BMG 1014

MANAGEMENT
Topic: Shifting Direction
Page 262-263 | Chapter 8 Foundation of Planning

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Group 3 :

Nurul Asmira Bt Rozlan 1131123131

Tengku Nur Ameera Bt Tengku Azlan -1131123132
Norsyahira Bt Baharuddin 1141124606
Shanti A/P Selvakumar 1131123034
Jessica A/P Philominraj 1131121305
Lai Khar Yee 1132702142

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Summary

Global leader in satellite navigation

Making superior products for automotive, aviation, marine,
outdoor & sports that are essential parts of customers lives.

Reason
Smart phones

Integrates music, phone, gaming,

web & GPS into one unit

Free GPS apps

The Changes that Garmin Made :

Launch 6 navigation-friendly
smartphones (Garminfone)

Introduce even higher-end

models, comes with a fancy
magnetic mount & bells-andwhistles map features (Nvi
3597 LMTHD)

 Introduce speciallized GPS

devices
Introduce navigation Apps
(Garmin Viago)
Partner with automakers to
embed its GPS
system in car dashboard.

Question 1
What role do you think goals would play in planning the change in
direction for the company?
List some goals you think might be important.
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The role of goals in planning the

change in direction of the company

Determines a course of action and aids them in preparing for

future changes
Future state that the company strives to achieve
Provide guidance and direction
evaluate and control performance employees

Resources:
http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-Goal-Setting.html

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Goals
Increase product sales through alternative markets
Collaboration with automakers, aviation industry, marine industry.
Increase value and shareholders profit
Through increase in sales via the various collaborations
shareholders profit and value will be increase
Establish a need to ensure product existence
eg: via making it a requirement in automobiles product existence
would be able to be retained
Up to date in terms of technology to enhance product
capabilities
In house research and development department to keep abreast
with changing technological advances

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Question 2
What types of plans would be needed in an industry such as this one?
(For instance, long-term or short-term, or both?)
Explain why you think these plans woud be important.

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Garmin products in short-term plan!

Automotive
Aviation

Fitness

Outdoor
Marine

Why these plans woud be important?

Can invent many products as it can compete with upcoming

technology.

Attract the interest of customers by creating new innovative product

that is essential for nowadays technology era.

Make the company survive with their competitors.

Question 3

What contingency factors might affect the planning Garmin executives

have to do?
How might those contingency factors affect the planning?
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The 3 contingency factors that affect the

planning of Garmin executives:
1) Environment Uncertainty
When uncertainty is high, plans should be more specific but flexible.

Plans need always updated to what customers desires.

As example: Garmins executive come out with idea to partnering
with automakers to embed the GPS system in car dashboard.
A company must be aware about the changes of technology.

2) Length of Future Commitment

Plans should extend far enough to meet those
commitments made when the plans were
developed.
Example : Garmin partnering with automakers to
keep stay in the market.

3) Organizational Level
The level of manager whether he/she will be involved in
operational planning or strategic planning
Lower- level managers do operational planning while upperlevel managers do strategic planning.
As managers move up through the levels of the organization
their planning becomes more strategy oriented.

The level of a manager determines whether he or

she will be more involved in operational planning
or more involved in strategic planning.

Question 4
What planning challenges do you think Garmin executives face with
continuing to be the global market leader? How should they cope with
these challenges?

Resources

http://www.pcmag.com
http://www.garmin.com
Forbes
http://www.technologyreview.com

Dynamic
Environment
Planning must be specific
but flexible

Competitors

Quality
Price
Accuracy
Accessibility

Dynamic
Environment
Planning must be specific
but flexible

Competitors

New
technology

2007 : Stock pickers predicted

Garmin as the next Apple

Smartphones happened
CEO Min Kao told Forbes that he
wasnt worried because of high
barriers to entry
2012 : Google free map navigation
app made available for free
download in IPhone, 10 Million people
downloaded it in a day, almost as
many as the number that bought
Garmin GPS in a year!
Garmin sales shrunk by 15%, worth
less than a third of what it use to be
in 2007.

How they cope with

competitors?

Competitor intelligence ; gathering information about competitors product

With Garmin devices, points of interest are categorized down to several levels, making it easier to find
specific kinds of stores and restaurants.

Garmin avoids bundling everything under, say, "Shopping," leaving you to sort through dozens of entries all
within a few miles away for everyday errands.

Garmin's POI search updates in real-time as you're driving, complete with compass directions. You can run a
search for, say, the nearest Starbucks; it will display them all in a list, and then as you drive, show you which
ones are getting closer and which ones are further away, and in which direction.

That means you can aim for the one that's straight ahead, instead of trying to get to the "closest" one only to
find out you have to get off the highway and turn around.

Garmin always makes everything large and easy to glance at quickly while behind the wheel.

How they cope with new

tech?
Environmental scanning, knowing what consumer really want
Add more function ; With goodies like free traffic reporting, lifetime map
updates, and local search becoming commonplace
Introducing even higher-end models like the Nvi 3597 LMTHD, which sells for
$379.99 but comes with a fancy magnetic mount and bells-and-whistles map
features. It can tell you what highway lane to be in and will alert you to turn
right at Starbucks, something that phones cant do.

Lower price ; They never been more affordable

Highlighting the downside of using smartphone as GPS ; Many thinks they're

more convenient than using a phone, because you can leave the PND in the
car, and not drain your phone's juice while on the road

How they cope with new

tech?

The company has also worked hard to diversify. Last April, with Suzuki, it
announced its first factory-installed dashboard infotainment system for cars
the result of four years of investment that saw it open new offices in automotive
hubs like Detroit, Germany, Japan, and China. Garmin has also been selling
more specialized GPS devices, like wristwatches to help runners map their
workouts and extra-rugged handhelds for backpackers.
Those are applications of GPS where a smartphone still isnt up to the task.
Maybe free navigation is good enough, Iddings says, but if you are a serious
hiker and are going to hike up a big old mountain, you are probably going to
want a better product.

In 2011, for example, it acquired a company that makes GPS-enabled training

collars for dogs.

Outcome

CEO Min Kao said in a statement. This is a great way to

start the year; yet, we remain cautious regarding the PND
industry as much of our strength was related to global
market share gains. The revenue growth of our core
business segments of outdoor, fitness, aviation and marine
was 14%, highlighting the continued diversification in our
business model. We continue to grow our research and
development investment in these segments, as well as auto
OEM, in order to capitalize on the numerous long-term
growth initiatives in each of them.

CONCLUSION

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Thank you!