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Assignment Details
Strategic Manageme nt
Module name
Module "ode
or or the the atten attentio tion n of of #ue date )ssignment )ssignment title
7BE002
Mr." Mr."ha hamar mara a #e #e $oysa
%& th September %'(& Strategic Strategic Management Management Portfolio *asks *asks
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Executive Summary The three wheeler (TW) is the most popular popular and fast selling vehicle in Sri Lana! "inance companies grant leasing facilities for TWs due to high pro#t margins and high demand in the vehicle maret! $entral "inance also has attractive leasing facilities facilities for TWs! But in this strategic plan% $entral "inance "inance is going to mae headwa& the maret share in the TW maret! The& are going to introduce new leasing facilities% increase the customer service and special o'ers for TWs to otain the competitive advantage from the TW maret!
Introduction of the company $entral "inance ($") is one of the leading #nance companies in Sri Lana! The compan& commenced commenced operations operations in *+7 as a private liailit& compan& to provid provide e #nancial #nancial facilities facilities to passeng passenger er transpor transportt and goods goods haulage haulage in ,and& and $entral province usiness communities! -n *.. the compan& was incor incorpor porate ated d in the $o $olom lomo o Stoc Stoc E/cha E/chang nge e as a puli pulic c comp compan an& &! -t is registered under the $ompanies ct 1o! 07 of 2007% "inance Business ct 1o! 2 of 20 and "inance Leasing ct 1o! +. of 2000($entral "inance% 20+)! $ompan& is diversi#ed as a group and the main susidiar& companies are $entral $entral -ndustri -ndustries es 3L$ and $" -nsuranc -nsurance e Broe Broers rs (3vt) (3vt) Ltd! Ltd! The compan& compan& hold holds s 204 204 shar share e prop propor orti tion on of 1ati 1ation ons s Trust rust Ban Ban as one one of the the main main shareholder shareholder!! There There are *+ credit points spread throughout throughout the countr& with ,and& as the 5ead 6ce% Show room and $olomo $it& 6ce! The main products are leasing% hire purchasing% saving and 8eposits ($entral "inance% 20+)!
Executive Summary The three wheeler (TW) is the most popular popular and fast selling vehicle in Sri Lana! "inance companies grant leasing facilities for TWs due to high pro#t margins and high demand in the vehicle maret! $entral "inance also has attractive leasing facilities facilities for TWs! But in this strategic plan% $entral "inance "inance is going to mae headwa& the maret share in the TW maret! The& are going to introduce new leasing facilities% increase the customer service and special o'ers for TWs to otain the competitive advantage from the TW maret!
Introduction of the company $entral "inance ($") is one of the leading #nance companies in Sri Lana! The compan& commenced commenced operations operations in *+7 as a private liailit& compan& to provid provide e #nancial #nancial facilities facilities to passeng passenger er transpor transportt and goods goods haulage haulage in ,and& and $entral province usiness communities! -n *.. the compan& was incor incorpor porate ated d in the $o $olom lomo o Stoc Stoc E/cha E/chang nge e as a puli pulic c comp compan an& &! -t is registered under the $ompanies ct 1o! 07 of 2007% "inance Business ct 1o! 2 of 20 and "inance Leasing ct 1o! +. of 2000($entral "inance% 20+)! $ompan& is diversi#ed as a group and the main susidiar& companies are $entral $entral -ndustri -ndustries es 3L$ and $" -nsuranc -nsurance e Broe Broers rs (3vt) (3vt) Ltd! Ltd! The compan& compan& hold holds s 204 204 shar share e prop propor orti tion on of 1ati 1ation ons s Trust rust Ban Ban as one one of the the main main shareholder shareholder!! There There are *+ credit points spread throughout throughout the countr& with ,and& as the 5ead 6ce% Show room and $olomo $it& 6ce! The main products are leasing% hire purchasing% saving and 8eposits ($entral "inance% 20+)!
