Excellence is a matter of millimeters, no gesture is decisive in itself, but a million little things done only a little better than the others make a real difference that the customer always remembers.
Introduction
The need for a methodology that guides the formulation of the business strategy is evident from the conception of the strategy as a set of objectives and lines of action oriented towards the future, as an expression of the will of the company against the many factors that condition its evolution.
Business strategy is unique to a given company, under certain circumstances. There are no recipes that provide us with the right strategy for each company, in each different time of its life. Many and different kinds are the factors that influence the development of business strategy.
So it seems useful to structure this task, very laborious and complex, of considering all these factors, in a formal process. Respect for such a process cannot obviously guarantee the success of the strategy formulated, but it can be a systematic and conscientious effort that undoubtedly contributes to considerably reducing the risk of a wrong strategy.
In the present work, a general characterization of the Granma Repair Company in Matanzas is carried out, and its main purpose is to analyze the Strategic Exercise carried out in said entity, as well as assess its results.
Chapter # 1 The Marketing Strategy
For a long time, most companies have developed their promotion and marketing without taking into consideration any plan, guide to their objectives, policies and strategies. However, it is in the making of Marketing decisions that the most notable revolution of the last decades is perceived, the transition from the global to the local.
The first theory of strategy considered only the art of directing military actions. Nowadays, the Dictionary of the Spanish Language of the Royal Spanish Academy defines it more broadly, stating: it is an adjustable process, the set of rules that ensure an optimal decision at all times.
Other definitions state that a strategy is a process of conception of command that responds to the need to reach a point and the action plan that results from this process when defining what the strategy does, will have to examine its purpose and describe its operation.
Its purpose is to establish the process that is developed and follow the path to reach the proposed goals and objectives. While carrying out these strategies is the responsibility of actual plans, your goal is to determine the right course.
The strategy begins with the desired results extracted from formulating your previous goals and objectives, then determining your ability to achieve those results and developing the method to achieve it. It is the set of decisions that define the general marketing approach to follow to access the goals that have been set. Then the strategies will be converted into concrete tactics and action plans linked to time programs, also concrete.
The three elements that constitute a marketing strategy are structure (action), time frame and implementation of the project / task. In each level of managment, the elements that compose it will be different, but they will share the same strategy.
According to George A. Steiner (1979) the formulation of objectives should benefit the global operation of the destination or the company with the following ten attributes.
- Adequacy of the marketing objectives for the purposes of the company or the organization that represents the tourist destination. Possibility of temporary measurement of objectives, for example, increase revenue by 15% in one year. Feasibility of the objectives to be achieved. If they are impossible to do, they will not motivate anyone. Acceptability. Flexibility. Motivation. Understandability. Commitment, that is to say that it is convenient to ensure that all those who work on the elaboration and execution of a strategic marketing plan commit to trying to achieve these objectives. Participation of those involved, of all partners in the plan. Internal and external coherence.
1.2.4 The SWOT matrix as a tool for formulating strategies
The Marketing Environment is the place where the company begins the search for opportunities and threats. It is made up of all those actors and forces that affect the ability of the company divided into two groups for analysis, the micro and macro environments.
The micro-environment of the company is made up of the actors in its immediate environment that affect its ability to serve its markets: specifically, the company itself, its suppliers, its competitors and its stakeholders.
The macro environment of the company is made up of six main factors or forces: demographic, economic, environmental, technological, political and cultural.
SWOT analysis has become very important within the strategic direction of the company. Its objective is to specify, in a graphic or summary table, the evaluation of the company's strengths and weaknesses (competition or ability to generate and sustain its competitive advantages) with external threats and opportunities, consistent with the logic of that the strategy must achieve an adequate fit between its internal capacity and its external competitive position.
The SWOT matrix, like any strategic analysis matrix, is a synthesis of the organization's situation, internal and external, present and future. This synthesis does not include all aspects of management, but only those that have been considered and chosen from the inventory of weaknesses, strengths, opportunities and threats formulated.
Most of the authors suggest that the matrix is usually presented under the combination of the strategic themes formulated in the evaluation and defined under the concepts of opportunity and threat with those of strength and weakness, thus, of the combination of these four management aspects. From the organization we find four basic strategies.
