PROC7001: Finecraft Woodworks Strategic Plan Development and Analysis

This report provides a comprehensive strategic plan for Finecraft Woodworks Pvt Ltd, a wood manufacturing company based in New Zealand. The report begins with an introduction to the company, its organizational structure, and product offerings. It then delves into the company's mission, vision, and values, comparing them with those of other companies in the wood manufacturing and pharmaceutical industries. The core of the report focuses on the development of a strategic plan, including a detailed PESTEL analysis to assess the political, economic, social, technological, environmental, and legal factors impacting the business. The strategic plan itself outlines key initiatives such as positioning the company for quality, investing in research and development, selecting appropriate distribution channels, communicating its quality position, and installing new equipment. The report concludes by identifying critical factors that could impact the implementation of the strategic plan, such as weaker strategy, inefficient training, dearth of resources, absence of communication, and absence of scheduled reviews. The report utilizes tables and figures to present data, and it includes a list of references.

Running head: MANAGEMENT
Company Name: Finecraft Woodworks Pvt Ltd
Date:
Company Logo:

MANAGEMENT 1
Table of Contents
1. Introduction:.......................................................................................................................2
2. Statements..........................................................................................................................4
2.1 Introduction to Company Statements...........................................................................4
2.2 Mission.........................................................................................................................5
2.3 Vision...........................................................................................................................5
3. Strategic Plan Development...............................................................................................5
4. Strategic Plan.....................................................................................................................7
Factors Impacting on Implementation...................................................................................8
References:...........................................................................................................................10
Table 1: Key Arguments......................................................................................................12
APPENDICES......................................................................................................................13
Appendix 1: Organizational Chart....................................................................................13
Appendix 2: PESTEL Analysis........................................................................................14
Figures..................................................................................................................................16
Figure 1: Company Logo..................................................................................................16

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1. INTRODUCTION:
The report aims at providing at insight into a wood manufacturing company Finecraft
Woodworks Pvt Ltd that opened its doors in New Zealand and looks forward to become a member of
Wood Processors & Manufacturers Association of New Zealand (WMPA). The WPMA refers to a
governing body that acts on the behalf of the members particularly ensuring the manufacturing and
processing arm of the forest industry of New Zealand (NZ) to have a profile and collective voice in the
public and political arena (wpma.org.nz, 2020). The body has been found to serve the members through
collective interest and act as a single voice in determining the export earnings of New Zealand. The wood
industry of NZ has been found to capitalize on higher customer demand across globe. This is because, the
wood products of the country has been brand as sustainable, higher quality, innovative and certified. This
included both the traditional products as well as the wood based items. The traditional products included
the engineered and solid wood, paper, pulp, panel and packaging while some of new wood based products
included biochemical, fuel and plastic.
Finecraft Woodworks Pvt Ltd is a small wood manufacturing firm of New Zealand that employs
a minimum of 50 staffs and provides domestic market with high quality timber products manufactured
from limited native species derived from forests that are sustainably managed. The philosophy of the
company remains governed by the needs of customers. The manufacturing process of the firm put across
optimum turnaround. However, the strategy of the company lies in being the preferred provider of the
superior timber products.
As far as the products are concerned, the company manufactures various kinds of furniture from
timber profiles along with providing treated and primed moldings, door jambs, window reveals,
weatherboards and fascia. The company follows basic organizational structure that comprises of CEO,
production manager, marketing manager, workers and the sales people. However, the organizational chart
of the company is mentioned as follows:

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CEO
Production
Manager
Marketing
Manager
Processing/
Fabrication
Department
ales ffi erS O c
Employees Sales People
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CEO
Production
Manager
Marketing
Manager
Processing/
Fabrication
Department
ales ffi erS O c
Employees Sales People
Figure 1: Organizational Chart of Finecraft Woodworks
Source: By Author

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2. STATEMENTS
2.1 Introduction to Company Statements
The aim of vision statement is to put across the purpose and aspirations of a firm (Riggs
et al., 2019). The mission statement is known to communicate the purpose and the direction of a
firm to employees, customers and stakeholders (Kenny, 2014). On the other hand, the value
statement of the firm involves connecting and identifying with targeted customers and reminded
employees about goals and priorities (Edvardsson, Klaus, Payne and Frow 2014).
Critical Analysis of the Vision, Mission and the Value Statements of Wood Manufacturing
and Other Company
As far the vision statement is concerned, wood manufacturing firms like Atco Wood
Products focused on quality, innovation, productivity, maintenance of industry standards and
customer satisfaction. The mission statement guided the company to look forward towards the
fulfillment of customer needs through quality products and offer great value for money. Core
values of the company primarily focused on collaboration, trust, excellence, innovation, quality
and responsibility. A look at the vision, mission and the core values of a pharmaceutical industry,
Finar, also portrayed the mission revolving around satisfaction of the employees, stakeholders
and the customers through consistent manufacturing of higher quality products
(finarchemicals.com 2020). While like most other companies its vision lay in being the market
leader through satisfying expectations of customers. Finar’s core values concentrated on
integrity, commitment, customers, respect for individuals and societal contribution. The question
now lies in whether these companies are able to live up to its vision, mission and core values in
the long run.

