Executive Summary
Strategic Management is wide and encompasses all functions and thus it seeks to integrate the
knowledge and experience gained in various functional areas of management. It enables one to
understand and sense of the complex interaction that takes place between different functional
areas. In real life there are constraints and complexities, which strategic management deals with.
Strategy is about the future. The focus is long term often 5-10 years into the future. It needs
operational effectiveness, tradeoffs and fit. The strategy at different levels needs to be in synergy
and also consistent. Success of any company depends on how well the company has formulated
its strategy. Strategy formulation is not easy, you need to take into account the environment of
the company. The steps in strategic management which starts with the vision mission of the
company forms the foundation. PESTLE and SWOT analysis is important. It is both subjective
and objective.
This assignment revolves around the Logistics Business and AJ Brown & Co Ltd. A futuristic
model which can help the company to form its Strategy. To compete against the global leaders in
the logistics business around the world. A strategy formulation which can make a difference and
become a revolution in the business.
Table of Contents
Executive
Summary
1
1.0 INTRODUCTION............................................................................................................. 3
1.1 The Current Environmental Situation Facing the Organization...3
1.2 The Current Strategic Plan...4
1.3 Management Role within the Organization.....5
1.4 Environmental Analysis of the Organization...5
1.5 Key Services....6
2.0 STRATEGIC OPTIONS...7
2.1 Proposed goal for the strategic options
..7
2.2 Proposed strategic option with the stakeholder ..
...9
2.3 Range of strategic options based on an environment
analysis...10
2.4 Strategic Plans
goals..11
2.5 Strategic option to meet the organizational goals..
12
2.6 The most feasible option for their further consideration.
..14
2.7 The best strategic option in conjunction with the Organizations
stakeholder...15
2.8 Choice of strategic option...
..16
3.0 STRATEGIC PLAN17
3.1 Organization strategic plan with all of the relevant selection....17
3.2 The strategic plan appropriate goals that implement the strategic option..18
3.3 Communicate the receive strategic plan to the organizational stakeholders..19
References...20
Introduction:
A J Brown & Co Ltd started life in 1948, formed by three partners to take over the cartage and
customs business started by Archibald John Brown some decades before. These days the
company is still owned by its Directors who have been with the firm for many years, and
continue to instill in all personnel the highest professional standards which typify the traditional,
yet progressive, culture of our company
A.J. Brown & Co Ltd with over 50 years of expert assistance to New Zealand importers and
exporters, AJ Brown is your choice for smooth, rapid transit of your international consignments
into or out of New Zealand. As professional, experienced Customs Brokers and Freight
Forwarders they competently and reliably handle all aspects of customer international
consignments. From initial discussion of all your available sea freight and air freight options,
through the final clearance and carefully delivery anywhere in New Zealand, and around the
world .
Involving AJ Brown at all stages of the planning and operation of your international
consignments will achieve the lowest possible legitimate import duties and best freight rates for
the most appropriate service. There in-house expertise, developed over more than 50 years of
customs freight industry involvement, has been utilized by a huge number of importers and
exporters, for a massive range of good.
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1.1 The Current Environmental Situation Facing The Organization.
Political: - Tax Policies and Trade Agreements
The company operates within various political boundaries. Hence, sometimes certain
political boundaries will not facilitate organizations like AJ Brown. Tax policies in
different region, Health safety laws, Government involvement in trade unions and
agreement
Economic: - Exchange Rates
Global economic situations such as recessions and economical situations peculiar to
countries such as exchange rates are important when operate globally.
Social: - Demands Varies with Regions
Society changes from country to country, region to region and town to town. Hence,
company should take into various societal factors when it comes to its promotional,
communication, and even delivery services. Moreover requirements and need
changes according to the region.
Technological: - Growing IT
Rate of technological change, Spending on research & development, Communication
infrastructure, Internet infrastructure and penetration.
Legal: - Laws Affecting Business
This makes it clear that an organization has to face various legal systems that may
affect the organization in different ways. Labor Laws, Consumer laws , Health Safety
Laws, Various Standards.
