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HIGHER INSTITUTE OF MANAGEMENT STUDIES

(HIMS) MOLYKO BUEA

COURSE TITLE: STRATEGIC PLANNING

MARGARET ARINOLA: UBa/HIMS/PG18/TL/004

LECTUERER: DR YAKUM IVAN
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Strategic planning

Question: Design a strategic plan for any company

This strategic plan is focus on the detergent (hygiene products) sector in

Cameroon. It is an imaginary plan that can be used for any start up in the Micro,
Small and medium Size Enterprises sector of Cameroon. There are quite a variety
of steps to design a strategic plan, however this detergent (hygiene products)
business plan or strategic plan will adopt the five basic step process embedded in
the five basic components of strategic planning and implementation. These steps or
component include:

1. Set the mission, vision and aspirations

The company is named Health Care and Hygiene Lt. Our mission is to provide
variety of detergent and hygiene products (what) to household (Who). These
hygiene and detergent products are available for all age groups and for every
Cameroonian (Where). The organization will go operational in six months’ time
(When) from now so that it may join efforts to sustain the W.H.O guideline of the
COVID-2019. Our vision is to take over the supply of detergent and hygiene
products from the foreign companies. This means we aspire to become number one
supply of detergent and hygiene product to Cameroon within 5 years.

2. Raise the objective and the core values

 To take over the leading position in the detergent and hygiene industry
 Import Substitution Industrialization
 Improve hygiene and sanitation
 Take at heart the principle of corporate social responsibility
 To remain profitable and generate enough financial resources for the
shareholders
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Sustainability and survival (going concern)

The core values of the business planning are depicted from its products offer. The
detergent and hygiene products will include: 1) Tiles cleaners, 2) bleach 3)
Disinfectant 4) Sanitizer (hand), 5) Liquid Soap, 6) Air freshener 7) Solid Soap, 8)
Power Soap, 9) Shampoo (hair). Other products of value will be raise and discus in
the strategic choice section of the plan.

3. The SWOT Analysis

Internal analysis (strength and weaknesses – VRIO review)

The value of this institution is more visible as the outbreak of a health sector
disease get on a global scale. All media houses and or national governments are
preaching the concept of hygiene and sanitation. Keep the hands clean, keep the
body clean, and sanitize the hands after watching the preaching of the day. This
will keep on even after the end of the deadly disease. In this regards, the sector and
the products have gain added value. There are enough staff that have the
production knowledge of production. The knowledge and technically in the
production of the mentioned products is an internal capability of added value. Few
staff especially at the marketing department will be high since the manufacture
department is of high production capacity. More of labor intensive than capital
intensive since the raw material like ethanol, methanol and others are bought and
not manufacture by the firm.

External analysis (Opportunities and Threat-PESTEL review)

The political system in Cameroon is a threat to the business. This is because the
process of registration or licensing the firm may need obstacles aim to collect bribe
(a usual practice). These corrupt practices usually add the cost of production. The
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regional decentralize system in the license process make it easy to have it register
from the Fako regional head office in Limbe. This may help to upset the projected
threat. The tense atmosphere in the Cameroon in regards to the Anglophone
uprising and the COVID-2019 may delay the launching phase of the business and
therefore a threat. The future stability of the global economy is actually a general
threat because they are constant threat to war and possibility of long period of
pandemic or resurfacing of covid-19. However, the current level of technology and
digitalization can actually wave some opportunities to online purchase and selling.
Detail of the SWOT analysis is presented on the table below.
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Table 1. The SWOT analysis

Strengths Weaknesses
Internal analysis (strength and weaknesses – VRIO review)

 Ready market (The  Exist foreign and well known

approximately 26 million products in the Market.
Cameroon population)  It requires hard work and extra cost
 Availability of raw materials like in advert to subvert the effects of
Ethanol and Methanol. The foreign brand.
mentioned and others can be  The raw material though available
easily be supply from The is purchase, which source a cost
Cameroon economic Capital that cannot be eliminated
Douala and neighboring Nigeria.  High unemployment and poverty
 It required low capital to go can actually slow down demand
operation. It is possible to take  Poor road network connectivity can
this advantage to pilot its slow down supply and demand of
activities before engaging in full raw material and finish product
and large scale production. respectively
 Availability of skill workers. The  Fight against prejudices in local
initiator is well train and also production. Local customers may
acting training others for such find it hard to embrace “Made in
production for home use Cameroon”
 The local Market could include  Local instability like the ongoing
the CEMAC member states and Boko harram and Anglophone
other neighboring economy like crisis
Nigeria The centralized government system in
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Cameroon
Opportunity Threats
External analysis (Opportunities and Threat-PESTEL review)

