Strategic management is one of the main areas of the company, which should be planned and designed carefully, taking into consideration all possible variants of the market and economic development in the country and in the world. Able Corporation is a company that is focused on the manufacturing of a full range of portable electric power tools. The Able Corporation had some difficult times when no investment was provided, and it had cast away it in the development and shifted it from the markets. The strategic plans put the company in the leading positions again, but not for long. The competing companies borrowed the Able Corporation’s ideas and managed to outrun it in the country and world markets. The main task of the Director of Strategic Planning and Analysis is to consider the corporate, business, functional, and operating strategies of the competing companies and to create a better strategic plan in order to occupy the leading positions again.
The main competing companies in the manufacturing of a full range of portable electric power tools are as follows, Black and Decker, Makita, Bosch. These companies’ strategies are going to be analyzed separately, in order to investigate their potential and then compare their level of development. All these companies are American, but the markets they occupy are in different countries of the world, and the strategies they develop are aimed to meet the requirements of world consumers of portable electric power tools.
Black and Decker is a company that specializes in producing energy series, power tools, hand tools, outdoor tools, home products, levels, automotive, and cleaning tools. The company sells its products in over 100 countries. The company’s main aim is to support the reputation of the innovative and high-quality products producing company. The company is customer-led as it makes all possible to satisfy the customers and is ready to answer all their questions. The company cares about its employees as human resources are one of the main guarantees of successful company development. The site of the company is very informative, it is possible to find all necessary information about the product, to watch how to use it (what is very important, to read the instructions and to order the tool you want). (Black and Decker Company) Considering the annual report 2008, it is possible to see that the crisis in the country also influenced the company, but they still continue to develop. A new line of tools was presented in 2008, which says about the great potential of the country and desire to grow. The cost reduction plan is going to be inserted in 2008. It is important that the balance sheet of the company is stable and that there is no long-term debt till 2011. The company assures that “our approach to the market-leading brands, world-class innovation, understanding our end-users and broad global distribution —is still a winning strategy” (Annual report 2008, 2009-1).
The next company which deals with manufacturing of a full range of portable electric power tools is Makita Company. Considering its website, it could be understood that the company directs its strategy on producing and promoting new products. Anti-vibration technology is one of the main innovations which is being developed in Japan now. To promote its products, Makita organizes different fairs where new products can be seen, tried, and purchased. One of such tool fairs is planned for 17 – 18 September 2009.
Investing in the future, Makita pays too much attention to human resources, such as training of young specialists, sponsors skills competitions where new employees may watch on the professionalism of old ones. Makita’s strategy is also based on the fact that it cares about the environment. People became conscious about it is very important for them that the company they work with provides technologies that ether not harm or even protect the environment. The advertising strategy of the company is based on its belonging to the European Power Tool Association, which guarantees the high quality of the products of its members. Entering this association, the Makita Company guaranteed itself a good development which may be supported by the exchange of technical, economical, and environmental data among its members. Working in a team, every member of the association may count on help and support. This is very important for the developing company in the modern world. Too much attention is paid to the delivery of the tools to the customers, so the purchase is usually delivered on the next day, which is also a good strategic step, as modern people are in a constant hurry and do not want to wait too long. (Makita Company)
Bosch Company is a company of broad manufacturing, one of which fields of development is producing cordless electronic tools. The Board of management of the Bosch Company is very developed, every department has its manager who is responsible for a certain branch of the company. One of the main directions of Bosch Company’s strategy is the investment in service. The managerial staff of the company understands that providing good services to its clients, will be demanded and people will turn to it frequently. The local representation is going to be a guarantee high quality of service, reduction of costs, and increase of efficiency. Bosch Company “will be making sustained investments in employees, processes and innovative products in order to position itself as the service provider of choice within the packaging industry” (Bosch invests in service, p. 36). Bosch is a world-known brand, which products are in demand but the company continues to provide some new methods and techniques to be the best in its sphere. Bosch develops and increases the lines of the products it can promote to the market in order to give customers the opportunity to consume only its products and do not turn to the other mark.
So, it may be concluded that that Black and Decker, Makita, and Bosch are three companies with the same sphere of production (cordless electronic tools), but which provide absolutely different strategies. Makita Company directs its strategic development on new products, new innovations, and promoting these products to the world market as soon as possible. Black and Decker’s pay directs its strategy to human resources development and innovations, which may help to occupy leading positions in the world market. Bosch is a well-known brand that continues to develop and directs its strategic plan to the development of the service, which may allow to reduce costs and to lower prices for its products. As it may be seen, companies use different strategies and methodologies to enter the world markets and to settle there, and all of them work successfully.
References
- Annual report 2008. Black and Decker Company. Online.
- Black and Decker Company. Online.
- Bosch invests in service. Online.
- Makita Company. Online.