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Posted: December 2nd, 2023
Planning to plan includes developing answer to the questions and making the necessary decisions to the initial questions of the any actual planning process. It is critically important not to rush to the planning process. Without clarifying the different expectation held by people in the organization related to plan.
The first step in planning to plan is to make certain that there is organizational commitment to the planning process. The organization’s key players is especially the chief executive officer (CEO) or executive director, who are view the planning process as important and are willing to invest time and effort behind the planning process of the organization, without that kind of obvious commitment strategic planning process can not be successful. (Leonard David Goodstein, 1993)
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This modeling involves the organization’s initial attempt to spell out in some detail with the paths by which the organization’s mission is to be accomplished. In this phase of the modeling process, the planning team is asked to future scenarios and it is also asked to identify the steps necessary fro achieving those scenarios, who will responsible for those step and when those steps can be accomplished.
Moreover, strategic business modeling is not an extrapolation of the organization is doing now. This models that are developed should reflect the values and the overall mission which was created on the earlier phases of the planning process. (Leonard David Goodstein, 1993)
I am going to explain the 7 S frame work as follows:
This 7-S frame work developed by the McKinsey. This frame work was originally developed by deep thinking and more broadly about effectively organizing a company. It’s concept related on strategy implementation as a matter of structure and strategy. These seven elements is conjunction with a different of other elements.
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Shared values
Strategy
Structure
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Systems
Skills
Staff
Style
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The seven S elements divided in two parts, are called ‘hard’ and ‘soft’ elements. ‘Hard’ or ‘tangible’ elements are strategy, structure and systems.
Strategy refers to plan of action to achieve a particular goal or objectives, such as related on certain products and markets and allocating resources. Strategy is the direction and scope of an organization over the long term period.
Structure: it is refers to the organizational structure, hierarchy and co-ordination including division and activities and integration of tasks. A structure provides a convenient way of organizing several related variables as a single unit.
Systems are the primary and secondary processes that the organization employees to get things done, for instant manufacturing system supply planning order taking process etc. systems thinking offers you a powerful new perspective and a set of tools that you can use to address the most stubborn problems in your everyday life and work.
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Diagram of basic frame work develop strategy (Steven, Wouter, & Steve, 2003)
‘Soft’ elements are style, staff, skills and shared values.
Style refers to the unwritten yet tangible evidence of how management really sets priorities and spends its time. It is a symbolic behavior between bosses and workers. Style is a refection of your speaking and thinking habits.
Staff: The staff is comprised of the people in an organization, who work for the organization and the employees and their general capabilities.
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Skills: “To get paid what you are worth, know your disruptive skills” by Whitney Jhonson. When selling yourself in the talent marketplace, it can be all too easy too easy to focus on the strengths that are required of the job in question. Skills are organizational capabilities that are independent of individuals.
Share value: called “super ordinate goals” when the model was first developed. It is proof of existence of the company. Share value is represents their own present company situation.
There are plenty of marketing models I found. I would like to describe among three of them.
Benchmarking is the systematic comparison of organization processes and performances in order to create new improve processes. Benchmarking involves management identifying the best firms in their industry; in which organization evaluate various aspects of their processes in relation to best company’s processes. There are four general types.
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Internal – benchmarking is the process of within an organization.
Functional – the process of benchmarking within the broader range of the company.
Generic – benchmarking comparing operations between unrelated industries.
Competitive – benchmarking performance and operations with direct competitors.
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There are much has been written on the benchmarking process. Most variations on the basic elements of the methodology are the results of including situational characteristics factors practical issues that arise in certain industries in between benchmarking partners and analysts. Benchmarking methodology identifies other industries that have same processes, for instance if one were interested to improving hand offs in addiction treatment he or she would try to identify other fields that may also have hand off challenges.
Benchmarking entail the following steps.
Determine the scope.
Select the benchmark partner.
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Determine measures, units and data collection method.
