Question

Mitsubishi Corporation plans to enter the markets of Ghana with its new Sports Utility Vehicle (SUV)-- the
Mitsubishi Sogo Sosha Model. You are the Sales Manager of Mitsubishi Corporation for Middle East and African
Markets. Prepare a report for the Board of Directors detailing the feasibility of the proposed venture. Your report
should include the following
Question 1:
Implementation plans as follows;
step 1 :establishing annual objectives
step 2 :devising policies
step 3 :allocating resources
step 4: altering existing organizational structure
step 5 :restructuring and reengineering.

Answer 1

Date: 01.05.2020

FROM: (STUDENT NAME)

TO: The Board of Directors

SUB.: FEASIBILITY REPORT OF THE PROPOSED VENTURE OF SELLING MITSUBISHI SOGO SOSHA MODEL (SUV SEGMENT) INTO GHANA MARKET

GHANA MARKET

Republic of Ghana is located along the Gulf of Gunea in the subregion of West Africa with a land mass 238,535 sq.kms. and a population of 30 million people, where 70% are Christians, 15% Muslims and remaining other tribes. Ghana is one of the fastest growing country neighouring with Ivory Coast, Togo and Gulf of Guinea. Ghana is Africa's second largest Gold producer and economy of Ghana depends largely on manufacturing and exports in addition to its dependency on agriculture. Ghana is also blessed with natural reserves of crude oil and there is a tremendous activity of crude oil and gas exploration and refining going on in Ghana, which is contributing to boost the country's economy.

Ghana is one of the fastest growing economy and industrial development is booming. Ghana is also very close to Nigeria (one hour flight time) sharing the same GMT. Therefore, there is a tremendous business opportunity for Ghana to exports its products to Nigeria as well.

Ghana is a peaceful country where people are generally peaceful and they like to enjoy their life spending heavily on house and cars. Ghana witnessed manufacturing of prototype of SUV named SMATI Turtle 1, which was made keeping in mind the rough roads and rocky areas and therefore, it became a preferred brand as compared to normal sedans. Moreover, Ghanains prefer to ride big vehicles like SUVs to boost up their personalities as they are generally tall in figure.

The sales of automobile vehicles in Ghana last year was 5700 units. Due to the steep economic growth, road conditions, available opportunities of ever increasing industrialisation and better positioning as compared to Nigeria, Ghana is surely going to witness at least 15% growth year on year. Nigeria has several problems of severe power shortage and frequent outages, weakened economic growth, unstable political situation, frequent communal disturbances, frequent thefts and forgeries,etc., many companies decide to choose Ghana as their manufacturing hub where they can comfortably produce the goods and export to Nigeria to cater to their needs.

All the above facts, figures and various above mentioned factors clearly highlight that the new venture of establishing SUV assembly unit in Ghana will be a viable option.

ANNUAL OBJECTIVES

Establishing Mitsubishi Corporation's new SUV, Mitsubishi Sogo Sosha Model, in Ghana market and achieving a sales of 500 units by the end of year 2020, thereby grabbing a marketing share of 10%.

The long term objective of Mitsubishi's SUV is going to be a market leader with a market share of atleast 50%, in next three years, by the end of 2023.

DEVICING POLICIES

A comprehensive project plan is made, which depicts below mentioned policy guidelines to be framed in detail:

1.The location of plant chosen, area of the unit, total planned budget and outlay, commissioning of entire plant, building, fabrication and installation of all necessary machineries and equipments : clear time lines defined

2. Getting necessary approvals from various government agencies with time lines

3. Establishing production processes with maximum efficiency and scope of further production capacity increase in coming years

4. Establishment of Plant offices, including offices of General Manager, Plant Manager, Quality Assurance department, Supply Chain Department (Procurement, Goods Receipt and Finished Products Dispatch) and Supervisory Staff. Making elaborated supply chain related policies.

5. Establishment of head office/corporate office, including office of CEO, Sales & marketing policies

6. Drafting policy on quality check parameters, troubleshooting provisions, customer complaints and grievance handlings

7. Drafthing safety and security policy covering employees and plant in general

8. Drafting an efficient supply chain policy guideline with robust procurement policy of key raw materials

9. Drafting of HR policies with guidelines of categorising staff and senior employees on graded system, making annual salary increment policy, promotions policy, employees selection, recruitment, induction, orientation, training policies.

ALLOCATING RESOURCES

In order to successfully execute strategic planning, resource allocation is the most important exercise. The resources available are : human capital, financial capital available, plants & machinery, etc. In order to perform an ideal resource allocation plan, we have divided the whole project into various tasks as mentioned in above points no.1,3,4,5,6,7,8 and 9. We identify the available resources and new resources required so that these resources can be allocated to individual tasks while keeping policy guidelines in our mind. Then we scrutinize the efficiency by way of tracking the resource utilization. These cannot be described in this report since it involves another detailed working which has been done and shall be separately submitted to the Board of Directors.

ALTERING EXISTING ORGANIZATION STRUCTURE

In order to execute this new business plan for Ghana, there is a need to alter the existing organization structure. From the level of new entity of a start up and reaching the level of an established organization in Ghana, the structure has to be altered as per the requirements of the business plan. In our business plan of setting up a new venture in Ghana, there are both external as well as internal factors which are affecting this organization change.

The external factors are new markets, products and technology in the external environment. The internal factors are setting up new venture in Ghana thereby allocating financial capital, human capital, reorganising internal functions like production, sales, marketing, business development, etc.

RESTRUCTURING AND REENGINEERING

In order to execute the new proposal of setting up a new venture, Restructuring and Reengineering are important criterian to be kept in mind. Restructuring involves creating new heirarchical levels in the company in line with the existing HR policies. This will not only cover new recruitments but it will also cover cost cutting measures like reduction of redundant staff members not active in other regions so as to compensate for the proposed increment in HR costs. Reengineering is applicable here to redesign the new management system which ensures the achievement of newly defined objectives of the organization. With the help of reengineering, we will have a clear cut review of all different levels of company's way of doing business so as to improve the efficiency of the organization.

This report broadly covers all the important policy decisions based on which we can decide to take on the new venture with full zeal, enthusiasm and positivity of surpassing the organizational objectives set by us.