Management is so important for any business. It is the key to success. Lack of proper management can lead to business failure. All the business succeeds through having and ensuring they achieve goals and objectives. The business goals and objectives can only be attained through strategic management. Strategic management is or therefore a broad collection of day-to-day business activities and processes that companies use systematically to organize and bring into line resources and actions with a specific objective, mission, vision, and strategy all through an organization. Strategic management is or therefore important for any organization or company to succeed in its business operations. In this work, I am going to discuss the international lease finance corporation and its strategic management activities.
International lease Finance Corporation is among the largest lease finance companies in the world. It deals with leasing aircrafts such as the Airbus and Boeing to airlines all over the world. The company was established in 1973 and later thereafter acquired by the International insurance giant in 1990. The company has maintained its position in offering high-quality services to its potential customers in four decades. Approximately, the company has 1000 owned and managed aircraft and a variety of leasing programs.
The company works with approximately 200 airlines more than 85 countries international leasing company is wholly owned by the international insurance giant, which is an international insurance company that serves almost 130 countries in the world. The company's headquarters at California building sixth floor which is located in the city of century city. International Lease Finance Corporation is aimed at becoming more global and serves customers from all over the world with more high-quality services. It is or therefore among the top companies in the aircraft leasing industry.
Strategic Analysis Procedure
Once the International Finance Lease Corporation has specified its goals and objectives, it starts with its present condition to set a strategic plan to attain those goals. Changes in the external factors often bring new opportunities and ways to attain the company goals. An environmental scan is normally conducted to recognize the existing opportunities and to identify its own weaknesses and strength for them to take the best strategy for attaining the best results.
Stages of the Strategic Analysis
International Lease Finance Corporation normally goes through three main stages in the analyzing its strategies during the management process. These are; the input stage, the matching stage and the decision stage
The Input Stage
In the input stage, three-sub stages, which are evaluating the internal company's factors, the competitive factors and evaluating the external factors affecting the company? During this stage, the company requires essential input information for the other two stages matching and decision stage, strategists for quantifying objectivity early in the process and good perceptive judgment. For example, the company, International Finance Lease Corporation, normally evaluates its employees to make sure that they work as per the requirements and its considered according to how other firms in the industry operate their businesses in order to make the best strategy for its business.
The Matching Stage
The stage involves comparing and matching the organizational internal factors such as the opportunities, resources, and skills with the external factors. Under this stage, the company, international lease Finance Corporation goes through four different types of stages. First, the Strengths-Opportunities stage where the company uses it is of internal strengths with an aim of taking advantage of the available external opportunities. The second stage is the weaknesses- opportunity where the company attempts to utilize the advantage available and external opportunities with the aim of improving its internal weaknesses. The third stage is the strengths - threats.
Under this stage, International Lease Finance Corporation concentrates on reducing the external threats effects by making good use of the company's strengths. The last sub-stage in the matching stage is the weaknesses- threats where the company tries to avoid the external threats and reduction of its internal weaknesses. In general, under the matching stage, the company matches its key factors in formulating the alternative strategies. Hence, it determines the best strategy. Among the internal factors, which the company looks at, is the level of its creditworthy in determining the best strategy to be implemented in the business.
The Decision Stage
In this stage, International Lease Finance Corporation designs some procedures for making decisions on the virtual attractiveness of the possible alternative actions. The company goes through steps, which are noting down the internal and external and opportunities and threats of the company, allocating weights to each of them, examining the matching stage. It also decides on which strategy to consider implementing, decide on the attractiveness score, comparing the total score of attractiveness, and lastly calculating the total score of attractiveness. In International Finance Lease Corporation, the company always computes the total attractiveness in deciding on the best strategy to be implemented.
Steps of the Strategic Analysis Process
Problem Identification and Definition
The company, International Lease Finance Corporation first defines the problem trying to be solved. Ones the problem or is well defined and understood on the issue to be answered through the analysis, now the company focuses on the specific areas involved in attaining the goals and objectives. Poor problem definition makes many companies to focus on the whole organization of which makes it hard to achieve the desired objective. Problem definition has been so important to the International finance lease corporation. By defining its problems and knowing well what is supposed to be done has really contributed to the company's success.
Ones the problem is well known, the company goes on, and collects data in doing some research concerning the defined problem.The information collected normally assists the company in identifying its strengths and weaknesses on the issue at hand. The company gathers Information through observing past studies concerning the issue and their conclusions. This enables it to identify the appropriate strategy to be implemented in solving the problem. International Finance Lease Company normally conducts some research to get much information on the problems they face and need to be solved. The company gets to know the probable cause of the problem, its effects, and the appropriate ways of solving the problem at hand.