Collect the different data
Analyze the data and discrepancies to get facts behind the numbers.
Analysis and discuss implications according to company goals.
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Make an action plan with procedures.
Monitor on benchmark progress. (Steven, Wouter, & Steve, 2003)
Maruti Suzuki also apply benchmarking plan on new Zen Estilo sports car. Maruti has come with a refreshed version of Zen Estilo’s sports edition. It is not much difference with original car , Estilo sports the new MotoGP graphic, sports decal on door panels and full wheels cover on both the wheel. This car also gets electronic ORVM and integrated. By applying, benchmarking can not only provide comparative data that can trigger the need for improvement, but it highlight new improvement opportunities and get good solutions to problems. (http://www.gaadi.com/cars/blog/benchmarking-for-zen-estilo, 2010)
Benchmarking is not easy for apply in the organization. All to often benchmarking is carried out by semi-committed managers, without the use of pre determined measures and without the proper tools for analysis and presentation. Most of benchmarking projects may not get good results.
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Benchmarking is never ending: measure continuously in order to get up to date result and company can get lots of new ideas from the benchmarking performance. (Steven, Wouter, & Steve, 2003)
Marketing mix method gives priority to the marketing mix consisting of product, promotion, price and place (distribution).This elements also known as 4Ps.
Product
Price
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Promotion
Target Market
Place
An element creating an effective marketing strategic is the choice of target market. A target market consists of a group of potential customers with similarity characteristics (e.g. it would be similar demand and needs or processing) that company has chosen to serve. Although the creation of satisfaction among a particular group of potential customers involves is to dozens of decision. The objective is to combine the satisfying of market needs as well as company meet their profit.
Product is anything that is capable of satisfying customer needs and wants. Customer needs may value, costs, delivery, status, risk, reduction and many more that is all key customer requirements. In the product there are four stages like introduction, growth, maturity, and decline.
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Growth: at this stage company sale the more product and get good profit. Apart from this the demand of product will also increase so customer perches repeat the product. Profit may decline to next stage.
Maturity: maturity is the stage that sales reach at pick point; the survivor’s battle for market share by product improvements, advertising, promotion offer, price cutting and discount. So the result is a company sells more products but profit margins low.
Decline: sales and profit fall during the decline stage as new technology or change in the consumer task work for reduce the demand of the product. Product and promotional development budget may be down and supplier seeks to increase profit margins.
This strategy is related with decision which focuses on the methods of communication. Key methods including personal selling, door to door, publicity, direct marketing, advertise, exhibition and many more. Promotion strategy is in five stages like identify target audience, set communication objective, create message, select promotion mix and set promotion budge. Sales staff play important role in word of mouth and public relations.
Pricing is the main element of the marketing mix because it is only one way that directly generates profits. The price is the amount a customers pay for the product. In the price of the porduct include of design, develop and manufacture products, transport and distribution. There is three strategic objectives that affect to the pricing decision are build, bold and harvest.
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Place represents the location where product can be purchased. It is determined by number of factors including material costs, product identify, share market and materials cost. (Egal colin, 1998)
Customer relationship management (CRM) is a process which company use for understand their customers groups and respond fast on at times and instantly-to shifting customer desires. This method allows firms to collect and manage the customer data and arrange on the bases of that information. CRM also provide needs and wants as well as behaviors and allow them to modify products targeted customers segments.
This strategy method uses for collect market research on customers at in real time, generate more reliable sales forecasts, improve customers retention and relation and feed data on customer preference and problems related on product designers. The main methodology of CRM is by defining strategic “pain point” in the customer relationship cycle. (Darrell, 2000)
In Marketing practice, most so-called “customer retention programs” that is only focus on behavioral outcomes, such as repeated patronage. Customer loyalty is viewed as the strength of the relationship between an individual’s relative and repeat patronage. Maruti udyog limited maintain relationship with customer, so company reduces their original price of the car. Only one automobile company in India which is provides number of car service center at different place. According to the company’s MD, our customers rated us the best in India in both sales satisfaction and service satisfaction in the survey held JD power. Maruti Suzuki has now the leadership in customer satisfaction for the past ten consecutive years. The main advantage of the strategy is that company attracts more customers for purchase new car. Company provides low rang of the car that’s way company get lees profit margin.
