MGMT19128: Strategic Plan for Holden Motors - Term 2 2018 Assessment

This strategic plan for Holden Motors, prepared for MGMT19128, includes an overview of the company, an external audit using Porter's Five Forces, and an internal audit using Porter's Value Chain Analysis. It identifies key strategic issues such as declining revenues due to increased competition and challenges in the transition process. The plan proposes strategies to address these issues, including promotional activities, discounts, and employee training. Financial objectives focus on increasing sales and market share. An action plan outlines specific activities, expected results, and responsibilities. The report concludes with a reference list of sources used in the analysis. Desklib provides access to similar solved assignments and study resources.

STRATEGIC PLAN FOR
HOLDEN

OVERVIEW OF COMPANY
• Holden Motors is known as General
Motors Holden which is one of the
Automobile importers which is being
headquartered in Port Melbourne
• The company was founded in the year
1856 as manufacturer of the Saddles and
the company tried to move the different
operations to the automobile sector
• In the year 2005, the organization was
being renamed as General Motors Holden

EXTERNAL AUDIT
PORTERS FIVE FORCES ANALYSIS
• Competitive rivalry in the entire industry: It is strong in
nature in which the various organizations is considered as
essential part of the industry. The force aggressiveness is
depicted as the strong aspect which is required to be taken into
consideration
• Bargaining power of suppliers: It is weak in nature as the
suppliers can affect the different operations of the Holden in a
negative manner.
• Threats of substitute products: It is moderate in nature as
there is low availability of the substitute products in the entire
market (Schilke, 2014).
• Threats of new entrants: It is moderate in nature as there are
no such kind of new entrants in the market and this can affect
the overall profitability of firm.
• Bargaining power of the customers: It is moderate in nature as
the customers prefer to buy the similar kinds of products in the
market as a less price in comparison to the other competitors in
the market.

KEY SUCCESS FACTORS FOR
INDUSTRY
• Positive image which is being developed by
the different organizations which is operating
in the industry will be essential as the trust and
safety level is being formed by the Companies
Act
• Distribution based network is being developed
by the company which is essential of Australia
• The level of cash flow in the automobile
industry of Australia is essential in which the
company operates and this will be helpful in
becoming successful

INTERNAL AUDIT
PORTER’S VALUE CHAIN ANALYSIS OF HOLDEN
Primary Activities
• Inbound logistics is the factor which is related to production
line of Holden. The different suppliers play a major role in
the logistics which will be essential for the success
• Operations is the other factor which is inclusive of the
different kinds of raw materials which is converted into new
products which are being done in an effective manner
• Outbound Logistics is the factor in which process of
production of the different automobile related products are
essential which are conducted by Holden
• Marketing and Sales is considered successful for the
different operations of Holden and the company is required
to reach the different target markets with strategy related to
distribution
• Services is the last aspect which helps in managing the
different effective levels of the value which is being
provided to organization.

CONTD..
Support Activities
• Infrastructure is the first element which helps in
developing effective kind of infrastructure which
helps in analyzing the facilities related to production
• Human Resource Management is the second element
is required to include the different kinds of operating
areas which will be helpful in managing the various
operations
• Technology is inclusive of the different kinds of
innovative technologies which are being
manufactured in the industry. The level of safety
along with high level of technologies is essential in
nature (Saeidi et al., 2015)
• Procurement is responsible for the purchasing the
different kinds of services which is essential in
nature

CORE COMPETENCIES AND CAPABILITIES
• Brand value of the company is used
which helps in manufacturing the
different kinds of products and
providing the customers
• The huge distribution network is the
other aspect which helps in analyzing
the development of the company
(Scarborough, 2015)

IDENTIFICATION OF KEY STRATEGIC ISSUES
OF HOLDEN
Strategic Issue 1
• There is lack of revenues which is due to the huge
increase in competition in the entire automobile
industry.
• The customers are receiving huge other choices which is
affecting the profitability of the company and this is
affecting the overall brand image of the company
Holden
Strategic Issue 2
• The transition process of Holden is the other major issue
which can be a major importer or exporter. The
transition can affect the overall operating procedure of
the different organizations in an ineffective manner

STRATEGIC PLAN
Targeting Issue 1
• Proper development of the promotional kind of
strategies which will help in reaching the different
customers
• Furthermore, providing of attractive kind of discounts to
the different customers which will help in attracting the
different customers towards the company
• Proper and appropriate training is required to be
provided to the employees which will help them in
serving the customers
Targeting Issue 2
• The training provided to employees which will help in
transition of the employees
• Employees are required to be informed and these
operations are essential in Holden
• Designing different kinds of workshops for the different
employees

FINANCIAL OBJECTIVES OF HOLDEN
COMPANY
Financial Objectives
• The total sales of the company are required to be more than 12179 units in the year 2017and the sales
have tried to increase by more than 57.7% from the year 2016
• There will be increase in the shares within the next 18 months which will increase the sales to more than
60%
• The company is aiming to increase the shares in the market of Australia and there should be at least 8%
which will be fallen to more than 5.3% in first part of 2018.
Strategic Objectives
• The aim of Holden Company is increasing the shares in Australian automobile company in comparison
to the different competitors
• The distribution strategy will be enhanced which will reach the number of consumers within short span
of time
• The development of the different kinds of products which will be improved within the two years

Activity Expected results Actual results Who performs this task When is this task due? Status
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
ACTION PLAN

REFERENCE LIST
• Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson Higher Ed.
• Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
• Hill, C. W., Jones, G. R., & Schilling, M. A. (2015). Strategic management theory. Cengage Learning,.
• Madsen, T. L., & Walker, G. (2015). Modern competitive strategy. McGraw Hill.
• Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic management interface. Strategic entrepreneurship: Creating a new
mindset, 17-44.
• Robson, W. (2015). Strategic management and information systems. Pearson Higher Ed.
• Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
• Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance?
The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of business research, 68(2), 341-350.
• Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.
• Schilke, O. (2014). On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental
dynamism. Strategic management journal, 35(2), 179-203.