Ppq Parts Stategic

In: Business and Management

Submitted By denise1962
Words 416
Pages 2
PPQ PARTS EXPANSION INTO A GLOBAL MARKET

PPQ Parts Expansion into a Global Market
Mildred Denise Johnston
American Intercontinental University
Global Operations Management
Unit 2 Individual Project
Professor: Clifford Butler

Abstract

You have held conversations with Precision Part's leaders and obtained the following information, which you want to use in the development of a 4-year strategic management plan.

•PPQ Parts employees now number 5,000, and all are currently employed in the United States. It plans to grow to 10,000 employees in 4 years.
•New facilities will be needed in international expansion, and PPQ Parts anticipates building most of those (80%) outside the United States.
PPQ Parts holds 5% of the world market share on small SUVs, but its goal is 9% in 4 years.
•Current stock price is $10 per share. The goal is $22 a share.
Profit margin 3-year average is 6%. Industry average during this time has also been 6%. The company goal is 13% in 4 years.
•PPQ Parts has averaged 28% employee turnover during the last 3 years. This is compared to an industry average of 25%. The company’s goal is to increase employee retention by lowering annual turnover to 17%.
•PPQ Parts contributes to all the local communities in which it is doing business. This is one of its corporate values. Current charity is 0.5% of total profits, but the company would like to raise that to 5% in 4 years.
Assignment

A strategic management plan is vital for the company business today. Review the company scenario at the beginning of the course for additional information regarding growth goals. Create a basic strategic management plan for PPQ Parts including quantifiable goals and measures. Include the following in your report:

•Provide environmental scanning of current conditions in the area of expansion including economy, competition, political stability, and…...

Similar Documents

Ppq Part

...Eyleen G. Rivera MGMT415: Global Operations Management IP Unit 1: PPQ Parts Company October 5, 2012 Issues that the host foreign country could face as a result of the expansion. PPQ Parts is a company in the auto parts industry. When PPQ Parts decides to expand their business to foreign countries, they will have to make many adjustments to be able to enter these different markets. It is important for the company to be aware of any environmental impact that the expansion may play regarding the host country. They could face issues related to landscaping and the use of water where the company operation is going to be located. Also, they might experience some impact on the wildlife from the incursion of new employees in the area. Also, the company unconsciously could cause conflict with the local population with the introduction of new workers and their families. Schools and communities where the company is based may also experience changes from the addition of new people into the population. Also they might experience problems related to the foreign nature of the interaction between the new staff and the current members of the community where PPQ decides to set up the shop to sell their merchandise. All of the above factors and many more need to be the first thing in the mind of the management of PPQ so when the time comes they know how to approach and solve any difficulties before they become overwhelming to the people of the host country. (Global HR News) What......

Words: 1394 - Pages: 6

Parts

...limit for obtaining parts ■ Are orders spread throughout the day? If I make my supplier's job easier, I will get better service. ■ Do I respect Renault VI stores' cut-off? Do I get caught out by the amount of work to be done in the afternoon? Guide to good practices in the parts department Explanations and advice ■ Do stores staff know how to give advice and tips on use and "good practice"? Do they mention "traps" that may occur when fitting spare parts? ■ Do they mention installation kits that can simplify the mechanic's job? ■ Do they have the opportunity to meet their colleagues from the workshop to exchange information on the advice customers would like to get? Attention paid to orders ■ Is enough importance attached to listening to the customer? Generally, customer complaints noted in the survey on this point are a matter of customers feeling that they were not listened to. ■ In the event of large or complex orders, do stores staff have sufficient time to check delivered goods in detail before hand-over to the customer? ■ Do staff who are new to the job always have a more experienced member of staff to whom they can turn if a problem arises? Parts availability ■ Are the management procedures for Renault trucks parts stores exhaustively applied? ■ Has the stores manager undergone the relevant training? Meeting delivery times ■ It is preferable to state delivery times that you are sure to be able to meet. If the spare part arrives......

Words: 845 - Pages: 4

Part a

...crime described. In some instances this is not always the case. As technology becomes more advanced and readily available in today’s society so isn’t the rate of cyber crimes and how they have increased. A cyber crime could be defined as a crime using the technology, usually over the internet and other technological devices. It is important that our generation and then future generations understand what is happening in today’s society. There has been a growing trend that probably started up a few years ago. “Sexting” is the form of texting for the young teenager generation to show them self in the most unwanted manner. The evidence of sexting could get you very serious trouble and then you could be facing like long threatening outcomes as a part of it. The purpose of the article “sexting” found in the Federal Bureau of Investigation Bulletin is to show the risky actions and overreactions if you get caught (Bowker and Sullvian 1). The authors of this article take an approach in multiple areas of this article. It gives the consequences pending what actually happens and then the horrific stories and why you should not do it in the first place (1). The evidence approach to this article can be interpreted as so. There are two ways that the evidence of sexting can be seen (Bowker and Sullivan 1). The first one says that illegal images of child pornography such as a text of a nude underage person can be placed under the law of the federal child pornographic statue (1). Even......

