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 companys 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 companys 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

Strategic Plan for Edwabo Co. Ltd.

distribution firms, marketing-service agencies and financial intermediaries.

Like

suppliers, marketing intermediaries form an important component of Edwabo Co. Ltd. overall value delivery system. In its quest to create satisfying customer relationships, Edwabo Co. Ltd. must do more than just optimize its own performance. It must partner effectively with suppliers and marketing intermediaries to optimize the performance of the entire system.

There are many factors in the macro-environment that will affect the decisions of management of Edwabo Co. Ltd. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyze these factors it has been categorized by using the PESTEL model. This classification distinguishes between:
y

Political factors: These refer to government policy such as the degree of intervention in the economy. 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, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

Economic factors: These include interest rates, taxation changes, economic growth, inflation and exchange rates. For example: - higher interest rates may deter investment because it costs more to borrow. - a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency. - inflation may provoke higher wage demands from employees and raise costs. - higher national income growth may boost demand for a firm's products.

Socio-cultural factors: Changes in social trends can impact on the demand for Edwabo Co. Ltd. products and the availability and willingness of individuals to work. In Ghana, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff is living longer. Socio-cultural factors include population size and growth trends, changing age structure of a population, the changing family, rising number of educated people, increasing diversity etc.

Strategic Plan for Edwabo Co. Ltd.

Technological factors: new technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way Edwabo Co. Ltd. do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as Edwabo Co. Ltd. providing the products.

Environmental factors: environmental factors involve the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Environmental factors include the weather and climate change, shortages of raw materials, increased cost of energy, increased pollution, and government intervention in natural resource management. 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. Ltd. to consider.

Legal factors: these are related to the legal environment in which firms operate. In recent years in Ghana there have been many significant legal changes that have affected firms' behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organizations actions. Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).

Different categories of law include:

y

consumer laws; these are designed to protect customers against unfair practices such as misleading descriptions of the product

competition laws; these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power

employment laws; these cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect employees against the abuse of power by managers

health and safety legislation; these laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate provision of safety equipment

Strategic Plan for Edwabo Co. Ltd.

The outcome of the analysis has been categorized into Strengths, Weakness, Threats and Opportunities. This outcome is therefore used to sets out a strategic plan for Edwabo Co. Ltd. It reviews strengths, weaknesses, threats and opportunities; presents a series of statements relating to Edwabo Co. Ltd.'s vision, mission, values and objectives; and sets out its proposed strategies and goals. Strengths, Weaknesses, Threats & Opportunities This strategic plan addresses the following key strengths, weaknesses, threats and opportunities derived from the environmental analysis for Edwabo Co. 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

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

New technology may make products obsolescent

y y

Export markets offer great potential Distribution channels seeking new products

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

Strategic Plan for Edwabo Co. Ltd.

Vision The promoters' vision of Edwabo Co. Ltd. in 3-4 year's time is: Edwabo will be operating from a 1000 sq. ft. unit near 2000 Town. It will have annualized sales of GH200,000 and be profitable. It will employ 200 people mainly engaged in R and D, marketing, support and administration. 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. Edwabo's offerings will be technically advanced and offer many clear-cut advantages and improvements over competitors' possible offerings. Edwabo will continue to expand through organic growth and acquisitions in related technology/market segments. It will have recently received mezzanine finance prior to a public offering.

Mission Statement The central purpose and role of Edwabo Co. Ltd. is defined as: Edwabo designs, develops and markets advanced systems for specialist data capture and transaction processing management. These web-based systems work with specialist hardware supplied by major integrators. They are sold to small, medium and large-sized companies within the system development industries for a range of specialist applications. Edwabo's systems are distinguished from competition by their sophisticated interfaces, scalability and ease of modification and are extensively patented. Sales are made directly and through major distributors/OEMs in the home market and overseas.

Corporate Values The corporate values governing Edwabo Co. Ltd.'s development will include the following: Edwabo operates in accordance with the highest standards in all relationships with customers, suppliers, environment and the community. Edwabo fosters a climate which encourages innovation and diligence amongst staff and rewards accordingly.

Business Objectives Longer term business objectives of Edwabo Co. Ltd. are summarized as: y To expand the business aggressively and offer above-average returns to shareholders.

Strategic Plan for Edwabo Co. Ltd.

To become the leading, innovative systems company within the 150 market segments.

Key Strategies The following critical strategies will be pursued by Edwabo Co. Ltd.: 1. Accelerate product launches by strengthening R and D team. 2. Extend links with key technology centres, 3. Raise additional venture capital. 4. Expand senior management team in sales/marketing. 5. Recruit non-executive directors. 6. Strengthen human resources function and introduce share options for staff. 7. Appoint advisers for intellectual property and finance. 8. Seek new market segments/applications for products The following important strategies will also be followed: 1. Locate new premises in the business city center. 2. Commission assessments of key markets. 3. Start participating in trade shows and missions. 4. Develop overseas market entry plans. 5. Pursue strategic alliances with complementary players. 6. Strengthen web presence and promote. 7. Seek new market segments/applications for products.

Major Goals The following key targets will be achieved by Edwabo Co. Ltd. over the next 3-4 years: y y y y y y y Achieve sales of GH150 million by 2015 Report annualized profits of GH5 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

Strategic Plan for Edwabo Co. Ltd.

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

Strategic Plan for Edwabo Co. Ltd.

Edwabo Company Limited P. O. Box AS100, Asamankese Phone: (233)244487665, e-mail: edwabo@yahoo.com

Strategic Plan for Edwabo Co. Ltd.

INSTITUTE OF PROFESSIONAL STUDIES-LEGON (IPS)

DEPARTMENT OF MARKETING WEEKEND SCHOOL LEVEL 300 STRATEGIC MARKETING PLAN ASSIGNMENT AGYARE BOTWE EDWARD 10BMK346