The Gulf Agency Company Strategic Management - Essay Example

Task Introduction The Gulf Agency Company is a worldwide leading supplier of delivery, logistics marine, and solutions tasks inthe world market. Since the company started its operations, it has expanded its region coverage to many worldwide customers through the provision of valuable and quality products and services. It is a world number one provider of significant shipping and marine industries in all geographical regions. The GAC provides the promises formulated on the mission statement of the company through the provision of the services that combine expertise and experience within the shipping, logistics and the company solution and marine fields. Thus, the paper will deal with the formulation of strategic action plans for the GAC and its implementation guidelines to help the company set valuable objectives and goals. The paper will analyze different methods used to formulate the strategic action plan of the company. It will cover the SWOT analysis that is used to establish the strength and weakness of the action plan in the external and internal environments. Finally, the strategic action plan will provide an opportunity to the stakeholder and staff members to establish a common language and take part in the company safety systems. Meanwhile, great flexibility about the company approach methods used to strategic planning and the concepts of mission, objectives, and goals provide valuable information that gives the overall implementation guidelines about crucial elements of strategic action planning. According to Babar, Matias, and Markku (145-200), strategic plan of action is a set of goals, investments, plans based on the analysis of strengths, weaknesses, opportunities, and threats related to an organization. The strategic of the GAC Company will analyze the goals using three different levels: Strategic is the highest level of the organization, responsible for identifying the company goals and functioning strategic planning. In this level, we will aim at long-term goals. Tactical or middle level is the middle level is responsible for linking the strategic and operational levels, defining tactical goals, and performing tactical planning on the selected goals (Bryson, 125-130). Operational or low level is the basis of the planning and is associated to the actual accomplishment of tasks. In this level, operational planning defines the goals of the company. Formulating the Goals To accomplish strategic planning, the method used is the Balanced Score Card (BSC) that describes strategies and manages its execution, linking goals, action, and indicators. The BSC recommend an analysis of goals based on the performance indicators using the four perspectives: Financial Customer Internal Business process Learning and Growth To achieve an established strategic planning we have to implement the strategies at a lower level of the company. This requires the dividing strategic planning into tactical planning that understand and the middle level. In the GAC Company, the tactical goals will recount to issues like shipping, marketing, and training of the staff members. The tactical goals relating to shipping indicate that the company needs to improve its shipping process and products in the market. Therefore, in analyzing of the GAC goals, we will focus on tactical goals related to shipping as the company improvement goals. The actions allow the execution on the operational level that is operational processes and products. In the strategic planning, the company needs to define the company goals, the cost, and schedule and quality requirements of the company. In addition, it is vital to plan how to monitor and control the defined goals. In the GAC Company, the control of the goals depends on the shipping measures; thus, the company needs to plan how to measure their shipping processes and products. Defining and monitoring strategically aligned the GAC improvement goals. Figure 1: Adapted from Babar, Product-Focused Software Process Improvement Depending on the defined indicators, it can be obligatory to denote three targets considering the expected results in the short, medium, and long term. These targets specify in an ad-hoe way based on the historical data or using simulation to identify possible values (Koteen, 65-80). To determine whether the GAC existing goal satisfies and empower its staff, first, we need to look at formulated goals to justify if they should remain the same. The following is GAC some of goals copied from the corporate web profile: Strengthen Core Mission Capabilities Optimize Performance Relevance Prevent Strategic Surprise and Support Contingency Operations There is no problem in formulating organization goals as long they serve the anticipated outcome of the organization to achieve the formulated mission of the statement (Farah, 145-180). The above goals of GAC fulfill the fundamental principles in the perspective of the employees that show that sustainable business activities in a different region are able to control the weakness and threat of the company, in order to maximize the performance significance of the company in the region. According to Edgley (77-80), the social analyses show the viable of the strength and opportunities in the association of cultural value and homogeneous culture within different business line. The GAC is places where employees share, evaluate, and analyze challenges facing the company but the success of the formulated goals will come from approach of critical issues to meet success of the company. The goals help the company to launch suitably in the competitive market in a global setting that has resulted into remarkable growth and expansion of the company (GAC Chat). Therefore, it shows the company is capable of providing services to shareholder and optimizes the available resources to obtain sustainable growth as formulated in the company goals and objectives. According to Joseph et al (45), for the company to facilitate the achievement of the formulate goals, it is vital to analyze the internal and external environments of the organization, identifying forces that can contribute to the achievement of the above formulated goals. The goals formulated