Marketing Leadership Planning- Jun 2014 CIM Reg.

no 14168303

Re-designing the Strategic Marketing

Planning Process of
Samson International PLC
Marketing Leadership & Planning

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Index Page No

Executive Summary ---------------------------------------------------------------------- 3

1. Assessment of SIL Current Strategically Marketing Planning Process

1.0 Rationale & Objectives ---------------------------------------------------------------------- 5

1.1 Strategic Marketing Planning ---------------------------------------------------------------------- 6

1.2 Assessment of current SMPP ---------------------------------------------------------------------- 7

1.3 Recommendation for improvement ------------------------------------------------------------------ 9

1.4 Monitor and Control ---------------------------------------------------------------------- 11

2. Strategy Development need for adapting to the changes

2.0 Changing of Market Environment--------------------------------------------------------------------- 13

2.1 Strategy to deal with changes ---------------------------------------------------------------------- 14

2.2 Revision of Vision and Mission --------------------------------------------------- 16

2.3 Change Management for SIL --------------------------------------------------- 19

2.4 Potential Implementation Limitation------------------------------------------------------------------ 23

3. Briefing Paper for Employees Addressing Changes

3.1 Briefing Paper ------------------------------------------------------------------------------------------- 24

3.2 Self-Evaluation of My Leadership Style -------------------------------------------------------------- 27

Bibliography & Reference ------------------------------------------------------------------ 29

Appendix

Appendix 01 Company Background 30

Appendix 02 Audit Findings 32
Appendix 03 FSC Products Best Practices 36
Appendix 04 FSC products STP 37
Appendix 05 Product wise Sales FY 2006~2013 & Projection up to 2018 39
Appendix 06 SIL Ten Years Financial Summary 40
Appendix 07 SIL Management Floor Chart 41
Appendix 08 SIL Marketing Department Process 42

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Executive Summary
Business world is changing rapidly without leaving a moment for specialist to have a peaceful mind. Changes
always challenge the management, outdating the prevailed strategies and impel for revising them time by
time. Changes are not only always challenging the organizations but also create an opportunity those who look
optimistically.

Industrial revolution forced for making the products at economical ways and at cheap price. Fordism is a
classic example which was succeeded through economies of scale. No one did not lament about how the
product was come out. But now rational customers are looking at a cheap product in doubtful minds, judging
themselves whether such products have been made out of correct material, ethical manner or meeting the
statutory requirements. Hence watch dogs are opening their eyes toward Chinese, Indians & other
manufacturers who follow ―Cost Focus‖ strategy. Most times they were disgraced by watch dogs as many
cases unveiled the bitter truth that many cheap price products made out of hazards material and following
unethical practices such as Forced Labour, Child Labour, unsafe, and unhealthy working environment,
without maintaining even statutory requirements. On the other hand Green Products, Fair Trade Products,
Forest Alliance, Eco Friendly, Ethical Practices and Best Code of Conducts are becoming buzz words among
the B2B and B2C customers. And studies show that customers are willing to pay more for such products.

Being 25 years in General Rubber Goods Industry, serving B2B international customers, Samson International
PLC (SIL) faces the rapid external environment changes. These changes are challenging SIL to change their
strategic planning process.

The first phase of this task explains the present strategic planning process prevailing at SIL evaluating the
appropriateness, parallel to the external changes. Evaluating the present key strength and weaknesses this
chapter end with the recommendations need for improvements.

The second phase starts with developing the strategy, highlighting the needs of the SIL to be more
adoptability to fit to the external environment changes. The adoptability is must and essential for SIL to be
competitive in the industry. Vision and mission of the company is the heart and to adoptability to the external
environment it plays great role. Hence the mid of this task identify the loop holes of the available vision and
mission of SIL which would not be reckoning to adopt of external changes. This ends with driving the revamp
of SIL present vision and mission for better future to be more adoptability. The Change Plan addresses the
importance and the way of adjustment to be done internally to be adoptable to external changes.

The third phase of bring ups the Briefing Paper to address the staff, parallel to the prospect changes to be
done. This will helpful to motivate and empower the employee to embrace the revised strategy, guiding them
to play the expected role to be played by them.

The final part portrays the self-assessment of my leadership style of mine, highlighting the areas need to be
improved. Parallel to the change in strategy of the company mine leadership is expected to be changed
prospectively.

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1. Assessment of SIL Current Strategically Marketing Planning Process

1. Rationale
2. Selected Scenario
3. Marketing Audit

a. External Anlysis
 Economic Environment
 PESTEL Analysis
 Competitor Analysis, Porter‘s 5 Forces Analysis

b. Internal Analysis
 Customer Analysis
 Marketing Strategy Audit
 Marketing Function Audit

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STRATEGIC REVIEW REPORT

Date : 30-Apr-2014
To : Board of Directors, Samson International PLC
From : Marketing Manager, Samson International PLC
Subject : Marketing Strategic Review Report of Samson International PLC

1.0 Rational

Samson International PLC (SIL) is the leading General Rubber Goods (GRG) manufacturer and exporter in
Sri Lanka since 1988. Being a sister company of well reputed DSI Samson Group which is celebrating their
Golden Jubilee year, SIL extend great strength to the group being export oriented company (Refer appendix 1,
Figure B1), registered in Colombo Stock Exchange as a Public Quoted Company, opening the door for the
shareholders to be the part of progress.

At present SIL faces below challenges which the future success is at stake,

1. SIL major export revenue generates through the Natural Rubber Hot Water Bottles (HWB) and Jar
Sealing Rings (JSR) 45% and 34% respectively, are at Declining/Maturity Level of Product Life
Cycle. (App2, B3)
2. SIL heavily depends on 2 major customers Sanger and DSI holding 52% & 26% portion of total
revenue respectively. (App2, A3)
3. Stagnating of the SIL turnover throughout the last 3 years below LKR 1,000 Mn, though it was
expected 15% revenue growth ( App1, Fig B1)

Hence it‘s important to SIL reviewing their Strategic Marketing Planning Process (SMPP) and activities to
win the marketing standing against the competitors, adapting to the external changes.

1.0.1 Objectives

This strategic report targets below objectives.

1) Critically assess the current approach of SIL in respect of Strategic Marketing Planning Process
(SMPP) and identify key issues.

