Essay About Nur’S Current Strategies Management And Executive Summerythis Report

An-Nur’s Current Strategies Management
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Executive SummeryThis report provides an analysis and evaluation of An-Nur’s current strategies management and its effectiveness to dethrone An-Nur’s major competitor and respond to the growing market.As methods of analysis, we use SOWT analysis and Poster Five factors model because it gives clear image about industry as well as competitive environment which helps in planning and decision making. We proposed two alternatives Status quo and Restructuring, refining the company business management or strategic management. After careful analysis and evaluation, we decided to go with second alternatives which is restructuring, refining An-Nur’s current strategic management to achieve the targeted goal by year2025. The report finds the prospects of the company in its current cultures are not satisfactory. As recommendation, we suggest the president of An-Nur should sit down with key managers from different departments such as manufacturing, shipping, marketing, purchasing, human resources and accounting to understand their perspective and involve them in the planning. The management should allocate a sufficient time for the budget committee in gathering information so that they can come out with more realistic budget. As for the management’s bonuses, it is suggested to use hybrid evaluation that combines both subjective and objective performance evaluation.MAJOR ISSUE AND SYMPTOMS IDENTIFIED IN AN-NUR        The major issue faced by An-Nur Company was the ineffective strategic management, considering to the growing size and complexity of the operation to ensure the An-Nur’s goal to dethrone Awani (major competitor with approximately a 50% market shares) and to become the one of the leading wetsuit manufacturer by the year 2025.According to Smith, Arnold and Bizzell, “Strategic management is the process of examining both present and future environments, formulating the organizations objectives, and making, implementing, and controlling decisions focused on achieving these objectives in the present and future environments” (1991). Nag, Hambrick and Chen (2007), strategic management is the formulation and implementation of the major goals and initiatives taken by a companys management, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. The symptoms identified supporting the stated major issue are as follows. First, Ryad Lotif the president of An-Nur, is no longer confident with the current management practise to respond to the quick market shift. He indicates that the current practise is not working effectively and efficiently and could be improved only if the underlying problem could be able to be identified. Besides, the inevitable growth of An-Nur has been noticeable, following with overall growth of wetsuit industry as shown in exhibit 1. However, rapid growth and competition makes the current culture of coordination and communication throughout the company to be ineffective. Lack of coordination between the goal setting and strategies undertaken to achieve the goal by the An-Nur company. Moreover, the budgeting system of the company is too optimistic and current strategies are not well enough to achieved targeted budget which makes the budget unrealistic and ineffective compensation plan adapted by An-Nur.