Organizational planners always ask the basic questions on how organization could reach out the future. Getting into the future must determine the internal capabilities of the organization and identify the external situation of the environment. Methodological stages of plans are applied to fully address the determination and identification of internal and external factors affecting the organizational operations.
Thus, strategic plan develops in the overall directions of an organization to achieve short and long term goals. Strategic planning plays a vital role in the life of an organization, as Abraham Lincoln (1809-1865) once said, “if we could first know where we are, then whither we are tending, we could then decide what to do and how to do it” (Birnbaum, 2008). Reflective of Lincoln’s visioning, the directions are set and somewhere along the way are setting of the path for the organization to meeting its future.
The strategic plan is therefore a visionary’s parameter to process the growth and developments of an organization, especially on the Chief Executive Officer’s role in setting the directions of its company’s vision, mission and objectives. In most business ventures, enhancing the workforce capabilities compliments in the capacity of the capital investments and productivity to gaining market competitiveness. This approach could be a strategy to acquire the demand potentials of the market.
Another approach as a strategy could be in the form of market intelligence that identifies the needs of the market and the prevailing competitors. The processing of these approaches could be described through a business plan which a company may develop. However, it is critically considered that the implementation process shall objectively determine the effectiveness and efficiency of a strategic plan. Methodology This paper will discuss how strategic plan is being developed by organizations, specifically in the organizational life of the Manitowoc Company.
The organizational review of Manitowoc Company and the use of additional literatures will guide the examination and analysis throughout the discussions. Literature review Executive Summary Reaching out the future illustrates the vision of a company. Through this vision, the company develops its mission, role in the society, character in the industry and position in the market. Setting the vision and mission of a company describes its objectives on how sustainable existence can be achieved.
Setting the vision, mission and objectives evolves the establishment of needed resources, such as capital budget, the workforce and the kind of industry to cater the investments or business ventures. The establishment of organizational resources is perceived by organizational planners to have been created and made according to the environment, probing the existential elements on how and where the business can be successful. Probing the success of business or investments is likewise inquiring the situational elements or factors, such as the size, needs and stakeholder of the market.
The logical inquiry on “what” are the situations enables the inquisitive quest of the company to examine the capabilities of organizational resources, evaluating the weaknesses and strengths, and determining the opportunities and threats within and outside of the organization. Strategic plan develops along the way of addressing the basic inquiry [on how, where and what] the organization can effectively and efficiently achieve its goals.
The setting of priorities in view of operations is significant to implementing the strategies or methods of plans. The strategic components of business operation may be composing of determining the viabilities and potentials in the aspects of production [in which the company caters its business] to optimize the resources. Depictive of the strategic operating components of the organization, the workforce and market performance is essential.
In addition, the diversity of market, industry and the overall supply chain attributes to major considerations of a business plan that composes the strategies. Realizing the situation in this executive summary, the capabilities and performance of the Manitowoc Company will be probed, and analyze how a business plan relates effective and efficient implementation. Brief background of the Manitowoc Company The Manitowoc Company was established in 1902 as a ship builder and repair business located at the lakeshore community of Manitowoc in Wisconsin.
During the 1920s economic boom in the US, Manitowoc diversified its business venture into manufacturing of construction and refrigeration equipment, and achieved its growth towards the early years of 1940s, which was impeded by the occurrence of World War II. (Manitowoc, 2008). The industrial reconstruction of America when WWII ended has paved the business continuation of Manitowoc which became a pioneering company in the diversified manufacturing of refrigeration equipment used by food service companies, cranes for building construction and marine apparatus.
The diversified business of Manitowoc has consistently catered to global industry partners that have enabled the business operation in more than 20 countries. The global business expansion of Manitowoc is founded on dedicated service and product quality to meeting the needs of its clienteles (Manitowoc, 2008). Vision Statement The vision statement of Manitowoc is outlined in its mission to generally “promote good economic values”. Promoting good economic values could be typified by analogous understanding.
Firstly, a company retains the value of social responsibility in aspects of providing and generating employment opportunities for a broader labor force in the industry, specifically the labor forces that Manitowoc requires are in the manufacturing sector. This finds relevance in the visioning of a larger employment or labor intensive business for the vast majority of labor forces in the market. Secondly, the customer-focused approach of business strategically promotes the recognition of customer values.