2) Critically appraise the suitability of the present SMPP under volatile macro environment.

3) Recommendation for the SMPP improvement of SMPP of SIL for robust future competitive position.

1.1 Strategic Marketing Planning

Strategic Marketing Planning is the process that the operational and managerial staff of a company goes through to create
and implement effective marketing strategies (www.smallbusiness.chron.com). Business strategy defines for dimensions
as follows.

A. The product-market investment strategy - Where to compete

B. Customer Value Proposition
C. Assets and Competencies How to compete
D. Functional Strategies and Programmes

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1.1.1 Benefit

Strategic Market Management is a system to help management both precipitate and make strategic decisions,
as well as create strategic visions (Aker & McLaughlin, 2007). They perceived that below benefits can be
obtained through SMM.

1. Precipitate the consideration of Strategic Choice

2. Force a long Range view
3. Make visible the resources allocation decision
4. Aid strategic analysis and decision making
5. Provide a strategic management and control system
6. Provide both horizontal and vertical control system
7. Help a business cope with change

1.1.2 Strategic Audit

The strategic analysis aim is to identify the extent to which the current strategy of an organization and its more
specific strengths and weaknesses are relevant to, and capable of dealing with, the changes taking place in the
business environment (Johnson and Scholes, 1988)

Figure 1.1 : Rational Model of Strategic Management Source : De Wit and Meyer (2004)

1.1.3 Methodology

This report utilize the ‗Rational Model of Strategic Management‘ developed by De Wit and Meyer (2004) for
critically assessing the current approach of SIL in respect of Strategic Marketing Planning Process (SMPP)
and identify key issues . The audit was based on heavily secondary research while primary research was
conducted at need interviewing senior managers using constructive and unconstructive questionnaire in
addition to observe the working attire and practices of SIL.

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1.2 – Assessment of SIL current SMPP

Element Scale Critical Assessment

Mission & Vision and mission are not clear and fit for.
Objectives 4 Objectives are not backed by the clear strategies.
Strategic Main target is annual sales and financial budget for coming financial years need for
Appraisal 3 corporate plan, submit for Board of Directors approval. This is drafted based on the past
years performance. Just expects percentage growth. Intended strategy follows and
emergent strategy has been never considered. Not market oriented.
Environmental Not sufficiently done at planning level. Emerging opportunities or threats
Audit 1 (Refer App A3,B & D) and competitiveness (A7) are not highly taken into grant. Thus
external factor (PESTEL Analysis-Refer A1) consideration is minimal for SMPP.
Internal Position MPP take into consider the Key Success factor by taking into granted the resource and
Audit 1 competency analysis (A13) is not sufficient. Product Portfolio analysis (A2) is not done
though the revenue generation is projected for years. Refer Appendix 5
Strategic Options The available Growth Strategies or Generic Strategies are never discussed or evaluated. By
Generations 1 habitually it‘s set for Accessibility, suitability and Feasibility. The required analytical tools
are not used even by the capable managers.
Strategy Market Development Strategy is targeted as growth strategy. Yet throughout the past years
Evaluation and SIL was unable to access of any new markets for Jar Sealing Rings while Hot Water Bottle
Selection 1 just succeeded mere around 2%. This reflects the failure in strategic options. Though SIL
Follow the Production orientation, Cost Leadership strategy many Chinese and Indian
suppliers has overrun them with lower cost production operations and lesser pricing.
Implementation 3 Operational plan is based on the annual budget and required resources are allocated
accordingly. The functional strategies are not coordinated or well co-related with the
marketing planning. Each department highly focus on their own objectives.
Review And 2 Though market plan, objectives are reviewed monthly for BOD presentations, adjustments
Control and controls cannot be observed.

Scale 4, 5 Good 3 Average 2,1 Bad

1.2.1 Process

SMPP of SIL is the part of corporate strategy (Refer A12, Figure A8). It‘s a top down process (Refer A11,
Figure A7) which decides by the MD, after monitoring the past year sales and financial performances. As DSI
Samson Group initiated the business as family conglomerate, still the influence (moderate dictate) of family
directors is at greater level.

Prior to start the financial years, Managing Director informs his expected sales and profit growth. Else
General Manager provides their draft budget for MD comments and approval. Based on this expectation
revenue generation is set through product portfolio management. Hence most of the time, MPP is set by
adding the 10~15% the previous year turnover. (Refer App 5)

However the changing of the market environment or it‘s dynamic situation is hardy concerned at this level.
Hence strategic approach to the marketing plan is very minimal. Although feasibility reports are made at new
investment monitoring and controlling cannot be observed.

1.2.2 Validation of SMPP to SIL

Audit Findings (A4) indicates that 78% of the turnover generates through the 2 customers Sanger and DSI.
However this revenue is generated through the efforts paid by them, being agent and OEM manufactures.
Contribution of SIL owns marketing efforts for them is very limited. Hence the SIL earn only 22% out of total
of sales the through their strategic planning activities. It reflects that SIL SMPP is at very lower level.

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1.2.3 Timing & Base for SMPP

As above phase described Marketing Planning Process occurs annually as habitual practice, need for the next
finical year‘s sales forecast and budget allocations. Although it is considered the company Mission and
Objectives it is hardly taken into considered Internal, External environment or Strategic Selection followed by
the process which is shown by the figure 1.1 Hence the arisen marketing opportunities are not grabbed.

1.2.4 People

Key team members who involve in SMPP and hierarchy of them is shown by A11 Figure A7. Their roles and
contribution is shown by table 1.1.

Key Team Members Contribution Player Key strength Weakness

Managing Director 5% SMPP Owner PR, Expert, Autocratic
Leadership
General Manager 30% SMPP Sponsor Leadership, Skill, Limited Flexibility
Knowledge
DGM-RND 5% Supporter 25 yrs Experience Aggressive.
Bulldozing the others
ideas.
Manager-Marketing 15% SMMP Manager Leadership Knowledge/Skill limit
Asst. Mgr-Marketing 20% Marketing Knowledge Poor Follow up
Researcher
Asst. Accountant 15% Financial Specialist Knowledge Poor leadership
Table 1.1: Key Team member of SMPP and their contribution

The most of the team members are opinion leaders and hence the planning process is opinion based. Market
trend analyses are very little concerned. Example: Since 2008 the market shows changing of the demand from
Rubber Garden Hose to PVC Garden hose. Yet SIL did not evaluate this opportunity though market research
revealed it and lost their market share significantly from 30% to 7% (Asst. Manager-Marketing/SIL). This is
due to opinion leaders‘ lethargic response paid to the market research results.