The compan& holds 9s .. illion worth of assets% 9s :: Billion depositors; depositors; funds and 9s 20 illion shareholders funds! -n the 20<20+ #nancial &ear% compan& made 9s : illion net pro#ts after ta/! That was a commendale achiev achievem ement ent and and the the pro# pro#tt has has incr increa eased sed from from 2!7 illi illion on to :!0 illi illion on comparing with the previous #nancial &ear 20:<20 (=6=)! There are .2 emplo emplo&ee &ees s in the compa compan& n& and and 2:%*> 2:%*>7 7 custo custome mers rs islan island d wide wide (nnu (nnual al report of $entral "inance 20<20+)! Introduction to the Strategic Business unit (SBU)
Leasing and 5ire purchasing have een carried out under ?icro and ?acro segments! ?icro segment generates high pro#t margin due to high interest rates! rates! Three Three Wheeler Wheeler (TW) produc productt operate operates s under under the micro micro sector sector! -t is a separate strategic usiness unit (SB@) of the $entral "inance and there are : inds of three wheelers which are availale in this sector! The& are BaAaA% TS and 3iaggio! This SB@ which is under the ?areting 8epartment and there is a separate product ?anager to overloo this SB@! $onsidering the threeCwheeler maret% it is the highest pro#tale product in the #nance maret! This is ecause the #nance companies o'er high -nternal 9ate of 9eturn (-99) rate of 2+4 to 2>4 to get the ma/imum pro#t margin! There is a huge competition competition for the three wheeler maret maret and most of the Bans and non aning #nance companies tr& to otain the maret due to the high pro#t margin! Statistics of ?otor Trac department shows% there are 7*%0:> TWs registered within the &ear 20! Current Challenge of the SBU
$onsi $o nside derin ring g the last last three three &ear &ears s TW perfor performa mance nce of $"% The The $o $omp mpan& an& indicates signi#cant improvement! Last three &ears statistic are as followsD =ear =ear
1ew TWs
16 of TWs
9egistered
"inanced from
?aret Share
202 20: 20
*>%>+ >:%.7: 7*%0:>
$" .%+7 2%.: ::%>0>
74 2*4 :4
Source 8epartment of ?otor Trac and $" mareting department The $ompan&Fs e/pectation is to gain .04 of maret share from the TW maret to enhance the current pro#t margin of the compan&! Though the compan& TW maret share has signi#cantl& increased the new TW registration has continuall& dropped in the maret! There is huge competition to otain the TW maret share in the leasing maretG the main competitors are ssetline Leasing $ompan&% LB "inance and $itiHen 8evelopment and which are in the non aning #nance sector! 6n the other hand% Bans also diverts their leasing usiness towards the TWs maret focusing the pro#t margins! Therefore $" needs to have proper strategic plan to increase the TW maret share from :4 to .04! Proposed Changes in the SBU
With this strategic plan% The $ompan& has prepared a : &ears strategic plan to improve the TW maret share from :4 to .04! -n the #rst &ear% the compan& is planning to increase from :4 to >4% -n the second &ear from >4 to ++4 and in the #nal &ear from ++4 to .04 maret share! ll activities and strategies will e handled & the mareting department and the performance will e monitored on a monthl& asis! The 0Aective of the strategic plan of $entral "inance Ishall e the #rst choice for progressive TW customers in delivering innovative #nancial solutionsI!
rgani!ation "nalysis S#$ "nalysis
Strength
Weanesses
! *+ credit points spread
! 8epending on limited product
throughout Sri Lana! 2! deJuate funds availale for lending! :! @se speed credit approval s&stem for $redit #les approvals! ! Strong rand image and
range (Leasing and 5ire purchase) 2! $entraliHed approval s&stem! :! Lac of activities to develop $" rand image! ! -nconvenient oce environment for customers!
stailit& of the compan& ("itch rating K) +! 5igh return on investment! .!
?ore than 20%000 customers lined to the $ompan&
6pportunities ! -ntroduce short terms usiness loans for corporate clients! 2! -ntroduce mortgage loans! :! 3awning maret! ! -ntroduce loan scheme for
Threats ! 5igh competition in the -ndustr&! 2! overnment regulation and policies on #nancial sector! :! $ommercial ans o'er less
professionals with attractive
interest rate for leasing and
interest rate!
hire purchase usiness!
PES$E% "nalysis
3olitical
ll the ans and non aning #nance institutions are governed & the $entral Ban of Sri Lana and the& have implemented a monitor& polic& to monitor all the ans and non aning #nancial institutes ($entral Ban% 20+)! lthough previous governments implemented a s&stem to consolidate all the ans and non aning #nancial institutes% the new government holds that plan (Lana usiness online% 20+)! fter the civil war which ended in 200*% government has invested more funds to develop infrastructure% ut the presidential election of 20+ has changed the Sri Lanan political stailit& with uncertain polic& decisions ($ountr& report Sri Lana% 20+) Economical
ccording to the $ountr& report of Sri Lana (20+)% Sri Lanan 83 growth rate has een Muctuating from 20: to 20+! 83 growth has increased from 202 to 20: to .!:4 to 7!:4! But after 20: it has declined to 7!04! in 20 and 20+ it was .!+4! -n 202 -nMation was 7!. 4 and it declined to :!>4 in 20 and suseJuentl& it has increased to +!4 in 20+! s per the Sri Lana S6$-6 Economic data (20) Sri Lanan per capita income has increased rapidl& from 200+ to 202! -n 200+ it was 9s %>*. ut in 202 it has increased to 9s %*:2!
ccording to trade economics (20+)% Sri Lanan lending rate has drasticall& declined comparing to 20:! 1ow it is Muctuating etween of 74 to .4!
