Strategic Plan for Edwabo Co. Ltd.

In this easy I will look at the analysis of the micro-environment (internal) and macroenvironment (external) of Edwabo Company Limited. Edwabo Company Limited designs,

develops and markets advanced systems for specialist data capture and transaction processing management. The outcome of the analysis will be used to develop a strategic plan and recommend appropriate programmes for the implementation of the strategic plan.

The micro-environment refers to the forces within the company¶s intermediate environment that could affect its ability to serve the customers. Some of the forces include; employees, customers, competition, structures, suppliers etc. These forces are further discussed below: y Employees: these refer to the number of staff in the organization, their skills and knowledge, their qualification and experience, listening skills and communication skills, presentation skills. y Customers: customer refers to all those who buy the output of Edwabo Company Limited. They include individual customers, business customers, and the trade,

institutional and governmental bodies. They determine the success or failure of any business. For Edwabo Co. Ltd. to be successful, it must constantly monitor the changing needs in the environment and provide products and services that will meet their needs. y Competition: competition is becoming more and more influential in a company¶s approach towards marketing. Edwabo Co. Ltd. has to find out who their competitors are and how strong they are, the characteristics of the market they compete in and what are the likely strategies and responses of competitors to Edwabo Co. Ltd. strategies. y Structures: structure refers to the flow of information within the organization. Whether top-down or bottom-up approach is use. How effective/efficient does information flow within the organization. y Suppliers: suppliers are firms and individuals who provide the resources needed by Edwabo Co. Ltd. in order to deliver value to customers. They may include those who provide raw materials, component parts or finished goods to Edwabo Co. Ltd. Edwabo Co. Ltd. needs to build sound credit reputation with its suppliers to guarantee future supplies. It must meet it credit obligations when they fall due. y Marketing Intermediaries: these refer to firms that will help Edwabo Co. Ltd. to promote, sell and distribute its goods to the final buyers; they include physical

rising number of educated people. Ltd. . products and the availability and willingness of individuals to work. changing age structure of a population. must do more than just optimize its own performance. the population has been ageing. y Economic factors: These include interest rates. taxation changes. distribution firms.a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency. for example. It must partner effectively with suppliers and marketing intermediaries to optimize the performance of the entire system. marketing-service agencies and financial intermediaries. Ltd.higher interest rates may deter investment because it costs more to borrow. the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. new laws. inflation and exchange rates. In its quest to create satisfying customer relationships.inflation may provoke higher wage demands from employees and raise costs. . Ltd. To help analyze these factors it has been categorized by using the PESTEL model. overall value delivery system. For example: . trade barriers. Socio-cultural factors include population size and growth trends. increasing diversity etc. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce. In Ghana. . Ltd. economic growth. . marketing intermediaries form an important component of Edwabo Co. There are many factors in the macro-environment that will affect the decisions of management of Edwabo Co. Like suppliers. y Socio-cultural factors: Changes in social trends can impact on the demand for Edwabo Co. demographic change and government policy changes are all examples of macro change. Edwabo Co. the changing family. Ltd.Strategic Plan for Edwabo Co. Tax changes. This classification distinguishes between: y Political factors: These refer to government policy such as the degree of intervention in the economy. This has increased the costs for firms who are committed to pension payments for their employees because their staff is living longer.higher national income growth may boost demand for a firm's products.

if new systems and procedures have to be developed) and demand (e. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for Edwabo Co. They cover issues such as training. Ltd. these are designed to protect customers against unfair practices such as misleading descriptions of the product y competition laws. Online shopping. do business as a result of better technology. computer games. y Environmental factors: environmental factors involve the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Ltd. dismissal. Different categories of law include: y consumer laws. to consider. reporting accidents and the appropriate provision of safety equipment . these cover areas such as redundancy. increased pollution.Strategic Plan for Edwabo Co. In recent years in Ghana there have been many significant legal changes that have affected firms' behaviour. y Legal factors: these are related to the legal environment in which firms operate. Legal changes can affect a firm's costs (e. The introduction of age discrimination and disability discrimination legislation. bar coding and computer aided design are all improvements to the way Edwabo Co. Ltd.g. providing the products. They aim to protect employees against the abuse of power by managers y health and safety legislation. an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organization¶s actions. if the law affects the likelihood of customers buying the good or using the service). y Technological factors: new technologies create new products and new processes. MP3 players. Ltd. online gambling and high definition TVs are all new markets created by technological advances. improve quality and lead to innovation. working hours and minimum wages. These developments can benefit consumers as well as Edwabo Co.g. Environmental factors include the weather and climate change. and government intervention in natural resource management. shortages of raw materials. these laws are aimed at ensuring the workplace is as safe as is reasonably practical. Technology can reduce costs. increased cost of energy. these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power y employment laws.