Participation of bottom line employees for planning process is hardly observed. Although the gap between
managers to staff/employee is thin, the knowledge base culture is not available to share their thoughts and
ideas for marketing planning process.

1.2. 5 Key Issues of Strategic Marketing Planning Process of SIL

As per Audit findings A15, SIL has below key issues in Strategic Marketing Planning Process

A15. Strategic Marketing Elements of SIL & Ranking Ranking Comments

1. Planning is an anticipative & habitual process Satisfy Lack of Interest
2. Involvement of top management & seriousness of the team Un-Satisfy When new investment
3. Regular / Periodical process Good Only for Budget and Forecast
4. Consideration of internal factors & resources Poor Only 4M Factors
5. Decided collectively after analysed Poor Inadequate communication
6. Consideration of external changes & adoptability Poor Inadequate Analysis
7. Consideration of exploit the opportunities and trend Poor Inadequate Analysis/MKIS
8. Planning is Marketing Oriented Poor Poorly depends on MKIS
9. Serious about the outcome and share it Un Satisfy Inadequate communication
10. Knowledge & skill of the team members Un Satisfy Lack of Interest to grab it
Table 1.2 – Key issues in SMPP of SIL Source: Focus Group Interview and various

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1.2. 5 Reflectors of the Poor in SMPP

SIL poor strength in SMPP process, unable adopting the external changes is reflected through below areas.

1. Major two products are at maturity level and not see the prospect Start Products in line
2. Heavy dependency of 2~3 major customers which is very risky for future growth
3. Annual Turnover stagnates throughout the last 3 years and at risk of facing the by this year also.
4. Stagnate or decrease of Net Profitability, Earning Per Share, Dividend rate (App 6)
5. Poor engagement of Employees and Management

1.3 Recommendation of improvement in SMPP

As 1.6 indicates SIL is weak in external analysis area though they are in somewhat satisfactory in internal
analysis. Aker & McLaughlin (2007) (Refer Figure 1.2) point outs that external analysis will help to strategy
indirectly by identifying:

 Significance Trend and Future Events

 Threats and Opportunities
 Strategic uncertainties that could affect strategy outcomes.

Figure 1.2 – The role of external analysis Source: Aker & McLaughlin (2007)

Therefore SIL should improve the external environment scanning process in below ways. The improved
MKIS will help in strategic operations in which denote by figure 1.3

Internal External

Strategic *Trends monitoring *Market positioning

support *Effectiveness monitoring *Competitors, mapping
*Strength /weaknesses *Opportunity / Threats
*New product development *Environmental scanning

Operational *Sales promotion *Market research

support *Advertising *Direct marketing
*Product pricing (database, Internal)
*Sales force management *Contact management
*Customer Relation

Figure 1.3 MKIS for Strategically and Operational Application Source: Xu, 1999
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1.3.1 Research on Customer: Market

The industry SIL exist change slowly. Hence it‘s recommended conducting market research every year prior
to SMPP. The present research officer can be used facilitating with him additional employee.

Monitoring Competitor activity – Using the secondary research, such as competitors‘ web site, annual
publications, magazines, and import data etc, SIL can monitor the competitor movements. Participating for
related exhibition will be a good opportunity to capture the emergent competitor activities as well as trends.
That will help to understand their strength as well as weakness.
1.3.2 Industry changes Monitoring

Participating for the international trade fairs (Rubber Expo, Automechanica, Plast etc), referring industry
related publications (Ex-Rubber Asia), magazines, business forum (on line, off line) would be help to
understand the industry changes. Further SIL can hire outside consultant at need to capture the change in
innovations, regulations, manufacturing facilities etc.

1.3.3 Monitor the Customer Behaviour Changes

It‘s must and essential monitoring the customer behavior. It will reveal the,
* The profitable customer segments and groups them so that SIL can apply unique business strategy
* Customer motivation points
* Unmet needs etc.

As PESTEL analysis reveals most of supermarket nowadays use to online purchasing system. And they prefer
to purchase environmental friendly product which is made in ethical manner. Such movements heavily can be
utilized to be a first enter to the market, being a differentiator at first phase.

Maintain customer data base as well as referring the customer website, meeting them, having focus discussion
with them will help to monitor their perception as well as expectations.

1.3.4 Developing a flexible culture:

Schein (1985) argues that culture is important because it is a powerful, latent and mostly unconscious force
that impacts on the behaviour of those within a company. A6 (Figure A5) reflects that that SIL culture low
scored in Pervasive Productivity, Energizing Environment and Reward and recognition elements. To improve
these elements, interdepartmental co relation and improve the empowerment of the employees is must.

SIL presently follow the planned strategy. SIL should adopt for an emergent strategy where the SIL can more
adoptive to the changing market environment. The flexible culture helps to adopt for the change.

1.3.5 Benchmark

Swain (1993) defines competitive bench marking as the process of measuring own strategies and operations
against „best-in-class‟ companies, both inside and outside the industry. SIL operations started in 1988
benchmarking the German and British Standards for the products and operations. Hence products quality
standards, product features and functions are highly admired by the European and Australian customers.
Based on this, SIL can benchmark the Freudenberg, which was ranked 3rd place among top 10 in world
General Rubber Goods (GRG) companies by European Rubber Gernal (2010). 48.7% of their corperate
revenue generate through the GRG sales (Refer table 1.3)

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The Freudenberg Group was founded in 1849.

Freudenberg is a family-owned group of companies
in German active on the global stage. Its 12
Business Groups operate various markets and
industry sectors. Today, this family-owned
company employs approximately 40,000 associates
in about 60 countries.

The product and operations of this company is

quite similar to SIL.

Table 1.3 – Top 10 GRG Companies in the world

The benchmarking process can be done through direct interviews with the customers and with the retailers via
distributors (point 2.1) and also by referring and observing published data and data sharing done in industry
forums as well through informal contacts with access to these companies, as suggested by Swain (1993).

