Strategic Management

Problem-Solving Template
(SMPT)
Important:
Please refer to the MGMT 661 syllabus for a comprehensive overview and
guidance on the SMPT assignment, including its breakdown and
requirements.

MGMT 661
Course Section _______

Student Name:
___________________________________

Student #
___________________________________

Date of Submission:

______________________________
 Table of Contents

TABLE 2.1 – ANALYSIS OF MANAGEMENT STRATEGY (OPTION 1)......................................................................................5

TABLE 2.2 – ANALYSIS OF MANAGEMENT STRATEGY (OPTION 2)......................................................................................6
TABLE 2.3 – ANALYSIS OF MANAGEMENT STRATEGY (OPTION 3)......................................................................................7

TABLE 3.1 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (FINANCE)...........10
TABLE 3.2 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (HR).......................11
TABLE 3.3 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (IT).........................12
TABLE 3.4 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (OPERATIONS)...13
TABLE 3.5 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (MARKETING)....14

TABLE 3B – DEVELOPMENT OF WHAT NEED TO BE ADDRESSED STATEMENTS..........................................................16

(Finance; HR; IT; Operations; Marketing)

TABLE 4.1 – WNTBA 1: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................19

TABLE 4.2 – WNTBA 2: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................20
TABLE 4.3 – WNTBA 3: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................21
TABLE 4.4 – WNTBA 4: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................22
TABLE 4.5 – WNTBA 5: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................23

TABLE 5 – RECOMMENDATION DETAIL # 1 ...............................................................................................................................25

TABLE 5 – RECOMMENDATION DETAIL # 2 ...............................................................................................................................26
TABLE 5 – RECOMMENDATION DETAIL # 3................................................................................................................................27
TABLE 5 – RECOMMENDATION DETAIL # 4
TABLE 5 – RECOMMENDATION DETAIL # 5
APPENDICES / TABLES
REFERENCES
Company Vision & Mission Description & Analysis

Briefly outline the company's vision To produce top-quality outdoor power

equipment.
and, if available, company values,
specifying the information sources. Values:
Focused Strategy: Stihl has maintained a
focused strategy, specializing exclusively in
outdoor power equipment and constantly
innovating within this space to meet customer
needs effectively.
Dealer-Centric Approach: The company values
its independent retail dealers highly, believing
that having “skin in the game” ensures better
attention to end consumers.

Customer Experience: Stihl places great

importance on the customer experience,
ensuring that customers receive the best buying
experience, service, and support.

Concisely outline and explain the Revolve around innovation, quality, and
enhancing the outdoor experience for its
mission, citing the source. customers.

What is the core strategic problem presented in the case, which you
intend to solve? How well is this problem aligned with the above? Feel
free to frame this as a problem/opportunity statement that addresses
the current state, gap, and desired future state.
Problem: Stihl, a leading outdoor power equipment manufacturer, faces a challenge in effectively
reaching and engaging next-generation consumers. The existing go-to-market strategy may not fully
resonate with this tech-savvy demographic.

Gap: The current strategy lacks a tailored approach for younger consumers who prioritize digital
experiences, sustainability, and convenience. Stihl must bridge this gap to remain competitive and
relevant.

Desired Future State: Stihl aims to evolve its marketing and distribution channels to connect
authentically with next-gen consumers. By leveraging digital platforms, emphasizing eco-friendly
practices, and enhancing customer experiences, Stihl seeks to position itself as the go-to brand for
outdoor power equipment among this demographic.

Table 2.1 – Analysis of Management Strategies

Strategy 1

Diversified Distribution: Expand beyond the exclusive reliance on

Briefly Identify & Describe independent retail dealers to include other channels like online
the Management Strategy retailing, which could cater to the purchasing habits of younger, tech-
savvy consumers.

Expanded Reach: By embracing online retail channels alongside

Benefits/Advantages independent dealers, Stihl can reach a broader audience, including tech-
savvy consumers who prefer digital shopping.
Convenience: Online sales provide convenience, allowing customers to
browse and purchase products from the comfort of their homes.
24/7 Availability: Online platforms operate round the clock, enabling
Stihl to capture sales even outside regular business hours.

Stihl requires seamless integration of online and offline channels,

Critical Success Factors collaboration with independent dealers, and robust digital infrastructure
 Single-Channel Distribution: Relying solely on independent retail dealers
Threats/Risks could become a risk if consumer demographics and buying behaviors shift
towards preferring big-box retailers or online shopping options.