Defining Potential Opportunities and Threats
After getting enough information on the issue to be solved, International Lease Finance Corporation goes on and defines the potential opportunities and threats that are likely to be within the scope of the issue trying to be solved. The company does this by assembling a group of people in the organization with appropriate skills concerning the departments that will mostly be involved in managing the issue and implementing the solution. This team then assists the company in recognizing the opportunities and threats to the organizational effort that are in the company. In knowing its opportunities and threats, international finance lease have found it easy to solve some issues affecting the business. The company has been able to make full utilization of its opportunities and deal with the available threats, which have contributed to the company's success.
After knowing its strengths and weaknesses, International Lease Finance Corporation continues in determining ways that can enable the company to utilize its strengths, remedy the weaknesses, and fully utilize the available opportunities. This has also been an important key to success for the company.
The Strategy Formulation Processes
In formulating a strategy, International Lease Finance Corporation goes through two main processes, which are continuous implementation and environmental scanning. In the environmental scanning process, the company concentrates on the external environmental factors that can affect its business operation. In the continuous implementation process on the other hand, the company focuses on implementing some necessary sections of the company's strategy to undertake the next step in the strategy formulation. For example, the international lease finance company focuses on its suppliers to make sure they supply materials at the right time in order to enable the business activities to be discharged on time.
The Steps in Strategy Formulation
Evaluating the Company's Environment
Under this step, the company makes some observations on both the external and internal environmental factors for determining its strengths and weaknesses. Based on the discovered strengths and weaknesses, the company then determines the probable strategies to be formed in dealing with its competitors and other external factors. International Lease Finance Corporation normally evaluates its employees and the suppliers to determine its strengths and weaknesses in looking to know which strategy should be formed.
Setting Quantitative Targets
In setting quantitative targets, the company does so through some of the company's set objectives. For example, the company, International Lease Finance Corporation's target is to become worldwide and serve customers all over the world through its objective of providing its customers with high-quality services.
Aiming in Context with the Divisional Plans
In this step, the company recognizes all contributions prepared from all departments in the and consequently takes a strategic planning for all sub-units. For example, the corporation encourages all departments to provide their contributions on the appropriate strategy to form for the company.
In analyzing its performance, the company analyzes the planned objectives and the realized objectives to decide on the right strategy to be implemented in order to realize the unrealized planned objectives. The International Lease Finance Corporation normally does some analysis to see which strategy is appropriate for meeting its planned objectives.
Choice of Strategy
This is the final step in formulating the company's Strategy. Here International Lease Finance Corporation selects the best strategy bearing in mind the long-term objectives, strengths, limitations and capabilities and the external opportunities. This is the critical step, which need one to pay full attention. In choosing a strategy to be implemented, International Lease Finance Corporation always makes sure that this step is thoroughly observed to select the best strategy and this contributes to its success.
The Stages of Strategy Formulation
This is the first stage in the strategy formulation process where the company looks into the values, operating philosophy, its culture, stakeholders, and all members of the organization. For example, the International Finance Lease Corporation normally does its value assessment by carrying out an observation to its stakeholders especially the employees and shareholders.
Vision and Mission Formulation
After assessing its values, International Lease Finance goes on in formulating its mission and vision statements, which are the basis for building the company's strategy. An efficient vision needs an envisioned future and the core ideology (Dandira 2011). A core ideology is a power that brings the company together and entails core values and core purposes. On the other hand, the mission statement states the main aim of the company. It assists to determine the distribution of resources directs the company's culture and assists in facilitating time, control, and performance through providing a way for mission accomplishment. For example, the international finance lease corporation's mission is to work with an international airline system and provision of cost decrease fuel effective aircraft to the coming generations while its vision is to be identified as an in the international leader in fleet administration and driver mobility.
In designing strategies, the company identifies the major lines of business, establishing critical success indicators, identifying where the company will more concentrate. Lastly figuring out the types of company's culture that must be formed in order to attain its objectives. The International Finance lease Corporation conducts its strategic design through these four steps in designing its strategies.
Performance Audit Analysis
After designing the strategy, the company goes on and keenly observes its external opportunities and threats, its strengths and weaknesses, which are normally referred to as the SWOT analysis. The company, International Lease Finance Corporation, normally do some performance audit analysis by looking at its competitor's business performance, their weaknesses and strengths in deciding on how to conduct its business operations.
In analyzing available gaps, International Lease Finance Corporation observes the gaps through asking some questions concerning; what it is doing and what it requires to stop it, what the company is not doing and what is required for it to start doing it. This step has been so beneficial to the International Lease Finance Corporation in terms of its business operations.
Action Plan Development
In this stage, the company, International Lease Finance Corporation formulates its goals and objectives. The Company derives its goals from its vision and mission. On the other hand, objectives are goals, which the company wishes to achieve in the short run. They assist in attaining the company's goals. For example, the International Lease Finance Corporation's objective is to work with an international airline system and provision of cost decrease fuel effective aircraft to the coming generations.
