Designing the Model of Strategic Planning Systems in Automobile Industry with Using System Dynamics Approach

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Abstract

Strategic planning increases the probability of reaching goals with the optimal use of organization resources by determine the organization strategic goals, identify and select the suitable strategies to achieve selected goals and develop the organization strategic capability.  In this study not only identify the various models in strategic planning systems, but also presented the features of a suitable model for improve strategic plan in automotive industry with using a system dynamics method based on the subject-oriented strategic planning approach.  Using these models in a manufacturing organization like automotive industry will lead to achieve the competitive or relative advantage. The suitable strategic planning model for the automotive industry is a model that has been designed due to the economic, political and cultural conditions of the country and its significant features, then provide appropriate techniques for its codification and implementation. Applying the suitable strategic planning model helps the automotive executives to determine the right strategic goals and choose the right strategies and tactics to reach them. The presented model in this regard has been simulated with using Vensim DSS software and the results of this study proved that if the automotive industry of the country continues its ways due to the existing strategies, only it will be able to cover 40% of customer demand until the year of 1400. In this research, three scenarios have been presented to improve the condition of this industry. Based on the presented scenarios, it can be stated that if the productivity just improves 3% during the period under review, we will see the supply level will grow 1.13% compared to the baseline. The results of the two other scenarios that base on the 8% growth rate of return on capital and combine this with growth in return on equity, confirm that if these scenarios are implemented, respectively they will see the supply level in this industry will improve about 1.67% and 5/13%. Among the suggestions that improve the supply level in this industry could be focusing on value added and providing professional training for employees to improve productivity in this area and also focus on more profitable investment opportunities during the under review period and moving towards investing in productive assets.

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References

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Commercial Strategies
Volume 16, Issue 14
March 2020
Pages 73-90

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