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2.2 Mission
To fulfil customer needs by offering quality products that will ensure greater value for money.
2.3 Vision
To become a leading manufacturer of wooden products through commitment, dedication, focus
on innovation, quality, productivity and customer satisfaction.
2.4 Values
The core values of the company will focus on innovation, trust, collaboration, customer
satisfaction and quality.
3. STRATEGIC PLAN DEVELOPMENT
The strategic plan development would involve defining the mission, vision and values
statement which is already mentioned above along with undertaking a PESTEL analysis:
Factors Business Suitability
Political 1. The political stability in the country will
prove to be conducive for the business (Kelsey,
2015).
2. The trade barriers of the host country will
ensure protection to the wood manufacturing
firm
3. A higher level of tax would demotivate the
companies
4. The country also offers lower level of
minimum wage that results in higher levels of

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profit.
Economic 1. The higher rate of growth in GDP will
ensure a faster growth of Finecraft Woodworks
2. The higher rate of interest will result in
greater investments that would imply higher
level of growth
3. Stability in the currency and exchange rate
will act profitable for the wood manufacturing
firm (Bjørnland & Halvorsen, 2014)
4. The higher level of unemployment would
lower the cost of labor and act profitable for
the firm
Social 1. The distribution of class amongst population
acts as paramount importance to allow the
promotion of premium product (Wham et al.
2015).
2. The difference in the educational
background of the marketers and the target
market might make it difficult for the firm to
lose connection between the priorities and
interest of target market.
Technological 1. The technological breakthroughs and
developments will enable the firm to innovate
new products (Keisner, Raffo & Wunsch-
Vincent, 2015).
2. Implementation of new technology results in
higher profits which can further be
implemented into the research and

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development.
Environmental 1. The weather conditions has a significant
impact on the management of transportation of
both the finished products and resources.
2. The wood manufacturing industry should
contribute towards adopting environment
friendly measures in undertaking
manufacturing activities and should avoid
pollution quotas and fines (Aboelmaged,
2014).
Legal 1. Laws relating to the safety and health of the
workers will enable the firm in developing a
feeling of social responsibility towards other
individuals.
2. Laws relating to the delivery of quality
products will enable the company in ensuring
consumer safety.
4. STRATEGIC PLAN
The strategic plan for the company includes:
 To position themselves as one of best in terms of quality scale that will feature the
combination of the technology and the old fashioned woodwork for buyer who looks for
quality products irrespective of price.
 The firm will have to undertake Research and Development (R&D) in relation to the new
designs and technology. R&D has widely been attached to innovation. In absence of
R&D program the company will not be able to survive and might have to rely on the
others.

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 The company will need to make a choice for the appropriate distribution channels. This
will help the wood manufacturing firm in reducing its cost and focus on the core
competencies. It will not only enable a wider reach in terms of customers but also an
increasing level of efficient marketing. In other words, the manufacturing firm is able to
experience faster rate of growth.
 The firm will need to communicate its quality position within the market. This is vital for
improving the employee engagement. Therefore, continuous and effective
communication between the subordinates and the superiors with an organization and the
society at large is vital for defining the growth and success of the organization.
 The organization will need to install new equipment to be at par with the latest designs.
Installation of new equipment with help in saving time and money and produce the latest
designs effortlessly.
FACTORS IMPACTING ON IMPLEMENTATION
These factors include:
1. Weaker Strategy: The strategic initiative of becoming the best in terms of quality
seemed quite weak as it should have stated distinct timelines, clear milestones and the precise
roles of the employees. This might pose a challenge in the implementation of the proposed
strategy.
2. Inefficient Training: The strategic initiative in undertaking research and development
can only be materialized without appropriate training provided to the employees who are meant
for executing it. Employees needed to be provided with the right kind of training options that not
only saves money but also strengthens and teaches new skills (Hanif, 2013). This should also

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comprise of a follow up for ensuring that the employee get a chance in executing them in the day
to day work flows. This may be quite challenging for a small scale wood manufacturing firm and
might hinder the implementation of strategies.
3. Dearth of Resources: The direct cost associated with identifying the distribution
channels should be associated with the board members or the consultants who must include it as
a part of the plan, execute it and provide training along with considering the cost of the new
technology. This is mostly prohibitive for companies of smaller sizes and might act as a
challenge in implementing the strategy.
4. Absence of Communication: To ensure effective implementation of communication
strategy, it is vital to initiate a communication plan from top bottom. In absence of a proper
communication plan the organization may find it difficult to implement the communication plan.
This factor might pose a challenge to the effective implementation of the strategy
5. Absence of Scheduled Reviews: Installation of new equipment’s should undergo a
regular review process for judging the effectiveness. There must also be a plan to record the
performance with regular tweaking as a when required. This may be a challenging task on part of
a small scale wood manufacturing firm and might restrict it from its strategy implementation.