Strategic Issues Assignment | Operations Report

Added on - Sep 2019

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Executive summary
The company Al Hail ORIX is taken for this report because I worked in the company for three
months to gain some experience and I am familiar with its operations and the activities. Further,
the report will discuss about the strategic issue which the company is facing in order to expand
its operations along with the background of the company. Then, the proposed changes will be
discussed in respect to the strategic issue. Furthermore, the section of the literature review will
help in giving knowledge about the concepts and the theories of strategic management to a great
extent. Then, the analysis of the company will be done by using various frameworks and the
recommendations will be made accordingly. Then, the strategic professional development
portfolio will be developed.
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Contents
Task 1-.................................................................................................................3
Introduction...............................................................................................................3
Challenges of the strategic business unit..........................................................................3
Proposed changes in the strategic business unit.................................................................4
Literature review........................................................................................................5
Company Analysis.......................................................................................................8
Porter’s five forces model..........................................................................................8
PESTEL analysis.....................................................................................................9
SWOT analysis......................................................................................................11
Findings..................................................................................................................13
Recommendations.....................................................................................................15
Conclusion...............................................................................................................18
REFERENCES.........................................................................................................19
Task 2- “Personal Development Plan”................................................................21
Introduction.............................................................................................................21
Evaluation style........................................................................................................22
Critical reflection......................................................................................................23
Professional development action plan............................................................................27
REFERENCES.........................................................................................................29
APPENDICES..........................................................................................................30
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Task 1-
Introduction
Al Hail ORIX Finance was founded in the year 2002, and the company has its operations in
Japan and Pakistan. In the year 2006, the Al Hail ORIX Finance was established in UAE in order
to expand and its operations and maximize the profitability by attaining sustainable competitive
edge for a longer period of time. The company is known as the leading investment organization
which has interest in different sectors such as healthcare, retail, education, financial services,
technology, etc. The company offers leasing diversified services of the finances in various
sectors. Al Hail ORIX Finance is led by an enthusiastic staff and the professionals with the
expertise in the lease finances. The company has succeeded in various sectors in UAE and has
achieved the strong presence in the market. The aim of the company is to diversify the economy
of UAE, and the vision of the company is to become the leading provider of the financial
services in the UAE by competing for various other institutions which provide financial services.
Further, the company has started offering financial services to the market of two-wheelers in
UAE since 2014, but it is facing various issues because of the problem in strategic business unit,
the company is not able to achieve the expected outcome.
Challenges of the strategic business unit
It has been observed that the market of two-wheelers provides the highest profits in the market of
finances. Further, these companies provide high IRR in order to maximize the margin of profits.
There is a great competition among the market of two wheeler and the financial institutions in
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order to get the high margins in the profit(Alhailorix.ae, 2017). The statistics of the traffic motor
department demonstrates that 79,087 two-wheelers were registered in the year 2016.
Moreover, considering the past three year's performance of the market of two-wheelers of Al
Hail ORIX Finance, the company shows great improvement. The statistics of the past three years
are-
YearTwo wheelers
Registered
NO of two
wheelers
Financed fromAl
Hail ORIX
Finance
Share of market
201492,81216,64516%
201580,67024,72328%
201679,02133,79944%
The expectation of the Al Hail ORIX Finance is to gain 65 percent of the share of the market in
order to attain sustainable competitive edge in this sector further to maximize the margin of the
profit. Therefore, the Al Hail ORIX Finance need an appropriate strategic planning in order to
maximize the market share in the two-wheeler market from 44 percent to 65 percent by the end
of the next year.
Proposed changes in the strategic business unit
Al Hail ORIX Finance should prepare the three-year plan with this strategic planning in order to
improve the market share in the market of the two wheelers and further achieve the expected
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share in the market i.e. 65 percent. During the first year, the Al Hail ORIX Finance should plan
to maximize the share from the 44 percent to 50 percent then in the second year the Al Hail
ORIX Finance should plan to increase the market share from 50 percent to 58 percent, and in the
final year, the share should increase to 65 percent. The activities should be monitored on the
regular basis by the department of marketing, and the corrective actions should be taken
accordingly.
Literature review
Strategic management and structure
According to the researchers (Afsar, B., 2011), the strategic management is being defined as the
combination of science and art which helps the organizations to lead towards the desirable
success. Further, the strategic management helps the organizations to make the long-term plans
in order to achieve the objectives and the goals along with the sustainability. The steps of the
effective strategic management are the formulation, implementation and the evaluation.
