share is concerned in 2006, they have
40% of the market share in the industry. So this is also a significant amount that we need to
look at. As mentioned in the question 1, one of the share holders expectations is, becoming
the company, a benchmark of the industry. So this manufacturing company became market
leaders, which is a greater strength to them.
y satisfactory levelofprofitsEven though the profitability of the organization is gradually decreased during last couple of
three years, they have satisfactory level of profits. In 2005, they gained Rs.1500mn and in
2007 and 2008, they got Rs.1200mn and Rs.1000n which is not an insignificant amount. So
gaining a satisfactory level of profits also can be regarded as strength of them since profit is
one of the crucial factors to lead a company a success and survive. So having a significant
and satisfactory level of profits became a bigger strength of this manufacturing company.
y Manufacturesandsellswiderrangeofconsumer products Manufactures and sells wider range of consumer products is one of the strengths of this
company. Since this wider range of products minimize the amount of risk that the company
may under gone. They have the opportunity to reduce the risk of gaining loss from one
product, by producing variety of products. Product diversification is one of the strategies that
use specially for the SBUs and it supports a lot for any organization to achieve larger profits.
So this factor became one of the strengths that the company benefited.
y financialstabilityAs far as strengths are concerned, financial stability can be regarded as potency to this
company. Even though profits are reduced gradually, they have the significant amount of
profits during last three years. In financial terms they were strengthen and stabilize. Their
sales amount such as Rs. 10 bn in 2006 also support to stabilize the company
WEAKNESSES
y Customer complaintsabout quality ofthe products.During the period of 2006-2008 company has large number of weaknesses. One of them is
customer complaints regarding the quality of the products. I.e. company produced low quality
8/6/2019 Preparation of a Corporate Plan
10/22
10 | P a g e
products. Customers are very much concerned about the quality of the product and quality is
one of the main expectations of the customers as stake holders. So the quality needed to be up
to the standard. But the company fails to produce it to the extent level, which is a weakness of
this company.
y High costtoincomeratioCompanys cost had increased by 25% is also a weakness that this company faced. If we take
the figures of sales revenue, in 2006 its Rs. 10 bn and gradually it decreased to Rs. 8bn in
2008.So the income has decreased and the production cost of the company has increased.
Company need to find solutions for the high cost, which is one of the weaknesses of the
company that will lead the company a failure.
yHighstaffcost
Staff cost is gradually increased by 20%, which is a weakness of the company. Company may
spend higher amount of cost for salary and wages, EPF, ETF, bonuses, gift and donation,
medical allowances, travelling allowances, gratuity, cost of training and development etc. So
the staff cost may high and increasing cost of the company can be regarded as a weakness of
this manufacturing company.
y Poorrelationship between linemanagersandtheemployees The relationship between the line management and the employees has been deteriorated. This
can be considers as one of the biggest weakness in this manufacturing company since good
labour management relationship is a crucial factor for any company to become a success. If
there is a poor relationship between managers and the employees, employees will not give
their maximum performance and the opportunity for going to the industrial action by the
employees can be take place, And this negatively affect to the organization as well as stake
holders.
y Staffturnoverhasincreased.This is also a weakness of the company. Staff turnover means the rate of leaving employees
from the organization. Company should capable enough to retain employees in the
organization. Because if the employees who have competencies decided to leave the
organization it will impact the company adversely. So the company needs to reduce this
weakness and make employees satisfied towards the organizations performance.
8/6/2019 Preparation of a Corporate Plan
11/22
11 | P a g e
y Costofproduction isincreasedAnother weakness of this company is, there high production cost. Their production cost has
gone up by 30%. They need to introduce the ways and means of reducing the production cost.
If not the company may have to face a huge loss. If the production cost is increased, even
though their revenue and profits increase, the ultimate objective of the organization cannot be
achieved.
y ProfitsaredecliningEven though they have stabilized financial facet they have profits, which is in a declining
rate. This can be regarded as a weakness, which affects the company adversely. If profits
become low, the whole system will get exaggerated and it will lead company performance to
diminish.
OPPORTUNITIES
y Favorablemarket condition.Sri Lanka manufacturing company is a leading business organization which manufactures
and sells a wide range of consumer products and they are the leading company in the
industry. So they have favorable market condition which is 40% of market share is owned by
them. This becomes an opportunity of them to lead their business organization.
