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Introduction In todays highly competitive business environment, budget-oriented planning or forecast based planning are not sufficient for large organizations to survive and to remain in business. An organization must develop a strategic plan which is going to act as a road map for the organization. A good strategic plan clearly defines the objectives of the organization. It also asses the internal and external situations to formulate the strategy, implement the strategy, evaluate the progress, and make necessary adjustments in order to stay on track.

The strategic planning process includes the following steps: 1. Setting up of mission and objectives; 2. Environmental scanning; 3. Strategy formulation; 4. Strategy implementation; 5. Evaluation and control. Source: http://www.quickmba.com/strategy/strategic-planning/ For this particular assignment we have chosen Mace Enterprise Ltd, an organization which provides air conditioning services. We have developed a strategic plan for this organization since the organization has many competitors and is smaller in size compared to its competitors. Due to its size it is difficult for this organization to receive contracts from large organizations. The company also has problems in retaining its employees, who are going to the competitors after acquiring experience in this organization. This may lead the organization to run out of business.

2. Background of Company MACE Enterprise ltd (Mechanical Air Conditioning and Electrical Enterprise), was set up in 2004 by Mr Pravin Bhowanydeen. Firstly, the company was situated at 60 Jacarandas Avenue Quatre-Bornes that is the house of Mr Pravin Bhowanydeen and comprises of 5 workers. For the company to operate, Mr Pravin Bhowanydeen had invested the sum of Rs 500,000 and a bank loan of Rs 1,200,000. At the present time, the company has shifted at Boundary Road, Rose-Hill. Since its opening the company has not ceased to grow and nowadays the company comprises of 25 workers and 3 vehicles for the daily activities.

MACE Enterprise ltd, an incorporated private company offered services in the field of Air Conditioners. It specializes in the sales of all brands of equipment available on the local market and undertakes all aspects of design, installation, commissioning and in particular preventive maintenance.

In fact, MACE Enterprise offers total turn key solutions, covering all aspects of customer needs, from initial site survey to commissioning. Its commitment is to provide high quality services to customers by ensuring a prompt delivery service in times of need and emergency and also by creating awareness of the high risk factor in the use of faulty equipment. Its leitmotiv is QUALITY, RELIABILITY AND CREDIBILITY. It offers personalized service and it such respect flexible contracts are tailor-made to the customer specific requirements.

MACE Enterprise is structured into three distinct operating divisions each with its own dedicated staff and resources. The company has a strong professional management and technical team with adequate training and possesses the necessary skills and attitudes.

3. Direction and Goals The strategic direction and goals included in this plan are Mace Enterprise Ltds response to its understanding of what its employees and customers value most about the organization, and current opportunities and challenges for offering quality service to its customers.

The two-year period of this strategic plan will be a time of assessing and improving Mace Enterprise Ltds approaches to managing the organization and providing quality service to existing and new customers.

With a fresh perspective on its mission, understanding what it does well, and the environment in which it operates, Mace Enterprise Ltd will pursue the following strategic direction: 1. Mace Enterprise Ltd will review and improve its existing processes over time to ensure that quality service is given to its customers. 2. Mace Enterprise Ltd will further assess its customers needs to identify gaps or needed shifts in service delivery. This assessment will serve as the basis for expanding or adding new services. 3. Mace Enterprise Ltd will indentify its employees needs so as to motivate them and retain them.

4. Mace Enterprise Ltd will make use of different promotional tools to make people aware of its services and to attract more customers. 5. Mace Enterprise Ltd will also adopt the green approach in the utilization of energy saving appliances and adapting ozone friendly standards. This will be used as a marketing tool to attract customers.

Goals The following goals for Mace Enterprise Ltd over the next two years are the organizations response to the important issues identified in the environmental scan that was completed as part of the strategic planning process. These goals provide a roadmap for fulfilling the strategic direction. Service Delivery Employees will be trained in order to provide timely and good service to customers. Human Resources Mace Enterprise Ltd will develop a stable, highly qualified and motivated workforce that actively delivers the organizations mission. The organization will recruit more qualified staffs to meet customers needs and wants. Some existing staff will be sent to the IVTB for training, thus, acquiring a motivated, trained and qualified workforce to better serve the customers. Resource Development The organization will have its own office space and will invest more in modern equipments to upgrade the quality of services delivered. Successful implementation of this strategic plan will help the organization become competitive and better serve its customers.

4. Organization of the Strategic Plan

This strategic plan is intended to be a management tool for Mace Enterprise Ltd. This plan has two purposes, namely: 1) It presents the most comprehensive compilation of the plan and its component parts. It is a record 9of the strategic planning process and the decisions reached by the newly appointed top management team.

2) It is a reference guide for strategic planning. The beginning of each section includes a definition of the component part.

