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Consider the following scenario:
PPQ Parts has determined that for the company to expand globally over the next several years, its managers must be properly trained in multiculturalism and diversity management. (you choose the country in which to expand). PPQ Parts executives must be aware of any political and economic concerns that may arise during the expansion. You 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. (Hint: 4,000 in new location 1,000 in home location)
New facilities will be needed in international expansion, and PPQ Parts anticipates building most of those (80%) outside the United States. (Hint: will not be ready for people most of first year) PPQ Parts holds 5% of the world market share on small SUV parts, 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 goal of the company is to increase employee retention by lowering annual turnover to 17%. (Hint: some countries have very low annual turnover which would help this goal)
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.
•Assignment
•A strategic management plan is vital for the company business today. Create a basic strategic 4-year management plan for PPQ Parts including quantifiable goals and measures. Include the following in your report:
•Provide environmental scanning of current conditions in the area of expansion including economy, competition, political stability, and so forth.
•Address internal resource analysis such as managerial and financial strengths and weaknesses.
•Please include short-term and long-term strategic goals. (see five specific items above)
•Location consideration for implementation is vital. Please explain the benefits and limitations for expansion into your chosen area. (you choose the country in which to expand)
•Hint: A table or chart would help explain the strategic analysis results for the above details
•
•Be sure to reference all sources using APA style.
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