Strategic Planning 148693

Strategic Planning

Propose a new product or service for the new company division. The company in question is Shaw Group Inc., located in the Eastern part of Canada. The company has been the leading community developers as well as natural resource manufacturers within this area. It focuses mainly on construction products and to do this effectively, the company has been divided into six main divisions. They include Clayton developments, Shaw precast solutions, Shaw brick, Ven-Rez, Shaw resources and Prestige homes. Each of these divisions are entitled with different activities and tasks that makes the company to be managed in a decentralized manner.

Despite of that, the company has been very successful since it was founded in 1986 up to date. It has enjoyed a very high growth rate, high profits and revenues, presence experienced business units, among other key factors that have contributed to its success. The following paper addresses one key proposed new division that will also deal in a new product line for this company. Being a construction based industry, the proposed new division must still focus upon construction. The new division will therefore be known as Shaw Construction Vehicles.

As the name suggests, the division will deal in construction vehicles as the main product. This will include the manufacture of these vehicles which will be made available to other construction companies for purchase and renting purposes. Alternatively, the vehicles will also be used for building and construction purposes for this company. Generally, construction must take place using construction vehicles; this is the key reason as to why this new division is expected to add value to all other divisions in this company. Some of the vehicles in which the new division will manufacture include loaders, excavators, bulldozers, cement mixers, backhoes, and cranes.

Describe how the division addresses customer needs and achieves competitive advantage

The new division in question is aiming at ensuring the needs of the customers are well taken care of. In addition to this, it is aiming at obtaining a competitive advantage against other major firms which are already existing in the construction vehicle industry. Within any construction activity, the need of the customer to have quality goods and services. The new division, dealing in construction vehicles, is aimed at manufacturing high-quality construction vehicles. The division will manufacture its vehicles using the right metal raw materials among other factors in order to produce a high-quality product which is the concern of every customer (Wong & Chan, 2010).

The company is also expected to use marketing techniques in ensuring it addresses the needs of the customers and also achieves a competitive advantage. One key factor the division will focus upon is the reliability of their construction vehicles. Customers are always disappointed when they purchase a product and it fails to be reliable, especially in the long term. To therefore satisfy customer needs and to gain a competitive advantage against other firms, it is essential that the vehicles are highly reliable; that is, they can be used for extended periods without failure or breakdown. Pricing strategies will also be employed to position the division competitively.

Being a new entrant in the industry, the division should utilize pricing strategies to gain a competitive advantage. Construction vehicles are generally expensive, leading many companies to prefer renting for short-term needs. The division aims to make its products accessible by offering affordable prices, which may not necessarily align directly with existing competitors' pricing but will focus on delivering value. Affordability fosters customer loyalty and helps build a solid market position (Pearce & Robinson, 2013). Additionally, establishing effective communication channels, including feedback systems, will be critical. This approach allows the division to gather customer insights, identify required improvements, and continuously enhance product quality and service delivery, thereby maintaining competitive advantage.

Create a vision and a business model for this new division that clearly demonstrates your decision on what you want your business to become in the future

The new division’s vision will serve as a guiding star for its future growth and success. It will be: "To become the world’s best construction vehicle manufacturer by attaining extraordinary outcomes for the customers and also building nourishing careers for the employees of this division."

This vision emphasizes ambition for excellence and growth on a global scale. To realize this vision, a suitable business model must be established. The business model will describe how the division creates, delivers, and captures value. It will focus on key revenue sources, products, financing, and customer segments. Initial funding will come from the company’s existing capital investments, which will finance the procurement of manufacturing resources, technology, and infrastructure. The core processes will involve vehicle design, manufacturing, quality assurance, and marketing. Revenue generation will be structured around direct sales, rentals, and after-sales services, with profit depending on efficient resource utilization, cost management, and customer satisfaction.

Explain how the vision, mission, and value of the new division align with the company's mission and vision

The overarching mission of Shaw Group Inc. is to be driven by visionary leadership and an entrepreneurial spirit, which has enabled diversification into technological, industrial, and environmental sectors since its inception in 1986. The company's mission emphasizes growth, innovation, and global reach, supported by a workforce of over 26,000 employees worldwide. The new division’s vision and mission are aligned with the parent company’s strategic direction. Its vision to become the world’s premier construction vehicle manufacturer reflects the company’s broader aim of global leadership and excellence. The division’s mission to deliver high-quality, reliable construction vehicles complements the company's overall mission of expansion and diversification. The shared focus on leadership, innovation, and customer satisfaction ensures alignment, enabling the division to support the company's long-term growth and strategic objectives.

Summarize how the vision, mission, and values guide the division's strategic direction

The division’s strategic direction is primarily shaped and guided by its vision, mission, and core values. The vision articulates the long-term aspiration to be a global leader in construction vehicles, providing a clear target for growth and excellence. The mission explains the approach—delivering superior quality, reliability, and affordability—establishing actionable priorities for day-to-day operations. Values such as honesty, ethics, teamwork, sustainability, and innovation serve as the moral compass, influencing decision-making processes, stakeholder relationships, and corporate culture. These guiding principles ensure the division remains focused on customer needs, operational excellence, and social responsibility. Collectively, the vision, mission, and values serve as the strategic foundation that drives goal setting, resource allocation, performance measurement, and continuous improvement, ensuring the division’s sustained success and alignment with the broader corporate strategy (Plunkett & Allen, 2008).

Define your guiding principles and values for your division in the context of culture, social responsibility, and ethics

Practicing strong ethical standards and fostering a responsible organizational culture are fundamental guiding principles for the new division. Key principles include ensuring safety and quality in all operational processes, promoting environmental sustainability, and fostering a culture of integrity and fairness. These principles underpin the division’s commitment to social responsibility, implying that all manufacturing practices will adhere to environmental regulations, and products will be designed with sustainability in mind. Transparency, trustworthiness, and respect are core values, ensuring ethical conduct among employees and Stakeholders. Diversity and inclusion will be prioritized, creating an equitable work environment that respects different perspectives. These guiding principles and values are essential in cultivating an ethical culture, building corporate social responsibility, and ensuring long-term success of the division within a global, socially conscious marketplace.

References

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