values and objectives. and sets out its proposed strategies and goals. weaknesses. Threats and Opportunities. Ltd.: Strengths: y y y y Weaknesses: y R and D almost complete Basis for strong management team Key first major customer acquired Initial product can evolve into range of offerings Over dependent on borrowings Insufficient cash resources y y Board of Directors is too narrow Lack of awareness amongst prospective customers y Located near a major centre of excellence y y Need to relocate to larger premises Absence of strong sales/marketing expertise y y Very focused management/staff Well-rounded and managed business y y Overdependence on few key staff Emerging new technologies may move market in new directions Threats: y Opportunities: y Major player may enter targeted market segment Market segment is poised for rapid growth y New technology may make products obsolescent y y Export markets offer great potential Distribution channels seeking new products y Economic slowdown could reduce demand y Scope to diversify into related market segments y y y Dollar/Pound may move against ¢ Market may become price sensitive Market segment's growth could attract major competition . Weaknesses. This outcome is therefore used to sets out a strategic plan for Edwabo Co. threats and opportunities derived from the environmental analysis for Edwabo Co. mission. threats and opportunities. It reviews strengths.'s vision. Ltd. Threats & Opportunities This strategic plan addresses the following key strengths. presents a series of statements relating to Edwabo Co. Ltd. Strengths. weaknesses.Strategic Plan for Edwabo Co. Weakness. Ltd. The outcome of the analysis has been categorized into Strengths.

suppliers. is defined as: Edwabo designs. It will have annualized sales of GH¢200. develops and markets advanced systems for specialist data capture and transaction processing management.Strategic Plan for Edwabo Co. Business Objectives Longer term business objectives of Edwabo Co.000 and be profitable. Vision The promoters' vision of Edwabo Co. in 3-4 year's time is: Edwabo will be operating from a 1000 sq. Edwabo's systems are distinguished from competition by their sophisticated interfaces. Edwabo fosters a climate which encourages innovation and diligence amongst staff and rewards accordingly. ft. medium and large-sized companies within the system development industries for a range of specialist applications. environment and the community.'s development will include the following: Edwabo operates in accordance with the highest standards in all relationships with customers. marketing. Ltd. These web-based systems work with specialist hardware supplied by major integrators. unit near 2000 Town. Sales are made directly and through major distributors/OEMs in the home market and overseas. Edwabo will continue to expand through organic growth and acquisitions in related technology/market segments. scalability and ease of modification and are extensively patented. Ltd. . Edwabo will offer 900 core products and provide addedvalue services to a large customer base throughout the 150 market segments and in 15 countries overseas. support and administration. Ltd. It will employ 200 people mainly engaged in R and D. They are sold to small. are summarized as: y To expand the business aggressively and offer above-average returns to shareholders. Edwabo's offerings will be technically advanced and offer many clear-cut advantages and improvements over competitors' possible offerings. It will have recently received mezzanine finance prior to a public offering. Ltd. Mission Statement The central purpose and role of Edwabo Co. Corporate Values The corporate values governing Edwabo Co. Ltd.

Ltd. Seek new market segments/applications for products. Pursue strategic alliances with complementary players.Strategic Plan for Edwabo Co. 6. Major Goals The following key targets will be achieved by Edwabo Co. Expand senior management team in sales/marketing. Appoint advisers for intellectual property and finance. 8. Strengthen web presence and promote. Recruit non-executive directors. Extend links with key technology centres. 4. Ltd. Key Strategies The following critical strategies will be pursued by Edwabo Co. 2. innovative systems company within the 150 market segments. 5. 6. Start participating in trade shows and missions. Commission assessments of key markets. over the next 3-4 years: y y y y y y y Achieve sales of GH¢150 million by 2015 Report annualized profits of GH¢5 million in 2012 Secure 75% of the 150 market segment by 2013 Become largest supplier of systems in 35 countries within 10 years Undertake an IPO by 2015 Employ 250 people including 25% technically qualified by 2015 Have sales offices or agents in 35 key markets before 2015 . Seek new market segments/applications for products The following important strategies will also be followed: 1. 4. Strengthen human resources function and introduce share options for staff. y To become the leading. Raise additional venture capital. 3. 7. 7. 5. Ltd.: 1. Accelerate product launches by strengthening R and D team. 3. Locate new premises in the business city center. 2. Develop overseas market entry plans.

Ltd. 3. Strategic Action Programs The following strategic action programs will be implemented: 1. TechDir: Review R and D resources and scope for technical alliances . 2.Strategic Plan for Edwabo Co. CFO: Recruit Marketing Director and other key staff for marketing/sales and HR Director within 3-4 months. CEO: Prepare comprehensive business plan and develop contacts to raise VC within 6-9 months. Board: Expand BoD to include further independent financial. 4.expand with arrival of VC. technical and industrial expertise prior to seeking VC. 5. All: Develop and implement accelerated market entry and development plans. .

Edwabo Company Limited P. Ltd. e-mail: . O.Strategic Plan for Edwabo Co. Box AS100. Asamankese Phone: (233)244487665.


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