ccording to "inancial S&stem 9eview (20:)% Total Leasing N "inance $ompanies
(L"$)
and
SpecialiHed
Leasing
$ompanies
(SL$)
have
accommodated 9s! ++0 million in 20: ut growth rate has declined from 2! to 7!: comparing to 202 and 20:! L"$ and SL$ hold 9s! :+0? as deposit ase and growth rate has declined in 20: from :.!. to :2!7! Social Sri lanan vehicle registration has signi#cantl& increased comparing 2007 to 20! -t has increased to a total vehicle population from :!? to +!. ? in
2007 to 20! Therefore there is a huge social trend for vehicle usage in the Sri Lanan maret (8epartment of motor trac% 20+)! Technological $redit -nformation Bureau of Sri Lana which was estalished in **0 to collect all the credit detail of ans and #nancial companies use it to help identif& the crediilit& of customers ($redit -nformation Bureau of Sri Lana% 20+) Environmental $entral "inance has not engaged in an& ind of activities which are detrimental to the environment and alwa&s has tried to compl& with the environmental laws and regulations (nnual report of $entral "inance% 20<20+)! Legal Sri Lanan #nancial s&stem has een regulated & numerous legislative enactments! The e& acts are ?onetar& Law ct% the Local Treasur& Bills 6rdinance% 9egistered Stocs and Securities 6rdinance% E/change $ontrol ct% Baning ct% "inance Business ct% "inance Leasing ct% 3a&ment and Settlement S&stems ct and "inancial Transactions 9eporting ct ($entral Ban of Sri Lana% 20+)!
Porter&s 'ive 'orces "nalysis
$ompetitive rivalr& There are 22 Licensed $ommercial Bans% * Licensed SpecialiHed Bans% :. 9egistered "inance $ompanies registered under the $entral Ban of Sri
Lana% therefore there is a high competition in the #nancial industr& in Sri Lana ($entral Ban of Sri Lana% 20+)! Bargaining power of customers 8ue to high competition% customers have high argaining power to argain with the compan&! This is ecause competitors have a power to o'er low interest rates to customers to gain usiness! Therefore customers have high argain power in the #nancial maret! Bargaining power of suppliers Suppliers of the #nancial maret are ehicle dealers% $ar sales% ehicle introducers and ehicle roers! The& direct customers towards #nancial companies to otain leasing facilities for vehicles! 8ue to the high competition in the #nancial maret% Suppliers have high argaining power to inMuence the #nancial companies! Threat of new entrants The $entral Ban has formulated rules and regulations% #nancial relevant acts% starting capital and maret competitionG therefore there is low possiilit& for new entrants to enter the #nancial maret! Threat of sustitute products Bans and non aning #nancial institutions highl& promote mortgage loans instead of leasing facilities! There has een a momentum of increase which indicates considering past &ears! Therefore sustitute products availale for leasing and hire purchase is a ig treat to the industr&!
Macen!ies ps "nalysis
3roducts
ehicle Leasing% 8eposits and Savings% vehicle hire and investments are the main products of the $entral "inance! @nder vehicle leasing% there are lot of su products availale in the maret the& areD Three Wheeler leasing% ?otor Bie Leasing% 9egistered car
3eople There are .2 emplo&ees in the compan& and 2:%*>7 $ustomers -sland wide with the $entral "inance $ompan& 3L$ (nnual report of $entral "inance 20<20+)! 3rocess The compan& uses speed& online -T s&stem to provide leasing facilities for customer! ll the processes are computeriHed and it is ver& convenient to grant #nancial facilit& to a customer within a da&! The compan& has carried out comprehensive credit evaluation processes prior to investment decisions (nnual report of $entral "inance 20<20+)! 3h&sical Evidence The compan& provides conveniences to customers in ranch premises% 5ead oce and $it& oce!
%iterature *evie+ Strategic Management
Strategic management is the comination of arts and scienceG it helps to change the organiHations towards success! -t guides the organiHation to long term planning to achieve goals and oAectives (fsa% 20)! ?ain stages of Strategic management are formulating% implementing% and evaluating (8avis 20)! Strategic management alwa&s helps to create a competitive advantage (5ill N Qones% 20)! Strateg& is de#ned as a large scale of action plan which is related with the organiHational environments to achieve long term organiHation goals and oAectives (Bartol N ?artin% **)! -t allocates organiHation resources towards goals and oAectives (Bateman N Reithamal **0)!
$orporate strateg& is a long process which determines the oAectives% purposes% policies and plans to achieve organiHation goals (ndrews% *>7)! 6rganiHations need to develop strategies to service in the maret and to otain competitive advantage (3orter% **>)!
