Market Situation Affecting the Brunch Tanker Company - Case Study Example

VIRTUAL BUSINESS Student’s name Code & Course Professor’s name University City Date Introduction This retrospect paper seeks to provide a strategic plan that effectively addresses the market situation affecting the Brunch Tanker Company. The company operates in the Australian market and majors in the construction of oil tankers that are sold to potential customers such as Shell, BHP, and Caltex. As a result of increased competition in the Australian market and a declined exchange rate, the company seeks to mitigate these situation effectively with proffered competitive approach. In this regard, the report draws upon relevant literature and theories from the organization’s management and planningperspective. An in-depth analysis is presented on the situations affecting the firm’s entry and management variables affecting its success. It further presents the firm’s position with respect to the potential threat in the market it operates.In this regard, a number of approaches are discussed in provisioning appropriate remedial actions Situation Defined The decline of the exchange rates has had a profound effect on Australia’s oil tankerindustry. Markedly, the sharp decline of the exchange rate has affected a number of variables pertaining its business dynamics. The marketcan support the influx of more competitors in the emerging market. The implication of the competition enforcement is straightforward to describe whilst the potential success, yet quite demanding in practice. Increased competition in the market has necessitated the need to change the company’s business approach. Situation Analysis Subject to the increased competition on multiple platforms that include innovation, quality, price, and service, there is a need effectively to create strategies that effectively maintains the company's competitiveness in the emerging market. In order to maintain its viability in the industry, it is imperative to consolidate appropriate response techniques. The company’s strategic goals articulate the need to maintain its global competitiveness in the market. It further seeks to consolidate efficient management approach in increasing its productiveness and an effective approach to its manufacturing capabilities. Thirdly, the company seeks to be a leader in the oil tanker manufacturing industry. Additionally, the firm seeks to meet consumer satisfaction through the provisioning of quality products that can favourably compete with its competitors. This situation necessitates the need to re-analyse the firm’s external and internal analysis, as well as, organizing the work teams to respond effectively to the prevalent market situation. Planning Perspective In markets typified by competitive forces and a competitive environment has tracked the intensity of the competition thus compelling the organization to anticipate the competition strategies andto provision of better value of assets. Insights into what the business anticipates and the plan on how the business adjusts to the shock of changing market conditions, will serve as an imperative part of the business (De Crème, 2010). Evidently, the alteration of the strategic planning offers a profound consolidation of external factors that potentially affect the business (Schaffer, 1998). Schaffer (1998) suggests that the essence of formulating the strategies is garnered towards the sustenance of a competitive advantage. A subsequent reorganization of its strategic plan will align the company to its present market position. The alteration of the external market will demand the need to create a robust planning approach that addresses various issues affecting the firm’s competitiveness. In order to improve the company’s planning, it is essential to consider the integration of the internal and external variables.Nevertheless, attuning the present market forces to the company’s objective will integrate a new marketing approach. Organizing Perspective Managers need to adapt to the production demands; attributed to the increased competition in the industry. The effects of the competition demand rely in the underlying reasons for the increased competition. Often, it is argued that the competition makes it imperative for firms adapt quickly to the new competition. Contrariwise, the competition can make the company’s adaptation more quickly. The anecdotal and casual evidence suggests the competition affects the internal factors of the organization(De Cremer, 2010). In particular, in order for the company to be successful it is requisiteto ensure that its managers adapt to the production demands. It is evident, therefore, that the effects of competition on the internal factors will have profound effects on the company’s production approach. Contextual factors Customers The customers play an imperative role in provisioning a ready market for the oil tankers in various market niche; they include oil producers such as Shell, BHP, and Caltex. These global companies have significantly created effective distribution systems that adequately covers all potential markets. It is important nevertheless, to consider effective security measures that are affiliated to the business. Therefore, the company will effectively provide quality tankers for the customers, with the aim of enhancing customersatisfaction. Competitors The increased competition in the oil industry has attracted new players. However, most of the competitors are offshore companies thatinclude Tsuneishi Shipbuilding Company, Hyundai Mipo Dockers Company and Samsung Heavy industries among others. Although, these companies pose a significant competition to the tanker business, the company expects to compete favorably in the Australian market. Suppliers Suppliers form an integralpart of the company’s supply chain since they offer a clientele network for the oil tankers. Contrariwise, although most of the suppliers are attuned to the company’s competitors, they have adequate knowledge of the affiliated safety requirement and regulations. Labor market Availability of labour is imperative for any business. In this reverence, the company will outsource cheap labour from China, Japan, and South Korea. These countries have a stable political environment. Hence, it will sustain the company’s production capabilities. On the other hand, two important labour laws governs china’s labourmarket. Thelabour Act of 1994 covers the minimum wage, working hours, over time pay vacation, collective bargain, holiday, labor protection, among other areas (Fong, 2002). Consequently, the Trade Union Act of 1992, presented a unified trade union systems which offers the unions a broader role in the settling labour disputes, collective among others (Fong, 2002). Considering these factors will essentially impact how business is conducted in this region. Conclusion Evidently, the planning and organizing functions of the company are ultimately affected by increased competition at various levels. For instance, the increased price sensitivity makes it significant that the company’s production is adapted to the market demands. On the other hands, the organization’s planning with respect to changing market dynamics compels the company adequately to change its strategic goals across various operational and organizational aspects. Nevertheless, contextual factors potentially affect the market operations and mitigation approach.. Recommendations Plan 1 It is recommended, therefore, that the company builds a modern manufacturing workforce. An effective workforce is essential in increasing productivity at all multidimensional levels. This can be achieved through ensuring that the educational levels at the entire production and management levels of thecompany are assigned with the industry needs. This will ensure effective productivity at all production levels. In order to provide quality products for the market, a skilled workforce has to be created in maintaining the dynamic market requirements. In enhancing the skills of the workforce, the company needs to invest in training programs. These programs enhance the workforce’s adaptability and knowledge at different organizational levels through a systematic and continuous process, as the company advances into different market conditions. Goldstein (1991) affirms that the organizational needs and employee assessment should be conducted for an effective training process. Plan 2 Consolidatingsustainability approach in attracting more clientele. More often than not, oil tankers have been typified by massive oils spills that have significantly degraded aquatic environment to a hazardous level. It is evident that potential clients are inclined to products that ultimately reduce operational risks after purchase. In this regards,lean manufacturing has been an effective way of manufacturing industries. The lean mantra of eliminating waste will not only reduce the wastage during production but alsoimprove its brand image among the customers. An increased brand image is imperative forany company, given the increased awareness among the users. A company that centers on the Triple Bottom Line offers more quality to potential customers and suppliers (Cawein, 2005). On the other hand, eliminating waste reduces the production cost (Arthur, 2002). Companies that adopt a socially friendly policy reduces their cost and the experience lower employee turnover and improve the firm’s profitability (Arthur, 2002). Reference List Arthur, D., 2002. The Case for Corporate Citizenship. Accessed at . Barney, J.B., and Wright, P.M., 1998. On Becoming a Strategic Partner: The Role of Human Resources in Gaining Competitive Advantage. Human Resource Management, 37(1): 31–46. Bouwens, J., and Van, L., 2008. Assessing the Performance of Business Unit Managers. Journal of Accounting Research, 45(4), 667. Cawein, J., and Rob, C., 2005. Turning Lean into Clean," AME Conference, Boston, MA, p. 57. De Cremer, D., Mayer, D., & Marshall, S., 2010. 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