Masco Corporations Strategic Planning Case Study

Masco Corporations Strategic Planning - Case Study ExampleThe caller has successfully true its product lines for faucets by establishing faucet manufacturing units with advanced railway line model.In 1986, Masco Corporation developed its vision statement, which reflected its impulse to become Procter & Gamble of consumer durables (Harvard Business School, 1998). The very vision statement has propelled the company to diversify its business into other consumer durable goods. Alongside, the company has also extended its tentacles to enter the market of oil-field equipments, drilling tools and transport connect products like gear shift levers, engine exhaust system etc. The company has even restructured its organizational structure and implemented other methods to reduce its overall cost of production. However, the primary obligation of the company is to elicit its research & development, and manufacturing ability so that the above stated concerns are addressed to. For acquiring t echnological breakthrough, the company has entered into contracts with research firms like MTI. For optimising the productivity of each manufacturing division, the company has developed formal organizational chart aimed at facilitating communication and exchange. In order to reduce the cost associated with its R&D various cost diminution programs were undertaken. This coupled with innovative working procedures and methodologies have helped the company to produce high quality innovative products at a lower cost. Mascos resourcesThe resources of Masco Corporation can be categorized into two types i.e. tangible and intangible. Since its inception, the company has been constructing its manufacturing units in numerous locations that produce a wide range of consumer durable products. This attest the fact that the company is advantageously equipped with necessary plants, machineries, inventories etc. Its intangible resources imply its expertise in metalworking. The company has a bottom experience in technology, driven by proficient technicians that constantly strive to design and create impudent products. With its existing resources, Masco can easily enter the $14 billion household furniture industry. The company has already curved out a niche in the mind of its customers by virtue of its quality products. thereof it is expected that the products manufactured by the company will find a ready acceptance. Another indispensable resource of the company is its high profitability. The company can use its retain-earnings for investments purposes in the furniture industry. Mascos Strategy for introduction the furniture industryBefore entering the furniture industry, Masco Corporation must implement only those strategies that controvert with the organizational structure and compatibility. It is of paramount importance for the company to analyze the internal and external factors. The internal factors include the strength and weaknesses of the country whereas the exter nal factors include Porters five forces of competition and macro-environmental factors like economy, demography, legal etc. entirely when the company has successfully scanned these factors, it will develop its strategy focusing on particular areas.