Words: 1148 - Pages: 5

Ppq Parts

...to take risks, based on the fluctuating rates. Also suppleness in corporate spending, inflation or deflation, or the global recession could affect demand which could negatively influence investments and profit margins. PPQ Parts would need to examine the economic issues directly concerning their company and have strategies in place to thwart off any economic factors which could directly affect their organization (Smith & Doyle, 2002). Political Factors - Political fluctuations can have an adverse influence on PPQ Parts. Political instability among singular markets can be very demanding. Managing federal, state and local legislation while running internationally dispersed personnel could pose to be a threat to PPQ Parts. Furthermore terrorist attacks and political volatility would also negatively influence investments and profit margins. PPQ Parts is also subject to at home and at broad competition, piracy, laws and regulations. Again, PPQ Parts would need to have strategies in place to deal with the management of political factors; in addition, they would need a crisis management team in place in the event of political volatility or terrorist attacks (Smith & Doyle, 2002). 6. Explain the importance of and the implications of each of these items in PPQ Parts' expansion plans to Germany and Japan. The greatest significance of going global with expansion in Germany and Japan, is with competitive advantage which they can ascertain through: economies of scale, first-mover......

Words: 1353 - Pages: 6

Stategic Plan

... Strategic Plan, Part III: Balanced Scorecard Rebecca Lanham BUS 475- Integrated Business Topics August 1, 2011 Phyllis Koch 2 Balance scorecard is essential for developing a healthy business growing place. This is a vital key for defining the goals and targets of a company as well as the vision, mission, and the SWOTT Analysis. A Balanced Scorecard is, A set of four measures directly linked to a company’s strategy: financial performance, customer knowledge, internal business processes, and learning and growth (Pearce and Robinson, 2009, p. 202). This term paper will relate TL Concrete Services, values, mission, vision and SWOTT Analysis with the four perspectives of the scorecard (financial performance, customer knowledge, internal business process, and learning and growth). Financial Perspective/Shareholder Value A strong and well defined vision and mission statement will facilitate the company to achieve its target. The objectives of TL Concrete Services should be implemented as a daily routine so as to increase the performance of the company. The first and foremost responsibility of a company is to seek its customer satisfaction, benefit utilization, increased net revenues, and also to achieve financial stability. To evaluate the financial stability of a company, one should calculate the Operating cost, Earnings per share, growth revenue and return on interest and capital. If we succeed how we will look to our stakeholders Customer Value Perspective. The customers......

Words: 363 - Pages: 2

Stategic Management

...ple te d 100000 10000 1 000 1 00 1 0 1 1 2 3 4 5 6 7 8 9 10 1 12 1 14 15 1 1 1 3 6 7 18 19 20 Total Faults Created Faults per Account 60.00% 40.00% 20.00% 0.00% Reliance have trebled their NOC fault management efficiency in two years To tal Orders Closed M odify Orders Clo sed Provisioning Orders Closed Delete Orders Closed 80% of all fixed line business orders are completed by day 1, 90% by day 3, and 99% by the end of two weeks When ARPU is low, operational efficiency is of key importance. Reliance have achieved end-toend process automation for the order-to-cash and trouble-to-resolve processes while concept-to-market process time-scales have been significantly reduced. Clarity’s Unified OSS has played a major part in this success. A practical measurement of efficiency is the ratio of subscribers to staff with Reliance comparing well with European and Asian mobile operators. This allowed Reliance to gain early market share through high performance provisioning on day one and led to an early generation of revenue to offset the $9 billion investment: Faults per A ccount Num ber of Faults 7 | Reliance Case Study It is no accident that Reliance has maintained such high efficiency – it is a pre-requisite for making the business successful in a low ARPU environment. The Reliance NOC contributes to operational efficiency by providing a centralised orchestration of fault, maintenance, performance, provisioning, field-force and SLA......