And thirdly, the enhancement of capabilities through adoption of “best technologies” sustains and retains the ethical ascription to product quality standards. It may be further reflected that Manitowoc’s vision complements with the mission statement, in which likened to a symbiotic relationship that mutually demonstrate the needs and complementation. These needs and complementation that goes along the vision of Manitowoc represents the holistic approach of a business strategy to sustain the “market value” of business and reach out the “business value” to its shareholders and customers.
In summary, a vision and mission statement describes the inquest on “what” to be achieved and “how” to achieve the future existence of a company. Thus, this analyzes re-focuses on what has been achieved [in the past] of Manitowoc Company and how that past experiences brought the present existence and ushering to the future. As cited, “where there is no vision, the people perish” (Proverbs 29:18; in Stack 2008) embraces the futuristic existence by working on today’s corporate social responsibility of a company, like Manitowoc that surpasses the long generation of business within one industry setting.
Mission statement The Manitowoc Company focuses its mission for continued development of good economic values, customer-focused services and preserving product quality standards. Manitowoc’s mission is complemented with the efforts in promoting product innovation and enhancement through research and development, support services and customer care, and development of new markets to guide the establishment of business units (Manitowoc, 2008). Reflective of the Manitowoc Company’s mission ascribe the extensive role of a business venture that position its business in the new industry trends and heights of market.
By defining its mission in the industry and market, Manitowoc has able to identify and describe the character of its business, the purpose of business existence and the essentiality of business to its targeted clienteles or customers. It may be analyzed that the mission synthesizes its role in the industry, the market consumers and competitors. A company’s mission situates or locates the “role” where the character of business could be widely recognized by its targeted consumers.
We may further analyze, Manitowoc’s mission statement envisions the organizational elements, such as (1) to demonstrate its organizational capabilities by promoting or advocating good economic values to shareholders of the company and the customers, (2) declaring the enhancement or improvement of capabilities by acquiring best technologies in manufacturing, and (3) envisioning the opportunities at a larger business scale by creating new markets that may as well correlate the emerging industries for the labor market. The mission statement is fundamental in the business development of a company.
It dictates the materialization of vision, wherein the missionary role of the organization is being identified, described and uphold. Values statement Manitowoc Company is inspired by its business philosophy for ‘a place where pride and passion thrive’ that assimilates the culture of oneness and perseverance (Manitowoc, 2008). The ingenuity of a business character is identified by its organizational representation to the industry and market, describing the identity and personality of a company. The statement values are the preservation of ethical standards in business undertaking.
The business undertaking of Manitowoc expresses the needs of the market, specifically the consumers or its customers. The simplification of promoting good economic values correlates in the values statement, in which the preservation of high quality standard products is more than of conveying the “after sales services”. It is a common knowledge that having or acquiring a good quality product would perfectly meet the “needs” of the user. Of which Manitowoc proclaim the “pride” of manufacturing high-end equipment that can withstand the time of usage, and maybe surviving from the normal wear and tear.
The value of “perseverance” in creating or producing high quality standards proves Manitowoc’s values statement “where pride and passion thrive”, describing the capability and performance of its workforce in manufacturing. The identity or personality of business culture is characterized by effective and efficient products that value the reliability, where customers are given the passion of craftsmanship. The value statement persevere the sustainable and consistent vision/mission of Manitowoc Company to objectively achieving its promotion for good economic values.
Thus, ‘a place where pride and passion thrive’ attributes the reliable, consistent and efficient service for the customers that becomes an over spilling reservoir of Manitowoc’s competitiveness and continuing business potentials. Strategic analysis and choice We may discuss the corporate governance of Manitowoc Company in order to indicate strategic analysis and choice based on the organizational performance. In brief, the corporate governance of Manitowoc Company strongly prescribed “par excellence” in the performance and capabilities of its workforce (employees), to gaining the strength in the conduct of promoting good economic values.
According to Manitowoc Company’s ‘code of conduct’, the setting of criteria “bridges” passion for excellence, wherein the policies strictly implements the ethical standards and values. As quoted by Manitowoc’s President and Chief Executive Officer Glen E. Tellock, “it is the framework for making business decisions that will make it easier to raise and address ethical challenges and concerns”, in which implementing the code of conduct in corporate governance becomes the fundamental principles that creates consumer or customers’ confidence, being consistent with the personal or individual and company values (Manitowoc, 2008).
