Strategic planning can be defined as the process of developing and maintaining consistency between the organisational objectives and resources and its changing opportunities. Hence strategic planning aims to define and document an approach to doing business that leads to satisfactory profits and growth. This approach or strategy sets the general direction for the use and management of all resources including information, throughout the organisation. Generally this direction will remain valid for an extended period of time. There are several major components that make up the strategic plan. They may appear in various documentations formally or informally defined and they may collectively represent the values and priorities of the organization. These components are mission, vision, goals, objective, strategy and policy.
Relationship between Mission, Vision, and Objective
Both of mission and vision are relate to an organization’s purpose and are typically communicated in some written form. In mission and vision statement, BMW Malaysia can known about the value, and what they wants to run the business. BMW have a clearly communicated, widely understood, and collectively shared mission and vision have been shown to perform better than those companies without them (mission and vision), with at that they related to effectiveness when strategy and goals and objectives were aligned with them as well. BMW have the mission, vision, and objective in the process of planning strategies to attract the customer. In the relationship between mission, vision, and objective is aim the goals of BMW Malaysia Sdn.
Stakeholders are individuals, group, or organization that has direct or indirect in an organization because it can affect or be affected by the organization’s actions, objectives, and policies. Key stakeholders in a business organization include creditors, customers, directors, employees, government, shareholders, suppliers, unions, and community from which the business draws its resources.
Stakeholders’ analysis is a process of systematically gathering and analyzing qualitative information to determine whose interests should be taken into account when developing and/or implementing a policy or program. Stake holder analysis is important to BMW Company because they need to do an analysis for their own plans so that they can find out what mistake they has done it and make a correction on it. This analysis also will determine that they can make a comparison with other competitors. Although, the stakeholder analysis originated from the business sciences, it has evolved into a field that now incorporate economics, political science, and game and decision theory and environmental sciences. The current models of stakeholder analysis are applying a variety of tools on both qualitative and quantitative data to understand stakeholders with their position, influence with other groups and their interest in a particular reform.
It also provide an idea of the impact of reforms and the potential power struggles among the groups and individuals and helps identify potential strategies for negotiating with opposing. Furthermore, another importance of stakeholder analysis is risk prevention. Analytic stakeholders sometimes would bring complicated and complex analysis and sometimes unexpected problem. Therefore, stakeholder management should carefully managed the business environment occur in the company. Unexpected negative development in the BMW Company can increase the risk.
Last but not least is the rationality. The management should perceive the ability of the stakeholder group as to measure the financial performance. The stakeholder commitment can show a moral duty by claim the benefits from the stakeholder management to the ethical principle.
As a result, the stakeholder analysis is an effective methodology as to evaluate the management process in the BMW Company. This analysis can help the management construct the identifiable and effective control and management. This analysis can convey sufficient and active project for BMW Company.
Most of the companies are practicing the organizational audit and environmental audit which may help them to solve any problem in the company and also give them opportunity to improving their business. Organizational audit can be defined as internal audit which is provide the independent professional service, to serve not only foe management, but also the whole organization. Besides that, it also may assurance that an organization’s risk management, authority and internal control processes will be operate effectively. This means that the organizational audits will arrange or care the important basic issues such as survival and prosperity of the company.
Environmental audit can be clarified as the broad. This will include all the outsider people to involve in the company. Or in other meaning, it is a systematic of dealings between any business operation and it is surrounding. This may contain the air, land, water legal constraint. For example, it may cause the community around the business, places that they doing the business, and the public’s perception of the operating company in the local area. Besides that, environmental audit can be simplified as an independent third party of assessment of the current status which may occupy the organization’s agreement with local environmental law. It also will be the assessment of the financial advantages and disadvantages for the company.
Factors that affect the internal audit
Internal factors are identifying through SWOT analysis. SWOT analysis consists of strength, weaknesses, opportunities and threats. The strength and weakness probably come for the management of the manager and employee. While the opportunity and threat is coming from the customers.
