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Legal & Social Issues in the Timber Industry Essay Sample

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Legal & Social Issues in the Timber Industry Essay Sample

Executive summary

Strategic management is the science and art or formulating a plan, implementing the plan and finally evaluating it, to see if the plan is on track. An effective strategy management will always enable the management to meet its goal. There are three stages of formulating a strategy; these are strategy formulation, strategy implementation, and strategy evaluation and control. These are the stages that I have used in coming up with my strategy management. I believe that this management strategy is the best if implemented well.

As the CEO, am going to adopt the following two approaches to improve the company, industrial Organization approach and the sociological approach. My industrial organization approach will involve assumptions (rationality, profit maximization, behavior, and self discipline) and economic based theory (dealing with issues like competition). My sociological approach will be dealing primarily with Human relation and it will also be based on assumption of bounded rationality, and profit sub optimality.


Strategic management can be defined as a science or an art of coming up with a plan, evaluating and implementing some functional ideas that will help the company to achieve its goals and to make maximum profit. It involves specification of the company’s mission, organization and vision. It also includes ways of developing the company’s plans, objective, programs and policies, and allocating appropriate resources and facilities to achieve the laid down plans and objectives. Strategic management usually integrates and coordinates operation of various functional areas of a company so as to achieve the long term and the short goals of a company. Strategic management is normally viewed as the highest level of managerial operation. The chief executive officer is the one who plans, guides or crafts the strategies before being approved by the board of directors, while the supervisors and the head of departments are the ones charged with the duty of implementing the strategy under the close supervision of the senior management team and the executives.

As the CEO, am going to adopt the following two approaches to improve the company, industrial Organization approach and the sociological approach. My industrial organization approach will involve assumptions (rationality, profit maximization, behavior, and self discipline) and economic based theory (dealing with issues like competition). My sociological approach will be dealing primarily with Human relation and it will also be based on assumption of bounded rationality, and profit sub optimality.

                                                    Strategy formulation

Currently timber industries are facing a lot of challenges, this call for a management strategy that is budget oriented and also focused for the survival of the business. I will engage the company in strategic planning that will define the objectives, at the same time assessing the external and the internal situation. The diagram below shows the planning strategy process that I have used to formulate my management strategy.

The Strategic Planning Process

Mission &
& Control


My Vision and Mission Statement for the Company

The company needs to adapt to the changing requirement of the timber industry, there are some core values that are ideal to develop guidance. The unchanging ideals are going to form my vision for the company which will be expressed in my mission statement for the company. My mission statement for the company will communicate the core idea and the visionary objective of the company. It will consist of the following components: Core purpose of the company, core values that the company is committed to, and lastly the visionary goals that the company will be pursuing to fulfill its mission.  My three components for the company can be portrayed as follows.




The following are just but examples of some values that I have identified to be the core values of this company, Creativity, social responsibility, technology pioneering, integrity and excellent customer service. Although it won’t be easy to achieve the visionary goals, I will encourage the employees to work hard; once the visionary goals have been achieved I will replace them with new ones.

I will be guided by the mission of the company, the mission and objective of the company is to be the leading timber provider in the world, the objective of the company is to make maximum profit as possible while maintaining a sustainable environment.  Guided by the vision of the company, I came up with the following measurable financial objectives and strategic objectives.

Financial objectives

I have developed a short term financial objective and along term financial objective.

  • To increase the amount of profit the company is earning by between forty to fifty percent within the next three years.
  • To reduce wastage by over thirty percent.
  • To reduce the cost of production.

Social Objectives

  • To improve the employees working conditions.
  • To improve the communication within department.
  • To create more jobs.
  • To plant over one thousand trees every month.
  • To start project in the community so as to boast the company relation with the society.
  • To increase the rate of production

Environmental Scanning

I did environmental scanning of the company so as to know where it is now, this was to help me to determine where I want to take the company, and it also helped me to formulate ways of getting the company to achieve the goals I wanted it to achieve.

Once I have specified the objectives of the firm I have come up with measures that can help me to achieve those goals. The main reason of doing environmental scan is to identify more opportunity for the company. Using pestle analysis, pest analysis, and Swot analysis I have analyzed the business opportunity. The external environmental aspect of the company has two aspects micro environment that impact the company only in a particular industry and macro environment that impacts all the firms. The internal analysis of the company will show the weaknesses and strength of the company.