The code of conduct in Manitowoc’s corporate governance may be described as the ‘terms of reference” of operation that becomes the underlying parameter in implementing the rules and regulations of the company, aside from the specific operational controls that will be discussed on the later section of this paper. The strategy and choice of Manitowoc could be analyzed to always deriving or referencing from the code of conduct, wherein even the shareholders (stockholders) abide by the rules and every policy concerning the shareholding.
This behavioral response is reflective of Mr. Tellock’s ascription to the framework of making business decisions and also relates the “pride’ of abiding to the ethical rules and “perseverance” to maintaining proper decorum within the organization. Planning of goals and implementation The planning of goals and implementation signifies the process of unity, synergy, collaboration, mutuality and other descriptions of process that connotes “oneness” and “belongingness”. The process of organizational consolidation always implies the “mutuality” of membership, especially the people in the management level.
The interim unity in the processes in setting of goals, planning and implementation conveys a critical role of every organizational member, in which the challenges and problems shall be addressed. We may relate the planning of goals and implementation to the conduct of Manitowoc in meeting its objectives and targets. The diversified operation is composing of product division, such as the crane group, food service group and marine group (Manitowoc, 2008). The division of labor in the respective production groups could be interpreted as a ‘streamlined operation”.
A streamline operation does not necessarily contain or compartmentalize the operational processes, as exemplified by the overall implementation of the code of conduct consisting of the production process. Based on operational review of production process, the “retrieval of operation” identifies the needed resources, production targets, and the systematization of works and financial plan. As mentioned, the systematization of works and financial plan makes the business plan viable and achievable (McNamara, 2008).
We may cite and quote in verbatim McNamara’s finding related to planning of goals and implementation, such as accordingly “the establishment of goals to accomplish the next 3-year plan is a result of the present condition or situation (environment) inside and outside the organization” (McNamara, 2008). As discussed above, Manitowoc’s planning of goals and implementation is perceived to be organizational-focused and environmental-based. Financial projections and analysis
The important part of setting the goals [as referring to short and long term goals] is the optimization of resources by adopting the effective means of organizational fiscal or financial management. The financial management, as attributed by forecasting the financial inflow and outflow of operation, may not only referring the basic understanding of crediting and debiting. The capital budgeting plays an important and critical role in the financial projections, wherein the specifics of budgetary requirements are needed to be described.
The resource mobilization, consisting of operational expenditures, must coincide and create a synergy of purpose to the organizational needs. Like Manitowoc’s capital budgeting in the operation of three product divisions, wherein manufacturing of different equipment could have been projected. The financial forecast of profit over expenditures could be well described according to the cash flow of operation. However, the cash flow procedures may vary upon various factors that are inherent to environmental change (McNamara, 2008).
According to McNamara, the environmental change must be also forecasted in the laying down of financial forecasting, concerning the cash flow of operation, most especially in the manufacturing sector. McNamara’s finding may be interpreted and examined by the effects of economic recession worldwide. To summarize the statement and finding, the supply chain in the world market could be affected by the decline of consumer purchases which therefore draws impact to the manufacturing business. In which case, the sudden decline or slowing down in the supply of raw materials could abruptly affect and modify the financial projections and analysis.
However, the process of diversification in the business operation could create a “balance of projection”, in which exemplified by Manitowoc’s diversification process in manufacturing. The streamlining of Manitowoc’s manufacturing business [by way of catering into a variety of equipment lines] could be perceived as part of the strategic financial management to “cushion” the sudden environmental change from the raw material sources and market that can be considered as a potential risk in the capital investments.
Critical success factors As cited from the Mckinsey And Company (2008), the technical definition of critical success factor, commonly called by organizational planners as CSF, is a component of elements that is essential for an organization or business to achieve its objectives. The CSF is composing of the “factors”, such as capital investments, the workforce abilities, the variety of consumers, the product quality, the business sustainability, to name a few (The Mckinsey Quarterly, 2008). We may attribute the CSF of Manitowoc by perceiving that the long generation of business operation in manufacturing has historically survived the organization.