Environmental: - Climatic and Weather Issues
The focus is on sustainable development. Therefore, company should address various
environmental factors that have an effect on its organizational survival.
Hence, it is clear that a vivid understanding about the macro environment of the
organization is important when it comes to all the aspects of the organization.
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1.2 The Current Strategic Plan
Long Term Goals:
Independent Freight Forwarding services, to source and arrange for you the
most appropriate and economic methods of international transportation for
your shipments. Documentation of freight as per the country rules.
Companys market position is based on differentiating itself from rivals
through its speed, reliability and provision of services of the highest standard.
Companys strengths are based on Security and Safety of the freight.
Preventing freight from localized thefts, Weather etc. Arranging appropriate
insurance on your international cargo at competitive rate.
Short Term Goals:
Customs Tariff Classification consultancy, to assist importers to minimize
their legitimate Duty liabilities, and minimize their exposure to legislative
penalties .
Legal Advices to customer as well as organization so as to get maximum tax
benefits
Freight Rate negotiation, on your behalf, with a selection of the most trusted
Forwarders servicing the region, and subsequent monitoring of those rates for
you.
Professional Customs Clearance services, for commercial cargo entering or
leaving New Zealand.
Providing Secure and growth oriented employment for the work force.
1.3 Management Role within the Organization
The roles and responsibilities of each worker are overseen by supervisors,
team leaders and managers.
Roles and Responsibilities are distributed at every level. To allow for the
supervision and management of workers organizations are divided by layers
as well as department or functions.
The smallest layer at the top of the organizational structure has more
responsibility and accountability than the larger layers at the bottom. This
forms an organizations hierarchy.
1.4 Environmental Analysis of the Organization
SWOT ANALYSIS
Strengths
The strengths of AJ Brown can be listed out as follows:
AJ Brown is considered among the fastest and most reliable provider of
freight delivery services
Uses sophisticated technology
Has a committed and a highly trained staff
Clearly stated policies, procedures, missions, visions, strategies, objectives,
etc.Being a well-established organization in the delivery industry, AJ Brown
has many strengths, which are not possessed by other players in the industry.
Weaknesses
The inherent weakness of the industry are:
Security and transportation
Time Limitation
Ever Increasing competition
Opportunities
AJ Brown is an organization that operates globally. Hence, it has many
opportunities to expand its operations
Development of transport and communication technology allows better and
speedier service
Threats
Threats those are prevalent in the industry are applicable to the AJ Brown as well.
The strengths of the organization have been responsible for AJ Brown to be
immune to lots of threats from outside.
There is a fierce competition in the market.
The inherent threats of the delivery industry such as competition, transportation
related threats, security of goods, etc can be considered threats.
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1.5 Key Services
Independent Freight Forwarding services, to source and arrange for you the most
appropriate and economic methods of international transportation for your
shipments.
Consignment Management of all your air and sea freight shipments into and out
of New Zealand.
Professional Customs Clearance services, for commercial cargo entering or
leaving New Zealand.
Delivery of imported goods, anywhere in the world. In Auckland we use our own
in-house fleet of (currently) 9 trucks and vans.
Customs Tariff Classification consultancy, to assist importers to minimize their
legitimate Duty liabilities, and minimize their exposure to legislative penalties.
Goods storage, long and short term, in our own 10,000 sq.ft. facility near
Auckland Airport.
MAF approved Sea freight container packing and unpacking, on a regular or
casual basis.
Distribution services, nationwide, from our Auckland warehouse.
Freight Rate negotiation, on your behalf, with a selection of the most trusted
Forwarders servicing the region, and subsequent monitoring of those rates for
you.
Arranging appropriate Insurance on your international cargo at competitive rates.
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Organizational Structure:
Owner
Managing Director
Marketing Manager, Finance Manager
Security Officers and Delivery Management Team
Delivery Centre Executives
2.0 Strategic Options
2.1 Proposed goal for the strategic options
J. Brown & Ct
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Promising Customers:
Improve Customer Satisfaction
Best in class services which are reliable and efficient.
