Strategic Plan for Holden - Analysis, Issues, and Solutions

This report provides a detailed analysis of the Australian automobile based organization named Holden. The report includes an internal and external audit, identification of key strategic issues, and a strategic plan to address them. The strategic plan includes solutions to the issues of lack of revenues and high competition in the industry, and the transition from a manufacturer to an importer. The report also includes a value chain analysis and identification of core competencies and capabilities of Holden.

Running head: STRATEGIC PLAN FOR HOLDEN
STRATEGIC PLAN FOR HOLDEN
Name of the Student
Name of the University
Author Note

1STRATEGIC PLAN FOR HOLDEN
2. Executive Summary
The report provides a detailed analysis of the Australian automobile based organization
named Holden. The organization is analysed based on different aspects that are able to affect
its processes in the industry. The inner environment of the firm has been examined with the
help of the value chain based model suggested by Porter. On the other hand, the external
environment of the company has been examined with the help of the Porter’s five forces
framework. The analysis of the internal and external environment is built on the ways by
which the company operates in the automobile based industry of Australia.
The analysis is also able to provide the details on the strategic issues which are being faced
by Holden in Australia. The report has also provided an analysis of the ways by which the
issues can be resolved with the help of effective strategic plan. The strategic and financial
objectives of the company have also been analysed in the report. Further, an action plan has
been developed in order to suggest the different processes which can be implemented in order
to accomplish the aims and objectives which have been set by the company in the automobile
based industry of Australia.

2STRATEGIC PLAN FOR HOLDEN
Table of Contents
4. About the company....................................................................................................3
5. External audit.............................................................................................................3
Porter’s five forces analysis of the industry...............................................................3
Three primary key success factors for the industry...................................................5
6. Internal audit..............................................................................................................5
Porter’s value chain analysis of Holden.....................................................................5
Key core competencies and the capabilities...............................................................7
7. Identification of two key strategic issues that Holden must address for the future. . .7
8. Strategic plan..............................................................................................................8
Development of a strategic plan addressing the two strategies issues.......................8
Setting the financial and the strategic objectives that are consistent with chosen
strategy...................................................................................................................................9
Action plan developed for the future.........................................................................9
9. Reference and Bibliography.....................................................................................11
Bibliography.............................................................................................................12

3STRATEGIC PLAN FOR HOLDEN
4. About the company
Holden Motors which was formerly known as General Motors Holden which is an
Australian automobile based importer which has its headquarters in Port Melbourne, Victoria.
The organization was established in the year 1856 as a manufacturer of Saddles. The
company thereby moved its operations towards the automobile sector. The organization was
thereby later on renamed as General Motors Holden in the year the 2005. The company had
further sold its stock to other organizations and imported the model from General Motors
(Holden.com.au, 2018). The vehicle based line up of the company was thereby based on
different models of the company that included GM Korea, GM and GM Thailand. Holden
had also started distributing its products all over the world with the help of its effective
supply chain. The Australia based vehicles of Holden Motors were thereby developed in
Elizabeth, South Australia from the year 1994 to the year 2017 (Holden.com.au, 2018).
The report will be mainly developed on the study of the strategic position that has
been developed by Holden Motors in the automobile industry with the help of its wide variety
of products. The industry in which the firm functions will also be examined in the report. The
internal environment of Holden will be an important part of the analysis.
5. External audit
Porter’s five forces analysis of the industry
Holden is an important part of the automobile industry of Australia. The firm has been
able to develop its position with the help of its management based style and the products that
are offered to the consumers. The industry of the company will thereby be an analysed with
the help of the Porter’s five forces framework. The diverse forces that are able to influence
the processes of Holden in the country will be examined with the help of this framework
(Barros, Hernangómez & Martin-Cruz, 2016).
Competitive rivalry in the industry – The influence which the different
organizations have on each other is thereby considered to be an important part of the industry.
The organizations in competitive automobile based industry thereby provide tough challenges
to each other with the help of their aggressiveness. The aggressiveness of force is thereby
depicted with the help of different marketing based campaigns that are organized by Holden
(Chienwittayakun & Mankin, 2015). The exit related barriers in the industry are quite high
which is able to impose a huge force on effective operations of Holden. – Strong