- Offensive strategy FO (Maxi-Maxi): Any institution would like to always be in the situation where it could maximize both its strengths and its opportunities, that is, always apply the strategy (Strengths vs. Opportunities). Such institutions could use their strengths, using resources to take advantage of the market opportunity for their products or services. FA defensive strategy (Maxi-Mini): This FA strategy (Strengths vs. Threats), is based on the strengths of the institution that they can cope with threats from the external environment. Its objective is to maximize the former while minimizing the latter. DO (Mini-Maxi) Adaptive Strategy: This DO (Weaknesses vs. Opportunities) strategy attempts to minimize weaknesses and maximize opportunities.An institution could identify opportunities in the external environment but have organizational weaknesses that prevent it from taking advantage of the market. DA Survival Strategy (Mini-Mini): In general, the objective of the DA strategy (Weaknesses vs. Threats) is to minimize both weaknesses and threats. An institution that faced only external threats and internal weaknesses could find itself in a totally precarious situation. In fact, such an institution would have to fight for its survival or reach its liquidation.An institution that faced only external threats and internal weaknesses could find itself in a totally precarious situation. In fact, such an institution would have to fight for its survival or reach its liquidation.An institution that faced only external threats and internal weaknesses could find itself in a totally precarious situation. In fact, such an institution would have to fight for its survival or reach its liquidation.
Consequently, both for the diagnosis and for the formulation of strategies, the SWOT matrix represents a relevant tool and technique for strategic analysis, but it is not a mechanistic model that provides a single solution, but rather a set of strategic actions that weighting and valuing are necessary for incorporation into the strategic plan and for implementing the strategy throughout the organization.
Chapter 2: Characterization of the Study Object
On December 25, 1976 by resolution No. 331 of the Ministry of the Iron and steel industry at that stage, co. Lester Rodríguez, the so-called: Motor Reparations Company and Aggregates "Granma" was created. Currently subordinate to the management of motors and boxes of the industrial group UNECAMOTO.
With legal domicile in Carretera Central KM 108 Peñas Altas, Ciudad de Matanzas and with commercial name ESTAMAT.
Our company began its construction in an area of 17 682.1m2 in February 1972 and in April 73, after completing some of the civil works, the installation and assembly of tools began in order to provide services in the repair of minor aggregates of Soviet equipment and later of Engines, facing the difficulties of the moment in terms of not having sufficiently qualified personnel to face the production plan with the new technology installed.
Just to mention some aspect of the production of that time in September 74, out of 42 engines to be repaired according to plan, 107% was achieved with 45 in total, and that same year the production plan for 300 engines was successfully completed. being evident the high productive and political morale that I identify from the beginning to the group of workers with their leadership and political factors at the forefront.
It reached its highest productive level in 1986 with 3.8 million pesos, in 87 it decreased to 1.0 million as a result of readjustment and reprogramming of production due to the passing of three important workshops to the Railway Union.
In 1992 the production curve bottomed out only 0.7 million. The following year the situation began to reverse, growing by 44% in relation to the previous year, as a result of the start of the equipment re-motorization activity and which would definitely mark the Company's activity with the distinctive seal. As of this date, the recovery of production levels begins, maintaining sustained growth. The figure of the plan has forced the Company to put its forces in tension and raise the level of direction, organization, management and control.
Corporate purpose of the entity: Produce and wholesale automotive parts, spare parts and accessories, provide repair, maintenance, recovery and re-motorization services for all types of engines for light, heavy agricultural and construction vehicles, provide services of reconditioning of forklifts, wholesale production and marketing of light metal structures associated with social programs of national or territorial interest, as well as providing assembly and installation services for them, in national currency and foreign currency, according to nomenclature approved by the Ministry of Internal Trade, In summary, it is the production and commercialization of engines in all their versions, generators, parts, pieces, automotive accessory components, the manufacture and repair of buses, trucks,trailer and wedges plus specialized technical services for technical assistance and after sales, capital engine repair.