Cost effective and Highly Competitive Services
Developing Employees:
Right people and Skills to deliver the promises it makes. The business is
committed to staff development.
Promotes around 70% of its managers from within the organization, enabling
people to have long-term careers.
Value to Stakeholders:
Increasing the Value of company
Creating more business
Branding:
Creating Brand World wide
Getting a Brand Ambassador for the Company.
2.2 Proposed strategic option will be developed in conjunction with the stakeholder
within the existing strategic plan while meeting the organizational needs.
SCOPE
DIFFERENTIATION
Organisation
Main Management roles are envisioning future strategy, aligning the Organization to
deliver that strategy and embodying change.
In AJ Brown stake holders are Owner, Managing Director of the company, Marketing
Manager, Finance Manager. They have played the large role in making the strategies for
the company growth in future coming five years. Like how much market share they want
to grab in next five year, want to become Largest Logistics Company of the New
Zealand. They discuss for what all they need how is going to be completed. Finance
Manager tells how much finance is required for all. Marketing Manager is discussed what
marketing tricks is require for the above stated plan for the future.
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htm
2.3 Range of strategic options based on an environment analysis
Political:
Merge or acquire those companies operating in the local markets
Built Global networks for taxes benefits
Industrial Regulations Standards
Economic:
Creating Jobs
Capturing Emerging Markets
Taxation Policies
Social:
Customer satisfaction surveys, market surveys, employee surveys play
Larger portfolio of company which is Customer oriented.
Catering the needs of different regions
Technological:
Mobile Platform
IT development
Adapting new Technology
Legal:
Health and Safety Laws
Labor Laws
Consumer Laws
Environmental:
Reducing Carbon Emission
Efficient Transportation
Environmental Regulations
2.4 Strategic options are consistent with the organisations purpose, directions and
values as expressed in the organisations mission statement and strategic plans
goals.
Current
Freight
Forwarding
Services
Freight
Security and
Safety
Custom
Tariff
Classificatio
n
Custom
Clearance
Services
Proposed
Promising
Customers
E
economic
methods of
international
transportatio
n
L
Documentation
of freight as
per the country
rules
Preventing
Localized
thefts
To assist importers to
minimize their legitimate
Duty
liabilities,
and
minimize their exposure
to legislative penalties
P
S
Cost
Improve
effective and Customer
Highly
Satisfaction
Competitive
Services
Safety
freight
weather
Legal Advices
to customer as
well
as
organization so
as
to
get
maximum tax
benefits
T
L
of
from
E
Best in class
services which
are reliable and
efficient
Right
Promotes
Developing
people
around 70% of
Employees
and Skills
its managers
to deliver
the
promises
Valued
Creating more business
Stakeholders Increasing the Value of
company
Branding
Getting a
Brand
Ambassador
Creating Brand
World wide
for the
Company.
In reference with 1.2
2.5 For each of the strategic option present feasibility study which assesses the
option in term of their ability to meet the organisational goals
POLITICAL
COST
BENEFITS
Government
RISK
Government
may
Merge or Acquire local
25 K
can grant the
not
give
market companies
Built global network
15K
Organization.
Expand
OPTIONS
Industrial Regulations
NIL
Standards
grant.
the Always risk to
business network
decline the business
We can run our
Always pressure in
Business easily in International
market.
ECONOMIC
If good it will
Creating Jobs
Capturing Emerging
NIL
20k
Markets
Taxation polices
Market.
There is always
improve the
not constant
company
If it will be in
economy situation.
Trends also not
our favor then
stable.
outsources can
25k
increases
less charge it will
Taxes
reduce burden on
generally raises not
company as well
reduce.
as Customers.
SOCIAL
If in our favor it
Consumer satisfaction
always
15K
will help to
now
days
Consumer
satisfaction doesn't
capture the market. always same.
