Strategic Management Essay Example | Topics and Well Written Essays - 1500 words - 2

Strategic Management - Essay ExampleApart from the tangible benefits in basis of financial loss, the firm also faced huge crisis in terms of losing intangible losses much(prenominal) as that of skills and experiences. Along with these losses, the firm also faced problem that was in the form of diversion of assistance from better opport building blockies for avoiding risk. The decision of selling out the unprofitable business units was pictured as renovating political programs for the 21st century. Fundamentally, four aims were clothe for this era that included the following (a) reduction of operational holdings that failed to either achieve the short-term goals or be non fit for the firms long-term sustainable strategy and a targeted profit of 600 to 700 million Dollars was anticipated from their gross revenue (b) reinvestment of the accumulated profits from these sales to profitable business argonas of the firm (c) improvement of equity return from these reinvesting strategi es in the long run and (d) strengthening of the firms financial position in terms of reviewing sense of balance sheet and position of credit. The firm followed the benchmarking technique with the help of BCG matrix utilization and derived that the structure of the firm would be designed as such that it would be comprising of mainly four business units financial services, energy, packaging and set products. Following the designed strategies, the firm insisted on selling the unprofitable business units only if in this fictional character also the firm faced the same problem of being unable to achieve strategic targets. It failed to generate the targeted 700 million Dollars sales from those units and achieved a figure which was around 250 million Dollars lesser than that was targeted. Prior to providing recommendation establish on the analysis of the current dapple of the firm in the form of a strategic plan of five years, it is essential to present a brief outlook of each of the positions of business units or the subscribe to situation that the firm at present is facing. Lockwood Groups financial services unit is believed to be strongly positioned within the industry. It is due to the efficiency of the management that this business unit has become able to intensify their targeted discussion section of the market and also have become self-made in avoiding any grave situation of cut throat competition with huge and potent competitors. Avoidance of competitors was essential for the business units holding a brand new position within the industry. With regard to the business position of energy, the firm is in a strong position in spite of being an initial operator within the industry but taking into account the firms abilities in production and exploration of energy, its position is not that strong. The unit of production and exploration is believed to be at a risky position as the firm does not hold strong position of investing huge amounts of money in expl oration activities and also are reluctant in taking risk through exploring in adverse situations. In the packaging segment of the firms business, it is holding an uncertain position as in order to become successful in this segment, the firm would have to remain updated along with the