4-Year Strategic Management Plan
4-Year Strategic Management PlanYou 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 company’s goal 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.
With the investment in technology and the power of the Internet has made it easier for businesses, big or small, to take their company and globalize it. It used to be that the most profitable and largest companies were the ones who were able to afford in building a multinational corporation. Thanks to Skype, Google Docs LinkedIn and cloud computing, which is available and affordable makes this possible. Globalizing a company can be very good for business because if you look at it, the domestic market has been well penetrated by domestic businesses and corporations and when it comes to the growth of revenue and share, it is showing little change. The international market is constantly sought potential and growth and development and there are new opportunities for competitors to invest overseas....