If in our favor it
They can also
Customer Oriented
20K
Catering the needs of
will help to
Negative work to
capture
our business.
the market.
If in our favor it
May not be
will help to the
always in our
different regions.
Nil
IT development
business
TECHNOLOGY
30K
It will increase by
Mobile Platform
NIL
business scale.
Help us for
changing
Expensive
Adapting new technology
40K
networking.
Improve for New
Should be suitable
Health and safety Laws
technology
LEGAL
10K
Help to increase
Labor laws
15K
Consumer laws
NIL
favor
Always keep
for business
Keep changing
the business scale.
Help to increase
Can be opposite
the business scale
Increase the
to our business
Sometimes reduce
business scale
some activities of
business due to such
law.
Reduce Carbon Emission
Efficient transportation
ENVIRONMENT
It will be positive
It will never be
NIL
and it make
same.
10K
coordination
Can increase
keep changing
scale of business.
2.6 Recommend to the organization the most feasible option for their further
consideration.
Political: Built Global Networks
Economic: Capture Emerging Markets
Social: Customer Satisfaction, Market and Employee Surveys
Technological: IT development and Mobile Platform
Legal:
Consumers Law
Environmental: Reduce Carbon emission and Environmental Regulations
.
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2.7 The best strategic option in conjunction with the Organizations stakeholder
Capture Emerging Markets: Mergers and acquisition were identified as a
big potential for AJ Brown to increase their market share and strengthen
position in Global market. AJ Brown would use power of those smaller
competitors, their networks and customer portfolio to gain bigger competitive
advantage. Size of market is limited but there are still gaps and opportunities
for logistics companies in Emerging markets. Emerging markets have the
potential of high economy growth and despite the influence of economic crisis
the growth has slowed down but has not stopped. Therefore it is important for
AJ Brown to be present in those countries and invest in active Sales &
Marketing. The aim is to continue and expand AJ Brown presence and
continuously work on brand and image recognition. The offer of product
portfolio cannot be full because AJ Brown would not be profitable if it offers
the full range.
Customer Satisfaction: It educates employees to actively cooperate and by
their attitude interest more customers and work on good relationship with
current customers. Closer cooperation with customers and employees brings
new innovative ideas and identifies gaps. If the company exactly knows what
the customer wants, it helps to work on customization of products and
workflows to satisfy their need. Specialization and customization is definitely
an important and strong opportunity for AJ Brown and it is one of the most
important opportunities I have identified. It also increases dependency that
forces customers to stay with AJ Brown. Productivity of AJ Brown will be
increased by strengthening of standardized systems, processes and workflows
and it will bring the key success factors that customer request: quality,
reliability and speed
IT development and Mobile Platform: IT is the most important technology
factor for logistics business because speed and reliability are equal to success.
However, there is an indisputable constant threat of falling behind.
Investments to the modernist technologies are evitable and in times of
economic crisis are much more important than any time before. Company has
to decide if it runs internal IT organization or if it outsources most of the
services and reduce cost.
2.8 Justify the choice of strategic option in term of its ability to meet the
organization purpose, direction and value of expressed in the organisation mission
statement and /or strategic plans goals.
Strategic programs represent an area that AJ Brown has already initiated, and as prove by
the analysis, they represent important success factors for the organization and it is
valuable and worth to continue them. This is an opportunity for the company to make the
organization more transparent and start with restructuring initiatives like improvement of
cross-divisional cooperation, work on standardized process workflows, create easy
cooperation channels among people in different levels of organizational structure and
make redundancies if it is necessary. All these activities will bring lower cost for the
company.
Capture Emerging Markets: This will help the company to grow globally and
show their presence in the international market.
Customer Satisfaction: This is the most important factor in the any business to
satisfy the needs of your customer. If the customer is satisfied, company will
definitely grow and bring more business to your company.
IT development and Mobile Platform: Technological advancement is the need
of today business to stay in competition with ever changing market. Moreover to
have a deeper penetration in the mobile age it is important factor for the company
to have its ace technology.