Factors that affect the external audit
External factors are identifying through PEST analysis. PEST analysis consists of political, economical, social and technological. Technological and economical variables are affecting by the media. While the political and social are affecting by suppliers and distributors.
BMW has analysed their organisational audit and environmental audits with the SWOT and PEST analysis. The analysis tools is where you recommend and improve their through this analysis tools can helps the company measure the performance of the internal and external factors in BMW Company.
Strategic positioning is important part in a company. It is because, it will advertising the strategies to consider. For example the product or brand to be effectively positioned within the customer’s mind, general research into target audience, competition’s advertising activity needs to take place. If the strategic positioning is successful, it may be situate the product in the mind of the customer when it comes to purchase time. Besides that, the criteria that a management should become aware of is the price, quality of product, convenience, time, and relevance which will attributes consumers associate to brands within a category. Strategic positioning is important to a company because they are a tiny little business which can plan heated down to one sentence.
Besides that, it also will briefly define the target, the categories which the company struggles, the differentiated benefits, and what the company must do to prove the differentiated to the customer. Moreover, strategic positioning also will develop the brand positioning to forces the company to consider what they want to be successful. Without a clear and good strategic positioning, the company may lose lots of time and money in hopeless. If the strategic positioning is not be clear, it doesn’t have real, meaningful, differentiated value to the marketplace and your organization, it will be not only wandering but somehow it will aimlessly, the chances of real success are greatly lessen.
Strategic Positioning Techniques
Strategic positioning is a key to business success. It has the advantage to help the company to focus what they do and market place to know what you stand for. This strategic position of a business includes the devising the desired position of the basis present and foreseeable development. Their strategic positioning techniques are show as below:
I. Market Segmentation
Segmentation system is well designed to measure the interests, attitudes and behaviours of their marketing mix. Segmentation, targeting and positioning are tools that a company used to gain competitive advantage in the market. Market segmentation is the process of dividing the market into similar groups according to the characteristics planned for the product acquire. BMW is a huge and well known automotive industry in all around the world. Therefore, their market segmentation is bigger than others. They need to fulfil many requirement by differentiate their marketing plans. Other segmentation is target marketing. Target market can recognise the diversity of customers and what the company offering. Different customers have different needs so it is possible to satisfy their customers by treating them alike.
This segment enables a company like BMW trade individual marketing plans of each customer group. Market segmentation is torn into some section which is geographic and demographic segment. Geographic segmentation variables require the region, size of population areas, population density and climate. Big population can increase the faith and build trust among their customers. BMW Company also can be their strategic position in gain the customer’s trust and believe. While, demographic segmentation includes the age, gender, family size and life cycle and others. When the family have big members, even when one of the members is purchase with BMW, the others can build their trust towards the BMW’s products. They will analyse through the product that the members bought from BMW.
Benchmarking is the process of identifying the best practice on how the product is created and delivered to the suppliers and customers. The objective of benchmarking is to understand and evaluate the current position of a business or organisation. Benchmarking examine on how the company achieve their performance levels. This technique helps the company explain the process behind the excellent performance that the company acquire. Strength of benchmarking is lies on the way the organisation measure the impact of the effectiveness of their processes. For example, BMW has famous and huge benchmarking form the automotive that they produce. They own benchmarking make their financial become higher and higher. This includes the activity such attracting the customers by meeting their needs. All the department will work together to gain the customers concerned. One type of benchmarking is a strategic benchmarking.
This strategic benchmarking is concerned on the strategic action and change. BMW has many strategic actions in market their product to all their customers in the international market. Their most target market are individual which has family and many member. BMW offers security for each of the automotive that they produced. The person that used the facilities that BMW offer will feel secure and they always trust to deal with BMW in future. The best benchmarking process need to carry out properly as to gain the experiences repeatedly. The best practice is used by the successful organisation as a tool of continually improving the production. The reason of product development can offer the necessary to undertake the best practice that BMW acquire.
As a conclusion, BMW has their strategic objective to be achieved. The technique that I can propose to BMW to achieve their objective is benchmarking and market segmentation. These techniques will bring effectiveness to the BMW performance and helps BMW develop their strategic positioning.