Strategic Management plant - Essay Example

The opportunities that are available to the firm are that of growth and government support. Threats that the company is facing include pirate attacks, weak economy, and environmental pressure groups. In this report we have suggested three long term objectives for the company. First long term objective is to lower operating expenses to 1500 million Euros by year 5. The second long term objective is to increase revenue by 20 percent by the end of year 5. The third long term objective is to reduce environmental pollution by decreasing the use of environmentally dangerous fuel by 20 percent by year 5.

By using the tools like Grand Strategy Selection Matrix and the Model of Grand Strategy Clusters we have reached a conclusion that concentric diversification strategy should be adopted by Hapag-Lloyd because of the large size of the firm and its relative position in the market. The key success factor for the company is to lower its operational cost. The whole industry is facing this problem and it is important for the company to solve this issue in order to maintain its competitive position. Another key success factor is to enter in similar businesses like air cargo services in order to achieve concentric diversification. . Both the companies operated during the World Wars too and this shows the rich history of the company.

It can therefore be safely concluded that the foundations of the shipping giant Hapag-Lloyd is quite strong. The size and stature of the company can be deduced by the fact that it is currently the fifth largest shipping firm in the world (Taylor, 2010). Hapag-Lloyd has offices in around 114 countries which show the extent of their business. The services offered by the company are aimed at providing ultimate customer satisfaction. The internal company structure is vertical with a board controlling all decision making.

All international offices follow a standardized plan designed in the Hamburg headquarters. Although some levy is also given to the foreign offices so that they can adapt to the local environment. Hapag-Lloyd mainly targets high end customers who are willing to pay high prices for quality services. Currently the company is facing problems from the Somalia pirates who are looting and hijacking ships in Arabian and Indian oceans. Hapag-Lloyd is also facing pressure from environmental groups to reduce sea pollution.

The industry in general is constantly searching to find environmental friendly ways to reduce pollution and preserve natural habitat. Increasing fuel prices is also affecting the shipping industry. Vision Statement The company does not have a vision statement currently. I would suggest the following vision statement, “Satisfaction of global clients by providing, safe, superior and quick services in an environmental friendly manner”. This vision statement broadly speaks to the external world about the business of the company.

The mention of the word ‘global’