THREATS
y Competitors Infringing in marketshareCompetitors are their biggest threat and they infringe the market share, which leads to reduce
the market share of the company. Company need to deal with the competitors in an effective
way s such as they need to implement strategies which the competitors do not used.
8/6/2019 Preparation of a Corporate Plan
12/22
12 | P a g e
PEST ANALYSIS
PEST analysis is merely a framework that categorizes environmental influences as political,
economic, social and technological forces. Sometimes two additional factors, environmental and
legal, will be added to make a PESTEL analysis
The analysis examines the impact of each of these factors (and their interplay with each other) on the
business. The results can then be used to take advantage of opportunities and to make contingency
plans for threats when preparing business and strategic plans
PEST analysis is a useful strategic tool for understanding market growth or decline, business position,
potential and direction for operations. The headings of PEST are a framework for reviewing a
situation, and can in addition to SWOT and Porters Five Forces models, be applied by companies to
review a strategic directions, including marketing proposition. The use of PEST analysis can be seen
effective for business and strategic planning, marketing planning, business and product development
and research reports. PEST also ensures that companys performance is aligned positively with the
powerful forces of change that are affecting business environment
POLITICAL ENVIRONMENT
(Assumption: political environment in Sri Lankan context)
The political environment in Sri Lanka is in a grave situation and which is very crucial factor
that needs to be taken into consideration. It is instable where it affects the company
unfavorable manner. Level of corruption has gone up and practices and the stability of ruling
parties are doubtful. Fiscal policies, social welfare policies, trading policies and also trading
and relations with other countries together with the labour market regulations are not
supportive for the business environment.
Even though such corruptions taken place all the parties become successful to obtain a greater
achievement of concluding the 30 year war. So this lead to open the doors to a newer era and
arise many opportunities specially for trading sector. Spending and borrowing, taxation
affects the business in favorable manner.
As far as this case is considered, during the period of 2006- 2008, issues of trade unions had
risen. They submitted a set of demands for negotiation. Considering all the other factors we
can see that labour unrest had taken place and due to that trade unions may intervene to this
8/6/2019 Preparation of a Corporate Plan
13/22
13 | P a g e
critical situation, which can adversely affect to the success of the company. Management
need to consider all these factors and need to maintain a constructive relationship with te
employees
ECONOMIC ENVIRONMENT
According to this case it is mentioned that the cost of production has gone up. This can be
due to high inflation rates in the country. As mentioned above, there is a high political
instability and this will lead to interest rate become higher etc.
It may be due to trade and budget deficits. In Sri Lanka income disparity is not that much of
spread and that leads the economic environment stable. But unionization taken place and un-
employability rate become high. This led the company in unfavorable situations.
Even though global financial crisis taken place, Sri Lankas economy recorded 6% growth in
2008. Due to the home grown policies based on Mahinda Chinthana, Sri Lanka managed to
keep off many of the ill effects of the economic down turn. However, the real impact be felt
by end of 2009 due to the overall economic downturn. This will impact positively in trading
sector. However the economy needed to be properly managed and the corruptions need to be
minimized
SOCIAL ENVIRONMENT
As we all know, 30 year war is concluded in 2009, it affects to the trading sector in favorable
manner. But still ethnic problems are not solved properly, which is a social factor that affects
trading organizations negatively.
Labour turnover is high and it affects their families directly. Their cost f living will become
high and there can be arising many cultural issues also. Life style changes, social structures,
attitudes to work and leisure, consumerism such as product, quality, and education affects the
company as a social factor.
On the other hand case mentioned that the profits are in a decline rate, which has an effect on
profit sharing. It becomes low and this will affect to their lives.
8/6/2019 Preparation of a Corporate Plan
14/22
14 | P a g e
Technologicalenvironment
This case is not mentioned about the technological aspect. So we can assume that they do not
make use of any technological advancement which affects the firm negatively. They need to
utilize the excess money they have to make innovations. They should discover innovative
techniques to improve their productivity. In Sri Lanka government spending on research,
government and industry focus of technological effort is in a higher pose, so the company
needs to get the advantage of this occasion and need to utilize of technology for maximum
inputs and outputs to improve the quality of the products and the efficiency of the work
process.
Thestrategic direction of the firm is to increase the production and control the prize
whilemaintainingthe quality.
