Introduction
Kyoto Industries Ltd. Was founded in 1978 and it has now grown to become one of the leading manufacturing industries for air-conditioning systems in China. With the rising demand in the global market characterized by stiff competition, we continue to explore new market strategies towards attaining world-class status. We strive to combine advanced technology and proactive contribution to the resolution of global environmental problems in fields outside our core business to create innovative products for industry and to our clients
Kyoto Industries Ltd has developed a strategic management plan (SMP) which reflects our hopes and dreams for what we may accomplish in promoting strategic leadership and performance planning while prioritizing goals within the organization that address the major issues we expect to face over the next five years (David, 1989).
As one of its components, the SMP identifies the company’s key trends in the social and task environments which offer Threats and opportunities.
Basic operating principles on the strategic focus areas
Threats
- Global environmental problems
Employ intense use of diverse energy-conserving technologies that help in preserving the global environment. Invest in production machinery that reduces waste and carbon emissions while offering high Energy Efficiency and low cost. Launch the operation of state-of-the-art air conditioning and testing facility in China and Japan to leverage our energy conservations campaigns.
- Overcoming the effects of the global recession.
Introduce cost-reduction campaigns targeting operating expenses and fixed costs and allow flexible procurement systems to reflect changes in foreign exchange rates. Hold sales steady even as demand falls by raising our market share. Consolidate tasks outsourced to other companies and start to perform most of these tasks ourselves. Use strategic deployment system for our workforce for higher productivity.
- Strategies to overcome the global Competition
Adopt a new company’s theme “Challenge to change” and abandon our past behavior and mindset in efforts towards transforming the Tokyo industry with the speed that the global market demands from us. Introduce promotional campaigns for our new environmentally friendly products to regions traditionally dominated by our competitors (Lamb, 1984).
Opportunities
- Expansion of sales for markets and products
Roll out the research on fluorine refrigerants and commence the production for next-generation refrigerants for Europe and North America market and create it demand through global promotions and through the strengthening of business solutions including after-sales services and maintenance to increase sales.
- Increase in market capitalization
Increase the market share through market promotions campaigns in North America and Asia. The campaign will be tightly focused on environment-friendly and energy-conserving products.
- Global environmental problems
Develop products with minimal environmental impact by raising energy efficiency that does not deplete the ozone layer and with a negligible adverse effect on human health. Assess products at all design stages to ensure that they are energy efficient and meet the world Standards for assessment criteria.
- Acquisitions for alliances and Partnership.
Kyoto Industries Ltd is well known in Europe and we are ratifying requests for partnership from her two leading companies that take effect from March 2010.
- Traditional values and beliefs
Revitalize culture and art in China to open up new markets in all the major cities of China and actively represent new artistic trends by presenting exhibits focusing on modern art (Dudik, 2000).
References
David, F. (1989) Strategic Management, Columbus: Merrill Publishing Company.
Dudik, E. (2000) Strategic Renaissance, New York, Amacon.
Lamb, B.(1984) Competitive strategic management, Englewood Cliffs, NJ: Prentice-Hall.