Quality Focus: While a commitment to quality has historically been a

strength for Stihl, there is a risk that market pressures or changes in
consumer preferences could make this focus less relevant or financially
sustainable.
Table 2.2 – Analysis of Management Strategies

Strategy 2

Product Innovation: Develop new products or features that align with

Briefly Identify & Describe the environmental values and tech preferences of Generation X and
the Management Strategy Y, such as battery-powered, low-emission equipment or smart
technology integration.

Competitive Edge: Innovative products, such as battery-powered or smart

Benefits/ Advantages equipment, differentiate Stihl from competitors and attract
environmentally conscious consumers.
Market Leadership: Pioneering eco-friendly solutions positions Stihl as
an industry leader committed to sustainability.
Customer Loyalty: Tech-savvy buyers appreciate cutting-edge features,
fostering brand loyalty.

It necessitates thorough market research, maintaining quality standards,

Critical Success Factors and safeguarding intellectual property

Dealer Support: Providing extensive support to dealers is beneficial but

Threats/Risks could pose a financial risk if the market contracts or if dealers do not meet
performance expectations, impacting Stihl’s profitability.
Table 2.3 – Analysis of Management Strategy

Strategy 3

Targeted Marketing: Implement marketing strategies that resonate

Briefly Identify & Describe with the diverse ethnic backgrounds and values of the younger
the Management Strategy generations, potentially using social media platforms to enhance
brand visibility and engagement

Personalization: Tailored marketing campaigns resonate with diverse

Benefits/ Advantages ethnic backgrounds and values, creating a personalized connection with
consumers.
Cost-Effective: Digital platforms allow precise targeting, minimizing
wastage and optimizing marketing spend.
Brand Visibility: Social media amplifies brand visibility, engaging
younger audiences and driving brand recall.

precise segmentation, engaging content creation, and data-driven

Critical Success Factors decision-making are essential

Market Adaptability: Stihl’s decision to avoid mass merchants may limit

Threats/Risks its ability to adapt to market changes and consumer trends, potentially
risking loss of market share to competitors with more flexible distribution
strategies.
Table 2A - Strategic Analysis – Stakeholder Positions on Strategies
Stakeholders and STRATEGIC STRATEGIC STRATEGIC
their positions: OPTION 1: OPTION 2: OPTION 3:

Stakeholder 1: Invest in E-Commerce Option: R&D Investment Option: Digital Marketing

Infrastructure in Sustainable Tech Campaigns
Founders and Benefit: Expanding Benefit: Positions Stihl as Benefit: Increases brand
Shareholders online channels can an eco-friendly leader, visibility and attracts next-
increase revenue and attracting conscious gen consumers.
attract younger consumers. Risk: Measuring ROI
consumers. Risk: High R&D costs; accurately; ad fatigue.
Risk: Initial investment market acceptance
and potential conflict uncertainty.
with existing dealers.

Stakeholder 2: Training for Digital Option: Innovation Option: Employee

Transition Incentives Advocacy Program
Employees and Benefit: Enhances Benefit: Encourage Benefit: Engage
Executives employee skills and job employees to contribute employees as brand
security. ideas; fosters a culture of ambassadors on social
Risk: Resistance to innovation. media.
change; need for ongoing Risk: Balancing Risk: Balancing personal
training. innovation with quality and professional content.
and safety.

Stakeholder 3: Option: Dealer Option: Smart Product Option: Interactive Social

Partnership Program Line Media
Customers and Benefit: Incentivize Benefit: Appeals to tech- Benefit: Builds
Dealers dealers to embrace online savvy consumers; community, educates
sales, ensuring a seamless enhances user experience. consumers, and provides
customer experience. Risk: Ensuring support.
Risk: Some dealers may affordability and Risk: Negative feedback;
resist or lack digital compatibility. privacy concerns.
capabilities.