Words: 3966 - Pages: 16

Fa Ppq

...Discounts for quicker payment may have caused this, as could lower sale prices to win more orders. (ii) Net profit percentage has reduced significantly. Increased wages and bonuses, or writing off obsolete stock may have caused this. (iii) Stock has more than doubled (has obsolete stock been written off?) (iv) Although sales have nearly doubled the increase is only 37.5%. (v) Surplus cash from year 1 has been used and bank borrowing has increased significantly. (vi) Creditors have more than doubled (157%) but turnover has only increased by 83%. Credit periods have extended and problems could arise if they have not been negotiated. (vii) Whilst fixed assets have increased, it may not be symptomatic of the increased trade. The expenditure may be part of a planned cycle and indeed if the assets are more productive they will benefit the increased business volumes. It is unwise to increase capital expenditure from short time finance such as trade credit and bank overdrafts. (viii) The positive current and quick asset ratios have worsened indicating a worsening of the short term financing position. Year 1 £ 180,000 ––––––– Year 2 £ 306,000 ––––––– (b) (c) Total assets Financed by: – Capital – Creditors – Overdraft – – – – – % % 96,000 53.3 99,000 32.4 56,000 31.1 144,000 47.1 28,000 15.6 63,000 20.5 ––––––– ––––––– 180,000 306,000 faster debt collection, although too much pressure may lose customers. more efficient stock holding. slower payment to creditors but there are......

Words: 6647 - Pages: 27

Stategic Management

...MARKS ALLOCATION: Assignment and presentation 10 5th week test (3pages+relevant appendices) 10 13th week test (3pages+relevant appendices) 20 (Submission date: last day of the class – soft or hard copy) Research Paper 20 (Submission date: last day of the class – soft or hard copy; 15-20 pages) Final exam 30 Class participation 10 (Students with insufficient class participation may be notified mid-way) TOTAL 100 (Students may also be required to attend guest lectures. Information on these will be notified in class in due course. Tests may be administered at the end of the lectures and they would count as part of the weekly assignments.) Criteria for Evaluating Class Contributions Woody Allen once said: “90% of success is just showing up.” He’s right!! Show up regularly, and you have a decent chance of passing this course. Because you must be present in order to participate, we shall incorporate attendance into your participation grade. As the course progresses, it will become clear who participates and who does not. Those who stand out as major contributors will be rewarded with the maximum in participation points. Those who show up in person, but not in mind, will receive very low participation points, if at all. Those who do not show up at all will not receive any participation points. SM is a course about a framework for......

Words: 4764 - Pages: 20

Stategic Management

...rise to 60,000 products which includes magnetic tapes, photographic films, coated abrasives etc. Sony has a core competence in miniaturization. Dupont has a core competence in chemical technology. In strategy formulation, environmental analysis and organizational appraisal are followed by choice of strategy with appropriate orientation. Corporate strategy provides overall direction for the firm irrespective of its size whether it is small or big. The orientation to wards growth can be decided by asking the three basic questions. ❖ Should we continue with the same business with similar efforts? ❖ Should we expand into new business areas by adding new functions, products and markets? ❖ Should we get out of this business or a part of the business? Based on the above questions three general orientations, known as Grand Strategies are evolved. ❖ Stability strategies consist of no change in the company’s current activities. ❖ Growth strategies, involve expansion of a firm’s activities. ❖ Retrenchment strategies that reduce the level of company’s activities. |Growth |Stability |Retrenchment | |Diversification | | | |Concentric | | ......

Words: 9511 - Pages: 39

Stategic

...time. Quickly they also became treated as the unchallenged basic model of marketing, so totally overpowering previous models and approaches… that these are hardly remembered, even with a footnote in most textbooks of today... Only a few models from these approaches have survived. American Marketing Association, in its most recent definition, states that “marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organizational objectives”. Eventually the Four Ps of the marketing mix became an indisputable paradigm in academic research, the validity of which was taken for granted. For most marketing researchers in large parts of the academic world it seems to remain the marketing truth even today. Kent refers to the Four Ps of the marketing mix as “the holy quadruple...of the marketing faith...written in tablets of stone”. For an academic researcher looking for tenure and promotion, to question it has been to stick out his or her neck too far. Prospective authors of textbooks, who suggest another organization than the Four P solution for their books, are quickly corrected by most publishers. As a result, empirical studies of what the key marketing variables are, and how they are perceived and used by marketing managers, have been neglected. Moreover, structure has been vastly favoured over process considerations. In marketing education, teaching students how......

Words: 7925 - Pages: 32

Stategic Audit Outline

...members contribute to the corporation in terms of knowledge, skills background, and connections? If the corporation has international operations, do board members have international experience? v. How long have members served on the board? vi. What is their level of involvement in strategic management? Do they merely rubberstamp top management’s proposal, or do they actively participate and suggest future directions? b. Top Management i. What person or group constitutes top management? ii. What are top management’s chief characteristics in terms of knowledge, skills, background and style? If the corporation has international operations, does top management have international experience? Are executives from acquired companies considered part of the top management team? iii. Has top management been responsible for the corporation’s performance over the past few years? How many managers have been in their current position for less than three years? Were they promoted internally or externally hired? iv. Has top management established a systematic approach to strategic management? v. What is tip management’s level of involvement in the strategic management process? vi. How well does top management interact with lower level managers and with the board of directors? vii. Are strategic decisions made ethically, in a socially responsible manner? viii. What role do stock options play in executive compensation? ix. Is top management sufficiently skilled to cope with likely......

