Executive summary
This paper provides a strategic plan for ERBAKIR CN WIRE Company. The strategic plan includes an analysis and evaluation of integral aspects of Company’s operation. These aspects are company’s background, its organizational mission, vision and value statements. Besides, the paper provides an environmental scan, describing Company’s place on the trade market. The paper reviews current strategies and states the recommended ones. In order to reduce and overcome risks, the paper offers an implementation plan including contingency plans for identified risks.
ERBAKIR CN WIRE Company is the largest of Electrolytic Copper Conductive companies in Turkey and one of the most powerful in the world. Even though the company has a sustainable place on the market and has a high revenue from its international markets, ERBAKIR CN WIRE Company was found to be stuck with a couple of risks. In order to overcome low billing and profitability, Company has shaped its mission as providing products and services that meet or exceed the requirements and expectations of our customers. The company vision is to be customer oriented, motivating our employees. The values are the satisfaction of customers and safety, both internal and external.
An environmental scan has shown that high competition and growing international links are the two main features of ERBAKIR CN WIRE Company’s surrounding. The company operates in a competitive business environment that faces a fierce competition, especially from its closest rival Sarkuysan Elektrolitik. Besides, the company has enjoyed a favorable market in Turkey and in the international markets, resulting in a growth in its revenue while, at the same time, increasing its profitability levels.
The current strategies are differentiation strategy and global expansion strategy. The best way to develop company’s business is to broaden the range of strategies and integrate both business-level strategies (which are low-cost leadership, differentiation and integration strategies) and corporate-level strategies (which are diversification and international expansion strategies). Given the fact that ERBAKIR CN WIRE is a big company serving a large clientele base, a combination of these strategies would be most effective to ensure its grows while and achieves a competitive advantage.
According to different probable risks, the implemented plan consists of four levels of contingency plans. The financial level is to decrease the level of financial risks and control the excess inventory financially. The ‘customers’ level is to develop relations and communication with customers. The organizational Internal level is to create and establish plans. The ‘employees’ level is to overcome the lack of experience.
With the strategic plan, we know where we are and where we are going, what are the objectives of the company, what are the risks and opportunities and the foreseeable market situation is likely to occur. It is recommended that the strategic plan is monitored and constantly revised all the time; this allows the company to maintain a competitive edge that makes it different in the market.
Company background
ERBAKIR is one of the biggest world manufacturers of Electrolytic Copper Conductive Segments. Since the first years from its foundation, ER-BAKIR has developed its authority and impact on the trade market. Besides, the company has become more competitive with well-established markets and a large clientele base, satisfying electrolytic copper needs of National Aeronautics and Space Administration (NASA) and other high-technology firms in the United States, Italy, as well as Germany. In order to win a substantial place on the American market, ERBAKIR established CN WIRE Company, which strengthened the links to the USA and increased the amount of exportation from Turkey to the USA.
Even though ER-BAKIR CN WIRE Company is considered to be a successful subsidiary company, it faces ‘tough times’. Current situation is described as minimum billing and profitability. Nevertheless, ER-BAKIR is an experienced and successful company of its segment. The managers of the company have already shown themselves as talented and devoted workers. It definitely needs no evidence that ER-BAKIR CN WIRE Company managers will do their best to resolve the issue and develop.
Organizational Mission
The mission of ER-BAKIR CN WIRE is to provide products and services that meet or exceed the requirements and expectations of our customers. We ought to operate in our particular area of Copper Segment; from this field, we derive products and services, which are key to our commercial offer. Our geographical target is the number of countries we already cooperate with. In terms of CN WIRE Company, the territory of our operation lies under the boundaries of the United States. In other words, we ought to develop our company in order to release the most qualified product (which will meet the customers’ requirements and please them) for the American market of our segment.
Vision
In order to develop ourselves and resolve the key issues of our current situation, we, as ER-BAKIR CN WIRE need to correspond to our image of the segment. The vision, which is beneficial for both our customer and us, is the following: In any part of the world, able to adopt the circumstances of the region to be able to perform sales, marketing and production we are customer oriented, motivating our employees. Make the best effort to be environmentally conscious and cooperate on mutual benefits shaping future with courage ("Erbakir", 2016).
