Briefly describe the organization and its industry.
Strategic management is associated with the identification and description of the strategies that needed to be carried out the managers or decision makers of the business organizations. The competition of all types of industries has been increased in the recent years. As a result, the key of achieving the success in any business is to get the sustainable competitive advantage through effective business strategy (Rosenbaum-Elliott et al. 2015). In order to develop a proper business strategy for an organization, the managers need to understand the situation of the company and the business environment. This will help them to understand the exact requirements of the business operations of the company and the target market of the business (Percy and Rosenbaum-Elliott 2016). In this context, the analysis of the internal and external environment of an organization is very important for developing a proper strategy for the business operations of an organization.
In this report, the strategic management of Jayco Corporation Pty Ltd has been analyzed. In this context, the description of the organization and the industry, in which it is conducting its business have been analyzed first in the report. After that the mission, vision and objectives are also given for analyzing the goal of the business operations of the organization. In the later section of the report, the internal and external environment of the organization have been analyzed and a strategy has been recommended for the sustainable development of the business operations of the organization. The strategy has been developed on the basis of the outcomes of the internal and external environment analysis of the organization.
Background of the Organization:
The selected organization for this report is the Jayco Corporation Pty Ltd, which is a recreation car manufacturer. The company is known as the best caravan manufacturer company in Australia. The company was established in the year of 1968 by Lloyd Jay Bontrager. The company has developed many innovative car models in the journey to this time from the past era. The headquarters of the company are situated in Middlebury, Indiana and USA. This is the largest manufacture of the recreation vehicles in Australia and the position of the company in the whole world is third. The company have made over 60000 vehicles in the 42 years of journey.
At present the company is conducting their business activities over the international market. They have more than 2000 employees in the different section of their business area. Jayco Corporation Pty Ltd gives high priority to the customers. Once a customer buys a car from the company, they used to add the customer in the Jayco family and consider him or her with high values. Currently they are focus in the area of the customer centric business for capturing the highest position in the world as the recreation vehicles manufacturing.
Background of the Industry:
The company chosen for this report is a recreation vehicle manufacturer company. The demand of the recreation vehicles in Australia is very high. The country is very popular for the natural beauty of many places. The tourism business is in very high demand in the country. The people of the country are highly interested in travel and tourism (Ibisworld.com.au 2016). The popularity of the enjoyment through some activities, which are different from the daily routine of the common people, has been increased in high level in the modern world. This is one of the main reason of the high level of popularity of the recreation vehicles in the country. The high demand is indicating towards the high future growth and opportunity of the manufacturing companies.
Due to the high demand of the products and good future opportunity of the products of the industry, the market is full of competition. The companies, which are developing the recreation vehicles are facing tough market completion in the target market in Australia (Hitt, Ireland and Hoskisson 2012). In this context, the sustainable competitive advantage gaining is very important for the companies to get the desired level of success in their business (Brown, Bessant and Lamming 2013). The research and development activities with high level of innovation are required for achieving the high level of success in the business in the recreation vehicle industry.
Mission and Vision of the Organization:
The mission of the company is to provide the best product to the employees as the recreation vehicles. The slogan used by the company for the promotion is “Generations of Family Fun” (Jayco.com.au 2016). The aim of the company is to give the maximum scope of family fun in their products, i.e., the recreation vehicles. The company is also cares for the customers (Wilson and Gilligan 2012). They used to give high values to the people who are using their cars for developing a good brand image in the target market. Therefore, the mission statement of the company should be “Jayco Corporation has the aim of providing the best environment for fun in recreation vehicles with the best customer support”.
The vision of the company is to be the world’s largest recreation vehicles manufacturing company. It has already gained the first position in the home country and the third position in the whole world in the recreation vehicles manufacturing industry. Therefore, now the vision is growing more in their business and achieve first position in the whole world among all the recreation vehicle manufacturing companies (Jayco.com.au 2016). The vision statement of the company “To build memories that last a lifetime”.
The companies value of working are associated with the Teamwork, Pride, Innovation, Reward and Recognition with proper planning and systems. The employees of the company are working by following proper plan and innovative way as a team for achieving the corporate goal of the company (Jayco.com.au 2016).
In order to fulfill the missions and going towards the vision of the company, it has to expand their target market and develop a very good brand image in the whole world. In this context, it has to develop a good business strategy based on the following objectives.
- To provide the most expected and valuable products and services to the customers
- To develop a very good brand image and a good customer base
- To provide the most innovative recreation vehicles
- To be the no. 1 recreation vehicle brand in the whole world
Internal Environment Analysis (SWOT):
2 year warranty from Jayco: The company provides a warranty period of two years from the manufacturer end not the dealer. This is a great opportunity to the users of the vehicles of the company that the manufacturer is giving this warranty. They don’t harass the customers for claiming the warranty in case of any hazard (Jayco.com.au 2016).
1 year free access to its Customer First Roadside Assistance program: This is also helping the company to attract the customers towards the services of the company and developing a good brand image in the target market (Jayco.com.au 2016).
Integrated manufacturing in Australia: The company has its integrated manufacturing unit in the country, which is helping them to provide the products to the customers in less price and shorter time.
Green Initiative: The environmental development is a major concern of the company. They are developing eco-friendly fuel efficient cars, which is helping the company to reduce the carbon emissions by the products and the customers to save their money for fuels.
No direct customer interaction: The company don’t interact with the customers directly. The corporate dealers of the cars of the company are the medium of communication between the manufacturer and the customers of the cars of the company. This is one of the main weakness of the company as the customers’ perception is very vital to be understood for providing best satisfactory services to them (Hill, Jones and Schilling, 2014).