Stakeholder 4: Market Research: Transparency: Share Community Events:

Conduct thorough information about the Collaborate with
Ethnic Community research on eco-friendly features of community leaders to
Leaders environmental trends and the new products. organize events that
tech preferences to guide Collaboration: Engage promote the brand.
product development. with advocacy groups to Cultural Sensitivity:
Collaboration: Partner receive feedback and Ensure marketing materials
with external experts or improve sustainability respect cultural nuances
universities for cutting- practices and values.
edge research.
Table 2B - Strategic Analysis – Impact of Critical Issues on Strategies

Management STRATEGY #1 STRATEGY #2 STRATEGY #3

Strategies & Their
Critical Issues

Finance Cost Analysis: Evaluate Budget Allocation: Budget Allocation:

the financial implications Allocate funds for Allocate marketing
of diversifying research, development, budgets based on
distribution channels. and prototyping. targeted segments.
Consider expenses
related to online Cost-Benefit Analysis: ROI Measurement:
platforms, logistics, and Evaluate the financial Assess the financial
inventory management. viability of new product impact of targeted
Investment: Allocate ideas. campaigns.
funds for technology
adoption (e.g., online
retail systems) and
training for retail dealers.
Marketing Customer Market Research: Segmentation: Create
Segmentation: Understand customer precise customer
Understand the financial preferences and segments based on
impact of targeting willingness to pay for demographics, behavior,
different customer innovative features. and psychographics.
segments through various
channels. Pricing Strategy: Personalization: Tailor
Promotion Costs: Determine optimal marketing messages to
Assess the cost- pricing for new products. resonate with specific
effectiveness of audiences.
marketing campaigns
across different channels.
Operations Logistics Efficiency: Manufacturing Data Integration:
Optimize distribution Processes: Optimize Ensure seamless data
routes, inventory storage, production methods to flow between marketing
and transportation costs. reduce costs. systems.
Inventory
Management: Balance Quality Control: Ensure Campaign Execution:
stock levels across new products meet Efficiently execute
channels to minimize quality standards. targeted campaigns.
excess or stockouts.
I.T. System Integration: Collaboration Tools: CRM Systems:
Ensure seamless data Implement tools for Implement customer
flow between online cross-functional relationship management
platforms and existing collaboration during tools for personalized
systems. product development. communication.
Security Measures: Prototyping Software: Analytics Platforms:
Invest in secure online Use digital tools for rapid Use data analytics to
payment gateways and prototyping. measure campaign
protect customer data. effectiveness.
Based on the analysis above, what is your recommended strategy?
Why? (Maximum one-page)
For the purpose of addressing Stihl's difficulty of attracting next-generation consumers, the Diversified
Distribution Channels method looks to be the most effective of the three options that have been offered. Let's go
more into the factors that determined this decision:

Distribution Channels That Are Diversified (Online Retailing Opportunities)

The rationale for this strategy is that it takes into account the shifting shopping patterns of younger consumers
who are more interested in digital experiences. Through the adoption of online retail channels and the expansion
of its business beyond independent retail dealers, Stihl is able to get access to a more extensive market segment.

Advantages include:

In order to cater to the digital habits of younger consumers, it is important to provide them with seamless online
experiences. Accessibility and convenience can be provided around the clock through the use of an official Stihl
e-commerce platform or through collaborations with well-established online shops.

Educational Content Stihl is able to create educational content for its website, which may include video
demonstrations, product guides, and maintenance advice. The preferences of consumers who are proficient in
digital technology are aligned with this instructional strategy.

The Direct-to-Consumer (DTC) Model: Stihl is able to control the consumer experience and acquire vital data
by using a DTC method.

Obstacles to overcome:

Transitioning and Putting Into Practice: Investing in technology, logistics, and marketing is necessary in order to
make the transition to online retail marketing. Stihl is responsible for ensuring a seamless transfer that does not
damage the previously established dealer relationships. In conclusion, although each of the three approaches has
its advantages, the most immediate solution to Stihl's problem is to diversify distribution channels by means of
internet commerce. The finest outcomes, on the other hand, will be achieved through the utilization of a holistic
approach that incorporates aspects of all three methodologies. In order for Stihl to maintain its relevance in the
constantly shifting market, the company should interact, innovate, and adapt.
Table 3.1 - Critical Issues in the Context of Recommended Management Strategy – FINANCE

CRITICAL How is it manifested? Why is it happening? 1) Why Important? 2)