indicate that the company has analyzed the external environment, including the outlining of factors that are external to the company and could proffer pressures or prospects. Moreover, the GAC has analyzed the possible impacts related to each factor: according to Arthur and Stephanie (2007, 55-60), formulate goals the company assume the impact will be positive because no company aim at negative impacts. The strategic goals of the GAC aim at long-term results and the success of the formulated goals depend on the evaluation of weakness and strength of the company. However, the formulated goals should guarantee the expansion and growth of the GAC goal has to describe the action, expected values, action targets, and interactions with other project goals (Hartmut, 53). Finally, in order to complete the planning, it is necessary to define or update the expected values for the indicators related to the company goals; as well as checking the significance of each goal to the growth of the company (Denise, 105). Grouping of the Goals The Key Result Areas are common areas of outcomes for that business line role is responsible; in the GAC, the KRA will help in grouping the goals and objective of the core areas where the stakeholders are accountable. Jurgen and Matias (120) state that the KRA will help capture about 80% of the GAC goals because it aid in communicating the roles of the stakeholders in the company and the obligation they have to others. It also supports the employees’ roles to the company or to the strategic planning and prioritizes the work and focus on the results rather than the work of the employees. We will develop the KRA from the SWOTs of the GAC analyzed in the assignment one, the KRA make the process of allocation of resources easy to be understood and coordinated Many KRAs increase revenue and improve the financial situation of the company. According to Frank and Markku, (60-80), KRA uses tactical level to group objectives and goals of the GAC, to allow adequate monitoring of the strategic goals. It will help to identify the tactical goals that relate to GAC like action, the action of targets, expected values, and contribution to the related strategic action. Joseph, Covello and Brian (30-50), demonstrate that each interaction of grouped goals defines in the KRA method that classifies the qualitative and direct interdependence, and inverse interdependence of the tactical goals and operational goals and objectives. KRA examples GAC goals and objectives SWOTS Increase the revenues of the GAC Identification of new opportunities in the global market Advances to improve the Agency operations Economic growth in various regions Access to capital Changes in the tariffs Benefits of the double tax agreements To promote the efficiency and productivity of the GAC The mission of product and process force advances The issue of partnership empowerment in the company Strong IT infrastructure Management to meet the new technological advancement Global intranet services Promoting the internal and external communication Maintaining a high level of disciple in the company The GAC innovate to gain the global advantage abolishment of racial boundaries company periodic social gathering Improve the financial situation of the GAC To maintain the solvency and the liquidity of GAC To keep annual reports of the GAC Full advantage of competitive advantages Value added selling of real sale success Figure 2: Adapted from Kim and Tan, “Effective strategic action planning: a process and tool", Formulation of Action Plan The action plan, according to Roger (45-70), is a method that expose and creatively manages any situations that face a certain organization it evaluate the uncertainties and find the solution of the long-term goals. Meanwhile, it shows what the company is supposed to do to accomplish possible outcomes. The strategic action of plan shows how the GAC has achieved the formulated mission of statements, without the proper action of plans the GAC would waste time and resource available or it could fail to produce quality products and services. The action plan of the GAC focus on the identifying and implementing measures that will promote the performance of the company over the coming year in order to establish inclusive foundation of a strong and growing economy and efficient of the GAC ( Greg, 2010 p64). The operational visions of the GAC should be clear to so that management can have a clear, functional direction the objectives and goals of the company should represent the mission statement of the company. The GAC goals corporate business functional Strengthen Core Mission Capabilities To evaluate the cultural values of the mission statement Full advantage of competitive advantages The goal are function to the GAC because they are effectively proving services to the society Optimize Performance Relevance The company maximize the available resources Expansion in a global market place It helps the GAC to evaluate the measures Partner and Innovates to Gain Advantage Help the GAC as corporate to gain new ideas about the products Create efficiency and high production of products Maximized the profits to minimize the cost of the GAC Figure 3: adapted from Greg, Tips and traps for writing an effective business plan The GAC goals help the organization to establish itself in the global market through formulating of a good action plan that describe how the company operate as corporate, business and functional unit in the market as shown in the table above. The following strategic template will help to analyze the strategic plan of the GAC that depends on the nature of the company prevention leadership, culture of the company and the complexity of the company to the global environment. figure4: adapted from Edgley, Strategic Action Planning The action plan should provide the evaluation statements in order to help the company to evaluate the achievement of the goals be implemented in the strategic action plan of the GAC. The evaluation will help in tracking the assessment of the result of the goals and objectives grouped by the key result areas methods. Action plans explain the strategic plan into the implementation stage; some companies combine the two into one