ASSIGNMENT ON HUMAN RESOURCE MANAGEMENT INSTITUTE

H U M A N R E S O U R C E M A N A G E M E N T
I N S T I T U T E ( H R M I )
P E A R S O N B T E C L E V E L 0 5 H N D I N
B U S I N E S S M A N A G E M E N T
STRATEGIC
PLAN
U N I T 3 2 -B U S I NE S S
S T R AT E G Y
STUDENT NAME: DION DEXTER REGINALD
STUDENT ID: 21/HNDENG/0013
1

TA B LE O F C O N T EN TS
STRATEGIC PLANNING 3
SOFTLOGIC FINANCE (PLC) 6
STRATEGIC PLAN FOR SOFTLOGIC FINANCE PLC 9
SWOT ANALYSIS 10
PORTER’S FIVE FORCES FRAMEWORK 11
RECOMMENDATION 17
CONCLUSION 21
REFERENCES 22
STRATEGIC PLAN - Unit 32 - Business Strategy
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STRATEGIC
PLANNING
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
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S T R AT E G I C P L A N NI NG
Strategic planning is the art of creating
specific business strategies,
implementing them, and evaluating the
results of executing the plan, regarding a
company’s overall long-term goals or
desires. (Mclen, 2022)
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
Strategic planning is the art of creating specific
business strategies, implementing them, and
evaluating the results of executing the plan,
regarding a company’s overall long-term goals or
desires. It is a concept that focuses on integrating
various departments (such as accounting and
finance, marketing, and human resources) within a
company to accomplish its strategic goals. The term
strategic planning is essentially synonymous with
strategic management. (Mclen, 2022)
4

• Helps formulate better strategies
using a logical, systematic
approach
• Enhanced communication
between employers and
employees
• Empowers individuals working
in the organization(Bigelow,
2020)
B E NE FI TS OF S T R AT EGI C P L A N
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
By Strategic Plans could be beneficial for the
organization because of the following points.
• Helps formulate better strategies using a
logical, systematic approach
This is often the most important benefit. Some
studies show that the strategic planning
process itself makes a significant contribution
to improving a company’s overall performance,
regardless of the success of a specific strategy.
• Enhanced communication between
employers and employees
Communication is crucial to the success of the
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strategic planning process. It is initiated
through participation and dialogue among the
managers and employees, which shows their
commitment to achieving organizational goals.
• Empowers individuals working in the
organization
The increased dialogue and communication
across all stages of the process strengthens
employees’ sense of effectiveness and
importance in the company’s overall success.
(Bigelow, 2020)
5

