A case study is selected on the failure of a factory Gohar Chipboard Pakistan (Business Profile Pakistan, 2014). Keeping in view the dimensions of the case study, brief introduction and summary of the case is described hereunder on a single page.
Factory is currently producing chip board sheets. As it don’t has latest technology so it has to sale out plain sheets of chip board. Due to frequent shut down of factory and some problem created by labour union the factory is in loss for 2 years. Chip board is used in making doors, cabinets and furniture. In Pakistan it has a large market (International trade, 2007).
Internal and External Environmental Analysis:
Before implementing any strategy, the firm has to clear off all the…show more content… • Order is not delivered in time.
• Quality of sheets is not comparable to those firms using latest technology.
External Environmental Analysis:
• Factory is near the wood that saves the transportation for wood supply.
• It is in industrial area and labour welfare trust has made a colony for low income factory workers that provide them flats on almost 70% less rent than the market.
• Government has given the facility of being exempted from the electric load shading.
• Factory further owned a large area that can be used for any other operation
• It is situated in north of Pakistan and honour of all these industry has a threat of kidnapping for ransom.
• Many plywood factories are in the same area making competition strong.
Evaluation of Environmental Analysis:
Factory is in loss for two years. It is not even on breakeven. Technology is not latest and head of labour union always try to shutdown the factory. Top management and even labours are not happy. As factory cannot produce order in time and mostly labour is on daily wages and has to lose money during shut down. Machinery of this is not new and need to be replaced by latest technology.
A successful strategic management process will be the one which devises a strategy by which an organisation can fulfil its mission by coming up with achievable short term and long term goals incorporating its organisational competency (Pinnington, 2010).