Diagram 1: Business Strategic Planning Procedure
2.1 Business Mission
A business mission is the most important driving factor of any business. It is what a dart is for an arrow and what a target is for a shooter.
BSL has declared its Mission Statement very comprehensively and in an effective manner.
Mission Statement of Banswara Syntex Limited.
“At the end of the day, we create more than fine, custom-made yarn and fabric. We create satisfied customers, which comes from “our vision to be always world class.” That’s an objective we never forget. Customers work with us throughout the design process to make sure they get what they need. This means, we don’t just meet expectations, we surpass them.”
Each and every person in the campus of BSL has digested this statement very well. Everybody wants to be ‘world class’.
2.2 SWOT Analysis
S: Strength and W: Weakness comes from the Internal Environment, while O: Opportunities and T: Threats emerges out of the External Environmental conditions with respect to the business concern.
External Environment Analysis
Environs in the market place today, are changing continuously and rapidly. The customer, the society, the cultural settings, the political environment, and competition are changing very fast. These have been discussed in detail under a separate topic Environmental Analysis.
Ronna Klingenberg, program director of the Trend Analysis Program conducted by the American Council of Life Insurance has said, “Rapid Technological advances and shifting social values are transforming our society so radically that even standard organizational methods of making decisions may no longer work.”
Opportunities and Threats
India, being one of the signatories of WTO agreement, with effect from 1st January 2005, import restrictions will be completely removed exposing Indian industry to international market, without any restrictions on import and export to textiles and garments. While globalization offers unlimited opportunities, the same is fraught with threats from competitors, particularly from countries like China, which can adversely affect BSL’s exports and local markets.
However, with the continuous technology up gradation and well-established quality standards in the international market, the management very optimistically believes that “the opportunities provided by the free market economy in the long run would be fully exploited by BSL to the benefit of the company and our country at large.”
Internal Environment Analysis
Field
Particular
Strength
Weakness
Marketing
Customer Satisfaction
P
Market Share
P
Customer Retention
P
Product Quality
P
Service Quality
P
Price Effectiveness
P
Distribution Effectiveness
P
Promotion Effectiveness
P
Sales Force Effectiveness
P
Innovation Effectiveness
P
Geographical Coverage
P
Advertisement (Web & T.V.)
P
P
Finance
Cost/ Availability of capital
P
Cash Flow
P
Financial Stability
P
Manufacturing
Facilities
P
Economies of Scale
P
Capacity
P
Able, dedicated workforce
P
Ability to produce in time
P
Technical manufacturing skill
P
Organization
Visionary, Capable Leadership
P
Dedicated employees
P
2.3 Goal Formulation
The step next of SWOT analysis is goal formulation. Managers use the term goals to describe objectives that are specific with respect to magnitude and time. Turning objectives into measurable goals facilitates management planning, implementation and control.
Very few businesses pursue only one objective. Most business units pursue a mix of objectives including profitability, sales-growth, market-share, improvement, risk containment, innovativeness and reputation. The business units set these objectives and manage by objectives (MBO). For an MBO system to work, the unit’s various objectives must meet 4 criterions:
(1) Objectives must be arranged hierarchically
(2) Objectives should be stated quantitatively
(3) Goals should be realistic, and
(4) Objectives must be consistent
After having completed 3 years after the silver jubilee celebrations, BSL management is quite aware of such aspects as stated above. Towards its much to the mission, BSL also has set certain well defined and realistic objectives like –
· Increase in Profitability
· Increase in Capacity
· Risk Containment
· Innovativeness
· Customer Satisfaction
· Consistent quality standards
· Expansion in a long run
· Increase in market share
Of course, these objectives are well defined and realistic.
2.4 Strategy Formulation
Goals indicate what a business intends to achieve; strategy is a game plan for getting there. Every business tailors a strategy for achieving its goals, consisting a marketing strategy and a compatible, technology strategy and a sourcing strategy.
Michael Porter has condensed the many types of marketing strategies into 3 Generic Groups :
1. Overall Cost Leadership
BSL works hard to achieve the lowest production and distribution cost so that it can price lower than its competitors to win a large market share. BSL while pursuing this strategy is quite good at engineering, purchasing, manufacturing and physical distribution and so needs less efforts in marketing.
