Masco Corporations Strategic Planning Case Study

Masco Corporations Strategic Planning - Case Study Example The company has successfully developed its product lines for faucets by establishing faucet manufacturing units with advanced business model. In 1986, Masco Corporation developed its vision statement, which reflected its desire 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 related 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 enhance its research & development, and manufacturing ability so that the above stated concerns are addressed to. For acquiring technological 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 organiza tional chart aimed at facilitating communication and exchange. In order to reduce the cost associated with its R&D various cost reduction 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. Masco's resources The 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 well equipped with necessary plants, machineries, inventories etc. Its intangible resources include its expertise in metalworking. The company has a sound experience in technology, driven by proficient technicians that constantly strive to design and create new 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. Hence it is expected that the products manufactured by the company will find a ready acceptance. Another vital resource of the company is its high profitability. The company can use its retain-earnings for investments purposes in the furniture industry. Masco's Strategy for entering the furniture industry Before entering the furniture industry, Masco Corporation must implement only those strategies that match 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 external factors include Porter's five forces of competition and macro-environmental factors like economy, demography, legal etc. Only when the company has successfully scanned these factors, it will develop its strategy focusing on particular areas.