Strategic Planning and Management

Running head: STRATEGIC PLANNING AND MANAGEMENT
STRATEGIC PLANNING AND MANAGEMENT
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STRATEGIC PLANNING AND MANAGEMENT1
Problem/Opportunity facing the company:
When compared with international competitors, the company is facing some problems
such as lack of features. These markets are mainly dependent on the domestic Chinese market;
thus there are more sales but profit levels of the Volvo cars are less (Oberholzer-Gee, Shih & Dai
2019). Moreover, the company is unable to build inexpensive cars due to the existence of global
automobile giants. Additionally, there is a lack of advertising strategies and technical awareness
amongst middle-class people (Oberholzer-Gee, Shih & Dai 2019). However, there are some
opportunities for the company. One such opportunity is the successful and strong Geely-Volvo
partnership. Volvo buying more market shares is aiding its integration with present entities that
are involved in automobile businesses. Geely’s rising emphasis on New Energy Vehicles, global
expanding and diversification of the automobile market and buyers and the company is leading
to the concentrating on the “up-market” population segment.
External environment of the company:
The socio-cultural aspect includes the modifying perception of individuals towards
independent brands in China. Volvo has limited car speeds in a bid for zero deaths and the
company mainly focuses on the customer and vehicles safety. Smaller families and childless
couples are frequent buyers of the Volvo cars, and now people are more aware of the
environmental effects. Therefore, they are becoming more eco-friendly (Oberholzer-Gee, Shih &
Dai 2019). More eco-friendly technologies are being launched at an exponential rate. Fuel and
commodity prices are also rising day by day, and growth rates are flat in developed markets,
excellent prospects in emerging markets like Asia. In 2008, the economic recession hit the
automobile business massively. So many automobile companies have become bankrupt. When
the recession was over, people expected the recovery of the international economy. Still, the