Determining the international expansion

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Reference no: EM131344954


Consider the following scenario:

You have held conversations with Precision Part's leaders and obtained the following information, which you want to use in the development of a 4-year strategic management plan.

  • PPQ Parts employees now number 5,000, and all are currently employed in the United States. It plans to grow to 10,000 employees in 4 years.
  • New facilities will be needed in international expansion, and PPQ Parts anticipates building most of those (80%) outside the United States.PPQ Parts holds 5% of the world market share on small SUVs, but its goal is 9% in 4 years.
  • Current stock price is $10 per share. The goal is $22 a share.Profit margin 3-year average is 6%. Industry average during this time has also been 6%. The company goal is 13% in 4 years.
  • PPQ Parts has averaged 28% employee turnover during the last 3 years. This is compared to an industry average of 25%. The goal of the company is to increase employee retention by lowering annual turnover to 17%.
  • PPQ Parts contributes to all the local communities in which it is doing business. This is one of its corporate values. Current charity is 0.5% of total profits, but the company would like to raise that to 5% in 4 years.


A strategic management plan is vital for the company business today. Review the company scenario at the beginning of the course for additional information regarding growth goals. Create a basic strategic management plan for PPQ Parts including quantifiable goals and measures. Include the following in your report:

  • Provide environmental scanning of current conditions in the area of expansion including economy, competition, political stability, and so forth.
  • Address internal resource analysis such as managerial and financial strengths and weaknesses.
  • Please include short-term and long-term strategic goals.
  • Location consideration for implementation is vital. Please explain the benefits and limitations for expansion in your chosen area.

Reference no: EM131344954

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