Strategic Plan for CBD Energy Essay Example | Topics and Well Written Essays - 1500 words

Strategic Plan for CBD Energy - Essay Example For instance the company plans of producing 20,000 units on an annual basis. This is indeed a huge plan that needs the presence of well chosen strategic plan to implement. Finally, there is a general need for the company to growth in size and revenue target. To make this target achievable, it is important to have a strategic plan that will serve as a benchmark for fulfilling the aspirations of the company. In selecting a strategic action however, there are a number of options for the company. This paper shall be dedicated to analysing a number of strategic actions to identify which would work best for CBD Energy. Levels of Strategy Before deciding on a strategic action, it is very important to appreciate the fact that strategic actions comes in different business levels and that the type of level of strategy selected for a company influences the final form of strategic action that will e taken. ... This is because the corporate level strategy will offer the company the opportunity to diversify, if the need be; with other companies to achieve the common objectives of the company. Again, quoting from Carpenter & Sanders (2009), Linnenluecke (2011) observes that corporate level strategy â€Å"Focuses on the selection and management of a mix of businesses competing in several industries or product markets to gain a competitive advantage.† This means that CBD will have the opportunity to work in a collaborative effort with most other companies when the need to merge or acquire new ventures becomes necessary in the strategic action to be selected. The option (Porter’s Cost Leadership Strategy) The Albany University (2007) outlines four major generic strategies that can be used in helping businesses gain competitive advantage. These are cost leadership, differentiation, focused low cost and focused differentiation. Having researched into all the strategic actions, the wr iter recommends that cost leadership would be the best strategy for CBD Energy for its present pressing demands. Description of Strategy Linnenluecke (2011) observes that this strategy works under two major philosophies. In the first place, there is a conscious effort to present products and services at lower costs as compared to costs charged by rivalry companies. In the second place, there is a focus on minimizing cost of production while â€Å"providing a more or less equivalent product or service compared to rival firms† (Linnenluecke (2011). The underlying factor therefore is that CBD Energy would have to agree on taking advantage of the market by lowing cost of production and cost of products and services. This strategic action works under