4STRATEGIC PLAN FOR HOLDEN
Bargaining based power of the customers – The decisions that are made by the
consumers of Holden are able to play a major role in its effective operations in the industry.
The customers in the automobile industry are able to determine the levels of profitability and
the revenues that can be earned by them. Different exterior factors also essential to be
considered by the company in order to control the bargaining power of these customers
(Cosenz & Noto, 2016). The important factors that are able to affect this force in a huge
manner mainly include, moderate availability of the substitutes, moderate levels of the
switching based costs and the small size of the individual buyers. – Moderate
Bargaining power of the suppliers of Holden – The power of the suppliers of
Holden who exist in the industry is an important force which is able to influence the
processes of the firm. The availability of the materials is thereby built on the methods by
which suppliers are able to provide them in an active way. The different factors that are able
to influence this force include, moderate levels of population of the suppliers, low levels of
forward integration based process and high levels of overall supply. A moderate number of
suppliers are accessed by the company which include the steel producers (Durand, Grant &
Madsen, 2017). This factor is thereby able to affect the company in a moderate way. The low
number of suppliers can increase their power of bargaining. The suppliers are thereby able to
affect the productivity and operations management of Holden. – Weak
Threats related to the substitute products – The substitute products of Holden are
able to influence the operations and profitability based levels of the firm. The revenues of the
company and its opportunities are thereby reduced by the availability of the substitutes. The
different external factors which are thereby addressed in an effective manner by the company
based on substitute products include, the moderate levels of the switching costs, the lower
variety of the substitutes and moderate availability of substitutes (Ethiraj, Gambardella &
Helfat, 2017). The intensity of this force has been reduced due to the low levels of
availability of the substitutes of products that are offered by Holden. – Moderate
Threats related to the new entrants – This force which is a part of the Porter’s
framework is able to affect the entry of new organizations within the industry. The new
organizations also have the capability of reducing the levels of profitability and the revenues
of automobile organizations. The different external factors which are considered by the
company in this case include, the high levels of competitive potential of the new entrants,
high scales of economy and moderate costs based on switching. Some of the organizations

5STRATEGIC PLAN FOR HOLDEN
that enter the industry are able to affect the profitability levels of Holden (Fratričová & Rudy,
2015). The moderate costs related switching is also an important factor which leads to the
decrease of the shift of consumers of Holden. – Moderate
Three primary key success factors for the industry
The three major main key success aspects that are an important part of the operations
of Holden include,
The positive image which is developed by the organizations that operate in the
industry. The levels of trust and safety which are formed by the companies act
as an important factor that is able to influence the processes of the industry in
a huge manner.
The distribution based network which has been developed by the company is
also considered to be highly important for the automobile based industry of
Australia (Gallus & Frey, 2016).
The cash flow levels in the automobile industry of Australia are important
factors that are able to affect the ways by which the organizations operate. The
companies can thereby develop effective profit based margins with the help of
sustainable levels of cash flow. The sustainability of cash flows is the thereby
considered to be a major factor which is able to affect the organizations in
Australia (Gans & Ryall, 2017).
6. Internal audit
Porter’s value chain analysis of Holden
Primary activities
Inbound logistics – This factor is considered to be the most important step that is
related to the line of production of Holden. The suppliers who are a part of industry are
mainly considered to be an important factor related to logistics.
Operations – The production process of the automobile based products are
considered to be important activities that are conducted by Holden. This process is based on
the ways by which the raw materials of the company are converted into products in an
effective manner (Hanson et al., 2016).