The Company has 8 well differentiated service and production areas, which are as follows.
| Units | Core occupation |
| Base Business Unit | "Mechanical Plant" Machining service, production of brake hoses |
| Base Business Unit | “Ampelo” Ticos, Hyundai and batteries repair service |
| Base Business Unit | “Renovamoto Re-motorization Service |
| Base Business Unit | "Ustamoto Engine repair and re-motorization service |
| Base Business Unit | "Usta General Automotive Technical Services |
| Base Business Unit | Varadero Services of steering frame and injection to light equipment commercialization of parts and engines |
| Base Business Unit | "Support" Transportation, storage, food and maintenance of the different organizations |
| Base Business Unit | “Stable” Provision of Services |
The activities carried out in these 8 areas, the vast majority are carried out manually, many outdoors, which implies:
- Low quality High cost Work intensity Delay in delivery
Being able to summarize all this at a low competitive level. However, we recognize that they have a defined image and are positioned in the minds of customers in one way or another.
It has a total of 165 workers distributed as follows:
- Leaders 19 11.52% Technicians 49 29.70% Administrative 0 0% Note: This is the Current Composition Services 28 16.97% Workers 69 41.82%
This group of workers can be characterized as:
- Stable. From work experience. With a high spirit of commitment and sacrifice.
They have the power to import raw materials and materials, which undoubtedly, in other conditions of liquidity and solvency, would provide it with an important competitive advantage.
The mission of the Company is: To provide with efficiency and quality post-sale services, re-motorization, engine repair, as well as the commercialization of parts and other mechanical productions.
Its vision is: Achieve for the future a competitive business culture where a rational order prevails in terms of material and financial assurances, potential attention to man, taking into account that people or human resources are the most important element with which quality can be stated as an essential part of the organizational culture, educating our collective in the principle that things must be done well the first time, marketing as a fundamental task of our productions and services, achieving a position in our region and others nearby, increasing technological development as a way forward and research achieving a systematic increase in effectiveness to achieve efficiency.
Values:
- Special attention to the economic education of the workers. General in the workers qualities and virtues such as interest in creative work, the spirit of group work. Strengthen the work and create in each worker a true sense of belonging and participation in the projections strategic, as well as in the decisions made in the Company. Promote among the main economic and productive tasks, the efficiency of the processes and a high sense of savings. Provide customer service, which allows security, prestige and confidence in the Business.
Chapter 3
With the assistance of 24 participants, of whom 11 were members of the Board of Directors and 13 were not, the Strategic Exercise was carried out with the aim of reviewing the Mission and applying diagnostic techniques such as the SWOT matrix.
SWOT matrix:
- Collective of experienced workers with a high degree of sacrifice and commitment. Image defined and positioned. Possibility of importing raw materials and accessories. Financial autonomy. Flexibility in production and services.
- There are no qualified and suitable personnel to carry out certain functions. Lack of advanced technology and appropriate measuring instruments and working means. Poor working conditions and means of protection. The absence of an automated system to facilitate internal relations. they affect poor collection management and decision-making. Breach of the contracted services in terms of quality and delivery time. Non-existence of a stimulation system that affects the demotivation of workers.
- High competitive environment and very close. Remoteness from financial sources. Chain of defaults that delay sales revenue. Better working conditions and stimulation of competition. Common customers with the competition.
- Wide market diversity. Possibility of economic association with abroad. Geographic location. Availability of new products and / or services. Possibility of Export.
Results of the Surveys.
Survey applied to the Board of Directors.
Total respondents: 11
This survey was applied to the 11 members of the Board of Directors, obtaining in the first instance that 54.54% perceive that the work they carry out is regular, 27.27% consider it to be good, and 9.09% consider it very good and bad respectively.
This element is essential to be handled in the next management rabbits because if a leader is not satisfied with the work he does, he is not able to correctly provide the relevant guidance to subordinates. It is necessary to look for the causes of this dissatisfaction and work in that direction, even more so we are talking about the entity's top management.
An environment accessible to change is breathed, that is, 100% of the respondents say that they easily accept the initiatives and changes suggested by the workers or the higher body.
After analyzing the different meanings of working conditions, the Company's Management considers, in order of priority, that the following should be improved:
- Attention to man and technological conditions (90.9%). Organizational conditions and protection and hygiene at work (81.81%) Insurance (63.63%). Management style (54.54%).