document, while, others keep the two methods separate. The stakeholders of the GAC are responsible for the implementation of the plan into developed strategic plan and use of the qualified teamwork make the plan more reasonable. The action plan organizes the general strategic, plan into smaller parts of the GAC objectives and goals as well as, integration of the company plan goals and objective into the stakeholders performance review. According to Kim and Tan (2005 pp137), the action plan evaluate the work appraisal performance of the employees and identify the significant leading, team of the GAC and communicate the role of stakeholders in the in the follow-ups, plan that implement the working conditions of the company (Mike, 2010 p45-80). The following is the structure of the strategic action plan of the Gulf Agency Company Goals# objectives Activities Strategies used The resources need Leading role timeline Strengthen Core Mission Capabilities Community work Tactical strategic plan Product and services of the GAC To promote culture understanding One year Optimize Performance Relevance Employees appraisal Operational strategic plan Team work To promote efficiency and development of company One year Partner and Innovate to Gain Advantage Review the resources of the company Tactical strategic plan Financial resources To promote global understanding One year Figure5 adapted from Bryson, Strategic planning for public and non-profit organizations The above table shows the strategic action plan of the GAC evaluated in a period of one year the evaluation was carried from the stakeholders of the company and staff members. According to Robert and David (45), the balanced score card is a strategic plan tool and management method used to support business mission and strategy of the company. It promotes the development of internal and external communication in the company and evaluates the performance of the company against strategic objectives and goals. Robert and David (124), demonstrate that the balanced scorecard maintains the formality of financial measures for long-term resources of the company; the following is balanced scorecard showing the company’s investment, process, technology, and innovation. Figure6: The idea obtained from Robert S. Kaplan and David P. Norton, Conclusion To achieve a successful strategic action plan, the GAC must achieve a fundamental culture because all members understand the formulated goals and objectives of the company. To sustain values in the competitive environment, the GAC should design proper and efficient action plan that will incorporate the goals and objective of the business in the worldwide market. The Key Result Areas help the GAC management to group different goals and objective into logical manner in order to assign each stakeholder equal roles and duties in the organizational. Further, it recommends the use of tactical goals and objectives that promote the company to make profitable environments that make GAC have a competitive advantage in the global market. The KRA groups the tactical level objectives and goals of the GAC allow adequate monitoring of the strategic goals (Roger, 2000 pp60-65). It help to identify the tactical goals that are related to GAC like action, the action of targets, expected values and contribution to the related strategic action. The strategic template discussed above show how the strategic are formulated and implemented into the company strategic plans. The balanced scorecard evaluates the performance of the strategic plan using the available resources in the company (Paul, 203). Finally, to achieve an effective strategic action plan the GAC should formulate the goals, mission statement, and objectives of the company according to the resources available. Works Cited DeThomas, Arthur, and Stephanie Derammelaere. Writing a Convincing Business Plan. New Delhi: Barron's Online Bookstore, 2007. Babar, Ali and Matias, Vierimaa and Markku, Oivo. Product-Focused Software Process Improvement: 11th International Conference. New York: Springer press, 2010. Bryson, John. Strategic planning for public and non-profit organizations: Program Planning and Management Organization Publications. 2007. Web. October 7, 2011. Denise, Berry. Small Business Cash Flow: Strategies for Making Your Business a Financial Success. United Kingdom: John Wiley and the sons, 2010. Edgley. Strategic Action Planning. Assoc. Manage, 2001, pp. 77-80. Farah. Strategic planning: The Foundation for Community Association Research. Report # 3. , 2001. Frank, Bomarius and Markku Oivo. Product focused software process improvement: Second International Conference. New York: Springer press, 2000. Greg, Balanko. Tips and traps for writing an effective business plan. New York: McGraw-Hill Press, 2010. Hartmut, Sieck. The Strategic (Key) Account Plan. German: Books on Demand press, 2009. Joseph, Covello and Brian, Hazelgren. Your first business plan: a simple question-and-answer format designed to help you write your own plan. New York: John Wiley and the Sons Inc, 2005. Jurgen, Munch and Matias, Vierimaa. Product-focused software process improvement: 7th international conference. New York: Springer press, 2006. Kim, Hua and Tan Platts. "Effective strategic action planning: a process and tool", Business Process Management Journal, 2005, Vol. 11: 2, pp.137. Koteen, Jack. Strategic Management in Public and Non-profit Organization. New York: Pager, 2005. Mike, Meier. How to Write a Business Plan. United Kingdom. John Wiley and Sons Inc, 2010. Paul, Niven. Balanced Scorecard step-by-step: maximizing performance and maintaining results. New York: John Wiley and the Sons Inc, 2006. Robert Kaplan and David Norton. The Balanced Scorecard: measures that drive performance. New York: Harvard Business Press, 2000. Robert, Kaplan and David, Norton. The Strategy-focused Organization: how Balanced Scorecard Companies thrive in the new Business Environment. New York: Harvard Business Press, 2001. Roger, Kaufman. Strategic Planning for Success: Aligning People, Performance, and Payoffs. New York: John Wiley and the Sons Inc, 2003. Roger Kaufman. Mega Planning Practical Tools for Organizational Success. New York: John Wiley and the Sons Inc, 2000. Read More