5. Mission What is a Mission Statement? A mission statement is a statement that defines the essence or purpose of a company what it stands for i.e. what broad products or services it intends to offer customers. The mission statement also gives readers a window on the raison dtre of the company and was initially designed as a means by which potential shareholders and investors could understand the purpose of the company that they were considering investing in. Source: http://articles.bplans.co.uk/writing-a-business-plan/mission-statement/367

Mace Enterprise Ltd mission is: Everything we do is inspired by our enduring mission: y y y To keep the world cool... in body, mind, and spirit. To grow profitably and responsibly. To provide career advancement opportunities for every willing member of our organization. y To create value and Make a Difference... everywhere we engage. 5

Mace Enterprise Ltd introduces a new sharper mission statement in this strategic plan. This statement reflects four dimensions that define the purposes of the organization.  The first dimension is about providing our service to everyone who is interested in having air conditioners at there place. It may be offices, schools, hotels, houses etc  The second dimension is about growth and environment protection. Profits made in the organizations will be invested in the organization for future growth. It also shows that the company will operate in a way that will not harm the environment.

 The third dimension is about providing career advancement for its employees. This shows the interest that the organization has for its employees.  Finally, the forth dimension is about differentiating the services provided by the organization from that of its competitors, by providing quality services to customers.

6. Core Values What are core values? The core values of an organization are those values we hold which form the foundation on which we perform work and conduct ourselves. We have an entire universe of values, but some of them are so primary, so important to us that through out the changes in society, government, politics, and technology they are STILL the core values we will abide by. In an ever-changing world, core values are constant. Core values are not descriptions of the work we do or the strategies we employ to accomplish our mission. The values underlie our work, how interact with each other, and which strategies we employ to fulfill our mission. The core values are the basic elements of how we go about our work. They are the practices we use (or should be using) every day in everything we do. Source: http://www.nps.gov/training/uc/whcv.htm

The following are the core values of Mace Enterprise Ltd:

Accountability

Responsibility of our actions that influence the lives of our customers and fellow workers.

Consistency

Be consistent in offering the best for wonderful experience.

Empowerment

Empowering the employees to take initiative and give the best.

Safety

Ensuring the safety of people and making sure to give them trouble free experience.

Service Excellence

Giving the best and world class service and achieving excellence each passing day.

7. Vision A vision statement is sometimes called a picture of your company in the future but its so much more than that. A vision statement is an inspiration, the framework for all strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, Where do we want to go? Source: http://sbinfocanada.about.com/od/businessplanning/g/visionstatement.htm The 2-Year vision for Mace Enterprise is To be recognized as one of the leading companies in this industry on the domestic market.

8. Environmental Scanning A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as Strengths (S) or Weaknesses (W), and those external to the firm can be classified as Opportunities (O) or Threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following Strengths, Weaknesses, Opportunities and Threats have been identified for Mace Enterprise Ltd:

Strengths

 Experience and networking of the Managing Director The Managing Director has years of experience in this field. This can be regarded as strength since the Managing Director knows the market well and can even cope with uncertainties. Furthermore, the Managing Director knows many people in different organizations, this can be beneficial as these people can be potential clients or help in having new clients.  Number of years on the market The organization has been on the market for many years. Therefore it already has some customers on the market and knows the needs and wants of its customers.  Workforce of the company Qualified employees are recruited in the organization. Furthermore, the employees are trained so as to deliver an excellent service to the customers.

 Quality of equipment sold and serviced The equipments that are sold are of good quality that meets the requirements of customers.

Weaknesses

 Dependency on suppliers

The organization is dependent on its suppliers of equipments. send the equipment in time.  Absenteeism and work culture of the staff

This is considered as a

weakness since there may be problems in delivery of equipments because the suppliers did not

There is a high rate of absenteeism in the organization. Due to the high rate of absenteeism the work is delayed and customers to not receive their equipment on time. This may affect the goodwill of the organization.  Knowledge and attitude of staff The staff is not dedicated to their work. The employees are not motivated. Moreover the employees are not aware of the mission and vision of the organization.  Lack of commitment from supervisor The supervisor does not motivate the employees to perform their work.  Availability of funds for future projects There is not enough capital to invest in large projects.  Responsibilities concentrated on the Managing Director Employees are afraid to take responsibilities. Since every decision is taken by the Managing Director, there are no new ideas for improvement in the organization.

Opportunities

 Environmental changes and change in consumer behavior More and more people are now installing air conditioners in their houses due to environmental changes. Moreover, many people are now opting for environmental friendly products even if their prices are higher.  Increase in the number of IRS and hotel projects in Mauritius The organization can have the opportunity of obtaining the IRS and hotels projects  Government policies on making Mauritius an IT and tourism hub, Increase Foreign Direct Investment (FDI) and sustained growth 9

This will lead to the opening of more and more firms in Mauritius which can be and opportunity for Mace Enterprise Ltd to service and install Air conditioning for the new firms.