2. Differentiation
Here, the business concentrates on achieving superior performance in an important customer benefit area valued by the large part of the market. It can strive to be the service leader, or technology leader.
BSL can be called a Quality Leader as well as a Technology Leader.
Quality of BSL products is bound to be the best because it passes through tests in the international laboratories. And domestic sales are also of the same export quality. But what is sold in the domestic market, is cloth that is less than 100 meters length, because for exports, it is required that any cloth should be exactly of 100 meters. So, that piece, which is even an inch less, is rejected by the international labs and is sold in the domestic market.
BSL’s production process is ISO certified. It is a technology leader as it is using state-of-art machineries which are imported from technologically advanced countries like UK, USA and Portugal.
As Mr. R.L. Toshniwal has said, BSL has invested 35 crores in the past one and half years on upgrading machinery and setting up their own power plant. 12 new state-of-art Picanol looms of Belgium make suitable for eeaving Lycra have also been upgraded with the addition of new Stenter for superfinish.
2.5 Program Formulation
Once the business unit has developed its principal strategies, it must work out detailed supporting programs. Thus if the business has decided to attain technological leadership, must plan programmes to strengthen its R&D department, gather technological intelligence, develop leading-edge products, train the technical sales force and develop ads to communicate its technological leadership. Same can be the case with quality leadership.
BSL is programming marketing programs consistently. Such programs includes,
Trade Shows of International levels
Personal Selling
Festival Sales
Participate in fairs
Discounts upto 25% on special occasions like Diwali, Christmas, etc.
Gift articles inscribing BSL to important parties and thus gaining advertising mileage.
2.6 Implementation
A clear strategy and a well thought-out supporting program may be useless if the firm fails to implement them carefully. Indeed, strategy is only one of the seven elements, according to Mc. Kinsey And Company, that the best-managed companies exhibit. The Mc. Kinsey 7-S framework for business success is shown in the figure below.
The first three elements – Strategy, System and Structure – are considered the hardware of success. The next four - Style, Skills, Staff and Shared Values – are the software.
2.1 Business Mission
A business mission is the most important driving factor of any business. It is what a dart is for an arrow and what a target is for a shooter.
BSL has declared its Mission Statement very comprehensively and in an effective manner.
Mission Statement of Banswara Syntex Limited.
“At the end of the day, we create more than fine, custom-made yarn and fabric. We create satisfied customers, which comes from “our vision to be always world class.” That’s an objective we never forget. Customers work with us throughout the design process to make sure they get what they need. This means, we don’t just meet expectations, we surpass them.”
Each and every person in the campus of BSL has digested this statement very well. Everybody wants to be ‘world class’.
2.2 SWOT Analysis
S: Strength and W: Weakness comes from the Internal Environment, while O: Opportunities and T: Threats emerges out of the External Environmental conditions with respect to the business concern.
External Environment Analysis
Environs in the market place today, are changing continuously and rapidly. The customer, the society, the cultural settings, the political environment, and competition are changing very fast. These have been discussed in detail under a separate topic Environmental Analysis.
Ronna Klingenberg, program director of the Trend Analysis Program conducted by the American Council of Life Insurance has said, “Rapid Technological advances and shifting social values are transforming our society so radically that even standard organizational methods of making decisions may no longer work.”
Opportunities and Threats
India, being one of the signatories of WTO agreement, with effect from 1st January 2005, import restrictions will be completely removed exposing Indian industry to international market, without any restrictions on import and export to textiles and garments. While globalization offers unlimited opportunities, the same is fraught with threats from competitors, particularly from countries like China, which can adversely affect BSL’s exports and local markets.
However, with the continuous technology up gradation and well-established quality standards in the international market, the management very optimistically believes that “the opportunities provided by the free market economy in the long run would be fully exploited by BSL to the benefit of the company and our country at large.”
Internal Environment Analysis
Field
Particular
Strength
Weakness
Marketing
Customer Satisfaction
P
Market Share
P
Customer Retention
P
Product Quality
P
Service Quality
P
Price Effectiveness
P
Distribution Effectiveness
P
Promotion Effectiveness
P
Sales Force Effectiveness
P
Innovation Effectiveness
P
Geographical Coverage
P
Advertisement (Web & T.V.)