Strategic Structure
Structure implies relationship of power% depending on acceptances of managerial power & respective suordinates and societ&! -t is called Olegitimac&P or Oauthorit&P! 6rganiHations
structure
depends
on the
respective pattern of the individuals and groups (9itson! 20)! Structure is the asic framewor of positions% groups of positions% reporting relationships and interaction patterns to drive organiHational goals and oAectives (Barne& N rin% **2)! rgani!ational Culture
6rganiHation culture is a d&namic phenomenon and it alwa&s surrounds us% it is a comination of leadership ehavior% set of structures% routines% rules% and norms! $ulture is an important factor for e'ective performance of the organiHation and strong culture is more e'ective for organiHations (Schein% 200)! $ognitive and s&molic are the main component of the organiHation culture! The cognitive factor consists of mutual assumptions% eliefs% norms% and attitudes! -t alwa&s depends on what organiHational memers share and their mental schemes (Smircich% *>:)! $entraliHed s&stems are limited authorities delegated and other authorities are centered in one place% one person or limited numers of group or groups% centraliHed emplo&ees are not empowered to mae decisions! 8ecentraliHed
means authorities are delegated to the lower level and decentraliHed emplo&ees are empowered to mae decisions (?ontana and $harnov **:)! Environmental "nalysis $ools
Before implementation of a strateg&% organiHations must anal&He the macro and micro environment through relevant anal&sis tools! 6rganiHations use these tools to avoid strategic surprise% mitigate the ris and long term health! Business environments alwa&s change the environmental anal&sis tools to help organiHations
to adapt
to changing environments
(Wheelen N
5unger%202)
SW6T nal&sis S6WT anal&sis helps to anal&He organiHations internal conte/t of strengths and weanesses and internal conte/t of opportunities and threats (alentin% 200+)! S6WT is a common tool and a ver& e'ective tool of strategic planning (Schneider and 8e ?e&er% **)! Environmental anal&sis is important for e'ective strategic planning! S6WT is a step and it is ver& useful to scan the environment of the organiHation (3ashiardis% **.)! s per $hristensen (**7)% S6WT e/presses as Omapping and identif&ing the driving forces the organiHation needs to consider; and Orelevant strategies can e developed to address these forcesP! The e/ternal factors are treats and opportunities% these are opposite to each other and organiHations can convert treats as opportunities% further it is a guideline called Ocompetitive forcesP to identif& e/isting treats and arising treats
in the respective industr& and include new competitors% sustitute
products% prolems with customers and suppliers (5orn% 1iemann et al. **)! 3ESTEL anal&sis
3ESTEL is used to scan macro environment of the organiHations it stands for 3olitical, Economic% SocioCcultural% Technological% Environmental and Legal These are all uncontrollale factors and this scan helps to identif& how the macro environment a'ects the organiHation and how to mitigate the organiHational ris (6/ford Learning La% 202)! 6rganiHations need 3ESTEL anal&sis on a regular asis to identif& the environmental trends! This will help to impact opportunities to create in the maret and how organiHations would react against the macro environment (Team "?S% 20:)! 3orters nal&sis 3orter;s #ve forces develop to anal&sis the companies; environment and the competitive position of the industr& and current rivalr& threats! This is considered as a main framewor in the strategic planning (3orter% *7*)! 6rganiHations can use this model to deal with the competition rather than looing at it in a narrow perspective! The tool scans the competition in a wide perspective which includes customers% suppliers% potential entrants and sustitute products (3orter% 200>)! This model is ver& helpful to determine the competitive strategic plan towards success of the organiHational strategic goals and oAectives (porter% *>0)! Strategic Implementation
Strategic implementation is strateg& put in to action towards the increase of performance of the organiHations! Levels of strategic implementation are functional% usiness and corporate to e/ecute strategic planning! -ts depends on the organiHation and it can e a Jualit& improvement% to position the products in di'erent place in the maret% price increase or decrease% mergers and acJuisitions or downsiHing organiHations (5ill N Qones% 20)!
Steps of implementation are estalishing oAectives% devise policies% motivate emplo&ees% and allocate resources! -mplementation needs to have a strateg& supportive culture% uild an e'ective organiHational structure% redirecting of maret e'orts% preparing udgets% develop information s&stem% develop a rewarding s&stem for emplo&ees to create competitive advantage! -t is called Oaction stageP! This is utiliHing of emplo&ees and resources towards organiHational success (8avid% 20)! Strategic Controls
ccording to ?ocler (*72) 5e e/presses that controlling is an e'ective monitoring s&stem to create and chec actual performance with standard oAectives% chec whether there are an& deviation with actual standards and tae action to rectif& the deviations of implemented strateg&! -t is useful to measure e'ective and ecienc& of utiliHed resources! 1inet& percent of strategies fail at the implementing stage due to lac of controls (,aplan and 1orton %200)! -t is important to have an e'ective control s&stem to successfull& implement the strategies and achieve organiHation goals and oAectives (Simons% **)! Strategic control s&stem thrusts strateg& to generate results (5a/ N ?aAluf% **.)!