6STRATEGIC PLAN FOR HOLDEN
Outbound logistics – The distribution and transportation based network that is used
by Holden in order to provide the products to different locations is considered to be an
important part of the process. The showrooms of the company are considered to be a major
part of the outbound logistics.
Marketing and sales – Marketing and effective sales of the products is considered to
be highly important for the operations of Holden in the automobile based industry of
Australia. The company is thereby to reach its target segment with the help of proper
distribution based strategies (Hill, Jones & Schilling, 2014).
Services – This is considered to be the last part of the primary activities of Holden
that is able to effective levels of value to the company. The support that is provided by
Holden after the sales of the products is considered to be a significant aspect which is able to
influence the revenues of the firm.
Support activities
Infrastructure – Holden has been able to develop effective infrastructure in Australia
with the help of its showrooms and production based facilities.
Human resource management – The human resources and leadership of Holden
have been able to play a main part in the processes of the company over the years. The
number of employees which still remain in the operating areas of the company in the
Elizabeth based factory is more than 1000 (Hill, Jones & Schilling, 2015).
Technology – Holden has used many innovative technologies in the products that are
manufactured in the industry. The safety based levels and use of high levels of technologies is
considered to be an important factor that affects the operations of Holden.
Procurement – Holden Global Purchasing and Supply Chain is mainly responsible
for the procurement of the services and the goods that are used by the company (James,
2016).

7STRATEGIC PLAN FOR HOLDEN
Figure 1 - Value chain analysis
Source - (James, 2016)
Key core competencies and the capabilities
The core abilities of Holden are mainly built on the methods by which the company is
able to operate with the help of its resources. The brand value of the company is thereby used
in an effective manner in order to manufacture the products and further providing them to the
customers. The huge distribution based network that has been developed by the company is
considered to be a major factor which can be considered to be a part of the core competencies
(Johnsen, 2015).
7. Identification of two key strategic issues that Holden must address for the future
Strategic issue 1 – The first issue which is being faced by the firm is built on the lack
of revenues of the firm due to the increase of competition in the Australian automobile
industry. The customers are thereby provided with huge number of choice which has been
able to play a major role in the processes of Holden in the country.

8STRATEGIC PLAN FOR HOLDEN
Strategic issue 2 – Another major issue that is being faced by Holden in the
automobile industry is based on the process of transition that has taken place in the company
from a manufacturer to an importer. This transition has thereby been able to affect the
operating processes of the company and the adjustment with this process is an important
factor.
8. Strategic plan
Development of a strategic plan addressing the two strategies issues
Targeting the issue 1 – Holden Motors has facing been issues based on the lack of
revenues and high levels of competition in Australian automobile industry. The development
of proper advertising and promotional approaches in order to function in the industry in an
effective way. The advertising strategies need to include the unique features that are offered
by the products. The timeline which can be selected for proper implementation of the plan is
six months. The different activities that are thereby considered to be a part of the process
include,
Development of promotional strategies in order to reach the consumers.
Providing attractive discounts to the customers in order to attract them towards
the company.
Provide effective training to the employees in order serve the customers who
visit the stores.
Targeting the issue 2 – The transition based process that is implemented in Holden is
also an important issue that is being faced by the firm in the procedure of its operations. The
major goal of the company in this case is to change the perceptions of the consumers based
on Holden in an effective manner. The company thereby needs to implement the customer
first based policy in order to increase the levels of consumers. The company cannot only
concentrate on the market share. The development of effective perception is also considered
to be important part of the strategic plan. The time frame which has been selected for the
implementation of this plan is 12 months.
The training provided to employees based on the ways by which they can take
part in the transition.
The employees need to informed and further made an important part of the
operations that are related to the transition based process in Holden.

