Business Strategy and Strategic Planning

Readers Question: “Business Strategy and the Strategic planning process within your organisation”

Do you know how i would go about answering this question- i am currently working for a manufacturing Global company called Smurfit Kappa who specialise in the paper and packaging industry.

Firstly, You could undergo SWOT analysis – Strengths, Weaknesses, opportunities, threats.

Strengths could include:

• Current profitable orders.
• Existing technology and skilled labour forces.

Weaknesses could include:

• Appreciation in exchange rate, which makes exports less competitive
• Over reliance on small number of customers.
• High ratio of debt
• Difficulty in finding suitable management / workers

Opportunities could include:

• Finding new export markets in developing countries like China
• Diversifying into new markets e.g. packaging aimed at ebay sellers.
• Improving production process to reduce costs and increase profit margins.

Threats Could include:

• Declining market as people switch to electronic forms of communication and less demand for paper.
• Increasing competitiveness decreasing profit margins.
• Increasing costs of production.

Future Strategies may include:

• Developing market share in new countries.
• Introducing new range or products which meet changing circumstances.
• Looking to streamline production process and reduce costs:
• New technology that helps cut costs.
• Better working practises e.g. giving workers more performance related bonuses to encourage innovation and harder work.
• Get outside consultants. Sometimes existing managers can’t see the wood for the trees. Getting outside consultants in may help provide a fresh approach.

Things to Watch Out For

• Economic Climate – is this is a good time to invest with rising oil prices and slowing economy?
• Does the firm have enough expertise to diversify into new areas?