Ron and Steel Products Manufacturing Company's Strategy - Assignment Example

Draft Bigg and CO LTD is an iron and steel products manufacturing company that specialises in production of steel and iron goods as well as production of iron and steel for sale. In its line of business the company deals with; iron and steel products and semi finished products such as slabs billets among others, flat rolled steel products such as hot rolled sheets, cold rolled sheets, coated sheets and electrical sheets among others. In addition, the company also deals with bar, shapes, tubular steel and iron products, wide rods, automotive steel, plates, special steel and stainless steel among other products. The company also has other investments in steel and iron businesses such as steel manufacturing operations including electrical furnaces, steel processing service centres that take care of processing and distribution services, steel sales business and production of motor vehicle parts. Apart from manufacture of steel and iron products, the company has other portfolios that include supply of mineral and metal resources to Japan and other areas of the world. The company also has investments in generation of renewable energy, industrial and infrastructure, water treatment and supply, project development in fields such as logistics and social infrastructure. In its integrated transportation systems business unit, the company deals with logistics, financing and sale of motor vehicles, sale and financing of construction machinery, trade and ownership of commercial ships, sale, purchase and leasing of aircrafts and helicopters and rolling stock leasing. The basic chemicals business unit deals with manufacture of industrial chemicals and the logistical support for their clients. The performance chemicals business unit deals with manufacture of agricultural chemicals, performance materials such as plastics and synthetics. In addition, the unit also deals with liquid crystal display material and commodities, semiconductors and supplies for printed circuit board. Energy business unit I and II deals with exploration and processing of energy sources such as oil, gas and uranium among others, in addition it also develops environmental business such as carbon credits, biomass ethanol and hydrogen. The food business unit deals with grains for livestock, energy production and human consumption. In addition, it also deals with food ingredients, distribution, retail support services and agri-foods. The consumer service business unit deals with a wide variety of business activities that include medical and health care services, real estate, housing and engineering materials, media and fashion. The innovation and corporate development unit includes business areas such as IT, financial businesses, logistics and insurance services. The staffing plan for the organization will be based on the qualifications of each employee where employee with similar skills will be placed in similar department in the various departments of the organization, for instance, human resource experts in the mining department will be placed together. In terms of promotions and responsibilities, individuals with the highest levels of experience and demonstrable enthusiasm in their areas of work will be given the first priority as they are the ones who are likely to help the organization rise to great heights of success. In addition, in order to retain employees and increase their performance, there will be opportunities for furthering their education which will be mainly for professional employees to learn more about their fields and the company culture. The importance of these elements of staffing is that they are bound to increase employee loyalty to the organization, focus their career paths in line with the company objectives and increase their productivity. The business, which dwells in both service and goods industries will mainly focus on marketing and growth stratergies. The main marketing objective of the company is to increase the market share of the company from the current 12 per cent to 30 per cent in the next five years; this will in essence boost the sales of the vehicles to the expanded markets Market Targeting and Positioning In market targeting, the buyers’ preferences and the structure and organisation of the market will inform the organisation on the strategies of marketing that the company will use. In view of this, the strategies that are most likely to be useful and effective will be the differentiated strategies due to the wide variety of preferences of the customers. In positioning ourselves in the global market as the market leaders in used cars, our marketing strategy will dwell on the quality of the products that we export to customers.. In order to increase our market share of second hand cars, the marketing strategy several factors will inform our marketing strategies, Since most of the customers are in the developing countries or the lower and middle classes in developing countries, the amount that a car costs will determine whether they will buy it or not. In Africa, where most of our target markets are, the population is generally poor and therefore cannot afford vehicles above a certain price range, therefore, the vehicles sold in Africa will be for the low-end consumers with few sport utility vehicles that are expensive. In the American market, the demand for sport utility vehicles is increasing therefore in order to capture that market we will have to channel out marketing to the demand for cheap sport utility vehicles. The focus of the organisation will be the quality of the vehicles and the availability of spare parts of those vehicles in the regions that our products are available. Most of the roads in Africa are generally poor with a large proportion of them having no tarmac, this makes driving in these tough terrains a challenge therefore vehicles specially designed for the rough terrain will find a huge market in Africa. As an organisation, our main goal of marketing will be to convince the customers from Africa of our potential and capabilities to deliver tough and durable second hand vehicles to them at affordable prices. The aim of the growth strategies will be to create new markets especially in Africa where there is a huge potential for sales since most of the large population there have been in the recent past lifting themselves from poverty to middle class citizens, they are therefore finding it increasingly difficult to commute to their places of work without vehicles. According statistics, the economic development that Africa is experiencing has led to increased demand for vehicles for either transport business or salon cars for personal use. In growing this market, our organisation will have captured a part of a market that will not be slowing in growth any time in the near future. In the recent global financial crisis and global recession, economic growth of African countries has relatively remained stable and the global crisis did not affect the markets in this region (Madani, Mas-Guix & World Bank 2011). Most of the vehicle manufacturers and dealers have not been enthusiastic of setting up big markets in Africa due to poor markets that did not guarantee the returns on investments as earlier thought. Read More