9STRATEGIC PLAN FOR HOLDEN
The transition process needs to be completed effectively with the help of the
employees and the methods by which they are able to offer their services to
the consumers.
Designing workshops for the employees.
Setting the financial and the strategic objectives that are consistent with chosen
strategy
Financial objectives
The total sales that were made by Holden in the year 2017 had amounted to
12,179 units. The sales have thereby increased by 57.7% from the year 2016.
The target that can be set by the company within the next 18 months is an
increase of 60% in the sales.
The company also aims at increasing its shares in the Australian market to at
least 8% which has fallen to 5.3% in the first part of 2018.
Strategic objectives
The main aim of Holden is to increase its shares in the Australian
automobile based industry as compared to its competitors including,
Toyota, Mazda, Mitsubishi, Nissan, Ford and many more.
The company also aims at increasing the rates of customer retention in an
active way with the support of services that are provided to them.
The development of the products will be improved within the next two
years.
The distribution based strategy will be enhanced in order to reach more
number of consumers within a shorter period of time.
Action plan developed for the future

10STRATEGIC PLAN FOR HOLDEN
Activity Estimated
outcomes
Real
outcomes
Who achieves
this job?
When is this job
outstanding?
Position
Development
of a
promotional
strategy
Increase in
the number
of
customers
Due Marketing
department
Within six months Not
completed
Developing
attractive
discount
packages for
the
customers
Developing
a loyal
customer
base
Due Marketing
department
Within six months Not
completed
Providing
training to
the
employees
based on
transition in
the
organization
Increasing
the skills of
the
employees
Due Human
resource
manager
Within 12 months Not
completed
Arranging
workshops
for the
employees in
order to train
them on a
practical
basis
Developing
the
services
that are
offered by
the
consumers
Due Human
resource
manager
Within 18 months Not
completed

11STRATEGIC PLAN FOR HOLDEN
9. Reference and Bibliography
Barros, I., Hernangómez, J. & Martin-Cruz, N. (2016). A theoretical model of strategic
management of family firms. A dynamic capabilities approach. Journal of family
business strategy, 7(3), pp.149-159.
Chienwittayakun, J. & Mankin, D. (2015). Strategic Management Planning Process (SMPP)
as an Organization Development Intervention (ODI) to Align Values, Goals and
Objectives and Improve Employee Teamwork, Engagement and Performance: A Case
Study of a Family-Owned Business in Thailand. ABAC ODI JOURNAL VISION.
ACTION. OUTCOME., 2(1).
Cosenz, F. & Noto, G. (2016). Applying system dynamics modelling to strategic
management: a literature review. Systems Research and Behavioral Science, 33(6),
pp.703-741.
Durand, R., Grant, R.M. & Madsen, T.L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Ethiraj, S.K., Gambardella, A. & Helfat, C.E. (2017). Reviews of strategic management
research. Strategic Management Journal, 38(1), pp.3-3.
Fratričová, J. & Rudy, J. (2015). Get Strategic Human Resource Management Really
Strategic: Strategic HRM in Practice. International Journal of Management
Cases, 17(4).
Gallus, J. & Frey, B.S. (2016). Awards: A strategic management perspective. Strategic
Management Journal, 37(8), pp.1699-1714.
Gans, J. & Ryall, M.D. (2017). Value capture theory: A strategic management
review. Strategic Management Journal, 38(1), pp.17-41.
Hanson, D., Hitt, M.A., Ireland, R.D. & Hoskisson, R.E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Hill, C.W., Jones, G.R. & Schilling, M.A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.

12STRATEGIC PLAN FOR HOLDEN
Hill, C.W., Jones, G.R. & Schilling, M.A. (2015). Strategic management theory. Cengage
Learning.
Holden.com.au (2018). [online] Available at: https://www.holden.com.au/ [Accessed 25 Sep.
2018].
James, S.D. (2016). Strategic bankruptcy: A stakeholder management perspective. Journal of
Business Research, 69(2), pp.492-499.
Johnsen, Å. (2015). Strategic management thinking and practice in the public sector: A
strategic planning for all seasons?. Financial Accountability & Management, 31(3),
pp.243-268.
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