Able corporation is an old manufacturing industry of different range of Portable Electric Power Tools (PEPT) in a number of years Corporation has been experiencing no investment and this has affected drastically this products proceed ad other related products. Due to the fact that there has been no investment of late many of the products are not up to standard and other have become inefficient and costly to use nowadays. Basically this condition must also have been brought about by other external economical Indices.
In order to analyze and understand the condition of Able Corporation, we need first to look into the current operations and the location of the manufacturing process. This will involve analyzing the efficiency of the corporation with reference to the competitors who also contribute a lot in the general performance of Able Corporation. (Taylor, 2007).
The fact that some of the products manufactured by Able Corporation are outdated and becoming inefficient in the market, has brought a negative image to the consumers. This is definitely another major problem that needs to be addressed. In this context the corporation needs to invest some funds in research and development.
This will give the company a new competing edge and also improve and development also will lead to manufacturing of products which have consumer focused characteristic. The Research and development will enable the corporation to know the characteristics that are lagging the products behind and identify the consumers’ interests. The whole process should also be directed towards reducing operating cost. These among other factors are critical and need to be dealt with.
In putting these precautions into the corporation, it should also be ensured that the raw materials need are affordable and of good quality since it will affect the final product. The process stations and time inventory control system need to be readdressed an effective control system is vital so as to enable reduce the product wastage which is usually brought about by malfunctioning of the system or product returned back to the corporation after being proved not functioning. For corporation to manufacture improved quality products, it is necessary to invest more funds in research and development.
This is because globally, the technology of power tools is growing very fast especially nowadays the cordless power tool market which has changed so fast. The corporation therefore needs to adjust and adapt to changing power tool market.
Another sensitive factor that Able Corporation need to address is the distribution channel. They should adopt a channel that will distribute the products to potential consumers effectively and reduce the cost. In this case the Able Corporation should look forward to large retailers who can serve both industrial and consumer. All these steps should be directed towards helping the Able Corporation achieve its strategic objective and would reduce the manufacturing cost and even the consumer cost on the power tool in addition to improving the quality of the products.
The power tool industry therefore needs research and development more than any other factors necessary. This is because, the power tool industry is subjected to a lot of changes and innovation and if there is no research its product will becomes out dated and obsolete. This is a step towards collapse of such company unless research and development step I s taken. This step will give the industry better quality product and hence more sales. It will also enable the power tool industry to cope in its operating environment with the presence of competitors. Innovation and new invention usually give such a company a new competing edging and a good image to the consumers.(http://www.campus.ctuonline.edu)
There are other tangentially related industries and other factors form the external environment of this power tool industry and have a big impact to the Able Corporation. The Able Corporation have various in dices it uses to estimate the forecast sales of portable electric power tool. In a situation when we want to consider the effect of tangentially related industries to the power tool industry, it is necessary too consider the general consumer market. In this case we focus on the market of the portable electric power Tool together with tangentially related industries products.
We also need to consider time factor because the power tool industry is basically a seasonal industry with highest sales during the festive seasons as gifts. The market also influences the sales of power tool industry. This is because the presence of potential and needing consumers in a market influenced sales of power tool industries.
Some of the industries that can be listed to be among the tangentially related includes; the batteries industry, electronic companies, building products, lumber manufacturing industries. These related industries have a different impact on the power tool industry depending on their strategic objectives and operations. Some of these industries influence the power tool positively while others are competitors and have a negative impact on the power tool industries. (Coulter, 2005)
The batteries industries can be considered related to the power tool industries. This is mostly brought about by the high demand for cordless tools. The demand for cordless power tools are in high demand ion the market. These batteries industries can be said to have a positive relationship with power tool industries. This shows that as the batteries produced in the market improves in quality, the power tools will also improve in quality development. The coexistence such kind of a company in the power tool operating environment has beneficial effect to power too company. Its performances in the market and success will be influence by activities of the batteries company.(http://www.campus.ctuonline.edu)
Another related industry is the electronic circuits industry. This is because most power tools manufactured uses different types of electronics and circuits. The important point to note in this scenario is that as the electronic and circuits advances, it become a challenge to the power tool company. It is therefore the responsibility of the power tool company. It becomes a challenge to the power tool company.
It is therefore the responsibility of the power tool industry to research and manufacture products which are compatible to the modern or current electronic devices. In this case these industries usually affect the power tool industry both negatively and positively in their different strategic operations and planning. It therefore implies that the strategic objective and decisions set by the power tool industry should be based partly on decisions and operations of the electronic or circuit industries. The sales forecasters of Able Corporation will usually incorporate the performance of the electronic or circuits industry before they release their results. The electronic industry is therefore directly in relation to power tool industry.
Other related industries to the power tool industry are the number and building products industries. This is because as the market for the power toll industrial products increase, the market lumber and building products also increases. These industries therefore also affect the power tool industry positively. It therefore means that consumers and commercial sales should recognize an increase in power tools soon they identify an increase in sales in power to lumber and building products. (Taylor, 2007).
Another industry related to power tool industry is the household appliances industries. The industry is a beneficial one in the economy in regards to the power tools industry. Most of these household appliances usually go together with certain power tools. This clearly implies that as the market sales of such household appliances increase, the sales of the power tools also increase. All in all it is necessary for the Able Corporation to invest more of its funds in the research and development. This is the only way to improve the quality of the products. It can be able to manufacture fast moving products in the market especially the Cordless which have high demand in the market nowadays. (Coulter, 2005)
In order to properly identify Able Corporation’s potential frame the correct mission statement and execute the value proposition setting achievable strategic objectives it is necessary to perform a goods analysis of available information resources and the annual reports of the competitors. (www.assciatedcontent.com) It is also important to investigate the channel/distribution means of product and then predict the economic status of the industry.
However, considering that forecasting services and other information agencies offer differ in the prediction of the future. State of the power tools industry and vital economic indicator. In this case, so as to put together a forecast it is important to incorporate statistics and forecasting factors so as to give a more uniformed answer. We must also consider the shape of the economy and other economic trends.
We need to ensure that the forecast sales of portable electric power tools have been arrived having used the four economic indices i.e. housing starts, expenditures on residential construction, expenditures for commercial construction and expenditures for home repairs and adjustments. These indices are much related and depend on one another in the economy. Having estimated the forecast sales under these indices and there still exist differences then it is essential to do the following to put together the different forecast sales. (Coulter, 2005)
We should research on the other important economic factors that affect the poser tool marketing and came up with estimated figures. If there is still some difference we should note them down. We should ensure that we have included nay economic indices. We should then look for past records for five years of performance. This should also include past records of the competitors. We should then weigh out how this past information affects the power tool market. With this above results we can then harmonize the results of our research.
Since it is hard to have the same forecast sales, after harmonizing these results we should use the forecast which is very close or equal. We should not use the forecast that is very different from others which have high probability in incorrectness. We therefore depend on average results which are almost equal or equal. These differences brought about by economic indices which keep on fluctuating and changing and also inefficiency of information agencies. (Taylor, 2007).
CTU, Phase 1 Business Strategy, retrieved on 12th February 2007 from http://www.campus.ctuonline.edu
Coulter, K. (2005) Strategic Management – In Action, Third Edition, Upper Saddle River
Taylor, S. (2007). ‘A marketing view on two top strategic objectives in the portable electric power’,
www.assciatedcontent.com Retrieved on 12th February 2008