It may have sized up and gauge the capabilities of organizational elements and the chronicles of the industry, being a pioneering company in the manufacturing of serviceable equipment. It may be cited that one of the CSF of Manitowoc could be referred as the retention of a product quality that has value proposition with the customers. We may point out the promotion of good economic values envelops the business culture that demonstrates the “strengths” in the marketplace, in which Manitowoc thrives a strong market value of product positioning in various kinds of customers.
The par excellence of customer’s satisfaction to the high quality standards of products is very much relevant to Manitowoc’s fundamental “footing” on the critical success factor. In every organization, determining the CSF is basically a requirement to enable a sound, effective and efficient strategic plan, like the determination of financial values that optimizes the resources through financial projections and analysis. The Mckinsey and Company develops the theoretical model of the CSF which simply finds the necessary elements or factors within the organization.
The findings are proven in the business practices of many enterprises and even by community-based projects. Determining the CSF is also similar with the method of retrieving the operation, which means to evaluate the existing resources and elements by way of physical inventory or technically called as “performance audit”. The inventory and auditing of the performance would determine the magnitude or extent of capabilities in aspects of operation, such as (1) the manpower skills and expertise, (2) the commercial viability of products and (3) the status of the company in the market and industry.
Added to this organizational determination of performance and capabilities is the assessment of the vision and mission of the company in order to also determine the “relevance” to the present environmental condition. The determination of the CSF can be defined as a strategic purpose for a strategic action, in which innovative and dynamic plans may address the existing “gaps” in the business operation towards resolving the critical issues that underlines the bottleneck of business success. Therefore, acknowledging the CSF is a primary concern in the formulation of business development plan.
Thus, Manitowoc Company could have derived the effective and efficient formulation of business ethics and product standards. Controls and evaluation The regulating and implementing organizational procedures is basically uphold for the purpose of objectively achieving the success rate of operational processes. One of the organizational controls is the implementation of organizational policies effective of enhancing the capabilities of manpower and capital investments, known as the fundamental organizational resources.
In Manitowoc Company, we may again define the existence of governing policy and procedures through the code of conduct in shareholding. The code of conduct has provided the company to control the possible “flaws” in business operation by strongly promoting the good economic values, emanating from its vision, mission and objectives. It may be then observed that a “synergy of capabilities” has been employed in the conduct of codes of ethics within the organization, wherein controlling the occurrence of possible flaws.
In a way, controlling is basically mitigating the weaknesses and threats in order to sustain the strengths and obtain the opportunities in business operation. Meanwhile, evaluation is a procedure that serves as a conduit in controlling. It is a common undertaking [or somehow a basic strategy] of every organization to evaluate and analyze the strengths, weaknesses, opportunities and threats inside and outside of the organization, referring to internal and external environmental change. The methods of evaluation or assessment can be categorized by a regular performance appraisal of the workforce.
The result of the performance appraisal shall be analyzed or studied if it adequately responding to the overall organizational operation, pertaining to productivity, efficiency of work and the business or market value of the company. To cite, exemplifying the evaluation procedure of Manitowoc, it is not only the profitability of business that is being evaluated but much more on the perspectives of manpower capabilities, wherein Manitowoc Company believes in “investing on the bankability” of its workforce. The result of evaluation in the manpower performance plays a major role in the sustainability of business operation.
The evaluation process has able to determine the need of Manitowoc’s diverse workforce, to quote;”bringing together the team that builds not only the products but also the reputation worldwide” (Manitowoc, 2008). To sum up, control and evaluation is a vital organizational component that must be addressed and developed in a business plan, in which it retains the managerial capabilities of the management and the strong determination of the company’s vision and mission to sustain the business operation and remain to be competitive to the industry.
Conclusion It may be said that organizational performance and capabilities are survived by a critical understanding on the formulation of a strategic plan. This understanding significantly draws a problem statement to be resolved in the development of a business plan. Thus, to achieve a strategically sound operational procedure in the conduct of organizational management could be derived from the strategic implementation of short and long term goals, adherent to the vision, mission, and objective of an organization.
The examination of Manitowoc Company herein depicted indicates that strategic plan is essentially a proven criterion in every organizational undertaking, guiding the formulation of a business development plan. It may be then concluded that all of the operational components to effectively and efficiently implement an organizational framework are basic fundamentals in achieving the vision and mission of a company. Therefore, strategic plan is cognizant and adherent to bringing about the capabilities of an organization to reach out its future existence.