'indings
./- Current structure
The Three Wheeler (TW) product implemented under the mareting department has a separate product manager to overloo the product! 5e is responsile for island wide TWs sales! $urrent Structure is as followsD ? ?areting
3roduct ?anager
Brach ?anager
?areting Sta' ll product decisions are handled & the eneral ?anager (?) ?areting and the TW 3roduct ?anager is under purview of the ? mareting! But the 3roduct ?anager (3?) is responsile to achieve given target from all the ranches! 5is target is taen from numer of TWS ut ranches and compan& target are measured & rupees values! 3roduct ?anager will #nd it dicult to handle *2 ranches and develop the TW maret share!
.0- Current 1ehicle %easing System
$urrentl& the compan& uses TWs as a normal product and promotes the product through *2 islandwide credit points (Branhes)! The values of the TWs are BaAaAC9s +0%000% TS 9s +0+%000 and 3iagioC 9s +++%000! 3rices cannot e increased of the TW maret share ecause the credit points do not have a vehicle categor& wise target! The assigned targets are measured in rupee value! 1ormall& ranch targets depend on the area potential! Branch targets are etween + ?illion to +0 ?illion! Targets are calculated reducing customers; down pa&ment and therefore mareting sta'
alwa&s tries to higher value the leasing vehicle to achieve their individual targets and ranch targets! .2- 3isplay 1ehicle at Branch premises-
8ue to the aove mentioned reasons% ranches do not lie to displa& TWs in their ranch premises! This is ecause the& don;t lie to encourage TW usinesses! But most of the ranches have facilities to displa& TWs in front of their ranch premises!
.4- Credit "pproval System
ll the credit facilit& approvals are handled through the $redit department! The& have authorit& to increase the -99 rate% e/posure of the vehicle and approve or reAect the leasing facilit&! But the 3roduct ?anager is not empowered to decide the interest rate or recommend the customers to #naliHe the TW usiness! The 3roduct ?anager alwa&s collects details from the competitors and tries to reschedule the $" TW product to challenge the competitors ut he doesn;t have enough
authorit& to mae
credit decisions
to challenge
the
competitors! .5- *egistered $#s 1aluation system
9egistered TWs are leased ased on the TW valuation! $" uses internal valuation s&stem to value the TWs! But competitors otain TW valuation from registered outside valuer! Therefore outside valuers values are higher than the $" valuations! $ompetitors o'er higher credit amount to customers than the $entral "inance! 3roduct ?anager #nds it dicult to manage this situation ecause he has no authorit& to inMuence the $" valuation s&stem!
.6- *epossessed 1ehicle selling system
$ompan& sells the repossessed vehicle again to the customers ut most of the time vehicles are sold as cash usiness! Therefore the compan& misses the leasing opportunities and it can e used to increase the compan& TW usiness volume!
*ecommendation
! *estructure $he $# SBU
6rganiHation
restructuring
helps
to
etter
formulation
and
strateg&
implementation (E& and Buch% **>)! 6rganiHational performance depends on structure and the degree of centraliHationG resources and information access of sta'% the nature of assigned tass and the individuals handling procedure directl& a'ect the increase performance (9ichard et al!% 200*G 3fei'er and Salanci% *7>)! 6ut sourcing is a good methodolog& to increase the organiHational performance without manpower% #/ed cost and variale costsG 9estructuring and redesigning of organiHation process
can drasticall&
improve organiHational current performance% and speed& service to the customers (1orle& et al!% 200)! s per the #ndings and aove theoretical aspects% it is dicult for a 3roduct ?anager to handle entire island wide TW operation! Therefore restructuring is necessar& & the SB@ as followsD
? ?areting
3roduct
TWs promotion
ssistant 3roduct
ssistant 3roduct
ssistant 3roduct
?areting Sta' for TWs
?areting Sta' for TWs
?areting Sta' for TWs
6utsourced TW gents
6utsourced TW gents
6utsourced TW gents
s per the aove module the compan& will recruit three ssistant 3roduct ?anagers allocating three groups of ranches comprising of :0%:%: ranches respectivel& to each ssistant 3roduct ?anager! The 3roduct ?anager will directl& report to the ? mareting and the ssistant 3roduct ?anagers will e monitored and supervised & the 3roduct ?anager! Targets will e allocated to all three ssistant 3roduct ?anagers! Selected TWs mareting sta'% who are specialiHed in TWs from current mareting cadre and the& will e empowered to register outsourced agents on a commission asis! Ever& mareting ocer needs to assign three our sourced agents and customer service and monitor all parts handled & the assigned mareting ocer! ?areting ocers need to visit the outsourced agents to access the development of the TWs new usiness! The compan& will pa& the commission after usiness is #naliHed! The ?areting 6cer can get his incentive from the numer of TWs which he had done in the particular month!