1.3.6 Take leadership by Marketing Department

At present SIL SMPP is controlled by the Corporate Strategy owners. As this is top-down stream it will less
help to put ideas of bottom line officers to the planning process. And they least consider the external
environment change or to adopt for emerging changes. Hence it‘s important taking the leadership of SMPP by
marketing department who deal with customers. And the customer and market oriented approach need to be
followed.

1.4 Monitor and Control-Balance Score Card

SIL present balance score card is heavily focused on only the financial performance. But it‘s very important to
balancing the other elements to achieve the financial performance. Hence SIL must set the objectives and KPI
for Customer, Learning & Grown & Internal Business elements. Monitoring its monthly will help to do the
needful changes. Link the each department for KPI based on their Objectives, following the external chhages,
will helpful monitor and control the performance.

Figure 1.9 Balance Score Card Source: Kaplan and Norton, 1996
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2. Strategy Development need for adapting to the changes

Date : 30-Apr-2014
To : Board of Directors, Samson International PLC
From : Marketing Manager, Samson International PLC
Subject : Marketing Strategic Development of Samson International PLC

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2.0 Changing of Marketing Environment

Marketing is the process which involves identifying existing customer needs and requirements and with
anticipating future changes. It is therefore a dynamic discipline. The marketing environment for most, if not
all, products changes regularly. The challenge facing the marketer is, therefore, to find out as much as possible
about this changing environment so that the business can respond in an appropriate way.
( http://businesscasestudies.co.uk )

As per figure B2 of Appendix 1, SIL total export turnover 45% and 34% (SIL Sales report FY 2013/14)
generate through the Natural Rubber Jar Sealing Rings (JSR) and Hot water bottle (HWB) respectively. Since
start, these two products have been playing major roles in export sales, continuously holding more than 70%
revenue generator. This industry shows slow, gradual change and now it has come to Mature Level as shown
by Figure 2.1 And the audit finding A2 Figure A1.

As per audit findings PESTEL Analysis shown by A1 table, external environment is affecting for the selected
2 products, amidst the competition shown by A7. But these two products have been too little concerned over
the external and internal environmental changes in SMPP and SIL does not have proper/regular mechanism to
monitor and analyze these changes. SIL reactively respond to the change. Ex: Changing the compound
formula applied only after REACH regulation is implemented in EU countries.

Figure 2.4 : SIL Stage of Industry Maturity Due to this business environment
Competitive changes now SIL competitive position
Position of Embryonic Growth Mature Ageing has come down from the Strong Level
HWB & JSR
(Which was hold 15 years back) to
Dominant Favorable Level and in a risk of
Competitive Position

Strong downward further (Refer Figure 2.1).

Favourable It is internally reflected by dropping of

the sales by 50%, profits decrease by
Tenable 70% and many lapsed customers.
Therefore its essential to SIL adopting
Weak
to the External Business Environment
Figure: 2.1 – Stage of Industry and SIL Competitive Position
Reason for Poor Score
Innovation – Only very few product has
come out through last 3yrs. Below3% of
turnover generated.

Agility – Structure does not give support

to change, less tamable manager.

Speed – Due to autocratic leadership,

hierarchy structure, and need higher
approval for many stage speed is slow
Marker Share Growth – Stagnation of
Sales, Profit drop, decreasing of price
per share.
Leadership – Managers/Employees
―Fear and Rear‖ behaviour

Figure 2.2: stakeholder Perception towards SIL adaptability Source: Focus Group Interview
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2.1 Strategies to deal with changes

Strategy is treated as differentiation position against the competitors as well as long term direction to the
organization. Hence selecting the appropriate strategy is the key elements of organization‘s success. Porter
(1996) argues ―the essence of strategy is to perform activities differently than rivals do‖. “Strategy is the
direction and the scope of an organization over the long term, which achieves advantage in a changing
environment through it’s configuration of resources and competence with the aim of fulfilling the stakeholders’
expectations (Johnson & Scholes, 2008).

Parallel to the increase of competitive market environment SIL should adopt the appropriate strategies to stand
against it. SIL can utilize strategy canvass as an appropriate model, Figure 2.3 to have more customer and
market oriented. The areas need be focused are highlighted by table 2.1.

Figure 2.3 – Strategy Canvass Reference: Lecturer Note

Elements Activities
Key Research-External environment analysis should be developed as described by previous
Activities chapter recommendations. Understanding these customer, competitors, consumer behaviour,
and external changes is the foundation for adopting.
Key SIL can utilize below resources and capabilities and formulate the Generic strategy of
Resources “Differentiated‖. Refer figure 2.6
 Loyal/Long term Customer base
 Availability of high quality natural rubber & special formula
 25 years‘ experience, being top of the learning curve
 Wide Product range
 Ethical Stance
Value SIL faces many competitive forces. Hence SIL can formulate the below shown Value
Proposition Proposition using the best available resources and capabilities. Adding this augmented
features will lead for “Product Development” as growth Strategy (Refer figure 2.5). This
would be the best ―By Passing‖ the competitors, ―Defensive‖ Strategy.
* Adding More than 60% of the quality Natural Rubber
* FSC (Forest Alliance) Rubber – Collaborate with successful alliances
* Special compound formula to delay the aging of products-Increase life time of the product.
* Fair Trade Practices which assures the CSR stance
* Product Liability Insurance (USD 1 Mn) assure the cover against any harm cause by
product failures. * Exceeds BS 1970:2012, REACH, ACCC requirements
* Environmental friendly/recyclable product

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Customer The selection of the most suitable customer segment is the most important element in long
Segments term profitability and sustainability. SIL can select the segment of Super Market of Australia
& Europe who could cover intensive distribution and purchase is done seasonally by
Centralized purchasing division. And further targets the customers who have been dealing
with SIL for more than 5 years, purchase more than 2x20‘FCL (50,000pcs) and give the
highest priority for quality concern products, in time delivery focus on their esteem. This
segmentation will help to avoid the completion by passing the competitor. And further this is
an emerging Sub Market, where can meet the Un-Met customer demand.
(Justification of STP is shown by Appendix 4)
Channels According to Audit Finding A4, SIL heavily depend on 2 customers which is more risky.
Hence SIL should consider develop more customer channels to bring down the risk as well as
increase the revenue.
Relationship1. As SIL is catering to the B2B markets relationship management is more important. Wining
Management
the trust is essential the suitable handful practices will be as follows.
1. Consistently delivering against promises
2. 2. Doing what it takes to resolve problems
3. 3. Looking out for the best interests of the customer
4. 4. Demonstrating fairness and integrity in all dealings
5. 5. Openly sharing information about objectives and problems
6. SIL MKIS must highly concentrate to achieve this objective.
Cost 7. As per competitive analysis (App, A2) this industry is highly invaded by many Chinese and
Structure
Indian Manufacturers. Hence maintain the ―economies of scale‖ is more important. SIL can
focus on best manufacturing methods such as 5S, KAISAN & LEAN management system to
control the cost of production. Available IFS, ERP system can be utilized to monitor and
control this area with the help of RND activities.

