Strategy formulation

Anonymous
timer Asked: Dec 18th, 2018
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Question description

Purpose of Assignment

The Week 4 individual assignment is the second part of a three part strategic management plan for the company selected by the student in Week 3. The purpose of the assignment is for students to establish long-term goals and objectives; indicate, specify and discuss strategies; and investigate, consider and describe specific business strategies including vertical integration and strategic alliances, to achieve competitive advantage in the industry. The student also generates an appropriate organizational chart in alignment with the stated strategies.

Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 2 of the three part Strategic Management Plan.

Assignment Steps

Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

  • Establish Long-term Goals and Objectives
    • Strategy Formulation.
    • Indicate the markets that the company will pursue.
    • Specify the unique value the company will offer in the selected markets.
    • Discuss the resources and capabilities that are required.
    • Analyze how the company will capture value and sustain competitive advantage over time.
  • Business Management Strategy
    • Consider Cost and Differentiation Advantages.
    • Describe the Corporate Strategy.
    • Investigate Vertical Integration.
    • Describe Strategic Alliances.
    • Detail the Company Competitive Advantage.
    • Generate an Organizational Chart of the company you selected.

Cite at least 3 scholarly references.

Format your paper consistent with APA guidelines.

I have uploaded my week three paper below.

Running Head: HYUNDAI’S STRATEGY MANAGEMENT PLAN Hyundai’s Strategy Management Plan Amber Lynn December 17, 2018 MGT/498 Sheila Marie Buendia 1 HYUNDAI’S STRATEGY MANAGEMENT PLAN 2 Strategic formulation plans are important to any business. They require the company to come up with new ideas to penetrate new markets or maintain existing market share. New strategies help businesses differentiate themselves from their competitors with the aim of attracting new customers or maintaining customers, all of whom value innovation. It requires an organization put up goals and provides a framework from which these goals are achieved and implemented. A company that develops a strategic plan ensures that its employees have a goal to focus on which helps the company be proactive as opposed to being reactive to changing internal and external environmental factors. Strategy formulation requires an organization to define itself, its mission, its strategic objectives, and competitive strategies implement said strategies and evaluate its progress over time. A company that has mastered the art of good strategic management is Hyundai Motor Manufacturing Alabama, LLC (HMMA) located in Alabama, the car company is owned by its South Korean parent company Hyundai Motor Company. The plant which was founded in 2004. The plant in Alabama has been helping the parent company build more cars in the United States with 50% of the cars sold in the U.S.A being made there. The automotive industry is said to be one of the hardest markets to penetrate especially in America with other big major manufacturing car makers such as Volkswagen, Mercedes Benz, Ford, GMC, Toyota, Lamborghini, and Ferrari. The company has greatly invested in the plant which cost around $1.7 billion to complete. The plant received the ISO/TS 16949 certification a highly recognized quality management standard HYUNDAI’S STRATEGY MANAGEMENT PLAN 3 (Hyundai America, n.d.). The company has used environmental scanning to gather information about external factors and internal relationships to help build their brand. Sonata and Elantra are among the top selling car models in the United States. The company has a competitive advantage in the market as it mass produces their cars in the United States with the hope of increasing their market share in America. The cars are sold in fair prices so that they can attract a bigger customer turn out. This will have the company have a significant market share. This is further driven by Hyundai Motor’s investment into other centers such as the $30 million design facility that designs Hyundai cars which include the Sonata and Genesis Coupe. They also built the Hyundai America Technical Center which was opened in 2005 which is a research and design center. Its internal strategies strengthen the company and help it compete with other car manufacturers. Its strengths include a highly innovative process, an increasingly strong brand, and a strong control of their production process. The company is known for its innovation in affordable vehicles which help the company gain a competitive advantage. Most people recognize the Hyundai Motor Manufacturing Alabama brand in America with the creation of the facility than before. Customers, before the plant was started, would have to import cars form the parent company which would turn out to be really expansive. They would then turn to other companies with fairer prices. With the plant being locally available people can purchase cars and even customize them to fit their needs. It is however faced with internal weaknesses such as a low market presence in America. Its external environment, however, gives hope for the company as it has put more effort into designing cars for the North American market which is its main target market. The company also diversifies its business operations such that they build cars while doing other projects such as research on other technologies such as hydrogen fuel cells. HYUNDAI’S STRATEGY MANAGEMENT PLAN 4 Other external factors include the highly competitive car market that the company is in which does not favor new entrants. HMMA’s strategy is the use of their highly technologically advanced plant to improve business operations with the plant using more than 400 robots to assemble the Sonata and Elantra. The company chooses to sell its cars through franchised dealerships with the company having more than 800 dealerships countrywide. They believe that this helps reach a wider target area thus meeting the company’s objectives of increasing market share in North America. They have service centers in most urban areas and the company believes that by opening up a center in a new area only helps increase the demand of their cars and in turn their market share. The company has diversified its product line by selling all types of cars such as SUVs and sedans. The company’s Elantra car has been well received and its technological capabilities such as adaptive cruise control and automatic braking with pedestrian detection along with the compactness of the car give the car a competitive (Vasilash, 2016). The company, however, has failed in America with the lack of certain offering such as pickups. HMMA also highly emphasizes build capacity with 97 percent of the cars coming off their line being considered as perfect. Internally, the company has employed close to 3,000 full-time employees and over 500 temporary workers on call. The plant can also churn out many cars with annual production of around 395,000 cars (Nishimoto, 2016). This number varies depending on the demand of the cars in the market. The company’s business strategy is centered on changing public perception about their cars by making the models from the Alabama plant more technologically advanced. To test its strategic effectiveness Hyundai needs to look at its growth since it opened the Alabama HYUNDAI’S STRATEGY MANAGEMENT PLAN 5 manufacturing plant. This is an effective measurement as it shows that the company has attained its goals of building its brand name, increasing popularity of its vehicles, and its level of innovation over the years. Using this guideline it can be seen that the company’s brand name has increased with its market share also increasing. The company has also changed the minds of many who may not have recognized the brand. Hyndai was not very well known in the American market before the Alabama plant was opened. Now, the brand has become a major competitor in the United states automobile market. The vehicles are durable and the different models manufactured suite the different needs of the customers. The company was originally created with the intention of building sedans, but have now decided to manufacture the Santa Fe an SUV. The company now needs to focus on strategies to help it gain a greater market share in North America. HYUNDAI’S STRATEGY MANAGEMENT PLAN 6 References Vasilash, G. S. (2016). 2017 Hyundai Elantra: All This and More Retrieved from https://www.adandp.media/articles/2017-hyundai-elantra-all-this-and-more Hyundai America. (n.d.). U.S. Operations Retrieved from http://hyundaiamerica.us/an-americansuccess-story/u-s-operations/ Nishimoto, A. (June 29, 2016). How one American plant puts the Seoul in the Elantra and Sonata Retrieved from http://www.motortrend.com/news/9-cool-facts-hyundais-manufacturingplant-alabama/