The compan& will grant authorit& to 3roduct ?anager to review the maret interest rates and all competitive activities! The 3roduct ?anager needs to develop the product towards creating a competitive advantage! s per the aove restructured schedule the 3roduct ?anager needs to handle the TWs promotion vehicle to create awareness throughout the countr&! 5e will decide the areas and displa& TWs in a igger vehicle and promote TW product to get the ma/imum sales! 0- Strategy Implementation
Targets
7ear
"ssume 8um9er of Expected $# per 7ear
:
=ear 2
7*%000
&ear :
>0%000
$otal
$argets
8um9er of $#s
PM ./
PM .0
PM .
>
:7%*20
2%.0
2%.0
2%.
++
%000
%..7
%..7
%..
=ear >0%000 .0 >%000 .%000 1ote assumption ased on previous &ear TW registrations
.%000
.%00
Three ssistant 3?s will e allocated the aove targets and the ssistant 3?s will divide their target to their respective mareting ocers! The ?areting 6cer will allocate to the outsourced agents and the& can achieve the target from their individual contacts! TWs unit wise target will e assigned to *2 ranches and would e encouraged for them towards increase TW usiness! ll ranch managers are responsile to supervise the mareting ocers and achieve the assigned unit wise TW goals! 6ver achievers will e entitled to claim their incentives accordingl&!
8ispla& of TWs at ranch premises will e supportive to achieve given targets! This is ecause mareting ocers will #nd it eas& to promote TW usiness through the vehicle displa& and it will help attract more customers to ranches! The 3roduct ?anager needs to review the maret interest rates and inform the credit approving ocers! The 3? is empowered to decide on the interest rates according to the competitors; rates with the approval of the 8irector $redit! 5e has the responsiilit& to maintain the compan& weighted average interest rate! So that it will not a'ect the compan& pro#t margins! 9eview the internal registered TWs valuation s&stem against the internal valuation according to the maret price! Therefore the compan& has an opportunit& to get more from registered TW maret and increase the numer of registered TW sales! 3? needs to review the maret price and negotiate with the internal valuers to get the correct valuation for registered TWs! 9epair and modif& all the repossessed vehicles% value them according to the maret price and conduct vehicle leasing fair of sale those vehicle! This s&stem will e e'ective to mareting ocers and ssistant 3roduct ?anager to increase the TW sales! 2- Controlling and Monitoring
ll the controlling and monitoring s&stem will e handled & the 3? and he needs to report the progress to the mareting ?! 3? meets the ssistant 3?s once a month and discusses all the promotion activities% issues and suggestions as well as their sales volumes! 3? needs to review all the sales #gures and to #nd if there are an& non performing mareting ocers to tae decision to guide them towards achievement of the targets! ssistant product managers need to report all the sales reports ever& evening to the 3?! The 3? will monitor the dail& island wide TW sales! The
?areting 6cers need to send their dail& report to their respective product managers! ll the performance of the mareting ocers will e evaluated through the Oalanced score cardP evaluation s&stem! -t includes e& performance indicators and ever& three month the assistant product managers need to sumit their respective mareting ocers; evaluations to the 3roduct ?anager! 3romotions and salar& increments will e ased on the evaluation s&stem!
Conclusion This strategic plan has gone through all the theoretical aspects and managerial implementation of this plan to increase the compan& TWs maret share in Sri Lana! This plan doesn;t increase the compan& sta' cadre ut onl& the newl& recruited three assistant product managers and other e/isting sta' will e utiliHed to increase the maret share! Therefore additional cost of sta' will not increase and the incentives will e paid ased on the performance! The interest rate is also monitored and controlled according to the compan& pro#t ?argin! This strategic plan can improve the TW maret share and it will e e'ective to increase the compan& pro#ts and create a competitive advantage in the TW #nancial industr&!
*eference ! fsar B! (20) Strategic ?anagement -n Toda&;s $omple/ World! Business Intelligence Journal! 2! nnual 9eport of $entral "inance% 20<20+ vailale atD httpD<
th ugust 20+U! :! Barne&% Q!B! N riri% 9!W! (**2) The ?anagement of 6rganiHationsD Strateg&% Structure% Behaviour% BostonD 5oughton! ! Bartol ,!?! N ?artin 8!$! (**) ?anagement% 1ew =or% ?c% rawC5il! +! Bateman% T!S! and Reithamai% $!3! (**0) ?anagementD Function and Strategy % 5omewood% -llD -rwin! .! $entral Ban of Sri Lana (20+)!6nlineU vailale atD httpD<! $entral Ban of Sri Lana (20+)!6nlineU vailale atD httpD<th ugust 20+U!