Figure 2.5- Towards Product Development Figure2.6 - Towards Differentiate Strategy

Adopted from Ansoff (1958)
Growth-As per audit findings SIL is in
Market Penetration Strategy. Yet due to the
completion SIL cannot hold on it and the
Product Development strategy would be fit
for SIL which would be the “Blue Ocean” as
per the created value proposition.
Adopted Porter (1980. 1985)
Generic – Cater for un-met demand Sub
Market. As per audit findings ―Cost Leadership‖
style can be continued due to invasion by cheap
Chinese producers. Building alliances relationship
with ethical suppliers, customers and changing
working environment SIL will be moved towards
―Differentiation‖ strategy for ―Hostile markets‖.
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2.2 Revision of Vision and Mission

“Vision defines and describes the future situation that a company wishes to have; the intention of the
vision is to guide, to control and to encourage the organization as a whole to reach the desirable state of
the organization” (Web and Macros, 2014). As below figure 2.7 illustrate company vision and mission is
the main drive for goals and objectives.

It's more important to communicate the mission

statement to employees than to customers. Mission
statement doesn't have to be clever or catchy-just
accurate. (www.entrepreneur.com)

Vision-“To be a leading Polymer Products

Manufacturer in the region”

Mission-“To become a versatile manufacturer of

diversified polymer products in the global market by
modern technology while providing optimum return to
stake holders”

Figure 2.7 – Link of mission with goals

2.2.1 Analysis of Current SIL Vision and Mission Statement

To evaluate the current SIL vision statement can be analyzed through the Ashridge mission model which
illustrates by figure 2.8.

Figure 2.8 – SIL Vision Mission Analysis - Source : Franzen G & Moriarty (2008)

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2.2.2 Limitations of SIL Vision/Mission Statements

Area Limitations
Purpose Though the vision statement says “Polymer Products” provide space for the future growth to
of SIL, still they stuck & limit with Rubber Products manufacturing. This is due to poor in RND and
Existence Marketing areas. And mission statement itself bound with the “Material-Polymer” not the
solution for customers. It addition, the mentioned “Region” is not specified.
Strategy Though statement says the “By modern technology” still SIL does not have the required
of SIL equipment to stand against the competitors. Example: Rotor Curing Machines, Injection
Moulding Machines and metal co extrusion facilities etc. Hence they are stuck by the available
facilities which are not capable enough to meet customers’ requirements, arisen due to change
of the external environment. Hence they provide only the product but not solution.
Value of “Provide optimum return to Stakeholders” is too wide statements, which covers even minor
SIL stakeholders. Yet it does not provide the priority to customers, which the most important.
Behaviour SIL mission statement does not provide space for behavior standard. Hence stakeholder cannot
Standards identify their stance.

2.2.3 Revamp the SIL Vision/Mission Statements

According to Sian Millard (2010) good mission statement should be short, memorable, unique, realistic and
current. As per above analysis there are some limitations of the existing Vision/Mission statement and need
some adjustment. Taking into consider the above SIL can revamp the Vision and Mission Statement as
follows.

Vision-“To be a leading solution provider for Polymer Products internationally”

Mission-“To become a versatile total solution provider for diversified polymer industries, with modern
technology in a sustainable and ethical manner”

This revised the market oriented, vision and mission statement will provide enhancement as follows

Area Improvements – Path for adjusting to Changes

Purpose New purpose of SIL is “Providing Solutions” not just a product.
of Example SIL can consider providing solutions for Body Warming instead Hot Water Bottle.
Existence Providing Flooring solutions with installation and maintenance facility in addition to selling
Rubber Flooring.
This will drive to a path where keep the customer in center, rallying all other activities
(Supporting Departments) to meet his requirements. It will build flat form for inter-functional
coordination. Then the mission statement will support to adjust the external dynamic changes.
Strategy When SIL speaks out the Total Solution Provider, statement itself must be followed by the
of SIL strategy, prioritizing customer needs/wants/expectations. Without utilizing ―Modern
Technology‖ SIL will not be able to meet the changing customer needs. It will direct SIL for
“New Product Development” and Diversifying The product‖ guided by MKIS. And
formulating the 7XP ingredient in appropriate manner. It will create a culture ―Get up and Go‖
needs to take over the competitors instead ―Wait and See‖ which practice by SIL at present.
Value of “Sustainable” – This word emphasize the long lasting viable development. It will help to
SIL distribute the benefits among its stakeholders. When express about ―Solution Provider‖ it‘s a
matter of providing a value proposition to customers, who are the most important stakeholder.
Behaviour “Sustainable and ethical manner” spell about clearly define that SIL behaves in socially
Standards responsible manner without letting a chance for a query. This would be the admirable element by
all the stakeholders especially the international customers, ex: reputed supermarkets that are
being served/target by SIL. They looks for assurance about Ethical Behaviour which cannot be
easily followed by the competitors or getting a lead being the first.
2.2.4 Lean culture and continuous improvements
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Cultures are whole systems, like the human body or

the economy. They are complex, interdependent
systems and should be redesigned with an
understanding of how the different components
interact with one another. (ww.industryweek.com)

The heart of organization culture is the values,

vision or beliefs. Therefore SIL redesigned vision
and mission will be the heart of organization. The
role of the ―SMP Committee‖ is to manage this
cultural core and align behavior and other factors to
the core beliefs. Symbols and stories often do the
most to pass on and preserve the values of a culture

Figure 2.9 – Lean culture and continuous improvements

Source: Industry Week (Sep, 2011)

