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Sh A.S. Case Solution

In:

Submitted By gumnam
Words 454
Pages 2
Main Problem:
As mentioned in the case top management of SH a.s. believes that the future lies in the market development and technological improvements but there are certain facts related to,
• External business environment in which SH a.s. is performing.
• Changes that are taking place in the market of Czech Republic.
• The nature of competition in the global market of products & services that SH a.s. offering.
We have to evaluate all these facts and to present a strategic technology management plan of action.

Main Contributing Issues:
Following are the major contributing issues or they are basically showing the evaluation of all the facts that must be consider before adopting any strategic plane.

• They are lacking in capital & competition for R&D efforts in hydraulic technology, although they are able to full fill the desired innovations of customers as they had done on very selective scale in case of heavy hydraulics.

• They are entirely restructured in1997 and start offering services and maintenance along with major sales but future of their clients using such offers is also uncertain.
• International competitors from Germany, US and from other western countries all are introducing computer based automated technologies but they are not offering such technologically advanced products.
• Light hydraulic applications also moving towards automated advanced technologies with lean and fragile processing having lesser processing steps and higher automated work, but they are still offering old systems.
• Other competitors like German & American are entering in Czech market with broad lines and advance technologies of lubrication technologies.

Proposed Solutions:
In this case the problem is not single directional or very clear it’s a multiple mix and complex bunch of several problems, therefore different issues that are discussed above need different solutions, the areas where I found possible solutions are given below.

• They should adopt such policies which can make them enough able to highly invest in R&D to fill the innovative demands of customers which could make them able to get better market position globally.
• They should try to represent new or modified technologies in order to get a sustainable or growing position in the global market, innovations and new diversified ideas can help them to present new technologies.
• They should try to increase the custom fabrication services on larger scale, although it’s small part but it’s seems profitable so it can help in financial sustainability.
• Since, after restructuring in 1997 their target market and customers are smaller with uncertain future so they should make flexible and just short term marketing polices for this area, design such polices which could be able change with the requirement of time.
• They should start to make technologically advance and automated products to survive in long terms.

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