Innovation Management in Defensive Organizations

Innovation Management in Defensive Organizations

Formulation of Organizational Strategies in Small Companies (Case Study: An Automotive Parts Manufacturing Company)

Document Type : Original Article

Author
Samad Khabbaz bavil
Department of Business Management, Payame Noor University, Tehran, Iran
10.22034/qjimdo.2024.450322.1702
Abstract
Background & Purpose: Small companies operating in the automotive parts industry navigate a dynamic and competitive environment where rapid technological changes, market fluctuations, and resource limitations pose significant challenges to strategy formulation and implementation. Despite the high importance of strategic management for these entities, many small companies lack a coherent structure and approach for defining their future direction. The objective of this research is to formulate an appropriate strategy for a small automotive parts manufacturing company, thereby providing practical solutions for improving its performance and enhancing competitiveness.
Methodology: This research is applied in terms of its objective and descriptive-analytical in nature. The statistical population comprises managers, experts, and key employees of a small automotive parts manufacturing company who are directly involved in decision-making processes and production operations. Due to the limited number of eligible individuals, a census sampling method was employed. Data collection involved a combination of semi-structured interviews and a researcher-made questionnaire encompassing internal and external environmental indicators. The collected data were analyzed using environmental analysis methods and Quantitative Strategic Planning Matrices (QSPM) to extract and prioritize suitable strategies for the company.
Findings: Based on the total scores obtained from the Quantitative Strategic Planning Matrix (QSPM), the strategies were prioritized as follows: formation of an industrial cluster with a score of 6.18 ranked first, formation of a reciprocal service consortium with a score of 4.95 ranked second, and participation in the value chain with a score of 4.76 ranked third. Therefore, based on the analysis of internal and external strategic factors, the formation of an industrial cluster was identified as the most appropriate strategy for the studied auto parts manufacturing company
Conclusion: The results of the study indicate that, considering the internal and external conditions of the auto parts manufacturing company, approaches based on cooperation and synergy among firms can play an effective role in improving performance and enhancing competitiveness
Keywords
Harvard Policy
Small Companies
Automotive Parts.
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