As per the analysis SIL Culture now has to adapt to the external environment changes, which cannot be
controlled. The controllable elements are the Structure, Systems, Skills and Styles. The companies such
as Toyota, Intel, Apple and Samsung won the markets, adapting to the changes, revamping their culture
and re-structuring the above said controllable element.
Elements Possible/Needful Changes Benefits
Knowledge Employees can be provided the needful knowledge Analyzing the trend and gathering
through Employee Development Activities, Training. And required knowledge and skill to
recruit qualified, skilled employees. Consulting the adopt.
specialist etc. Path for knowledge base
management
Structure Changing the present structure may be significance and Flexible working environment and
possible resistance from internal as well as corporate inter functional coordination will
level. Hence suggest to let the SMPP team (Later be improved
discussed) to work on Matrix Structure
Behaviour Encourage the employees for innovative thinking, Productivity improvements and
improvements and drive for change. Award for feel recognition and self-
recognitions. Always focus on customers, their needs motivated. Adopting for customer
wants, perceptions. oriented approach.
Technical Review the ISO system and make the needful changes to Reduce cost, waist improve the
Systems make more adaptability. Implement productivity and employee
productivity/People/Quality oriented 5S, KAISEN, engagement.
Quality Circle, LEAN Management systems etc.
Drive for improve the MKIS Decisions back by the MKIS.
Symbols & Write and publish excellent articles on prominent papers Improve corporate image.
Stories in “Story Telling” way & describing the CSR/Ethics. Improve stakeholders‘
SIL can develop „Rags to Rich” Christopher (2004) engagements.
model story telling article help to improve image.
Employee Recognition, Contribution to Economy, Won
Awards, and Certifications are some good points to be
published.
Table 2.1: Vision/Mission Change drive for SIL culture

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2.3 Change Management for SIL

“Change management is a set of principles, techniques, and prescriptions applied to the human aspects of
executing major change initiatives in organizational settings” (www.howtochangemanagement.com)

Figure 2.2 demonstrates that major stake holders‘ perception towards the changing of SIL against the external
environment is not good. Many elements are poorly scored and need improvements to deal with changes.
Especially though outside shareholders and customer believe thee leadership and culture is strong, SIL
employees do not hold that idea. Due to the SIL starts the business as family owned business still autocratic
leadership which limits the agility and speed of the changes. Therefore the change plan is required to bring the
SIL towards more adoptable and flexible environment with more proactive.

When change is not managed properly it will result for,

 Decline the Productivity – The what SIL is facing by now

 Intensify the Impassive conflict
 Leaving of the valued employees from SIL
 Deterioration the morale of employees
 Divisions of the employees to sub groups, creating unpleasant internal political environment
 Employee does not see the new ways and addict to the old passions.
 The company will make a history of failed as ―Dinosaur‖ age

Thus change plan will help to improve the SIL culture which described in table 2.1.

As per Kotter (1996) who is treated as the most popular author in Change Management says ―Change
management is an approach to transitioning individuals, teams and organizations to a desired future state‖.
His 8 Step to Change model is treated as the highest degree in popularity and evaluation among the other
models such as ADKAR (Procsi Reaserch), 3 Phase of Change (K Lewin), Change Cube (H Mintzberg)
Change Curve (Strech) and so on. Though this model is clearly drop down which doesn‘t give rooms for co-
creation (Limitation), its heavily used as it treats employee as focus for success, and giving the clear guidance
and steps for change the culture.

SIL can practice these 8 steps as change management tool which is most important phenomena to adopt the
changing market environment and to implement a sustainable growth.

Figure 2.10 – Kotter‘s Eight Step of Change Source: Kotter J & Cohen D (1996)
Steps Priority to Brief Description of the Activities Timing
be given
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1. Creating Very High  Examine the Market & Competitive position 30-Oct-
Urgency  Identifying and discussing crisis and available opportunities 2014
2. Form High  Forming a Group with empowerment to lead the change 07-Nov-
a Powerful works 2014
Guiding Team  Encouraging the group to work as high performance team
3. Creating High  Creating a Vision which help to direct the change efforts 07-Nov-
a Vision  Developing Strategies for achieving the revised vision 2014
4. Communicate Very High  Use all possible channels to communicate the vision and 14-Nov-
the Vision strategies 2014
 Educate and guide the team for expected behaviour
5. Empowering High  Remove the obstacles for change 28-Nov-
others to act on  Changing the system which would weaken the vision 2014
the vision  Encouraging for Risk Acceptance Culture
6. Planning and High  Plan for visible performance improvements Any time
Creating Short  Create those improvements At need
Terms Win  Recognize and reward the employee who made the advances
7. Consolidate High  Endeavor to change the systems or structures which does not Any time
improvements and fit for vision At need
encourage for  Hiring and promoting and empowering the employees who
more changes can implement the vision
 Strengthening the process with new projects & ideas
8. Institutionalize High  Coherent the relationship between the new behaviour and
the change company success
 Develop the paths to ensure leadership development

2.3.1 Create urgency

As per the analysis done in chapter 1, it was realized that the SIL is facing a difficulty as follows.

 of Export turn over are at maturity level. Hence the turnover of the major two products is decreasing
and stagnant. (Refer App.1, Figure A2)
 SIL heavily depend on 2 major customers holding 78% out of total turnover which is very risky
 Total turnover of SIL is being stagnated below the LKR 1,000 Mn for 3 years, which is un-satisfied
by the major stake holder. (Refer Figure B2 of company background)

This is the crisis time which needs utmost attention and if its not addressed the SIL will be doomed very
sooner. SWOT analysis (App1, A3 & A13) shows the available strengths and opportunities which can be
utilized for the prospective changes.

2.3.2 Formation a Powerful Guidance Team

As per the Audit Findings (A15), SIL SMPP is not strong enough and devotee of the engaging team (A11) is
not adequate, while having some limitations (Table 1.1). Hence bringing right people get together and forming
a suitable team is a fundamental requirement for better SMPP. Utilizing the available strength (Table 1.1) the
suggested team and their responsibilities are shown by below table 2.1.