Strategy Implementation Processes
This is a stage in the strategic management process where various activities are conducted to attain the overall goal of the firm. The strategic implementation process varies .from one company to another that depending on the company's real strategic plan. Strategic implementation is or therefore a process, which involves a number of steps and stages.
Steps of Strategic Implementation
After creating a new strategy, the company, International Lease Finance Corporation follows it by performing new activities. The company does this through creating a tool for measuring the strategic values the new initiatives. For example, International Lease Finance Corporation always measures its initiatives alongside a scorecard, which assists the company to underline its priorities and make sure that the correct initiatives are adapted for delivery.
Align Budgets and Performance
Company's performance should be aligned to the formulated strategy. Performance actions should be placed alongside strategic objectives across the company and every department. All employees will have job functions that will affect the strategy. Most employees affect the strategic objectives. In this step, International Lease Finance Corporation always ensures that the employees and other staff members are aware of their responsibilities and perform them according to the formulated strategy in implementing the strategy.
Structure Follows Strategy
The company asks questions whether the structure allows the formulated strategy to cascade across it in an effective and meaningfully in delivering the strategy. This is as important as some companies just try to implement a strategy without knowing whether the company's structure goes with the strategy (Morris 2005). This is the case with International Lease Finance Corporation, which normally looks at the organization's structure before implementing any strategy.
Under this step, International Lease Finance Corporation engages all staff members in implementing the formulated strategy. The employees should know and understand what is being implemented than just working blindly. This will enable one to knows, where is going and thus making them to struggles to reach. The International Lease Finance Corporation's success has been contributed by this. The company always makes sure that all employees are aware of the strategy being implemented.
Monitor and Adapt
Before implementing a strategy, the company undertakes some monitoring to ensure that the strategy is adaptable in case of any changes in the company's environmental factors both internal and external. The International Lease Finance Company normally monitors its strategy to ensure that it is adaptable before going ahead and implement it. This has contributed to the company's success.
Stages of Strategy Implementation
In the first stage in implementing the strategy, the company defines the objectives intended to be achieved. After what it knows clearly, what the company is aiming at, it or therefore goes on with implementing the strategy, which will be easy since in case something is not in the right way, one can easily recognize it and look for ways to perform in the required way. The International Lease Finance Company, before any strategy is implemented, the objective must be clearly defined to make sure it is clearly understood.
After clearly defining the objectives to be achieved, the company selects the structure and format of the content. The better one can match his or her goals and audience to the appropriate format, the more useful the final commodity will become in delivering the desired results. Asset architecture has been so helpful in International Lease Finance corporation's business operations and has much contributed to the company's success.
After defining the objective and performing the asset architecture, the company, International Lease Finance Corporation executes the strategy. Under this stage, a comprehensible production plan with several steps of review for the important parties (Fahsi & Linville 2010). During the execution, one should make sure that he or she does not compromise the goals and initial needs of the content and program overall. In executing its strategies, International Lease Finance Corporation ensures that the strategy does not compromise with the defined objective for enabling the success of the business.
Under this stage, the company does some tests to see if the output after the execution stage matches with the defined objectives. This stage is very essential in that it helps a company to know whether its realized results are according to the defined objectives. International Lease Finance Corporation normally measures its results after execution to ensure that the results match with the defined objectives.
Under this stage, the company, International Lease Finance Corporation does some assessments frequently to make sure the results are improved where required. The assessment can be done through one asking some questions concern; consumer's comments about the products, what one has learned in processing the product among others. This way enabled the company to determine specifically what can be done to improve the quality of the product if found necessary (Acharjee 2013). International Lease Finance Corporation normally ensures a friendly relationship with its customers to make them free to give their comments concerning the services and products they provide. The company uses these ideas in improving their services where required which has contributed to the company's success.
According to the above explanations, strategic management is a paramount process, which consists of several stages of which when well observed, can lead to attaining a company's goals and objectives. The above discussions reveal that the main key for any company's success is strategic management like what the International Lease Finance Corporation does.
It is revealed that, International Lease Finance Corporation all the steps and stages of all the three main stages. In the strategy analysis stage, the company observes all the four steps, which are; problem definition, information gathering, the definition of potential opportunities and threats and the analysis review. Under the same stage, the company also observes all the three stages, which are the input stage, the input stage, and the decision stage. The company also observes all the sub-stages and sub-steps in the other two stages, which are the strategy formulation stage and the strategy formulation stage.
According to all these explanations, strategic management or therefore is the major factor of business success. Since it a process with various stages, all its states are important and when performed well can result to the organization achieving its goals and objectives and hence the success of the business or the company at large.
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