3. Identify objectives based on Balance Score Card.Financial perspective
Production Finance Human Resource Marketing
1 Reduce the cost of the
production.
Increase Return On
Investment
Reduce the staff
cost
Increase current
market share
2 Improve quality while
controlling the cost of the
product
Increase Return On
Capital Employed
Increase sales
Volume
3 Increase net profit of the
company
4 Increase sales revenue of
the company
Peopleandlearning perspective
1
Increase the peoples
competencies relate to
production methods
Increase knowledge of the
finance people regarding
new packages
Recruit right
people at right time
to the right job
Increase skills of
sales reps
regarding
marketing
8/6/2019 Preparation of a Corporate Plan
15/22
15 | P a g e
techniques
2
Allocating funds to
training and Development
Increase the
productivity of the
people through
performance
evaluation
3
Improve the
employer
employee
relationship
effectively
Internal processPerspective
1
Stream line the
production process
Use software packages to
increase the effectiveness
of the financing
Use the method of
outsourcing to
improve efficiency
Enhance
knowledge of the
sales people
regarding
production,
marketing, etc.
2
Acquire speedy
machines to the
production department
Enhance
knowledge of
employees
regarding the new
technology
Customer perspective
1
Improve quality of the
products
Set an affordable price for
the customers.
Provide good
customer service
Promote the
production by
advertising
effectively.
2
Increase the variety of
products which
produced.
Increase the
channel of
communication.
Attract customers
and develop a
trustful brand
loyalty.
8/6/2019 Preparation of a Corporate Plan
16/22
16 | P a g e
3
Provide durable
service to the
customers by
linking globally.
4. Formulate measurement of objectives.Measurements For TheProduction Department
y Reduce the cost of the production by 25%y Reduce the defect rates of the production by 15%y Increase the rate of production by 25%y Minimize customer complaints by 10%y Expand the product portfolio by 20%
Measurements For The Finance Department
y Increase Return On Investment by 10%y Increase Return On Capital Employed by 15%y Increase net profit Rs.1000mn to Rs.1100 mny Increase sales revenue of the company by 8 b to 9 by Complete IT session(every employee in Finance department) and pass the
examination which relates to the software packages
y Decrease the price of the product by 10%Measurements For The Human Resource Department
y Reduce the staff cost by 20%y Re-organize the recruitment procedure and increasing the transparency of the
procedure.
y Appraise / evaluate the performances of employees once in three months.y Conduct a meeting with trade union once in every 6 months.y Complete IT session(every employee in HR department) and pass the examination
which relates to the newer technological advancements
y Minimize customer complaints by 10%
8/6/2019 Preparation of a Corporate Plan
17/22
8/6/2019 Preparation of a Corporate Plan
18/22
18 | P a g e
Strategies For Finance Department
y Conduct a customer survey to identify the preferences of the customers.y Critically analyze the production process and understand of the problem areas to be
solved, such as lay out, people, processes etc.
y Introduce new software packages such as software for managing cash, liquidity andfinancial risk, managing the workforce through rapid change, and business planning and
consolidation to the finance department to increase the effectiveness of the process.
y Host of financial issues and make sure that they have the right kind of impact on theperformance of the company and then ultimately the price of the companys shares.
y Reveals how financial principles can help a firm make the major decisions involve incorporate strategic policy.
Strategies For HR Department
y Provide a training program to develop soft skills, social, technical kills of employees.y Re- schedule the recruitment and selection policy and procedures to make the process
effective.
y Introduce performance appraisal system and if already implemented make necessarychanges.
y Negotiate with trade unions and made collective agreement with them ratherindustrial actions
y Introduce proper grievance handling system to reduce conflictsy Introduce health and safety policies and procedures to reduce accidents during the
working time.
y Introduce attractive compensation packages to the employees to lower the employeeturnover rate.
y Create good working conditions including meal facilities, sanitary facilities,infrastructure etc.
Strategies ForMarketing Department
y Conduct awareness programs regarding production to the staff on marketingdepartment.
y Introduce proper advertising system
8/6/2019 Preparation of a Corporate Plan
19/22
19 | P a g e
y Develop sales promotion system.y Giving sponsorship to the various activities including corporate social responsibility.y Link with the role models of the society and make agreements with them to promote
the business.
y Conduct surveys about brands and implement strategies to gain the brand loyalty fromcustomers.