The quality in the realization of the products and / or services of the company is evaluated by 90.9% as regular, an important parameter in the image of the company, which has its raison d'être in the provision of different services.
100% of the board of directors was projected in favor of urgent management of promotion of the services and / or products marketed by the Entity.
Survey applied to the areas of production and services.
Total respondents: 44
When applying the survey, which allows us to evaluate the work climate, it was obtained that the work relationships between colleagues from the areas is considered by 63.63% of the respondents as respectful, being friendly and sincere for 38.6% and solidarity for 18.18%.
This shows that the climate that is breathed is favorable for the fulfillment of the tasks assigned to the workers.
The management style of the bosses is seen by the subordinates as fair for 70.45%, with the ability to lead for 59.09% and as demanding 43.18%.
Only 4.54% and 2.27% rate their boss as democrat and authoritarian respectively.
This result reverts in the spirit and disposition to assimilate the orientations given by the bosses, since it allows a better boss-subordinate communication.
The work means (tools, office supplies and others) are considered by 72.73% as insufficient, which negatively affects the efficient performance of the various operations and specific activities that are carried out in the company.
In the absence of a stimulation system, the Company at this time has conceived the delivery of certain elements that constitute recognition or stimuli. However, 61.36% of the surveyed workers consider that these are not enough, which makes them less motivated.
The initiatives, suggestions and proposals for changes made by the subordinates to the superior boss are seen by 75% of the respondents as possible to carry out, manifesting a positive synergy.
The attention provided by the company to the workers is evaluated by 56.82% as regular, however 70.45% show a high degree of commitment to it. This element is important to consider by the management of the entity since it is a strength to have a group of workers who feel involved and committed to the objectives to be achieved in business management.
The Fundamental Strategic Problem.
The high competitive environment nearby and common clients, which are their threats, added to the weakness of non-compliance with the contracted services in terms of quality and delivery time, as well as the non-existence of a stimulation system that negatively affects lack of motivation of the workers, limit the strengths of both with a group of workers with experience, a high degree of sacrifice and commitment that do not allow taking advantage of the opportunity of a wide diversity of markets and the possibility of exporting.
General Strategic Solution.
By eliminating the non-compliance of the contracted services in terms of quality and delivery time and creating a stimulation system that positively affects the motivation of workers, we can mitigate the high competitive environment, close and common customers by having a group of workers of experience, high degree of sacrifice and commitment, taking advantage of the opportunity offered by the wide diversity of the market and the export possibilities.
Microenvironment:
Suppliers:
- Unecamoto Group. Transimport. Divep. Autoimport. Mitrans. International Engines. Tractoexport. Tropimotor. Recca. Mitral. Pegasus.
Real clients:
- Etecsa. Provincial Beverage and Liquor Company. Polygraphic. Banco de Crédito y Comercio. Cubatur Varadero. Ecomat. Raw Materials. Pescamat. Esi. Ecasa.
Competition:
- Divep –Sime. Sasa. Mercedes Benz. Workshop Company.
* In the specific case of Hydraulic Hoses:
- CIMEX (Due to the store network it has) Oleo Hidráulicos (Cienfuegos) Taino Spark Plug (Sagua la Grande) Empresa Guama (Contraimport Ciudad Habana)
Structural problems.
It should be noted that the structure presents significant imbalances between the Specialty of the workshops and the Generality of activities, between the Operational Management of the areas and the Organization, Planning and Control of the Direction.
Particularly the problems that have to do with the attention to man and others of a general nature for the different areas such as: Means of Protection and Hygiene at work, uniforms, cleaning tools, etc. They must be dealt with in a centralized way, although they do not exclude the participation of the areas, they must focus on their raison d'être, the organization of production and services, with the lowest cost and the highest quality for maximum customer satisfaction.
The success of this Company is sustained in the art of combining the essential decentralization and the irreplaceable centralization, especially when it constitutes a geographical unit and therefore there are common problems such as the security and protection of the center, dining room and cafeteria, recreation, which must require not only common but also prioritized attention. This will contribute significantly to developing the Organizational Culture and the Corporate Image of the Company.