 The global move towards  The Future of the global economy

increase hygiene and sanitation in social distancing and lockdowns.
resulting from the global Demand will surely fall in the
pandemic (COVID-19) midst of Lockdown even though
 Easy to learn and improve quality sanitation is highly needed.
with the ongoing knowledge on  The fear of future global instability
hygiene and sanitation. Equally it like wars and pandemic.
is best to take an opportunity of Unemployment increases during
global technology through war and pandemic and therefore
YouTube videos to better ease the reduces demand.
production steps  Import and export diplomacy and
 Take advantage of internet to policies can actually threaten price
introduce online home delivery deals and local market demand of
(sale) especially in period like these hygiene products.
lockdown

4. Strategic choice

After an evaluation of the external and internal environment of the detergent and
hygiene industry, a choice of business and corporate level strategies was selected.
Strategic management suggests three main type of business level strategy. These
three core was later broken down into five strategies. There is low cost,
differentiation and focus core business strategy. The focus strategy is split into
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focus low cost and focus differentiation. The fifth strategy is low/differentiation
strategy. It should be noted that mergers and acquisition, diversification,
divestitures and others are forms of corporate level strategies. A summary of
strategic choice is made below.

Business level strategy Corporate level strategies

Implementation stage: Low cost Implementation stage: Related
strategy diversification
Growth stage: Focus low cost Growth Stage: Unrelated
Maturity: Integration diversification
Core Business strategy: Contingent Maturity: Mergers and acquisition
Business strategy Core corporate strategy: Contingent
corporate strategy.

Face high level of substitute from foreign nations, it is good to follow a low cost at
the initiation phase of the products. This is to use price competitive strategy to win
comparative advantage. This may not last for the life cycle of the product since
focus low cost could be introduced to meet the demand of specific market niche. It
will be of advantage to introduce some level of differentiation at late growth stage
and maturity. This can be done through market segmentation and more branding
and improve quality to match imports. This introduction should be done side by
side low cost in an integrated business strategy.

At the introductory phase the firm will diversity into many products with same
purpose (hygiene and sanitation). In the growth stage the firm business cycle, light
food item like chocolate, Vinegar and Mayonnaise will be added in an unrelated
diversification corporate strategy. This will further add the value and reduce
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unsystematic risk related to the initial market boundaries. Cosmetics product like
Vaseline, glycerin, bathing liquid soap, body lotion, face lotion, bathing solid soap,
hair relaxer and oil, body spray will be introduced as well. The combination of the
cosmetic, food and hygiene and sanitation will help the firm to mitigate any risk
from in foreign import and export.

5. Implementation

The last stage of a strategic business plan is design to answer the question when
is the business going to go operational, who are the staff and what qualifications
do they have. How is the operation organized and how much and from where
will the money or financial resource come from. It will also relate to how
performance can be measure and outline some control measures that can
mitigate fraud as a risk.

Immediately the global economy is fully open and as the COVID-19 effects
reduce and less risky to human and employee, the business is going to go
operational. The COVID-19 period is used to license the company while
waiting for slow down of its spread and effects. The period is also use to initiate
a pilot test and mini production of sanitizer to participate in the global call. As
earlier mentioned there is already a ready work force especially at the
production department. The author of the plan already has full scale training
and the production of the mention products of value to the business idea. Some
family relatives in business school (E.g HIMS) across the nation of Cameroon
will be used as start to form the management team. They can as well participate
in the production and marketing.
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The initial capital will stand at 1 million since much of the process is labor
intensive. That is, will be in the short run or initial phase. This capital size will
be increase when the agenda of becoming number is lunch few years into the
manufacturing process. This capital will source from donations from relative
and savings by the author. Share holding will be lunch to attract funding in the
long run as the product gain its general acceptability. Borrowing from financial
houses to increase the capital size will be equally an addition financial source.
All category of performance measurement will be use to access the level of
success as we push ahead. We will be very interested to know if we able to
achieve a short term and long term objective. To have this information accrue
accounting measures like evaluating financial ratios from financial statement
will be employ. Market penetration and customer’s size are among the
performance indicators. Return on equality, turnover, gearing (debt/total asset)
and of course profit margin are clear ratios to offer the need performance
information. Computerization of transactions through software applications
will be use to record all transactions. This will help to trace fraud if any is in
place therefore a tool of monitory and control. Special stimulus reward in terms
of bonus will be offer to worker’s base on their performance. This is an
incentive reward system aim to stimulate hard work and accountability.