Process of implementation of the 3 year strategic plan. This should include assignment of
responsibility and time frame
Assignmentof
responsibilityStrategy Timeframe
PR
OD
U
C
TION
D
EPAR
TME
N
T
Quality control manager
Introduce quality improvement
methods such as total quality
management, 5 S system.
Kaizen
01/04/2008-
01/07/2008
IT manager Integrate with the latest
technological development
01/06/2008-
01/10/2008
Purchasing supervisor Buy raw materials from the
suppliers
01/07/2008-
01/12/2008
Production manager
(Assist)
Implement the strategy of
vertical integration and manage
the supply chain and the value
chain
28/12/2008-
01/04/2009
Product Designer Diversified the business to a
wide variety of products
01/04/2009-
15/07/2009
Plant supervisor
Maintenance supervisor
Properly maintained acquired
machines and repair the
machines
01/04/2009-
10/08/2009
Assistant factory manager Monitoring the progress of the
workers in the factory
01/04/2008-
01/04/2011
8/6/2019 Preparation of a Corporate Plan
20/22
20 | P a g e
FIN
A
N
C
E
D
EPA
R
TME
N
T
Manager-customer
relations
Conduct a customer survey to
identify the preferences of the
customers
01/04/2008-
01/07/2008
Production manager Critically analyze the
production process and
understand what are the
problem areas to be solved
01/05/2008-
01/09/2008
IT Manager Introduce new software
packages to the finance
department
01/04/2009-
30/12/2009
HR
D
EPA
R
TM
EN
T
Training specialist Provide a training program to
develop soft skills, social,
technical Skills of employees.
25/12/2009-
01/03/2010
HR manager
Assistant HR manager 1
Re- schedule the recruitment
and selection policy
01/04/2008-
21/05/2008
HR supervisor
Assistant HR manager 2
Introduce performance
appraisal system and if already
implemented make necessary
changes.
01/07/20008-
14/09/2008
HR manager Negotiate with trade unions
and made collective agreement
01/04/2008-
01/10/2008
Assistant HR manager 3 Introduce proper grievance
handling system
01/05/2008-
11/08/2008
Assistant HR manager 4 Introduce health and safety
policies and procedures
5/03/2009-
01/05/2009
HR specialist Introduce attractive
compensation packages
01/04/2008-
01/05/2008
HR manager Create good working
conditions including meal
facilities, sanitary facilities,
infrastructure etc
01/01/2009-01/03/2009
8/6/2019 Preparation of a Corporate Plan
21/22
21 | P a g e
MA
R
K
ETING
DEPARTM
ENT
Marketing planner Conduct awareness programs
regarding production
01/09/2010-
01/12/2009
Advertising Manager Introduce proper advertising
system
12/11/2010-
15/12/2010
Advertising Manager
(Assistant)
Develop sales promotion
system.
01/01/2010-
15/03/2010
Advertising Specialist 2 Giving sponsorship to the
various activities
01/11/2010-
15/04/2011
Advertising Specialist Link with the role models of
the society and make
agreements
01/04/2009-
01/07/2009
Marketing Researcher Conduct surveys about brands 25/04/2009-
01/07/2009
8/6/2019 Preparation of a Corporate Plan
22/22
22 | P a g e
CONCLUSION
In order for a business to be successful, there needs to be a roadmap for success. A strategic
plan helps to provide direction and focus for all employees. It points to specific results that
are to be achieved and establishes a course of action for achieving them. A strategic plan alsohelps the various work units within an organization to align themselves with common goals.
The process of developing a strategic plan should be rewarding for all involved and usually helps
develop stronger communications between members of the planning team.
For many business owners and leaders, creating a vision, company values, and a strategic plan
can be a daunting task for reasons like time, energy, commitment and lack of experience. It
requires business leaders to accept that yesterdays success does not ensure success in the future.
It requires challenging the status quo, changing behaviors, implementing new procedures, hiring
different people, and putting new systems in place in order to deliver on the strategy.
Why is planning so important and why must it be done in concert with a strategy is a crucial
aspect to follow. From a macro perspective, business today gets done in a global marketplace.
Change is occurring at an unprecedented pace. Time and distance continue to become less and
less relevant thanks in great part to the explosive growth of technology and the Internet.
There was a time when strategic planning was done by the biggest companies, and those who lead
change. Now it is a requirement just to survive.
Even though Sri Lanka manufacturing company implemented a strate