Tutor Answer

chemtai
School: Purdue University

please find the attached file. i look forward to working with you again. good bye

Running head: HYUNDAI’S LONG-TERM GOALS AND OBJECTIVES

Long-term Goals and Objectives
Name
Tutor
Institution
Course
Date

1

HYUNDAI’S LONG-TERM GOALS AND OBJECTIVES
Strategy Formulation
When formulating long term strategies, Hyundai focuses on strategic positioning,
marketing mix, affordability, and quality of products. The company focuses on positioning
because this drives market forces. Rather than simply selling random products in random
markets, the company adopts value based positioning strategies which ensure that a high
value experience is created for the customer. Factors such as fuel volatility, environmental
conditions, as well as government regulations are all considered when formulating strategies
for gaining a bigger customer base in both South Korean and international markets
(Systèmes, 2013). The company’s strategies focus on the customer; specifically on meeting
customer needs through improved car designs, services, performance, and affordability. In
the 21st century, the company is focusing more on technological innovation in keeping up
with customers’ changing tastes and preferences. Hyundai’s strategies also focus on
enhancing its manufacturing capabilities and expanding global presence.
Markets that Hyundai will pursue
Hyundai has in the past performed very well in developing nations especially Asian
markets, hence will focus on gaining more ground in these markets, especially among the
middle income groups who focus less on luxury, but instead are looking to purchase family
cars which offer value for mone...

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Anonymous
Thanks, good work

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