P
P
Finance
Cost/ Availability of capital
P
Cash Flow
P
Financial Stability
P
Manufacturing
Facilities
P
Economies of Scale
P
Capacity
P
Able, dedicated workforce
P
Ability to produce in time
P
Technical manufacturing skill
P
Organization
Visionary, Capable Leadership
P
Dedicated employees
P
2.3 Goal Formulation
The step next of SWOT analysis is goal formulation. Managers use the term goals to describe objectives that are specific with respect to magnitude and time. Turning objectives into measurable goals facilitates management planning, implementation and control.
Very few businesses pursue only one objective. Most business units pursue a mix of objectives including profitability, sales-growth, market-share, improvement, risk containment, innovativeness and reputation. The business units set these objectives and manage by objectives (MBO). For an MBO system to work, the unit’s various objectives must meet 4 criterions:
(1) Objectives must be arranged hierarchically
(2) Objectives should be stated quantitatively
(3) Goals should be realistic, and
(4) Objectives must be consistent
After having completed 3 years after the silver jubilee celebrations, BSL management is quite aware of such aspects as stated above. Towards its much to the mission, BSL also has set certain well defined and realistic objectives like –
· Increase in Profitability
· Increase in Capacity
· Risk Containment
· Innovativeness
· Customer Satisfaction
· Consistent quality standards
· Expansion in a long run
· Increase in market share
Of course, these objectives are well defined and realistic.
2.4 Strategy Formulation
Goals indicate what a business intends to achieve; strategy is a game plan for getting there. Every business tailors a strategy for achieving its goals, consisting a marketing strategy and a compatible, technology strategy and a sourcing strategy.
Michael Porter has condensed the many types of marketing strategies into 3 Generic Groups :
1. Overall Cost Leadership
BSL works hard to achieve the lowest production and distribution cost so that it can price lower than its competitors to win a large market share. BSL while pursuing this strategy is quite good at engineering, purchasing, manufacturing and physical distribution and so needs less efforts in marketing.
2. Differentiation
Here, the business concentrates on achieving superior performance in an important customer benefit area valued by the large part of the market. It can strive to be the service leader, or technology leader.
BSL can be called a Quality Leader as well as a Technology Leader.
Quality of BSL products is bound to be the best because it passes through tests in the international laboratories. And domestic sales are also of the same export quality. But what is sold in the domestic market, is cloth that is less than 100 meters length, because for exports, it is required that any cloth should be exactly of 100 meters. So, that piece, which is even an inch less, is rejected by the international labs and is sold in the domestic market.
BSL’s production process is ISO certified. It is a technology leader as it is using state-of-art machineries which are imported from technologically advanced countries like UK, USA and Portugal.
As Mr. R.L. Toshniwal has said, BSL has invested 35 crores in the past one and half years on upgrading machinery and setting up their own power plant. 12 new state-of-art Picanol looms of Belgium make suitable for eeaving Lycra have also been upgraded with the addition of new Stenter for superfinish.
2.5 Program Formulation
Once the business unit has developed its principal strategies, it must work out detailed supporting programs. Thus if the business has decided to attain technological leadership, must plan programmes to strengthen its R&D department, gather technological intelligence, develop leading-edge products, train the technical sales force and develop ads to communicate its technological leadership. Same can be the case with quality leadership.
BSL is programming marketing programs consistently. Such programs includes,
Trade Shows of International levels
Personal Selling
Festival Sales
Participate in fairs
Discounts upto 25% on special occasions like Diwali, Christmas, etc.
Gift articles inscribing BSL to important parties and thus gaining advertising mileage.
2.6 Implementation
A clear strategy and a well thought-out supporting program may be useless if the firm fails to implement them carefully. Indeed, strategy is only one of the seven elements, according to Mc. Kinsey And Company, that the best-managed companies exhibit. The Mc. Kinsey 7-S framework for business success is shown in the figure below.
The first three elements – Strategy, System and Structure – are considered the hardware of success. The next four - Style, Skills, Staff and Shared Values – are the software.
No comments:
Post a Comment