A strategy provides an organisation with a plan to achieve competitive advantage and profitable sustainable growth against its competitor. This paper highlights the process involved in defining a strategic plan. The paper starts with an overview of the company and the sector it operates in. It then strategically analyses the vision, mission, value statements, external environment and internal organisational competencies. The tools used to complete this analysis are PESTEL, KSF and SWOT. Finally, the paper ends with a recommendation on the strategic plan and highlighting the importance of implementation.
Table of Contents
1. Company Profile 5
1.1. Sector Overview 5
2. Vision, Mission & Values 6
2.1. Vision Statement 6
2.2. Mission Statement 7
2.3. Statement of Values 7
2.4. Key Objectives 8
3. Strategic Analysis 9
3.1. PESTEL 9
3.2. Key Success Factors (KSF) 10
3.3. SWOT Analysis 11
4. Strategic Plan (Recommendations) 13
4.1. Addressing the Sector Trends 13
4.2. Diversification 14
4.3. New Economies 14
4.4. Growth through Mergers and Alliances (M&A) 15
4.5. Technology Innovation 15
5. Conclusion 15
6. Execution / Implementation 17
1. Company Profile
ABC is a France-based global specialist that offers integrated solutions to the Energy Power and industrial Sector. ABC is organized in four Strategic Business Units (SBUs) – Buildings & Partner, Infrastructure, Industry and IT.
1.1. Sector Overview
The energy sector in the past decade has under-gone a major shift. With the challenges of the increasing energy demands and the depleting natural energy sources, it is crucial for us to realize the need to optimize in order to survive. The global market for energy consumption is forecasted to grow almost 56% by 2040, according to the US Energy Information Administration’s International Energy Outlook 2013. (IEO, 2013)
2. Vision, Mission & Values
2.1. Vision Statement
A vision statement is distinctive, specific and more importantly provide inspiration or motivation to the reader. ABC has a vision for the organization but it needs to be assessed for its alignment with the key definition of a strategic vision.
Table 1: Vision statement analysis
Vision Statement Elective Elements Shortcomings
We see a world where we can achieve more, while using less of our common planet. • Forward looking
• Memorable • Not Focused
Recommendation: Helping people make the most of their energy, while sustaining our common planet.
1.3 Billion People worldwide do not have access to energy (WEO, 2012). The growing demand of energy is a dilemma that is currently being faced by the common man; hence it is crucial to provide a vision where we can address the wider audience. The customers for ABC are not just major plant operators or infrastructure providers, there is a bigger picture and ABC has the leadership position and the resources to take measures today, to ensure a greener and sustainable planet tomorrow.
2.2. Mission Statement
A mission statement should be able to provide a snapshot of the organization’s core business and purpose (Thompson et al. 2014). It provides the customer an insight into how can they as an organization assist the customer to meet their need.
Table 2: Mission statement analysis Mission Statement Elective Elements Shortcomings
ABC provides products, services, solutions and systems for all actors of the energy supply chain. • Describes Present business • Lack of purpose
• No integration with Core Values
Recommendation: ABC focuses on making energy safe, reliable, efficient and green while maintaining a high level of customer satisfaction.
ABC being a global leader understands the challenges that exist in the market and have customized solutions for them. The recommendation above, leverages on this position and highlights the core values that helps in bringing both the vision and mission statement together and hence…