Value statements
For the sake of ER-BAKIR CN WIRE Company and its customers, our main value is to release only developed, tested and approved products. This ought to be done in the shortest terms, in order to keep up the whole world of modern technologies. Additionally, our key value is the absence of risks, for both our workers (safe conditions of a workplace) and the environment (the production is non-contaminant). Derived from the upper mentioned statements, the integral values of ER-BAKIR CN WIRE Company are:
the satisfaction of customers’ requirements (qualified product is developed in short terms),
safety (working conditions do not create any risks)
purity (the company is environmentally friendly).
Environmental Scan
ERBAKIR CN WIRE Company operates in a competitive business environment that faces a fierce competition, especially from its closest rival Sarkuysan Elektrolitik. Both companies engage in the production of electrolytic copper wire across Turkey and other regions of the world. Moreover, Sarkuysan Elektrolitik employs business strategies in its operation to offer discounted and high-quality copper wires to its customers, thus competing nearly at the same level in the industry as ERBAKIR CN WIRE. The strategies that are used by Sarkuysan Elektrolitik as a direct competitor play a crucial role in attracting high-income customers while, at the same time, increasing its revenue and becoming more profitable.
The second considerable feature of ERBKIR’s environment is its international status. Due to the global expansion strategy of the Company, the company has enjoyed a favorable market in Turkey and in the international markets, resulting in a growth in its revenue while, at the same time, increasing its profitability levels. Besides, the company is dedicated to offering excellent quality to its customers across the globe with the best price possible, enabling it to survive competition in the industry.
Strategy
ERBAKIR CN WIRE follows two integral strategies, differentiation strategy, and global expansion strategy. The first one seeks to differentiate ERBAKIR’s products from rival covering more buyers. This strategy is successful when profits increase and outweigh the added cost to the product. The second one has already helped ERBAKIR broaden its influence overseas and win a sustainable place on international markets.
However, these strategies are not enough to resolve the oncoming issues. A key to successful operation of ERBAKIR CN WIRE Company is to use both business-level and corporate-level strategies. Business level strategies that should be considered include low-cost leadership, differentiation, and integration strategies. On the other hand, corporate strategies that should be implemented include diversification and international expansion. The company should also consider the notion of fast cycle markets in its generic strategies. Since the company operates in a competitive business environment, fast cycle markets would play a significant role in enhancing the level of performance and profitability.
Low-cost leadership should be implemented as the key strategy, as claiming an advantage of lower costs over rivals it includes the essential features and services for customers, considering that for maximum effectiveness. This strategy will enable ERBAKIR CN WIRE to produce high-quality electrolytic copper wire at a lower cost as compared to its competitors to increase its market share. Moreover, the company may use differentiation as a value discipline strategy to compete favorably with its competitors in the same industry. Additionally, ERBAKIR CN WIRE should implement a grand strategy such as diversification to penetrate new markets with increased demand for electrolytic copper wires. The combination of business-level and corporate-level strategies should include integrated strategies that will help the company in venturing into new businesses.
Implementation plan
Implementation plan for ERBAKIR CN WIRE Company consists of four levels of action plans. All of the levels correspond with different identified risks. In order to decrease the level of financial risks and control the excess inventory financially, ERBAKIR ought to increase revenue and maintain profitability. In these terms, it is necessary to create and follow a sales plan, the annual operation budget and a system of Cost Control.
The ‘customers’ level includes an action plan to configure proper communication and decrease the risks of opponents’ development on the market. The actual actions plan includes technical advice (suggestions for improvement of information), prompt response (establish maximum response time to Customers and identify and classify queries, prices, construction), corrections in price/quality and product/service (create a database of production and a list of services and compare it to opponents’ one).
Internal organizational level includes actions, to overcome the main weakness, which is the lack of planning. The objectives (and appropriate actions) are knowledge of competition (analysis of competitors’ success comparing to our own with the use of surveys and database), boost trade management and quality (due to the research on a sporadic customer and desired implementation processes) and knowledge of management (by working out a management program).
The ‘employees’ level considers actions, taken to resolve the risk of lacking experienced people. This risk is to be solved by training (needed action is to work out a proper training program with the required features) and developing communication (by creating a ‘communication manual’, establishing employees’ logs and other initiatives).
References
ERBAKIR. (2016). Retrieved from http://www.erbakir.com.tr/en/sayfa.asp?id=2&id2=9