! $hristensen $! ?! (**7) ?aing strateg&D learning & doing! Harvard Business Review! 2! $ountr& report Sri Lana% (20+)!6nlineU vailale atD httpD<th ugust 20+U! >! E& L!T! and Buch ,!% (**>)% O The impact of adopting an ethical approach to emplo&ees dismissal during corporate restructuringP% Journal o$ Business Et%ics! *! "inancial S&stem 9eview (20:)!6nlineU vailale atD httpD<
22! 5orn% L!% "! 1iemann% et al! (**) SW6T anal&sis and strategic planning! 5amurgD "C$onsulting roup! 2:! ,aplan% 9!S! N 1orton% 8!3! (200) The strateg&Cfocused organiHationD 5ow alanced scorecard companies thrive in the new usiness environment! BostonD Harvard Business Sc%ool ress! 2! Lana usiness online (20+)! 6nlineU vailale atD httpD<! 1orle& L!% Swanson Q! and ?arshall 3!% %(200)% 3ractitioner;s uide to $orporate 9estructuring $it& 3lanning 3ulishing! 2*! 6/ford Learning La (202)! 3ESTLE C ?acro Environmental nal&sis! vailale atD httpD<) The E/ternal $ontrol of 6rganiHationsD " Resource #e&endence ers&ective% 1ew =or% 1=D 5arper and 9ow! :2! 3orter% ? (*7*) 5ow $ompetitive "orces Shape Strateg&! Harvard Business Review!
::! 3orter% ?! (*>0) $ompetitive Strateg&D !ec%ni'ues $or "naly(ing Industries and Com&etitors ! 1ew =or! :! 3orter% ?! E! (**>) $ompetitive strateg&D !ec%ni'ue $or analy(ing industries and com&etitors ! 1ew =orD The "ree 3ress! :+! 3orter! ?! (200>) The "ive $ompetitive "orces That Shape Strateg&% January Harvard Business Review! :.! 9ichard 3!Q!% 8evinne& T!?!% =ip !S!% N Qohnson !% (200*) O?easuring organiHational performance Towards methodological est practiceP% Journal o$ Management! :7! 9itson 1! (20) Strategic Management) 6nlineU vailale atD %tt&*++www.,au.edu.sa+Files+--/012+Su34ects+Strategic 52-Management52-Boo,.&d$ ccessed on 0*th Septemer 20+U! :>! Schein E!5! (200) 6rganiHational $ulture and Leadership% : rd Ed% Qohn Wile& N Sons% San "rancisco! :*! Schneider% S! $! and ! 8e ?e&er (**) -nterpreting and responding to strategic issuesD the impact of national culture! Strategic Management Journal! 0! Simons% 9! (**) 5ow new managers use control s&stems as levers of strategic renewal! Strategic Management Journal% ol!+% 1o!:! 1ew =or! Qohn Wile& N Sons! ! Smircich% L! (*>:)! 6rganiHations as shared meanings! -n L! 3ond&% 3! "rost% % ?organ N T! 8andridge (eds!)% Organi(ational Sym3olis. 2! Sri Lana S6$-6 Economic data (20)! 6nlineU vailale atD httpD<
! Trade economics (20+)!6nlineU vailale atD httpD<
3ersonal 8evelopment 3lan Introduction O3erseverance eeps honor rightP! Without a strategic life plan we are unale to reach the goals and to survive in a competition! With the gloaliHation% ever& person needs to have a methodolog& to succeed in life! ision% ?ission% oal and 6Aectives are e& aspects of successful life! We can use strategic management to achieve our goals and oAectives towards climing our carrier ladder! - wor as a $luster ?anager in a "inance $ompan&! The chapter of O5ow 8o =ou "it the 8esignP in 8aft (20:)% helps to identif& m& gaps etween current status and the future goals! s well as it teaches us to identif& our Strength% Weanesses% Threats and 6pportunities in our professional life! Ever& person should have a personal development plan to succeed in life! have learnt how to develop personal strateg& and the path to reach success from Strategic management module! This personal development plan alwa&s live is within me% and it alwa&s reminds me of Owho am -% and Where - am nd What - have to doP!
My ;oals ?& personal goals are as followsD a! To complete the ?B within a &ear and e a ?asters Juali#ed person! ! Success as a $luster ?anager and to e a eneral ?anager in the same industr& efore 2020! c! To own a compan& and e its ?anaging 8irector & &ear 202+!
Evaluation of style ccording to 8raft% (20:)% evaluate our personal thining st&le from si/ Juestions! 5e has given four perspectives to identif& our thining pattern! The& are structure% human resources% political and s&molic! oing through the Juestionnaire - got 2 mars! ?& est perspective is human resources! s a human recourses person% - am reall& concerned aout people% their needs% and support and motivate them towards organiHational goals and oAectives! ?& second perspective is structure! ?& political and s&molic perspectives are low! Therefore - have identi#ed m& weaer perspectives and e/pect to develop them to m& future success oAectives!
Mind and Environment 8raft% (20:) descries our mind set to an organiHation% in a certain and uncertain environment! 6rganiHations alwa&s change% this stud& anal&sis that we are in is aout stale or unstale organiHational environment!
There are positive Juestions in the Juestionnaire and - have got > mars! ccording to this anal&sis% - wor in a uncertain environment! These inds of organiHations alwa&s tr& to change in a particular industr&% Therefore - need to have innovative ideas to face the competition! - understood the areas need to focus for a successful future!