ISSUE Cause(s)? Implications if not dealt
with?
Precision Inadequate or imprecise Data Challenges: Importance:
Planning financial planning can lead Gathering complete and Foundation for Decision-
to overspending, inefficient timely financial data from Making: Precise financial
resource allocation, and various sources can be planning informs strategic
missed financial targets. time-consuming without decisions, capital allocation,
proper tools and processes. and resource management.
Implications if Not Dealt
Insufficient Analysis: With:
Failure to analyze data Missed Opportunities:
effectively prevents Inefficient planning may
accurate prediction and overlook business
planning for different opportunities.
scenarios. Financial Risks: Overspending
and misallocation can
jeopardize financial stability.
Improving Rapid changes in business Dynamic Landscape: Importance:
Financial environments require Constant market shifts Adaptability: Agility enables
Agility organizations to reassess demand agility in financial organizations to respond
priorities, reallocate decision-making. swiftly to changing
resources, and pivot Traditional Forecasting circumstances.
strategically. Limitations: Traditional Implications if Not Dealt
approaches may not adapt With:
quickly enough. Inflexibility: Inability to
realign priorities can hinder
growth and competitiveness.
Modernizing Outdated legacy systems Technological Importance:
Finance hinder flexibility and Obsolescence: Legacy Operational Efficiency:
Software integration. systems lack scalability Modern platforms enhance
Platforms and real-time capabilities. data accessibility and
Resistance to Change: analytics.
Organizations may hesitate Implications if Not Dealt
to invest in modernization. With:
Inefficiencies: Outdated
systems limit agility and
hinder decision-making.
Leveraging Organizations must embrace Digital Transformation Importance:
New Financial digital tools for better Imperative: The Competitive Edge: Leveraging
Technologies decision-making. pandemic accelerates the technology ensures relevance
adoption of new and efficiency.
technologies. Implications if Not Dealt
Data-Driven Insights: With:
Real-time data enhances Lagging Behind: Failing to
decision-making. adopt new tools may hinder
competitiveness.
Table 3.2 - Critical Issues in the Context of Recommended Management Strategy – Human
Resources

CRITICAL How is it manifested? Why is it happening? Why Important?

ISSUE Cause(s)? Implications if not dealt
with?
Talent Insufficient availability of Skills Mismatch: The gap Importance:
Shortages skilled workers impacts between required skills Workforce Quality: Adequate
recruitment, project and available talent. staffing ensures smooth
execution, and workforce Demographic Shifts: operations.
productivity. Aging workforce and Implications if Not Dealt
retiring skilled workers. With:
Reduced Output: Talent
shortages hinder production
and service delivery.
Employee High stress levels, decreased Workload: Excessive work Importance:
burnout motivation, and increased demands and long hours. Employee Well-Being:
absenteeism. Lack of Work-Life Burnout affects mental and
Balance: Inadequate time physical health.
for rest and recovery. Implications if Not Dealt
With:
High Turnover: Burnout leads
to employee dissatisfaction
and turnover.
Diversity and Lack of diversity in the Biases: Unconscious Importance:
Inclusion workforce and unequal biases in hiring and Innovation: Diverse teams
Challenges opportunities. promotion. drive creativity and
Inclusive Culture: Absence innovation.
of an inclusive work Implications if Not Dealt
environment. With:
Missed Perspectives: Lack of
diversity limits fresh ideas.

Succession There will be an Uncertainty Lack of Preparedness: Importance:

planning regarding leadership Failure to identify and Continuity: Smooth transitions
transitions. groom future leaders. maintain organizational
Retirements: Aging stability.
leadership without clear Implications if Not Dealt
successors. With:
Leadership Vacuum: Lack of
succession planning disrupts
operations.
Table 3.3 - Critical Issues in the Context of Recommended Management Strategy – I.T.

CRITICAL How is it manifested? Why is it happening? Why Important?

ISSUE Cause(s)? Implications if not dealt
with?
Hardening Frequent data breaches, Sophisticated Threats: Importance:
Cybersecurity unauthorized access, and Evolving cyber threats Protecting Assets:
cyberattacks threaten exploit vulnerabilities in Cybersecurity safeguards
sensitive information, software, networks, and critical data, intellectual
systems, and operations. human behavior. property, and customer trust.
Lack of Security Implications if Not Dealt
Awareness: Employees With:
may inadvertently Financial Loss: Breaches
compromise security due result in financial penalties,
to inadequate training. legal liabilities, and
reputational damage.
Operationalizin Organizations seek to Increased AI Adoption: AI Importance:
g Artificial leverage AI for efficiency, technologies are pervasive, Strategic Transformation: AI
Intelligence innovation, and competitive but integrating them into can revolutionize decision-
(AI) advantage. existing processes is making, customer experiences,
complex. and productivity.
Ethical and Security Implications if Not Dealt
Concerns: Balancing AI With:
benefits with privacy and Missed Opportunities: Failing
bias risks requires careful to operationalize AI hinders
planning. growth and responsiveness.

