Author: Xian Zhan
Date: June 15, 2008
This Strategic report is the guideline for Bosch Hinges’ development for the coming three years. The main focus of this business plan is to give the direction which management could follow in order to sustain and grow in the future.
The current problem of Bosch hinges lies in the declining client number and the reduced average order size of clients, which calls for a suitable strategy for its further business growth. Currently, the marketing objective of Bosch Hinges is to focus on the small-size ordered clients, maintain and increase the new clients’ number with 5%-15% in the following 3 years.
As for the financial objectives, Bosch Hinges has encountered very volatile
years from a loss
in 2004 to profit in 2006. In terms of production, the main finding is that Bosch Hinges needs to reduce lead-time, while remaining its maximum production capacity. With regard to human resource management; the most important finding is that there is no mechanism in place to measure employee’s motivation.
This report evaluated the current performance of Bosch Hinges and identified the gap between the current and the expected situation. There are main gap lie in the limited sales force to regain customers can not response to the declining of customer number and; the limited marketing and production capability can not measure and response to the changing customers demand.
After careful evaluating the feasibility of these three strategic options, they all have resulted in a positive net present value. Considering the debt position of Bosch Hinges BV, the project with the highest return should be their priority. Therefore, I recommended that Bosch Hinges should enter into a strategic alliance, and eventually choose one of the German standard hinges manufacturer. According to calculations, a...