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Company is exports in Poland, Switzerland, Netherlands, Finland and many more countries. Maruti Suzuki cars ply on the road of these countries and they are soon becoming the fastest selling in those land. As per the financial data Maruti export 147,575 vehicles in 2010. This is the highest number export by the company and translates to growth of 28.5% over last financial year. Company grew 111% in export sales mainly to Western Europe, because of company introduce new fuel efficient car A Star. A company export, entry-level across the globe to over 120 countries and focus has been to identify new market. Every coin has two sides, company can expand their business at international market and customers know about the brand value, on the other hand, main disadvantage is it can spend much time to think abroad culture, system to start business and it is not achieve all of this things. In addition, lack of experience in foreign markets. (www.marutisuzuki.com, 2010)
Maruti Suzuki main strategy is to provide good car with low cost. In India, medium people group stay, so company knows what is requirement of this country’s people. Though, company is trying to approach this strategy as low cost car. Maruti launch small car with different range in the Indian market as well abroad. Every car value between 250,000 to 450,000 it’s easy to purchase by medium worth people. Cost leadership in the market due to efficient value chain is the main strength of the company. On the other side, the biggest threat to Maruti is Globalization. With increase in globalization and world being a common market place every automobile company is leading in the small car segment. Latest example, TATA launch Neno car which worth is only one lake.
Maruti has number of stakeholders groups in the organization, which are as follows.
Employees: an employee is any person hired by an employer to do particular “job”. In this employees include directors, manager, supplier, and worker. Company should be responsible for wages, job satisfaction, security, trade union and condition.
Shareholders: a shareholder is an individual or organization owing invests in company. Shareholders have a legal claim on a percentage of the company’s earnings and assets. If company goes to loss at the time shareholder may loss their entire value. (www.investorglossary.com)
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Suppliers: company should be give payment on time and consistent order. Supplier should be knowledge of how maintain the relationship with the customers.
As a mention above, suppliers have contacts of different customer so company can know what the needs of customer are after word it may fulfill that wants. As well supplier should knowledge of how to behave with the customer and what the strategy for attract more customer to buy particular things. Maruti Suzuki is one of the company in India which have no equal sales and service network. As per the company data currently has 800 plus dealership across more than 500 cities in India. Service is major revenue of the automobile company. So, company could provide better service as well on time by different suppliers. This supplier strategy can attract more customers to purchase car. (www.marutisuzuki.com, 2010)
The implementation of strategy is key element of success business. Maruti Suzuki is very concise about employee’s strategy.
Employees play vital role to become successful an organization. When company wants to introduce new strategy at that time company should be involve in every important decision. The implementation of a business strategy, company need specific arsenal of skill necessary. If company wants really success in the business so it should be achieave the employess fulfils like pension, security, good remuneration, children education, job satisfaction. Once employee satisfied with the all requirement after word they will fully support towards the new strategy. Then company can achieve their goal with easy.
Creating a Vision statement is articulating your dreams and hopes for an organization. It does tell direction of the business planning and let your imagination go and achieve your dream.
Mission statement can guide in bad and good time to the company and it help to make good decisions making for the company’s goals.
A strategic objective is making decision on allocating its resources to pursue this strategy. Strategic planning includes various techniques like SWOT analysis, PEST analysis and STEER analysis.
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Book definition
Vision is “the leader in the Indian automobile industry, creating customer delight and shareholder’s wealth; a pride for India”
The company wants to create good image towards the customer and to attract shareholder also. Maruti Company believes in “Customer is the king of the market”. So, Company is very concise about the giving good units and service.
