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(PDF) Strategic Management Process

   

Added on  2021-02-19

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StrategicManagement

Table of ContentsINTRODUCTION...........................................................................................................................32. Mission, Vision and Objectives..........................................................................................32. Environmental analysis .....................................................................................................43. Capability analysis............................................................................................................104.Proposed Strategy..............................................................................................................185.Strategy Evaluation.............................................................................................................3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................5.........................................................................................................................................................8

INTRODUCTIONStrategic Management refers to process of planning, monitoring and analysing activitiesof a company which is required to attain goals and objectives (Ahlemann and et.al., 2012). Thisreport is based on IJM Plantation, Berhad which is a public trading company. Its headquarter issituated in Malaysia and IJM Corporation is its parent organisation. Along with this, respectivecompany was founded in 1983 as well as there are subsidiaries companies which are workingunder IJM Plantation such as Dynasive Enterprise Sdn. Bhd, Laserline Sdn. Bhd and many more.This report explains about mission, vision and objective of respective organisation. Along withthis, analysis of macro environment with the help of PESTEL analysis. Therefore, capabilityanalysis, industry examination and so on assist in formulation of effective strategic plan. Inaddition to this, respective company has also conducted resource audit as well as value chainanalysis which will help them to prepare their VRIO Model. Along with this, SAF analysis wasconducted on the basis of issues that was determined by TOWS model. This will aid organisationthat the strategy that they have chosen was suitable, acceptable as well as feasible.Strategic Challenge:According to the article published by Arthur Neslen (2018), EU institutions is defying byUK in order to push hike of palm oil imports which have been linked to deforestation, leakeddocument show (UK defies EU over Indonesian palm oil trade, leaked papers show, 2019).European parliament has ban EU biofuels with the use of palm oil which incurred loss of 150000orangutans in Indonesia since 2002.2. Mission, Vision and ObjectivesIJM Plantation Berhad along with its subsidiaries direct as an upstream agribusiness firmin Indonesia as well as Malaysia. This company is indulging in process of cultivating of oilpalms, processing of fruit brunches into crude palm oil any many more. Mission, vision as wellas objectives of respective company is described below:MissionTo maintain highest standards of performance in plantation and agribusinessVisionTo be a leading regional plantation group(Annual Report For The Financial Year Ended 31 March 2018, 2019)

Evaluation of Statements:Mission as well as vision statements of an organisation is necessary to clarity to thestakeholders. Analysis of the mission is based on criteria of clarity, focus and motivation. It isexplained as follows:ClarityMission of respective organisation is specific and clear which means inorder to maintain performance standard of plantation as well as agribusiness.FocusMission of IJM plantation is to concentrate on its core business in plantationsector as well as agribusiness with vision to become the leading regionalplantation group. The main motive of this two statement is to enhancemarket position and aware people about business and its product andservices. MotivationVision as well as mission statement are market oriented as it does not consistany benefit of staff. As the mission statement describes about deliveringcustomers value of organisation. The vision statement states about inspiringand motivating workers in order to accomplish goals and objectives ofcompany. 2. Environmental analysis Macro trend analysisMacro trend refers to external environment such as political, economic, social and otherfactors which affect the functioning as well as operations of an organisation. In context of IJMPlantation Berhad company in Malaysia are affected by these macro factors:PESTELDescriptionPoliticalThese political changes have a great impact on the industries inMalaysia. Though this country is free form corruption but has hightaxes and subsidies of government. But to operate business in Malaysia is effective. Industries likeplantation can operate their business effectively.

Illustration 1: Malaysia Corruption Index(Source: Malaysia Corruption Index, 2019)

EconomicIt means change in interest rates, exchange rate and many more.Economic factor is favourable in Malaysia (Austin and Pinkleton,2015). It is because this country provides economic opportunities andis very popular location for international trade.Along with this, business operating in this country can easily performtheir transaction across the world. Therefore, economic factor forplantation industry is favourable.SocialMalaysia has a multi-cultural society and support immoderate of theirreligion (Cartwright and Cooper, 2012). In this country, business must operate their business in ethical mannerand also take care of the needs as well as preferences of their societies,communities and many more. Illustration 2: Malaysia GDP Annual Growth Rate(Source:Malaysia GDP Annual Growth Rate, 2019)

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