Threats

 Available of cheap equipment from china Implications: Due to the availability of cheap equipments from china customers will prefer to choose the cheaper substitutes rather than buying from Mace Enterprise Ltd.

 No support from Government Implications: Due to lack of support from the government the organization may not have the means to invest in large projects.  No adequate training facilities fro staff Implications: Due to lack of training the employees will not be able to deliver the required service to its customers this may lead to dissatisfaction and eventually loss of customers.  New entrants and new technology Implications: More and more firms are entering the market thus creating fierce competition. Moreover technology is moving at the speed of light where new equipments are being introduced to the market and customers will prefer new products.  Staff is highly volatile Implications: The organization has to recruit new employees and give them training which costs for the organization and after acquiring training the employees switch to competitors.

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9. Strategy Formulation

After conducting the environmental scan, the firms should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats. To attain superior profitability, the firm will need to develop a competitive advantage over its rivals. Competitive advantage can be based on cost or differentiation.

Michael Porters Generic Strategies For an organization to obtain a sustainable competitive advantage Michael Porter suggested that they should follow either one of three generic strategies. Strategy one: Cost Leadership. This strategy involves the organization aiming to be the lowest cost producer within their industry. The organization aims to drive cost down through all the elements of the production of the product from sourcing, to labor costs. The cost leader usually aims at a broad market, so sufficient sales can cover costs. Strategy 2: Differentiation To be different, is what organizations strive for. Having a competitive advantage which allows the company and its products ranges to stand out is crucial for their success. With a differentiation strategy the organization aims to focus its effort on particular segments and charge for the added differentiated value. New concepts which allow for differentiation can be patented; however patents have a certain life span and organization always face the danger that their idea that gives the competitive advantage will be copied in one form or another. Strategy 3: Niche strategies Here the organization focuses its effort on one particular segment and becomes well known for providing products/services within the segment. They form a competitive advantage for this niche market and either succeeds by being a low cost producer or differentiator within that particular segment. With both of these strategies the organization can also focus by offering

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particular segments a differentiated product/service or a low cost product/service. The key is that the product or service is focused on a particular segment. (see diagram below)

Are you Stuck in the middle The danger some organization face is that they try to do all three and become what is known as stuck in the middle. The have no clear business strategy, be all to all consumers, which adds to their running costs causing a fall in sales and market share. Stuck in the middle companies are usually subject to a takeover or merger.

For Mace Enterprise Ltd strategy two will be more appropriate that is, differentiating its products from that of competitors. The main strength o this company is the quality of its staff and the quality of equipments sold, supplied and fixed.

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10. Strategies

The following strategies have been developed after identifying the strengths, weaknesses, opportunities and threats facing Mace Enterprise Ltd:

1. Business Strategies    Seek funding from banks and other institutions for money incentive projects. Seek help from SEHDA, Mauritius Enterprise, and National Empowerment fund for available schemes. Seek business opportunities in share holders, merges, partners, associations and takeovers.

2. Project Strategies    Adopt measures to build customer value, satisfaction and loyalty. Cultivate customer relationship. Product development in the supply of new equipments.

3. Marketing strategies     Targeting of market segments. Improve visibility Adoption of branding solutions Improve Public Relations

4. People Strategies  New Employee Orientation- Pave the way to success for new employees, their managers and the entire organization by communicating and leveraging their strengths from the beginning.

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Employee Development and Performance Plans identify important personal development priorities within existing employees to maximize their contributions and identifying their potential for advancement. Retention Strategies for Key employees- set en effective strategy for key employees through making an effort to recognize their unique strengths and build individual career plans with them. Often, this is the key to gaining commitment in an organization.

Coaching and monitoring - Produce a practical working plan for leading both employees and supervisor to more effective working relations and improved results. Conflict resolutions Create an objective framework for addressing behavioral conflict in the organization to the benefit of everyone.

Improve communication and Change management facilitate reorganizations through improved communications resulting from the knowledge of the human behavior and its contribution to successful change.

11. Conclusion After the implementation of the strategies, evaluation an control of the strategies will be needed to see if the strategies that have been implemented are meeting the objectives of the enterprise. To conclude we can say that strategic planning serves a variety of purposes in organization, including to:

1. Clearly define the purpose of the organization and to establish realistic goals and objectives consistent with that mission in a defined time frame within the organizations implementation. 2. Communicate those goals and objectives to the organizations constituents. 3. Develop a sense of ownership of the plan. 14 capacity for

4. Ensure the most effective use is made of the organizations resources by focusing the resources on the key priorities. 5. Provide a base from which progress can be measured and establish a mechanism for informed change when needed. 6. Bring together of everyones best and most reasoned efforts have important value in building a consensus about where an organization is going.

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