The diagram below represents the environmental scanning methods that I used to scan the company

    Environmental Scanning
          /   \
External Analysis     Internal Analysis
/                       \  
Microenvironment  Macro environment     

I will only give one report of analysis that is S.W.O.T analysis, but others were also done, should there be need to send them to you I can do, on your request.

  • Swot Analysis

Generally the industry has many strengths, weaknesses, opportunities, and threats that need to be evaluated to enable them to keep the organization on development track. Evaluation of the factors gives a rational perception on how to manage the firm for success.  SWOT analysis is a tool that is used by organization to identify other means and strategies for development to build up a growth and development. Companies use a well plotted SWOT analysis to meet their objectives and set up long term goals that will ensure growth and development.  SWOT analysis is the evaluation of the company’s strengths, weaknesses, opportunities and threats, being an acronym that stands for Strengths, Weaknesses, Opportunities and Threats that face a company or any other business venture. Experts ascertain that successful companies have mastered the SWOT analysis of their companies, building upon and developing their strengths, eliminating or rectifying their weaknesses, exploiting new opportunities ahead of their competitors as well as protecting itself from external and internal susceptibility to threats has already defined its strengths that can be identified from reports on its operations.  (Doyle 2007)

  1. Strengths

Some of the strengths I will , capitalizes on include price reductions, improved productivity, diversity in brands, and less complex distribution channels involved. I will establish a traditional method of using indirect procurement activities in the company marketing strategy that have varied height of development (Lee & Epstein 2007). I will continue to integrate and implement the common best organizational strategy which incorporates policies and sets up that processes.

  1. Weaknesses

The absence of strong bargain grounds for the company is usually considered as weaknesses. Generally weaknesses are factors that hinder expansion or growth of the company. Amongst the weakness which I noticed the company had was lack of enough qualified personnel, failure to meet the goals of production, there is need to improve the marketing objectives, and lack of employees access to new skills and modern technology.

  1. Opportunities

 Threats and opportunities are external factors that challenge the progress of a business venture some of opportunities that present a possibility of better performance by the company are; strong growth of sales volume, productivity savings, global strategy, and market break through. I will exploit the chances of developing new markets in China, Spain, Turkey and Italy (global market) and all over the world so as to expand the market share and volume growth.

  1. Threats

Threats include factors that the company cannot control; these factors can put the marketing strategy of a company at risk. The main threat the company is facing is competition from other timber companies, increase in taxes levied on timber products, the current economic doldrums that the company is facing, high prices from the wood.

Implication of the S.W.O.T analysis

The S.W.O.T analysis offered me an insight about the situation, potential and the condition of the company. Am going to capitalize on the strength of the company to maximize the profit, I will also focus on the opportunity of the company to minimize the amount of harm that can be caused by the threat in the event it becomes a reality.

                                             Strategy implementation

This is the most important part of strategy management, given that if a strategy is implemented in a good way it will work out, but if implemented in a bad way, it won’t work out if the strategy was formulated well. To implement my strategies I will use the following factors to support me: organization planning, organization structure, Human resources, annual business plan, monitoring and control and the last will be linkage.

  • Organization planning

The following are the action plans that I will use

I will assign responsibility to all the individuals in the company so as to help me to achieve my goals. planting over one thousand trees every week, increasing the amount of profit that the company is earning from the current one up to fifty percent, reducing wastage from the company, reducing the cost of production, improving the working condition of the employees, improving the level of communication in the company, creating job, planting over two thousand trees every month, starting community initiated project this will boast the company’s relation with the society. The due date for achieving all these will also be well defined. All the employees will be provided with the resources that they need to accomplish their tasks.

  • Organization Structure

To implant my strategies well I will come up with an effective organization structure. The entire department will be run by personnel who are qualified, for example the technical manager will have to be an Engineer and he will be in charge of Engineers and the technicians. Every department will be doing its duty, the one that it is designed to do. (Alfred 1962 page 12)

 The following will be the organization chart that I will use

My leadership techniques

Being the chief executive officer I will use different leadership skills at different times. I will use bureaucratic leadership technique. A bureaucratic leader is one who strictly follows a structured procedure and ensures that a goal is reached as planned. Though this is not the best method to use given that it does not allow for flexibility, I will only use it, should there be need. I will also adopt democratic type of leadership; I will involve all the employees in decision making however I will be the one to make the final decision. The last type of leadership I will use is Laissez faire, but this will be used rarely. Given that the employees can make a wrong type of decision. It is important to note that different types of leadership styles are used at different times. As the Chief executive officer I will execute different styles of leadership depending on the employees, task and time when the task needs to be executed. For example, for lazy employees, I will be autocratic (Saavedra, 2005).

