Aligning Operational Needs with Business Strategies

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Week 2: Organizational Analysis

Damascus Johnson

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Part 1: Organization Information

Organization

The company that has been chosen is Goodyear Tire and Rubber Company. The

company is an American multinational tire manufacturing company. It was founded by

Frank Seiberling in 1898. The company manufactures tires for various types of

automobiles ranging from light trucks, commercial trucks, SUVs, airplanes, race cars,

heavy earth moving machinery, and farm equipment. The company has its headquarters

in Akron, Ohio. The company operates in the rubber industry globally.

Mission and Vision

Mission “Constant improvement in our products and services to exceed the

expectations of our customers and people.”

Vision “To increase the value of our brands for everyone. With market-driven

innovation. Delivering the highest quality tires, related products and

services for our customers and consumers.” (Goodyear Dunlop, 2016)

Organizational Initiatives

One of the initiatives that the company has undertaken is the creation of a strategy

roadmap. The strategy roadmap indicates the company’s commitment to continuous

innovation and improvement and how the strategy will be achieved. The company aims

at promoting innovation and improvement in its processes to deliver sustainable

revenue and profit growth as well as increasing the company’s brand.

To achieve the strategic objective, the company has promoted operational

excellence in its operations. It has also increased sales and marketing excellence as well

as innovation excellence (Goodyear Corporate, n.d.). The company’s executives have

promoted collaboration in the workplace to deliver results. They also energize the team

and ensure that they act with integrity. The company also focuses on promoting a better

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customer experience and customer service and delivering high-value quality products.

Organizational Plans

Type of Plan Description Type of

Manager

Customer

Retention

Plan

The plan indicates the direction that the company

should be focused on. Through promoting customer

retention, the company will have more customers and

thus it will achieve its strategic objective of promoting

sustainable revenue and profit growth.

Customer

relations

manager

Sales and

Marketing

plan

The plan focuses on marketing strategies that the

company uses. The marketing strategies used by the

company determine the company’s competitiveness in

the market and the market share that the company has.

Marketing

manager

Employee

motivation

plan

Motivated employees lead to the success of a

company. Therefore the company’s employee

motivation plan focuses on promoting activities that

will ensure that the employees are highly motivated. It

also increases employee retention rates at the

company. Employee motivation also ensures that the

employees work with integrity and they are energized.

It also ensures that teamwork and collaboration is

promoted at the workplace.

Human

resource

manager

SWOT Analysis

Internal

Factors

Strengths

 Strong brand portfolio

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 Focuses on innovation and technology

 Strong distribution network

 Excellent performance in new markets

 Strong dealer relationships and community

 Highly skilled workforce (Fern Fort University, n.d.)

 Deep understanding of customer needs

Weaknesses

 Poor inventory control

 The company’s organizational culture is only compatible with the

current business model.

 The profitability of the company is below the industry average

 The company’s investment in research and development is below

the industry average.

External

factors

Opportunities

 High market potential for luxury tires

 The company has the potential of increased demand in emerging

markets.

 Opportunity of selling its products via online platforms.

 The company can harness new technologies in the production of

tires.

Threats

 Intense competition

 Rising minimum wages

 Changing consumer buying behavior (Bhasin, 2019)

 Imitation by counterfeit cheap tires

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 New environmental regulations

 Since it is a global company it faces the challenge of price

fluctuations.

Part 2: Evaluation

The vision and mission of the company meet the current needs of the company.

One of the initiatives that have been addressed is promoting sustainable revenue and

profits in the company. The company’s vision and mission support the initiative.

However, one unmet need that has been identified from the SWOT analysis is that the

company should create an e-commerce website. That will promote the company’s

initiative as well as increasing its competitive advantage in the market.

From the SWOT analysis, it is evident that the company has more strengths

compared to weaknesses. However, since the industry has intense competition, most

tire company’s share some of the advantages of the company. For instance, Continental

tires also have a strong brand portfolio and they also perform well in new markets. That

indicates that Goodyear tires have some of the same strengths and opportunities as

Continental tires. Therefore to gain a competitive advantage in the market, Goodyear

ties need to come up with effective strategies.

The unmet need that has been identified is the adequate use of technology in the

company. To meet this need, the company should come up with an online selling

platform. That will enable the company to reach more customers. That will also

increase its competitive advantage in the market. By creating an online selling platform,

the company will serve the global tire market seamlessly. Retailers, wholesalers, and

individuals may purchase the tires directly from the company at its online selling

platform.

To implement the strategy, some operational steps need to be accomplished. The

first step will be outsourcing an IT solutions developer. That will take three months.

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The process will entail verifying different IT solutions developers to identify the

developer who aligns with the company’s objective and has the required capabilities.

After the selection of an IT solutions developer, the process of coding the e-commerce

website should begin. That will take one month. After the coding is finished, the

company should test the e-commerce website and perform a penetration test. That will

take two weeks. The company should then start uploading the products it will sell to its

customers indicating the pricing levels depending on the number of products bought.

The platform will then be open for the customers to use it.

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References

Bhasin, H. (2019, May 25). SWOT analysis of Goodyear tyres.

Marketing91. https://www.marketing91.com/swot-analysis-goodyear-tyres/

Fern Fort University. (n.d.). Goodyear tire & rubber SWOT analysis matrix [step by

step] weighted SWOT. https://fernfortuniversity.com/term-papers/swot/1433/169-

goodyear-tire---rubber.php

Fern Fort University. (n.d.). Continental SWOT analysis matrix [step by step] weighted

SWOT. https://fernfortuniversity.com/term-papers/swot/1433/1348-continental.php

Goodyear Corporate. (n.d.). Strategy roadmap. Goodyear

Corporate. https://corporate.goodyear.com/en-US/about/mission.html

Goodyear Dunlop. (2016, November 23). Mission & values. Goodyear & Dunlop Tyres

Australia New

Zealand. https://goodyeardunloptyres.com.au/our-company/mission-values/