Member Present Responsible For Time

Capacity Allocation

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SMPP Director/ 1. Guide for SMPP with new Vision & Mission
Sponsor GM 2. Monitoring the progress and Return 7%
(SMPP-PS) 3. Communicate the issues and encourage team for high performance
4. Facilitate to SMPP team, providing required resources
5. Mentor or Coach the SMPP-OW
SMPP- Managing 1. Give the clear picture for SMPP 3%
Owner Director 2. Participate the SMPP at need
(SMPP- 3. Inform the SMPP leader if need changes
OW) 4. Review Score Board and evaluate the progress
SMPP Hired 1. Provide the needful training or recommend the prospective training
Consultant 2. Guide the team for being on track Out Source
(SMPP-CS) 3. Review the issues and address on them At need
SMPP- Manager- 1. Assure the communicate of Vision and Mission with employees 20%
Manager Marketing 2.Provide the direction & lead the team to execute the SMPP
(PM) 3. Getting the approval for the SMPP
4. Report the project progress vs plan
5. Make the changes if required and address on issues.
6. Act as an interface with the PS well as OW
7. Conduct regular meeting with the team and review the progress
Financial Executive 1. Release the funds at required, on pre-planned SMP activities 5%
Specialist -Finance 2. Review the budget vs actual expenditure
(SMPP-FN) 3. Report the financial status to the PS & OW
4. Participate for the SMPP meeting and address the progress
Marketing Asst. 1. Monitor/Track records external environment changes, Competitor, 20%
Researcher Manager- Consumer Behaviour changes etc.
(SMPP-RS) Marketing 2. Assure credible MKIS and improve it
3. Provide Market Information for SMPP.
4. Assist to PM at need.
Supporter DGM- 1. Keep eyes on External Changes based on the information provided by RS. 20%
(SMPP-SP) RND- 2. Perceptual customer need/wants and especially focus on international
customers
3. Encourage employees for innovations, changes & improvements
4. Extend the ―Idea Generation‖ pool and assist for ―Commercialization‖ the
new products.
Table 2.2: SMPP-Guidance Team for change

2.3.3 Creating a vision – Discussed at section 2.2

2.3.4 Communicate the vision & Mission

Employees must be educated at right time at right amount for making changes. As SIL has many internal
communication tools they can be heavily used for this purpose. It‘s needed to assure not to have Under-
communicating, Pushing information & Not walking the talk (Kotter & Cohen, 1996). The employee
engagement through the communication in change can be illustrated as Figure 2.11

 In-Person Communication * Telephone

 Individual Meetings (Group Meetings, Management Meetings, AGM etc).
 All Staff Meetings Notice Board – When the all employee needs to know
 E Mail – When communicate with staff members
 ―Ekamuthu, Printed Newsletter
 Intranet – Sharing the up to date information of Sales, Stocks, Financial, Production, Marketing etc.
Among the respective staff members.
 Social/Interaction Events – Felicitation Ceremony, Get Together, Day Outings etc.
 Tele Video – Video Conference and Skype –When communicate with remote groups/individuals,
when conducting meetings with head office directors

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 Under-communicating – the goal of organisational change is to get as many people as possible on-
side, i.e. working toward the same goal. Information must be relevant and come with the opportunity
to ask questions.
 Pushing information – good communication isn‘t simply about data transfer. Change inevitably
leads to conflict. Accordingly, open and honest dialogue is essential.

Figure: 2.11 – Employee Engagement through Communication

Source: Joe Williams Communications, Inc (2013)

2.3.4 Empower the action

Empowering is needed parallel to expected get rid of Autocratic leadership style. The SMPP Team can work
on Matrix Structure; build optimism and self-confidence using inspirational stories from the workforce. Let
the people to make errors aimed for improvement. Change comes most of times with ―Trail & Error‖.
Feedback can be used to help the employees get better decision. Mixing up the employee with those who have
change experience will boost the confidence.

2.3.5 Create short terms wins

Kotter (1996) suggests “Large scale organizational change needs momentum, a sense of achievement, and
optimism. And he further expressed Short-term wins serve four important purposes as follows

1. Provide us with feedback about the validity of our vision and strategies.
2. Give those working hard to achieve the vision recognition and encouragement.
3. Build faith in the change project — attracting those who are not actively involved.
4. Take away power from cynics.

Therefore, it is essential that results are achieved quickly‖. Hence short terms wins are essential which can be
celebrated. SMPP can use progress review meeting to recognize the achievements and appraise it while
awarding the achievers at right time in proper manner.

Change does not stop at any point. Hence SMPP team must break the tradition and new ways of working must
be continued successfully for some time before culture truly changes.

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2.4 Potential implementation Limitations and Recommendations

Managing change means managing people's fear. Change is natural and good, but people's reaction to change
is unpredictable and irrational. It can be managed if done right (John R F, 2011)
Parallel to this change, employee may doubt about the success and fear about career futures. As per table 2.1
reducing the involvement of Managing Directors could be observed. This will create a resistance for
prospective change, which final objectives would be at stake.

This resist should be closely monitoring in appropriate way getting the employees feedback. Effective
communication strategies could be utilized to manage this resistance. Then they can be convinced showing the
benefits what can be gained, being a part of success. This will help to feel them as a member of team who
would be empowered and engaged.

As per figure 2.12, the Strategic activities will be

subjected of organizational heart which pulse with
four components People, Structure, Culture and
Systems. Hence Organization SMPP depends on
the strength and well coordination of these for
elements.

Therefore continuous internal analysis is essential

to recognize the weak points. Taking the required
corrective and preventive measure of such
problems will help to smooth operations in SMPP.

This would be the fundamental base to assure the

expected performance.

Figure 2.12 – Frame work for analyzing organization

Source: Aker & McLaughlin (2007)

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3. Briefing Paper for Employees addressing the changes

3.1.1 Change is for better

In coming week you can see the change of our company starting with new “Vison and Mission”, aiming for
better future. As you feel this is a “Big Change” of our company heart. Yes! Its fo better!

3.1.2 Why we should Change?

Being a public quoted company we release our finacial status to every share holders and public quaterly and
annualy. So, it’s no secret to notice that our company grwoth situation is not healthier. Through out the past
3 years our income generate through the export and local sales stagnate below the LKR 1000mn, See below
figure. Dividents
This is great concerned point of our marketing team
as our sales objectives were not achived. Following
this scenario our company profitability is
shrinakging and we were unable to release worthy
dividends to the shareholders. As they do not get
back the sufficient Return on Investment we will
at risk of they would get back their investment.