“Taking forwards its commitment to road Safety; Maruti Suzuki has adopted a National Road Safety Mission
To fulfill the company’s mission, Train 500,000 people in safe driving across India in the next 3 years. In addition, Maruti Suzuki will continue to support to government and industry in their efforts for road safety.
Core values is “we believe our core values drive us in every Endeavour”
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Culture is the way your organization operates, its customs, attitude, etiquette etc. culture is to teach how to relate to other human beings, how to relate nature and how to relate to time. In organization, when worker work in group at the time face the basic ‘relationship dilemmas’. (Paul, 2000)
Ethics is about ‘public’ rules and regulation and that moral are personal, it ethics and morality and ethical and moral can be used interchangeably. Ethics has to do with what my feelings tell me is right or wrong. Ethics is roles of right behavior (Paul, 2000)
Maruti Suzuki is very concern about the culture and ethics towards employee and customer Company’s vision is “We believe our core and values drive us every Endeavour”. Company is to trying reach their vision statement to provide different activity like run driving school at free of cost and teach safe drive.
Company design to give road safety to fulfill the mission by corporate social responsibility program: utilizing existing resource and a nation reach, partnership with stakeholders, use of business skills to benefit society, in addition to making a financial contribution. (www.marutisuzuki.com, 2010)
Every individual has unique personal values and every origination has its own set of values, rules and organizational ethical culture.
Customer acquisition is a term used analyze the system and methodologies to manage customer prospects and inquires, it is worked by different marketing techniques. It can be connect between customer relationships and advertise management. By different advertise, company try to attract new customer and aware of the product. To approach this customer acquisition, companies apply two type of marketing, direct and mass marketing. (Darrell, 2000)
Brand value of the company is critical success factor for achievement vision, mission and objectives. Maruti Suzuki is fames In India by their brand value. Every one knows about the company and its feature in automobile market. So it’s enough to explain to launch the new product in the market.
Yes, Maruti Suzuki introduce K-series engine in the market, it is run by gas. So we can say that environment pollution will reduce by this type of car. This type of strategy boosts their business in international market. Apart from this company start work with ICICI in insurance sector. So company will provide good insure of the car as well person insurance. Because of this recent changes India has increase their GDP rate.
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4(b) effectiveness in the environment
Yes, I think company introduced new scheme to attract customer which is “the forever yours extended warranty program” to approach this program company give better resale value of vehicle and the proper Assurance.
This program effect on reduce the road accident and customer get proper compensation against the loss.
This is important functional area of Maruti Suzuki. Marketing is the simple process of winning customers for product and services. It can be approach by different marketing strategy. Maruti focus on rural market, plants to double outlets. The company’s vision & core values are “we believe our core values drive us in every Endeavour” they have earn reputation from the customers and their employees. Maruti launch new WagonR with K Series engine. It is more powerful and has higher fuel efficiency than other cars,
This is another major functional area which, Maruti Suzuki finances marks coming together of the largest players in the automobile finance business. They are believed in the benchmarks in quality as well as efficiency. Maruti volumes and networked dealerships with combined they will offer Maruti finance’s superior service and competitive rates in the marketplace.
This is the major function of Maruti which can protect to the customers by giving insurance. Maruti launch this area in 2002 with the help of National Insurance Company, New India Assurance, Bajaj Allianz and Royal Sundaram. According to the 2005 report company were able to sell more than two million insurance policies. (http://www.gaadi.com/cars/blog/benchmarking-for-zen-estilo, 2010)
As per above I mention three function area I would like to introduce marketing function area. Maruti Suzuki car is very fames in the Indian market because of small car with small amount. Maruti launch K-seris Wegnar to compete with TATA Neno car. Maruti brand value is enough in the market although company give right blend of product quality, design, features, costs and prices. Overall, all of that reason Maruti compete with other automobile company in the market.
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