Managing Resources & Operations

Abstract

PPQ Parts is looking to expand globally and a strategic management plan is very important. There are several factors that play a part in shaping the company strategy. PPQ has set certain goals to accomplish within a few years. Therefore the information that PPQ Parts have revealed will be used to develop a 4 year strategic management plan.

There is a process to strategic planning, which involves environmental scanning. Environmental scanning consists of internal and external factors such as political, social, and regulatory, as well as resource strengths, weaknesses, and capabilities and so forth. The first step to strategic planning is conducting an environmental scan of current conditions in the chosen area of expansion.

Environmental scanning

Environmental scanning embarks on collecting information about the external environment. This particular information can be attained from a variety of sources, both internal and external to the business. Take a look at Germany for instance when it comes to economic relations, the U. S. and Germany distributes an obligation to an open and growing world economy. Germany is known as an affiliate of the European Union, plus in 2007 was the major driver behind the establishment of the Transatlantic Economic Council, a political organization that looks to intensify collaboration between the United States and the European Union by encouraging economic expansion through enhanced job and trade creation (Germany, 2012).

The present conditions of the economy of Germany is said to be reasonably better than economics have expected for the fourth quarter regardless of the existing debt issue in Europe. (Germany, 2012). European Banks, observe indications heading to stability within economic activities due to the services and a factory increase in output within Europe. Germany is one of the profound influences in business; Germany has a surplus of prospects and growth sectors such as the machinery sector is a vital part of the engineering sector, Germans are recognized for their automobile industry and while it has slowed down during the recent economic slump, it still has potential, and metal processing and manufacturing have been a extensive custom in Germany (Germany, 2012). Although Germany is known for many things they are also known for a lack of IT and computer specialists all over the country, and a shortage of qualified technical workers around southern Germany, but in eastern Germany restructuring is taking position, there is also the factor of high unemployment. There are extremely a small amount of restrictions on which services or companies possibly will do business in Germany, the country is well regulated.

There are also environment conditions that a play a factor on business, for example Japan suffered an earthquake and tsunami that overwhelmed the country causing a drop in the economy for the fourth quarter (Japan, 2012). In reference to PPQ locating in Japan gives room for possible more competition than they can chew. Japan is known as the world's largest manufacturer of automobiles with 20 million units created globally. This makes Japan the leading market for automotive technology, parts and knowledge (Japan, 2012).

Internal resource analysis

The internal analysis focal point is on the business's operations along with resources, as well as international synergies. The weaknesses and strengths of the company's managerial and financial knowledge and efficient capabilities are assessed to establish what main success factors the company have and how well they can facilitate the company develop foreign prospects. Such factors gradually consists of better-quality technological competence, furthermore it involves additional strategic benefits for instance successful distribution channels

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