Strategic Plan
1
Present the organization strategic plan with all of the relevant selection not including the strategic option
Strategic Plan
Promising
Customers
Developing
Employees
Value to
Stakeholders
Actions
Improve the
Services
Cost Effective
Serving According
to the needs of
different customer
Hiring Right and
Skilled People
Skill Development
programs for
employees
Promotions at
different levels
Expanding business
globally
Acquiring Small
Businesses in
International
Borders
Resources
Technology
Transportation
Airways
Hard working
Employees
Top Graduates
Colleges
Business
Management
Schools
Separate Fund
Allocation for
Employee
Development
Finance and Legal
support
Hardworking Top
Management
Outcomes
Improved Brand
Value
New Customers
More Market Share
Long term Career of
employees with the
organization
Over all
development of
organization
Satisfied Customers
Global Presence
Creating a Brand
Value
Increasing the Size
of Organization
Timeline
Contingency Plan
2 year after the
implementation
Making the Prices
of the services
more competitive.
Development
program every 3
months
Hiring and
Promotions every
year
Hiring Permanent
Mentors for
guidance of the
employees for the
development
2 years in
establishing the
brand globally
As well as Acquiring
The small business
Making
Collaborations in
the other regions
with competitors in
failing case of
strategic plan
Branding
Giving a Brand Hollywood actor,
Ambassador to the Sportsperson
Company
Promising
customers
Add Value to the
company
1 year to establish
company with
biggest rivals in
market
Advertising on
social media and
using internet to
promote
3.2 The strategic plan appropriate goals that implement the strategic option as outlined
CUSTOMER CENTRIC
Understanding the Market, Customer and Employee
Providing and Covering every requirement of the each and every customer
Focus on Speed, Reliability and Security.
TECHNO ENVIRO APPROACH
Investing in IT infrastructure and Mobile Services for Ordering, Tracking,
Solution in Logistics.
Reducing Carbon Emissions in Transportation and Managing the Optimum
methods to prevent pollution.
Investing in R&D for new innovations and ideas in the logistics.
SUBSTANTIVE GROWTH
Capture Emerging Markets having potential to grow
Acquiring small enterprises in the foreign lands which help us to grow
Making Competitors felt our presence.
3.3 Communicate the receive strategic plan to the organizational stakeholders so a
s to encourage its uptake through understanding, commitment and enthusiasm.
COMMUNICATION METHOD
STAKEHOLDER
UNDERSTANDING
COMMITMENT
ENTHUISIASM
Manager
Maintain System
Quality Standard of the
organization.
Provide good services to
the customer
Work satisfaction by
services
Emails, Meetings
Promotions
through CEO.
Phone calls, letters
Get good salary
Increments.
Get Discounts
products and
services
Staff
Customer
Phone calls, Emails
Communicating what is planned is the important part of the Strategic Planning. Each and
every member of the organization should know it. This role involve with clear
communicating the strategy to internal and external party. The internal party includes the
organization and the external party is includes all stakeholders. The next role is aligning
the organization to deliver the strategy. Under this role, it is expected that all people in
the organization be committed to the strategy. These people should be motivated to
follow the strategy and should be empowered to deliver the change. The final role is
embodying change. The strategic implementation is highly involved with the
organizational change. Thus, strategic leader has a major role of following strategic
change process.
Now different methods can be adopted to communicate this strategic plan. Annual
Company brochure, through company meetings which will be bring enthusiasm and
commitment in the employees.
References
http://www.ajbrown.co.nz/
http://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html
http://pestel-analysis.com/
http://www.businessballs.com/swotanalysisfreetemplate.htm
http://www.tnt.com/corporate/en/site/home/about_us/our_business/business_strategy.html
http://www.logisticstoday.com/sNO/7869/LT/displayStory.asp
http://www.businessweek.com/magazine/content/04_48/b3910115_mz017.htm
http://www.ukessays.co.uk/essays/strategic-management/dhl-express-strategic-planning
document.php
http://www.tnt.com/
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