Personal net+oring -n this anal&sis% Juestionnaire the focus is to measure our personal relationships in societ&! -t evaluates our personal networing through ten Juestions! This will help to identif&% our spontaneous nature of reaching out to others on personal networing! - have got > mars from this tas! -t indicates m& personal networing in an avarage level ut - have a een interest to e/pand m& personal networ for m& future carrier development! s a manager% uilding relationships are essential tools for our da& to da& wor!
"re you ready to
Manufacturing vs- Service This anal&sis descries aout our ehavior! There are > Juestions ased from us to identif& our ehavior! - have got OaP and OPs! ccording to the 8raft;s (20:) interpretation% the right rain represents OaP and the left rain represents OP! Therefore using m& right rain and left
rain eJuall& and - thin m& trend of thought is at sucient level to achieve m& goals and oAectives!
Is goal setting your style= With this anal&sis% there are * Juestions to identif& our goal setting st&le! have got 7 mars out of * Juestions! - have identi#ed thatG - need to improve m& goal setting st&le! s a manager% goal setting is a ver& important aspect to perform in m& Ao! ccording to the interpretation of goal settings% measuring results and reviewing progress of people and department are main parts that - have to identif& in those areas to practicall& use m& personal and professional life improvement!
#hat si!e organi!ation for you This Juestion descries m& preference of selecting a large organiHation or a small organiHation! -n this assessment% - have got more than . mars that is reall& lie to wor in a large organiHation! Being a manager in a large scale organiHation is m& dream! - now% it is dicult to clim m& carrier ladder ecause it is a large organiHation with a ig hierarch&! But - would lie to tae that challenge and as m& goals! - want to e a ? in #ve &ears time! Therefore - tr& to develop m& ailities and capailities towards m& goals and - could achieve m& personal oAectives in a large scale organiHation!
7our strategy > Performance Strength This Juestion e/presses that% - am good to strateg& implementation and m& weaness is strateg& formulation! Therefore - want to gain more e/perience aout strateg& formulation! s a manager% - alwa&s need to implement strategies to achieve m& goals ut if - fail to formulate% it could e a'ecting for m& carrier! This anal&sis helps me to develop m&self!
$he pleasure > pain of +oring on a team
- have gone through the Juestions and - realiHed that% - am good to wor along and as a team memer! s a $luster manager - have to guide a team! Therefore - should e a good team pla&er efore handle a team! ood team pla&er should have a positive mind set and good nowledge to understand others feeling! ?otivation of others is a maAor role in a team and it will help other to achieve the targets! - understand that - need to develop m& team woring attitudes towards mu success
Corporate culture preference The Juestion descries four cultures ased on > Juestions! The cultures are clan culture% adoptailit& culture% mission culture and a ureaucratic culture! - have got high mars for clan culture and mission culture! doptailit& culture and ureaucratic culture mars are same and low! ccording to the interpretation - have strong preference to the adoptailit& and ureaucratic cultures! - have learnt that% - am reall& comfortale and e'ective with the low preference clan and adoptailit& cultures!
"re you innovative
This Juestion reMects m& innovative ideas and activities! -t helps to descrie in > Juestions! - have got . mars out of > Juestions! s per the interpretation m& mars indicates that - do not fear to change and - have adapted to the changes efore others! Therefore - have identi#ed m& ailit& of innovation! s a manager in a #nancial industr&% the industr& changes ever& movement! Therefore - need to change according to the environment
with the new thoughts and ideas that - reall& lie the change ever& moment in m& life!
Maing important decisions
8ecisions mareting perspective reMects% how - am capale to mae a decisions and what are the areas - need to focus! - have identi#ed thatG - am a Linear st&le decision maer! - alwa&s thin aout Logic% 8ate% "acts% $oncepts% and 9easons efore maing an& decision! But - realiHed that% considering other points of inner nowing% "elt sense% -nstincts% 5unch and "eelings are ver& important to e a good decision maer! s a $luster manager% - need to mae decision ever& da& to guide m& suordinate and achieve m& goals and oAectives! Therefore - understand the importance of the linear decision st&le and nonlinear decision maing st&le! can use oth the st&les for m& success!
Political Sills
This Juestion shows m& political sill towards inMuencing of people! - have got more than . mars from the answers! -t indicates - have a good political strength ut - realiHed that% as a ?anager - need to improve m& political sill! Because when - guide m& suordinates% - have to inMuence them to get the ma/imum productivit& as well as political factor support to develop collaorative culture with the e/ternal environment! 5owever eing a politiciHed is a ad attitude which will cause dicult& or misunderstanding to others!
Conclusion - have gone through all Juestions and the entire Juestionnaire to reach m& di'erent perspectives! B& this - would e ale to identif& m& weanesses and