S OF T LOGI C
F I NANCE ( P LC )
ENDURE TO CONQUER
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
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I NT RODUCT ION
S OF T LOGI C
F I NANCE P LC
• SOFTLOGIC FINANCE PLC IS A LICENSED FINANCE
COMPANY. THE COMPANY IS A PREMIER FINANCIAL
POWERHOUSE ENGAGED IN THE GRANTING OF
SME WORKING CAPITAL LOANS, BUSINESS LOANS,
LEASE AND HIRE PURCHASE FACILITIES, GROUP
PERSONAL LOANS, CONSUMER LOANS, GOLD
LOANS, OTHER CREDIT FACILITIES AND THE
ACCEPTANCE OF FIXED DEPOSITS AND THE
OPERATION OF SAVINGS ACCOUNTS.
Figure 1 Softlofic Finance Pic Source: (Kumarathunga, 2018)
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
Introduction Softlogic Finance PLC
(vision/mission/objectives)
Softlogic Finance PLC is a licensed finance company.
The company is a premier financial powerhouse
engaged in the granting of SME working capital
loans, business loans, lease and hire purchase
facilities, group personal loans, consumer loans,
gold loans, other credit facilities and the acceptance
of fixed deposits and the operation of savings
accounts. It operates through the following
segments Leasing and Hire Purchases, Vehicle
Loans, Gold Loans, Other Loans & Receivables, and
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Other. (Senaviratne, 2002)
Incorporated in 1999, Softlogic Finance PLC has
been a key player in the financial realm of Sri
Lanka. With the presence felt in 36 locations on the
island, this is a financial institute based on building
lasting relationships with the customers. (Softlogic
Finance PLC, 2021)
While Softlogic Finance’s products are designed to
connect with the customers with more
opportunities, its service ensures that they connect
with the hearts and lives of our customers.
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I NT RODUCT ION S OF T LOGI C
F I NANCE P LC
VISION: TO BE THE PREFERRED NON-BANKING FINANCIAL INSTITUTION IN SRI LANKA.
MISSION:TO STRIVE TO DELIGHT OUR CUSTOMERS THROUGH ACCESSIBLE TAILOR-MADE FINANCIAL SOLUTIONS, SERVED
THROUGH OUR WELL VERSATILE ACCOMPLISHED, AND HIGHLY MOTIVATED TEAM, COMMITTED TO EXCELLENCE.
• TO CREATE SHAREHOLDER VALUE THROUGH STABILITY AND ABOVE-AVERAGE RETURNS.
• TO SUSTAIN OUR CONTINUED COMMITMENT TO BEING A GOOD CORPORATE CITIZEN AND MAKE A POSITIVE CONTRIBUTION
TO THE COMMUNITY AND THE ENVIRONMENT. (SOFTLOGIC FINANCE PLC, 2021)
VALUES:1. PERFORMANCE
2. INNOVATION
3. INTEGRITY: WE ACT FAIRLY AND HONESTLY. WE BELIEVE IN ETHICS AND TRANSPARENCY IN ALL OUR DEALINGS.
4. HUMAN CAPITAL
5. SUCCESS
6. CORPORATE RESPONSIBILITY (SOFTLOGIC FINANCE PLC, 2021)
Vision: To be the Preferred Non-Banking financial
institution in Sri Lanka.
Mission:
• To strive to delight our customers through
accessible tailor-made financial solutions, served
through our well versatile accomplished, and
highly motivated team, committed to excellence.
• To create shareholder value through stability and
above-average returns.
• To sustain our continued commitment to being a
good corporate citizen and make a positive
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contribution to the community and the
environment. (Softlogic Finance PLC, 2021)
Values:
1. PERFORMANCE: We are committed to a result-
oriented culture. We place customers at the
center of our activities, and we hold ourselves
responsible to deliver what we promise in
keeping with customer needs.
1. INNOVATION: We constantly challenge
conventional wisdom and develop new solutions
and bring simplicity and accessibility to
customers.
1. INTEGRITY: We act fairly and honestly. We
believe in ethics and transparency in all our
dealings.
1. HUMAN CAPITAL: We benefit from the diversity
of our business and our people by working
together to achieve success. We treat all our
staff with respect and dignity, provide
opportunities for their career enhancement and
reward them for good performance.
1. SUCCESS: We always strive to be the best in
our business and possess a will to win.
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1. CORPORATE RESPONSIBILITY: We care for
the community and the environment, taking
responsibility to protect them. We are good
corporate citizens and support worthy causes
and CSR projects. (Softlogic Finance PLC,
2021)
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STRATEGIC PLAN
FOR SOFTLOGIC FINANCE PLC
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
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S WOT A NA LYSIS
A SWOT ANALYSIS IS A COMPILATION OF YOUR COMPANY’S STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS.
(SCHOOLEY, 2022)
S T R A T E G I C P L A N F O R T H E S O F T L O G I C F I N A N C E P L C
Strengths
Credit Ratings
Innovative services: SME loans
Credibility & public trust
Weaknesses
Less parking spaces in branches
Lack of focus on suburb areas
Underperforming branches
Opportunities
New markets in North and East after the
war
Emerging new premier class vehicle
importers and primary agents
New development in transportation
area(highway express bus service)
Threats
Volatile interest rate and
devaluation of SLR
Frequent changes in impose vat/tax
structure on vehicles
Many small financial companies/
leasing companies are been started
during the recent past
ICT Changes
A SWOT analysis is a compilation of your company’s
strengths, weaknesses, opportunities and threats. The
primary objective of a SWOT analysis is to help
organizations develop a full awareness of all the factors
involved in making a business decision. (Schooley, 2022)
Strengths
Credit Ratings
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Innovative services: SME loans
Credibility & public trust
Government guaranteed deposits
Flexible management & advanced
technology
Superior service & door-step-service
Customer centric service
Proper training & development
system
Customer loyalty & Pursuit of quality
Transparent structures, high degree
of flexibility and fast decisions
Superior service & door step service
Customer loyalty & Pursuit of quality
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Customer-centric service
Weaknesses
• Less parking spaces in branches
• Lack of focus on suburb areas
• Underperforming branches
• Less promotion activities
• Less awareness: Though the softlogic group is well
known people are less aware about the softlogic
finance High staff costs due to high levels of
employee qualification in terms of academic
expertise and experience
Opportunities
• New markets in North and East after the war