The other end as you feel, management was forced

for curtail your planned Salary Increments despite
their willingness throughout the years.
Figure 3.1-SIL Sales Trend

3.1.3 The cause for worst

The recently formed SMPP Team, (after one month detailed analysis) has identified the above poor
perfmance is due to below reasons.

 Over dependancy on 2~3 products (70%) and 2 major customer (76%)

 SIL agility to change is weak
 Innovation is not at admirable level to attract the customers
 Culture is not support for the innovation and changes
 Speed to the market is very slow, being behind the competitors
 Change in leadership style is needed
 Statgey devlopment is weak and not based on the market changes

Hence imrovements to the above is needed very sooner no later. And SMPP team is enthusticaly engage
with implementation unleashing great comitments.

3.1.4 We are at New Jorney - Our New Vision & Mission

Pls see the below our new version of Vission Mission Statement. Expertise has confirmed that these
statemnts are more robust which would assure sustable growth than the prevailed vision and misiion.

Vision-“To be a leading solution provider for Polymer Products internationally”

Mission-“To become a versatile total solution provider for diversified polymer industries, with modern
technology in a sustainable and ethical manner”
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3.1.4 Advantage of this Revamped mission

After setting this new mission our competive posstion will be improved as we take in to grant all the core
competencies. They skilled labour, loayal customers, ethical stance, experinced management and high
quality product range. Information gathering mechanisms will be improved and we follow the market
changes. As we strenthen the RND activities aiming to comercialize and supporting to the revenue
generation, you can see lot of new products are coming out sooner. This will be new revenue generators
increasing the profitability.

3.1.5 New Approach

We can illustrate the new approch by below figure. You will feel new approach is very friendly as all of our
main focus is to meet the requirements of customer, tracking their changes, monitoring competitors’
activities and external changes. Then every department will work together having well inter-functional
relationship

Figure 3.2- SIL New Approach Source :www.toyota-industries.com

3.1.5 You are Wanted!

This brifing letter is a one of such activities to bring the SIL back to the success path as it was in good past
days, where your were enjoying. You can extend your hand and be a part of the success. You were the
reason for the journey which SIL came up to now and you are the reason for future prospect growth. Below
figurer sumerzed the out come.

Figure 3.3-Your contribution in success Source: Fleming J H & Asplund J (2007)

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 What do you get?

The last years we observed you worked regularly through the experience you earned at work. The provided
training and guidance for further improvements and new thinking were not at adequate level. However future
you will be provided advanced training while giving the priority for your suggestions and proposals which
will help for improvements.

Through the new approach,

You are respected and encourage for growth as we belief our success is your smart works
We support equal employee opportunities and required knowledge/skills developments
Fair, Safe & healthy working condition
Respect the human rights and promote ethical behaviors
Communicate and dialogue with you, build and share the SIL values.
Opportunity for your suggestions and proposals to be implemented and recognition for them

 What should you give?

You are expected to work with faith and interest. Your any of suggestion which would help to improve the
productivity will be highly appreciated. Every your valuable contributions are recognized, evaluated awarded.
Your are expected,
Providing valuable information which would helpful to make changes and improvements
Proactively response for the changes
Support for RND in ―Idea Generation‖ for new product development and process improvemnts.
Mutual work with team members and participate actively for team work

You can make the mistake for good purpose. Our RND team will be behind to you to support for your any
trails which aim for any good cause. No one will blame you for your mistakes (Not ignorance). You can show
your colours and enrich your pouch.

 Do you belong?
You are the pulse of the heart where company vision and mission works. Hence you opinions are very
valuable for us. You are a team of our family. We respect each and every ones individual interest

 How can you grow?

As per the present strategy company grow means your success. So, company Goal, your carrier Goals and
Personal Goals are set off so that you have a single dream. During the coming 5 years we expect double the
revenue and profit as shown by figure 3.3. As this target is collaborative achievement you will share the
prospect without any doubt.
Each and every person‘s activities will be
linked with Key Performance Indicators (KPI)
with objectives. This KPI will be monitored and
evaluated monthly basis. Those who recognized
as achievers will be definitely awarded and
career advancement will be assured.

Figure 3.4 – Expected sales and profit growth

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3.2 Self-evaluation of my Leadership Style and required improvements

Parallel to the change all we have to adopt accordingly. Self-evaluation of this section is focus on to identify
the areas where improvement is needed. Herewith I utilize the accredited model, developed by Robert Blake
and Jane Mouton (1985).

3.2.1 Present Leadership Style

Area Gauges Superiors Peers/Subordinates Average

Inspirational C B 75%
Likable B A 85%
Ethical A A 100%
Open to feedback C C 70%
People Average 80% 90% 85%
Tactical C C 65%
Strategic C B 75%
Focus D C 65%
Decisive D C 65%
Output Average 65% 68% 66%
Average 72.5% 78.5% 75%
Table 3.1: Self-Assessment of my Present Leadership style

Scale: 50=F, 60=D, 70=C, 80=B, 90-100=A

Scores of 70+ are in the target range. Scores below 70 indicate weaknesses worth correcting

Present Leadership Position

Expected Position

Figure 3.4 – Present and expected change movement in leadership style.

As per the above analysis present leadership more lay towards the Country Club Style where ―Focus on
Peoples need and building relationships‖. Yet when concerned the productivity quantum, balancing the people
needs I should require developments in below areas.

Parallel to the company changes I have to play a big role as a Research Analyst. Hence all SMPP activities are
based on the provided information by me, I must be very reliable and responsible person with direction.
A primary task of leadership is to direct attention. To do so, leaders must learn to focus their own attention
(Forbes, Dec 2013).
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As per the above analysis I am required Creative Change Ability and Functional Knowledge, which is
illustrated by Figure 3.5.

Figure 3.5 – Leadership Development Elements Source: Readytomanage.com (2012)

3.2.2 Benchmarking and mentoring

To get develop my leadership style I can follow a role model. In the company there is an opportunity to follow
the Director/General Manger role as a model. And as he is the immediate superior to mine, I can his mentoring
service periodically so that I can self-develop my leadership styles. Further reading and successful leaders‘
styles, behaviour ways and follow the model roles would be prospective ways for self-development. And I can
follow below steps.

Figure 3.6: Five Practices of Exemplary Leadership Source: Barry Z. Posner(1987)

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