  • Human Resource

Human resource is the main machine that is driving the organization. The first consideration that I will do is the needs of a good communication needs in the company; this will help them to understand what they are to implement. The second factor that I will consider is the changes that will occur because of the change in strategy. The following is what I will do, employees will have to undergo mandatory training, I will motivate them by increasing their salary, and their working conditions will also be improved, I will in crease their allowances and lastly I will do anything I can do that will ensure that the employees are giving out their best.

  • The annual business plan

This will be done every year. All the strategies including employees training will have to be funded. The company will have to think about its financial commitment in the early stages of the planning process. All the departments will be engaged in planning whatever they want to achieve at the end of each year. The business plan is the tool that will be used to fund all the strategies.

  • Monitoring and Control

The Plan will have to be monitored and reviewed periodically to ensure that it is on course. The options available for changing the strategy are: changing the schedule, changing the tactics used, and modifying the objective.

  • Linkage – Foundation

Linkage can be defined as the tying together of the company’s activities so as to ensure that the activities are flowing. To manage my strategy I will tie them all and manage them all at the same time. I will use both the vertical and the horizontal.Vertical linkage will be used to establish support and to coordinate the various departments in the organization. Horizontal linkages are the ones which are across various departments, and across various regional offices. This one will be used to run the company in harmony.

                                          Strategy evaluation and Control

This is the final stage of strategy management. In measuring the effectiveness of the company I will use the S.W.O.T analysis. The S.W.O.T analysis will enable me to see the weakness, strength, opportunity, and threats the company is facing. I will use the three keys criteria developed by Scholes, these are: suitability (will the strategy work?), Feasibility (can the strategy be made to work?) and lastly acceptability (can the strategy work?)

  • Suitability of the strategy

It deals with the total rationale of my strategy. I will consider the following whether my strategy will solve the problem that the company is facing. For  example is my strategy making any sense economically, will the company be able to get the economies of scale, I have used the following tools to evaluate my strategy, what if analysis, decision trees and the ranking strategic option. My strategy is suitable to solve the problem at hand (Philip 1997 page 23).

  • Feasibility of the strategy

This is mainly concerned with the resources required to implement the strategy. The resources are already available. The resources I have include time, people, information, and funding. I have used the following tools to evaluate the feasibility of my strategy, cash flow analysis and forecasting, break even analysis and deployment of resources and the analysis. My strategy is feasible. (Philip 1997 page 24)

  • Acceptability of the Strategy

It is mainly concerned with the expectation of the share holders and other stakeholders. The out come of my strategy will be return, risk and stakeholder’s interest will be met. Given that the stakeholders will expect an increase in profit and a better value for their money. Stakeholder’s reaction shows the reaction that the stakeholders are likely to have. The following tools are the one I used: mapping of the stakeholders and what if analysis. My strategy will be acceptable, given that all the interest (profit maximization) of the company’s stake holders will be met. (Philip 1997 page 24)


If given the job, I believe that it will take me less than a year to return the company back to track. I only request for the maximum support from the directors, the support I need from the management will mainly be financial support, given that we will have to train the employees and to motivate them in order to increase their output. I also need maximum support from the employees.


Alfred C 1962, “Organizational Strategy” Doubleday, New York, page 12

Arnold M 2007 “The economy: Rockier route to buy out success” Pp. 230-250

Bream R., 2008. Less power to cut emissions: LE-PEST C analysis of supermarkets. Pp.120-150

Bernard M., 2006. Leadership-Transformational leadership-pp.282

Camass A 2005. The Directive Communication: Leadership Field Manual- Singapore- Verities Publishing

Doyle P., 2002. LE-PEST C analysis: marketing management and strategy. Page 34

David W 1989, “Strategic management” Merril Publishing Company, page 34 -40

Lee J.Y. & Epstein M.J (2007) Advances in Management Accounting Emerald Group Publishing

Robert L 1984, “Efficient Organizational Structure” Prentice hall, Page 21

Philip S 1997, Corporate Strategy, Mcgraw hill page 23 -24

Saavedra R. 2005. The contagious leader: Impact of the leader’s mood on the mood of group members, group affective tone, and group processes-Journal of Applied Psychology. vol., 90(2): pp. 295-305.

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