Furthermore, the strategic management helps in developing a competitive edge for a longer
period of time. The strategy is being defined as the scale of the action plan in relation to the
environment of the organization which helps in achieving the long-term goals and the objectives,
and also it helps in allocating the resources of the organization accordingly. The strategy of the
corporate is a lengthy procedure which helps in determining the purposes, objectives, plans and
the policies to achieve the desired goals of the organization. Some researchers stated that the
organizations require creating the strategies in order to provide the products and the services to
the customers to attain the sustainable competitive edge along with the maximization of
profitability (Dinnie, K., 2015). The structure of the strategy implies the relation of the power,
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relying on the acceptance of the managerial authority by the subordinates which is known as
legitimacy. The structure of the organization depends on the pattern of the groups and the
individuals. Also, the structure is the architecture of the positions, groups, relationships of
reporting along with the patterns of interactions in order to drive the desired objectives and the
goals.
Culture of the organization
According to the researchers, the culture of the organization is a dynamic aspect which is
surrounded by us. Further, it is being defined as the combination of behavior or attitude of
leadership, structure’s set, norms, rules and the routines. Culture is an essential aspect of the
organization's effective and the efficient performance which further helps in developing a strong
and effective culture for the employees. The symbolic and the cognitive are the main attributes of
the culture of the organization. The factor of cognition includes the assumptions, norms, beliefs
and the attitude and it further depends on the members or the employees of the organization.
Moreover, the systems of centralization have the restricted authorities which are delegated, and
various other authorities are being centered at an individual place, and the individual group or the
limited number of employees are not supposed to make any decisions. It has been observed that
the organizations believe in the decentralization in which the authority is being delegated to the
employees of the lower level, and they are supposed to follow the orders accordingly to achieve
the organizational goals and the objectives.
Tools of environmental analysis
According to the researchers, it has been recommended that the organizations should use the
environmental analysis tools in order to study the micro and the macro environment. Further, the
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organizations make use of such tools in order to avoid the risk and assure the health of the
organization for a longer period of time. The environment of the business is being changed by
the results of the analysis tools, and it further helps the organization in order to adapt those
changes effectively and efficiently. Furthermore, the SWOT Analysis helps in analyzing the
internal content of the organization i.e. strengths, weaknesses, opportunities and the threats. It is
the most common and the useful tool of analysis which helps in the effective planning of the
strategies of the organization. It has been observed that the analysis of the environment is very
essential for the effective and the efficient strategy planning. The analysis of SWOT helps in
identifying and mapping the driving factors which the organization requires to consider in order
to develop the strategies (Gundala, R.R. and Khawaja, H., 2014). Moreover, the PESTEL
analysis is used in order to scan and identify the elements of the macro environment of the
particular organization which includes economic, political, social, environmental, and
technological and the legal. According to the researchers, these factors are not controllable, and
the scanning helps in identifying that how these factors will impact the overall growth and the
functioning of the organization in order to attain a sustainable competitive edge for a longer
period of time. Also, the model of Porter's five forces helps to barrel with the competition, and it
helps in looking the scenario through a broad perspective (Rees, G. and Smith, P. eds., 2014).
Further, the model helps in determining the competitive plan of the strategy in order to lead the
organization towards success and attain the desirable goals and the objectives.
Strategic implementation and control
The strategic implementation is being defined as the strategy which is placed in action in order to
maximize the performance and the overall result of the organization. According to the
researchers (Karanja, G.W., 2015), there are various levels in the effective implementation of the
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strategy which are functional, corporate and business in order to execute the planning effectively.
Furthermore, it relies on the organization completely to improve the quality by positioning the
products and the services in the market’s distinct places by deciding the decrease or the increase
in the price, acquisitions and the mergers, etc. Further, the steps of the effective strategic
planning help in developing the objectives, devise the plan and the policies, encourage the
employees and the effective allocation of the resources (Ramadan, M.A., and Pilo, M.C., 2014).
The effective implementation of the strategy requires to have a culture of support which further
creates an effective structure of the organization, redirects the efforts of the market, prepare
budgets, develop the effective system of information and also develops the system of rewarding
in order to motivate the employees which will leads to attainment of the sustainable competitive
edge for a longer period of time. According to the researchers (Barney, J.B. and Griffin, R.W.,
2002), it is very important to have a strategic control by effectively using the system of
monitoring in order to make a comparison between the actual performance and the standardized
objectives and further unfold the deviations and take the corrective actions accordingly to lead
the organization towards success.
Company Analysis
Porter’s five forces model
Threat of rivals
According to the reports, there are 20 licensed banks which are commercial, 7 banks which are
specialized, and 34 companies which offer financial services in the UAE. So, it can be said that
there is high and the tough competition in this sector of UAE in order to expand the operations
and the services.
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