Low Pressure Hydraulic and Pneumatic Hose Assembly.
Objective: To establish the steps for the assembly of hydraulic and pneumatic low pressure hoses.
Low pressure hydraulic hose: It is the hose that has a light textile reinforcement inside used in automotive vehicles.
Fitting: It is the metallic component that is fixed in the hose to facilitate the connection of this in the automotive vehicle.
The following operations are performed in the hose assembly process.
Hose cut: Its cut is made with specific equipment for this, it has stops to tension the Hose according to the length to be cut, it also has a fixed tape measure that makes it easy to measure the length of the hose to be cut according to the D-04.03-1 Annex B The operator makes the adjustment of the machine before starting the cut, together with the workshop verifier, which verifies the cut of the first five hoses. If it complies with the provisions, the process begins.
As the hoses are cut, they are placed in plastic baskets.
Fitting assembly: The operator proceeds to mount the fittings on the vise on the work table to start the assembly of this, placing the fitting at one end of the hose, operating the test and start machine (A), the pressure is inserted into the hose into the hose to mount the other fitting. In this operation soapy solutions will be used to facilitate said assembly, forbidding the use of oils or other substances.
Once the assembly is done they are placed in plastic baskets.
Pressing the fittings: The operator presses the fittings to the hose taking into account the type of grinding wheel to be used. D-04.03-2 Column 2 see annex (C), there are 8 grinding wheels on the plate that are changed manually. The fitting is placed vertically on the plate with the wheels at a distance of 5mm from the hexagon at the end of the fitting, the micro is graduated with the measure established in D-04.03-2 Column 3 see annex (C) according to the type of hose, The electric crimping machine is turned on and in this way the fitting is pressed at both ends.
The operator each time pressing the fittings at both ends checks with the 0-150mm vernier caliper the size of the pressing footprint so that it complies with the provisions of D04.03-2 Column 4 see annex (C).
Once this operation has been carried out, the hoses are placed in plastic baskets for final control.
After having carried out the final control of the hoses, the hoses are marked on the manual crimping machine, removed from the 8-wheel plate, 2 wheels engraved with the letters G and R are placed, they are adjusted and the lever is operated, leaving the recording made, after this operation they are packed in nylon envelopes that are chopped in the sealing machine, in groups of 1 or 2 units, being sealed and placed in plastic baskets to be taken to the finished production warehouse.
The inspection established in the cutting, assembly and pressing operations of the fittings is carried out and the verification report is made.
The marking and assembly of finished production in the finished production warehouse is complied with. Correct storage of said production is carried out.
Once the product is finished and available for sale, the cost sheet is prepared, in accordance with current provisions, they are prepared on the basis of Joint Resolution No. 1/2005.
The general data for the preparation of the cost sheet are:
- Raw material and material. Salary breakdown. Other direct expenses. Indirect production expenses. General management expenses.
Product Objectives: To meet the needs of automotive, light, heavy, agricultural and construction equipment that need parts, accessories and other types of repairs according to the demand plans of our clients.
Product strategies
- Improvement of technological conditions through a level of investments. Increase in post-sale services. Cost reduction through detailed analysis of the product manufacturing and distribution process. Sales promotion and financing facility. Meet the needs of light equipment, automotive, etc.
Conclusions
From the results obtained in the investigation it is concluded that:
- The use of the marketing philosophy constitutes a support tool for the business management of the facility under study. The company has weaknesses that must be minimized by maximizing the use of opportunities in order to insert itself with an adequate orientation in the international market. It takes advantage of the potential derived from the geographical location of the facility, that is, from the Matanzas-Varadero-Cárdenas Triangle. Marketing strategies are not systematically used as a tool to support decision-making.
recommendations
The following aspects are recommended based on the conclusions established in the study of the Hydraulic Hoses product:
- Continue the current study in a second stage that makes it possible to cover all areas of the company. Implement Marketing strategies designed to strengthen the Hydraulic Hoses product and monitor their implementation. The results of the SWOT Matrix determine the need to develop Internal Marketing strategies to satisfy the demand of the facility workers as a way to reduce the exodus.
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