Words: 2745 - Pages: 11

Ppq Parts

...module. Some of these features include: • Master Production Scheduling • Material Requirements Planning • Advanced Product Definition Management • Unlimited number of MRP planning periods • Multiple-level Bills of Material (unlimited) • Purchasing • Vendor Analysis • Production Order Control • Production Schedule Control • Detail labor report / transactions • Engineering Change Management • Multiple inventory bin locations • Lot and serial number tracking • Cycle Counting • Bar coding interface • Credit Card Processing • Project Accounting • Job Accounting Management Reports • Human resources features • 401(k) and Cafeteria Plan features With everything this software package offers, this would be of great benefit for PPQ Parts. This package includes all the software systems we currently use and even some systems we could implement. The Mosiac M21 system can help our company increase our efficiency, lower cost, optimize resources, and control product cost and quality (Mosaic Data Solutions). References Capacity Requirements Planning. Retrieved on June 20, 2012, from http://www.investopedia.com/terms/c/capacity-requirements-planning.asp#ixzz1ylD6K8vy Enterprise Resource Planning. Retrieved on June 21, 2012, from http://www.csbdu.in/pdf/Enterprise_Resource_Planning.pdf Heizer, J. (2012). Operations Management 10th Ed. New Jersey: Prentis Hall. Mosaic Data Solutions. Retrieved on June 21, 2012, from......

Words: 689 - Pages: 3

Snvironmental Scanning Ppq Parts

...Abstract PPQ Parts wants to develop a 4 year strategic management plan for taking their business internationally and meeting certain goals. This paper will discuss the goals of the company. It will also discuss the environmental scanning of current conditions in the economy, competition, and political stability, as well as address internal resource analysis. It will discuss the long- and short-term strategic goals, and the location considerations. Environmental Scanning Introduction “The careful monitoring of an organization’s internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans” is called environmental scanning (Environmental Scanning, 2012). PPQ Parts plans to expand their company globally to Germany and Japan. The environmental scan of these two countries will include the economy, competition, and political stability of those two countries. The company has to consider factors such as managerial and financial strengths and weaknesses as well as long term and short term goals for the company. The location for the global implementation is vital and should include benefits and limitations for the expansion. The Economy Germany’s economy was beating the recession that began across the world in 2009, its unemployment rates were down and GDP was up, that was until recent trends that have predicted that the recession will catch up to them. Germany is still in better shape than its......

Words: 1311 - Pages: 6

Ppq Parts Global Operations Management

...contract needs to be composed and agreed upon by both PPQ and the service company. The second to consider is commercial presence, which simply means services that are supplied through the commercial presence of a foreign territory such as branch office opening after PPQ gets a good foothold on the current market. The third point to make is work force, will those people be coming from the local workforce or will PPQ be supplying the work force needed to run the startup company and/or any future companies open in that foreign country. Despite the best-laid plans, there will be some events that need to be taken care of on the spot. Those situations cannot be avoided just dealt with when they happen. Building a company in a foreign country can be exciting and rewarding. Long-term relationships will ensure the good reputation in that country for your business, PPQ. Laying plans ahead to cover once PPQ has established their market in the foreign country and financial statements show growth and profit. Building an alliance with your foreign partners or companies that supply goods is a healthy way to further your contacts and business in that country. In addition, looking at the growth of the company in that foreign country is it really an organic growth factor or is it heavily stimulated by the parent company? In planning the move to the foreign country the gain in the parent company, PPQ, is it limited by regulations of the country to which PPQ is moving? Some restrictions that......

Words: 1280 - Pages: 6

Ppq Parts

...PPQ Parts MGMT 415 AIU Unit 3 Assignment Abstract This paper will discuss as outlined purpose for different software packages with extensive research included. These package details will include the pros and cons to provide the appropriate software for the appropriate company. PPQ Parts Within any business there are tasks to be done and in order to perform these tasks; there is specific software that is needed. There are many software packages and research must be done in order to find the correct software for the company to do particular tasks. A single software may not be right for all business. It is important to know the task at hand and how to get it done, then the decision to choose the best software can be made. A very important operating software system called the Material Requirements Planning (MRP) is a structure that controls the processes of fabrication planning and inventory. This is a system that uses the Master Production Schedule (MPS) to regulate the material requirements and uses a practice of inventory, expected receipts, and bill of materials. There are many benefits of using an MRP system within a business, but there are four main benefits. The four main benefits are better reactions on customer orders, faster reactions on market changes, increase operation of facilities and industry, and decrease in inventory stages (Heizer & Render, 2012). A technique that many businesses practice to govern the obtainable production capacity is the......

Words: 645 - Pages: 3