Rising labor costs: The manufacturing of the recreation vehicles is associated with the efforts of any people or employees. The rising labour cost is affecting the cost efficiency of the cars of the company.
No current research for alternative fuel: The company has the aim of building fuel efficient and eco-friendly cars. In this context, they need to research well to find alternative solutions of the fossil fuels (Grünig and Kühn 2015). However the lack of current research activities regarding this is a major weakness of the company (Ward and Peppard, 2016).
High shipping costs: The recreation cars are very huge in size, which is the reason of high shipping costs of those. This is hampering the price of the cars.
Weak internet presence: The most effective way of promoting any products or services is the internet. In this context, the company has very less activities in the internet.
Increasing RV target market: 12,000 individuals are entering in the target market of the recreation vehicles which is a great opportunity to the company to expand the business and the target market of the company and achieve the desired level of sustainability.
Young adults entering the market: The young adults are very interested in the sue of the caravans or the recreation vehicles. These people have a lot of money to invest for their fun and adventure. This is also a big opportunity to the company to have major profits from the business in the upcoming times.
Tax deduction from the IRS as a second mortgage: IRS has deducted the tax of the company as a second mortgage, which is an opportunity to the company for reducing the cost of the company and increase the profitability of the company.
Returning customers: The customers who are using the RV of the company are satisfied well and they are returning to the company for new models with advance facilities. They are also referring the company to others. This opportunity is helping the company to expand their business.
Instability of oil prices: The increasing oil price is a major threat of the company. The RVs are generally require a lot of fuel for operating. The company is trying to develop the vehicles as fuels efficient, but they also have a limit. The price of the fuels is increasing in a high rate which is affecting the business of the company (Mols 2013).
Current economic state: Current economic status of the country is not so good, which is affecting the business of the company as the products are too costly.
Low customer satisfaction: The company is unable to understand the actual requirements and factors needed to satisfy them due to low level of communication with them. This is a major threat to the business of the company.
External Environment Analysis (PESTEL):
Political: As Jayco is one of the best recreation car manufacturers in Australia, therefore, the political factors such as the government policy, instability or the political stability of the country in the overseas markets, environmental law, labor law, and tax policy have a significant impact on the business of Jayco (Ibisworld 2016). The strict political factors of Australia can be influencing for Jayco’s business operation.
Economic: Economic growth of Australia has grown around 2.5 % on average in the previous two years (Ibisworld 2016). On the other hand, the recreation car industry requires an environment with good economic growth (Jayco 2016). Thus, it can be a discouraging factor for the business of Jayco in Australia.
Social: The social factors are very influencing for the regression car business of Jayco. People are greatly fond of regression vehicles in all over the world (Yüksel, 2012). This huge car demand is also same for Australia. People with high or medium income are interested to buy the regression vehicles (Rachet 2014). People always want to avoid the public transportation. That is why, they show more interest to get their own cars and that can be fulfilled by the regression vehicles manufactured by Jayco.
Technological: Due to excessive fuel consumption by the regression vehicles, the environmental sustainability is hampered the most. Therefore, this organization has to take an alternative way out to mitigate such crucial issues (Grünig and Kühn 2015). Thus, it can be done with the help of inventing another fuel that would not emit carbon. On the other hand, this organization can also take the help if latest technologies so that carbon emission can be minimized in order to maintain environmental sustainability.
Environmental: The regression vehicles are the major reason of the carbon emission as these vehicles require more fossil fuels. Therefore, it increases the green house gas effect in environment (Yüksel 2012). Thus, the research and development team of Jayco has to implement some alternative solutions so that the environmental sustainability can be maintained.
Legal: There are several legal factors those can have huge impact on the business of Jayco. These important factors can be product safety, product labeling, consumer rights and laws, advertising standards, equal opportunities and health safety (Grünig and Kühn 2015). This organization should be very careful while incorporating new effective or improvising their existing legal policies regarding the health and safety as well as the consumer rights and product safety and product labeling.
Recommended Strategy Development for the Organization:
Jayco Corporation Pty Ltd needs so many changes to catch up with the rest of manufacturing companies. The strategy that need to adopted for the company are given in the section below:
Proper leadership style: They need to leaderships training forums and workshops for their employees. This will help in transforming the kind of leaders they have to be more effective. The structure of the organization needs to support everyone and not a superior type of structure that is currently hoarding ideas and being notorious in discouraging the employees. For any organization to thrive they need took keenly on their leadership structure, their organizational structure and the handling of their employees.
Use of internet and social media: They need to use the internet and the social media platform for the promotion of the products and facilities provided by them. The social media platform will also help them to directly communicate with the customer and understand their requirements. In this way, they will be able to give the superior level of customer satisfaction.
Research and Development: High level of research and development activities is required for the development of the eco-friendly RVs. The company is currently not giving high focus in this area. They need to focus in the innovation in the area of fuel efficiency and alternative fuels.
The business industry and business environment of Jayco Corporation Pty Ltd have been analyzed in this report. The company has a good brand image in the target market and a developed market through the whole world. The SWOT and PESTEL analysis have been done and after that a strategy has been recommended for the development of the business strategy of the company. Motivation to the workers is imperative as well as having the best kind of leaders as well as managers. The kind of leadership skills tend to evolve with time and it is congruent that the impediments of rigidity be avoided at all costs. The company need to give focus in the promotional, communicational and R&D activities.
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