• Emerging new premier class vehicle importers and
primary agents
• New development in transportation area(highway
express bus service)
• Equipment and project financing area is developing
with the new economic in infrastructure and service
industries
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• Poverty reduction and increase in income of middle
class
• Increase in investments on stock market
Threats
• Volatile interest rate and devaluation of SLR
• Frequent changes in impose vat/tax structure on
vehicles
• Many small financial companies/ leasing companies
are been started during the recent past
• ICT Changes
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P O R T ER’ S F I V E F O RC ES
F R A ME WO RK Porter's Five Forces is a model that identifies and
analyzes five competitive forces that shape every
industry and helps determine an industry's weaknesses
and strengths. (SCOTT, 2020)
Porter's five forces are:
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
S T R A T E G I C P L A N F O R T H E S O F T L O G I C F I N A N C E P L C
Competetive
Rivalries
Potential of
new entrants
into the
industry
Power of
Customers
Threat of
Substitutes
Power of
Suppliers
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
Strategic Plan for the Softlogic Finance PLC
Porter’s Five Forces Framework
Porter's Five Forces is a model that identifies and
analyzes five competitive forces that shape every
industry and helps determine an industry's
weaknesses and strengths. Five Forces analysis is
frequently used to identify an industry's structure to
determine corporate strategy. Porter's model can be
applied to any segment of the economy to
understand the level of competition within the
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industry and enhance a company's long-term
profitability. The Five Forces model is named after
Harvard Business School professor, Michael E.
Porter. (SCOTT, 2020)
Porter's five forces are:
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
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• Experience and
learning
• Differentiation and
market penetration
cost
• Government
restrictions
1 . T H R E AT O F E N T RY
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G YP O R T E R ’ S F I V E F O R C E S F R A M E W O R K
1. Threat of Entry
The barriers are high so the threat of new
entrants is low.
• Experience and learning
Softlogic company is operating almost 18
years and they have a high experience and
learning culture.
• Differentiation and market penetration cost
Softlogic finance PLC company has 31
branches
• Government restrictions
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• High initial investments
• Foreign banking entries
• Skilled employees
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• The threat of
substitutes is high
• Customer service, High
customer
responsiveness
2 . T H R E AT O F S U B S TI TU TES
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G YP O R T E R ’ S F I V E F O R C E S F R A M E W O R K
1. Threat of substitutes
The threat of substitutes is high
Customer service, High customer
responsiveness
There are around 40 substitute service
providers in Sri Lanka. Main
competitors are,
ValibalFinance PLC
People leasing PLC
Commercial leasing PLC
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Central finance PLC
These services are substitute to each other and
the customers can switch
to alternatives. So the Softlogic PLC is
differentiated. Their service from the interest
rate
that they have given and benefits from
innovations that improves the customer
satisfaction.
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• Customers expect high-
quality services & the
high return on their
investments
• Switching cost of
customers is low
• Buyers are concentrated
3 . T H E B A R G A I N I N G P O W E R O F B U Y E R S
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G YP O R T E R ’ S F I V E F O R C E S F R A M E W O R K
This Photo by Unknown Author is licensed under CC BY
1. The bargaining power of buyers
The bargaining power of customers is high
• Customers expect high quality services & high
return on their investments
• Switching cost of customers is low
• Buyers are concentrated
• Availability of existing substitutes
• The technology
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The bargaining power of
suppliers is low
Customer deposits
• Loans from financial
institutions
• Mortgage loans
• Mortgage securities
4 . T H E B A R G A I N I N G P O W E R O F
S U P P L I E R S
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G YP O R T E R ’ S F I V E F O R C E S F R A M E W O R K
This Photo by Unknown Author is licensed under CC BY-SA
1. The bargaining power of suppliers
The bargaining power of suppliers is low
Customer deposits
Loans from financial institutions
Mortgage loans
Mortgage securities
Factors affecting bargaining power
Offshore operations
Economic factors
Providers of funds
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The bargaining power of
suppliers is low
Customer deposits
• Loans from financial
institutions
• Mortgage loans
• Mortgage securities
5 . R I V A L R Y B E T W E E N C O M P E T I T O R S
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G YP O R T E R ’ S F I V E F O R C E S F R A M E W O R K
1. Rivalry between competitors
The competitive rivalry is Low
Barriers to exit are very high
Competitors have similar strategies
Less price competition
High fixed costs
Low level of differentiation
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Recommended
Strategy
Conduct savings
promotion
campaigns,
motivate their
employees to
achieve their
targets and give
better training and
development to
enhance customer
service
Why
To overcome the
issue of
underperforming
g branches and
less promotions
activities
PROS
Encourage people
to save in improve
the deposits
Higher revenue
from each branch
CONS
Cost of marketing
campaigns Cost of
T&D programs
R E C O MM EN DATI ON
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
Recommended Strategy
Conduct savings promotion campaigns, motivate their
employees to achieve their targets and give better
training and development to enhance customer service
Why
To overcome the issue of underperformin g branches
and less promotions activities
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Pros
Encourage people to save in improve the deposits Higher
revenue from each branch
Cons
Cost of marketing campaigns Cost of T&D programs
17

