Table of Contents
- Background and History
- SWOT Analysis
- Strategic Directions
- Corporate Values
- Key Strategies
- Cutting Cost of Doing Business
- Diversification of Business
As part of the restructuring phase introduced to shareholders at the last AGM and ultimately accepted by this plan, the Board of Directors was established by the HR management consultancy company, Fortis Campbell Limited. With the complete involvement of the HR department, the strategy was established with guidance from all departmental heads at headquarters and all regional managers.
The plan draws out a ten-year roadmap for transformation of JP Lexington group companies. It is an outcome of a critical assessment of strengths, weaknesses, opportunities and threats in the industry, sector, and national and global economic environment. It is also layout new policy directions and an execution action plan.
To track the execution of the initiative, a committee led by the Vice President of Human Resource Management was inaugurated. It is anticipated that the consultancy company would review the execution of the strategy on a quarterly basis and submit to the Board of Directors a detailed update, as well as compile and present at each AGM an annual study.
Background and History
In 1978, in the USA, JP Lexington was incorporated. It is primarily in the manufacture of electric generator systems and water pumping equipment, but it has ventured into the manufacture of vehicle electrical and computer accessories. In Ann Arbor, Michigan, the company has the first and largest plant and three other plants in Virginia, Texas and Hawaii. Offshore subsidiaries in Malaysia, Singapore and China were also successfully opened and run by JP Lexington. His growth strategy involved the purchase and collaboration of modern or adaptive trademarks with companies in China and India.
The business is based in Ann Arbor and has international marketing departments in Brasilia, Brazil (South America and the Caribbean), Abuja, Nigeria (Africa), Dubai, the UAE (Middle East), Shanghai, China (East and Central Asia), Moscow, Russia (Russia, the Caucasus and Eastern Europe) and Amsterdam, the Netherlands (for West and Central Europe and Scandinavia). There are currently 12,578 salaried workers and over 5,900 casualized staff in the organisation.
To define the following capabilities, vulnerabilities, prospects and risks that this strategic strategy is intended to explore and change, the business and its industry-specific, sector-wide and economic climate have been x-rayed.
- Versatile, visionary and innovative management team
- A good succession plan
- Shareholders confidence and support
- Breakthroughs in R & D in green technology
- Flexibility of production lines and processes
- Labour intensive production process
- Overburdening branch network
- Low skilled and single-product skilled workforce
- Cheaper production costs in China and India
- Room for diversification into green technology and other related products
- Increased mechanization and irrigation-based agriculture
- Global economic meltdown
- Dwindling fortune in the automobile industries
- Increasing investment in electric power generation in leading markets
JP Lexington will progress to the next step with the usage of environmentally sustainable technologies in the next 10 years. It will continue to manufacture sophisticated iterations of its old goods, but will systematically divert energy, capital and expertise through collaborations in developing markets with entrepreneurs and companies. It branch network will be trimmed and equipped its workforce with new skills and competencies to fit into the new schemes of production. JP will continue to rely on its shareholder funds and soft loans to finance its transformation process. its annual turnover in 2020 will be $136billion with margins increasing at an annual average rate of 85%.
JP Lexington invests its resources to transform the world into a technology-even planet, in which life will be easier and more prosperous for every human on the surface of the earth. It takes technology to the doorstep of global citizens in remotest and urbanized places and provides tools for economic prosperity of people and nations.
JP Lexington believes in doing business with integrity and responsibility. Relationship among workers and the company’s relationship with customers, suppliers, communities and the environment are guided by core values of value-for-money and money-for-valuable-life.
This plan will strategically place JP Lexington to:
- improve our products in quality, quantity and environment friendliness.
- take the lead in green technology energy generation in China and India.
- capture the largest share of growing Sub-Saharan African agricultural machinery market.
- mobilize $120 billion for expansion through POs, RIs, saved money from cuts and lease/sell of headquarter building
- report $4.76 earning per share by 2015 and $7.45 by 2020
- launch new generating sets using green technologies in 2016
- secure new 34 key national distributors in different regions by 2020
Cutting Cost of Managing Business
- Relocating to the 9-storey Headquarters Annex
- Lease/sell 28-storey Headquarters building
- Downsize headquarters staff and post most to offshore businesses
- Cut bonuses of top management at the headquarters and branches
- Reducing salaried factory workers and using robotics
- Unbundle production US plants
- Outsource production of accessories
- Opening plants in China and India with partners
Diversification of Business
- Funding R & D in solar and wind energy generation
- Producing cheap solar and wind energy generating sets for households and factories
- Training workforce in new operation of new factory technologies and production processes
- Strengthen HR functions and initiate robust HR programs suitable for transformation process