Recommended
Strategy
Introduce new
personal loans
targeting lower-
level income
earners like
teachers and
apparel workers
Why
Banks and other
financial institutes
request many
documents as well
as it is more
difficult for them
to get a loan as
they have lower
income
PROS
Increase the
customer base.
The company can
ensure to get back
the money by
directly cutting off
the instalment
from the
burrowers’ salary.
CONS
There is a risk
associated with
the cut of the
installment from
apparel workers’
salaries because
they might leave
the job.
R E C O MM EN DATI ON
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
Recommended Strategy
Introduce new personal loans targeting lower-level
income earners like teachers and apparel workers
Why
Banks and other financial institutes request many
documents as well as it is more difficult for them to get a
loan as they have lower income
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Pros
Increase the customer base. The company can ensure to
get back the money by directly cutting off the instalment
from the burrowers’ salary.
Cons
There is a risk associated with the cut of the installment
from apparel workers’ salaries because they might leave
the job.
18

Recommended
Strategy
Telemarketing
through social
media where there
massive
communication at
no cost.
Introduction of
other banking
services using
internet
technology.
Why
To promote the
brand and the
significant services
among the people
Only limited
Financial
institutions have
provided internet
banking
PROS
No cost incurring
to promote
More easy for
customers Attract
more customers
CONS
Only can address
to a limited
audience
R E C O MM EN DATI ON
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
Recommended Strategy
Telemarketing through social media where there massive
communication at no cost.
Introduction of other banking services using internet
technology.
Why
To promote the brand and the significant services among
the people
19

Only limited Financial institutions have provided internet
banking
Pros
No cost incurring to promote
More easy for customers Attract more customers
Cons
Only can address to a limited audience
19

Recommended
Strategy
Conduct CSR
projects
Why
To how they are
socially
responsible and to
attract more
clients
PROS
Built the good
reputation and
attract the
customers
CONS
Time consuming
and money
consuming
R E C O MM EN DATI ON
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
Recommended Strategy
Conduct CSR projects
Why
To how they are socially responsible and to attract more
clients
Pros
Built the good reputation and attract the customers
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Cons
Time consuming and money consuming
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C O N C LUS I ON
In conclusion, Softlogic Finance PLC is
operating in a highly competitive industry.
There are lots of financial institutions that
give differentiated products and services to
attract and retain their customers. According
to the analysis, Softlogic also uses both
intended and emergent strategies to make
more value to the customers and gain
competitive advantages.
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
In conclusion, Softlogic Finance PLC is operating in a highly competitive industry.
There are lots of financial institutions that give differentiated products and services to
attract and retain their customers. According to the analysis, Softlogic also uses both
intended and emergent strategies to make more value to the customers and gain
competitive advantages.
21

R E F E R EN C ES
Bigelow, S. J., 2020. strategic planning. [Online]
Available at: https://www.tec htarget.com/searc hcio/definition/strategic-planning
[Accessed 14 07 2022].
Mclen, J., 2022. Strategic Planning. [Online]
Available at: https://corporatefinanc einstitute.com/resources/knowledge/strategy/strategic -planning/
[Accessed 14 07 2022].
SCOTT, G., 2020. Porter's 5 Forces. [Online]
Available at: https://www.investopedia.com/terms/p/porter.asp
[Accessed 18 07 2022].
Softlogic Finance PLC, 2021. About Us. [Online]
Available at: https://softlogicfinance.lk/about-us/
[Accessed 18 07 2022].
Softlogic Finance PLC, 2021. Annual Report 2021, Colombo: Softlogic Finance PLC.
Schooley, S., 2022. SWOT Analysis: What It Is and When to Use It. [Online]
Available at: https://www.businessnewsdaily.com/4245-swot-analysis.html
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
References
Bigelow, S. J., 2020. strategic planning. [Online]
Available at:
https://www.techtarget.com/searchcio/definition/strategic
-planning
[Accessed 14 07 2022].
Mclen, J., 2022. Strategic Planning. [Online]
Available at:
https://corporatefinanceinstitute.com/resources/knowledg
e/strategy/strategic-planning/
[Accessed 14 07 2022].
SCOTT, G., 2020. Porter's 5 Forces. [Online]
22

Available at:
https://www.investopedia.com/terms/p/porter.asp
[Accessed 18 07 2022].
Softlogic Finance PLC, 2021. About Us. [Online]
Available at: https://softlogicfinance.lk/about-us/
[Accessed 18 07 2022].
Softlogic Finance PLC, 2021. Annual Report 2021,
Colombo: Softlogic Finance PLC.
22

T HA NK YOU
Student Name :
Dion Dexter Reginald
Student ID : 21/HNDENG/0013
S T R A T E G I C P L A N U N I T 3 2 - B U S I N E S S S T R A T E G Y
23