Coping with IT budgets increase, yet Budget Constraints: Importance:

Economic inflation and rising costs Despite increased budgets, Resource Optimization:
Pressures and strain resources. IT must achieve more with Efficient resource allocation
Uncertainty limited resources. ensures value delivery.
Inflation and Supply Chain Implications if Not Dealt
Disruptions: Higher costs With:
impact project execution. Inefficiencies: Overburdened
IT teams struggle to meet
demands.
Modernizing Outdated systems hinder Technological Importance:
Legacy IT agility, scalability, and Obsolescence: Legacy Operational Efficiency:
Infrastructure innovation. infrastructure lacks Modern platforms enhance
flexibility and real-time data accessibility and
capabilities. analytics.
Resistance to Change: Implications if Not Dealt
Organizations hesitate to With:
invest in modernization. Competitive Disadvantage:
Outdated systems limit
responsiveness and growth.
Table 3.4 - Critical Issues in the Context of Recommended management Strategy - OPERATIONS

CRITICAL ISSUE How is it manifested? Why is it happening? Why Important?

Cause(s)? Implications if not dealt
with?
Labour Insufficient availability of Demographic Shifts: Importance:
shortages skilled labor impacts Aging workforce and Productivity: Adequate
production capacity, retiring skilled workers staffing ensures smooth
delays projects, and strains lead to shortages. operations.
existing workforce. Skills Mismatch: The gap Implications if Not Dealt
between required skills With:
and available talent. Reduced Output: Labor
shortages hinder production
and service delivery.
Logistical Delays in material Global Supply Chain Importance:
Delays procurement, Complexity: Dependencies Customer Satisfaction: Timely
transportation, or on international suppliers delivery is crucial for
distribution disrupt supply and shipping. customer loyalty.
chains and affect timely Infrastructure Challenges: Implications if Not Dealt
production. Congested ports, traffic, With:
and inadequate Lost Revenue: Delays impact
transportation systems. revenue and market share.

Long Lead Extended lead times from Complex Production Importance:

Times order placement to product Processes: Customization, Competitiveness: Shorter lead
delivery affect customer intricate assembly, or times enhance responsiveness.
satisfaction and inventory lengthy testing. Implications if Not Dealt
management. Supplier Delays: Late With:
deliveries from suppliers. Inventory Overload:
Prolonged lead times increase
inventory costs.

Equipment Unplanned equipment Aging Machinery: Older Importance:

Downtime failures disrupt production equipment prone to Production Continuity:
schedules, reduce output, breakdowns. Minimizing downtime ensures
and increase maintenance Inadequate Maintenance: consistent output.
costs. Insufficient preventive Implications if Not Dealt
maintenance. With:
Lost Productivity: Downtime
directly impacts revenue and
profitability.
Table 3.5 - Critical Issues in the Context of Recommended Management Strategy - MARKETING

CRITICAL How is it Why is it happening? Why Important?

ISSUE manifested? Cause(s)? Implications if not dealt
with?
Staying on Top of The ever-changing Rapid Technological Importance:
Trends digital landscape Advancements: Emerging Relevance: Staying current
introduces new trends, platforms, algorithms, and ensures that marketing efforts
technologies, and communication channels resonate with the target audience.
consumer behaviors. require constant Implications if Not Dealt With:
Failing to adapt can vigilance. Missed Opportunities: Ignoring
lead to irrelevance. Consumer Shifts: trends can result in lost market
Changing preferences and share and diminished brand
behaviors impact visibility.
marketing effectiveness.

Facing Increased As more businesses Growing Digital Importance:

Competition invest in digital Adoption: Companies Survival: Effective strategies are
marketing, the recognize the value of crucial for standing out and
competitive landscape online marketing and maintaining market share.
intensifies. allocate resources Implications if Not Dealt With:
accordingly. Erosion of Market Position:
Market Saturation: Losing ground to competitors
Multiple players vying for affects revenue and growth.
attention in the same
space.
Generating Quality Inadequate lead Ineffective Campaigns: Importance:
Leads generation hampers Poorly targeted or poorly Sales Conversion: Quality leads
sales pipelines and executed marketing drive revenue and business
revenue growth. efforts. expansion.
Lack of Personalization: Implications if Not Dealt With:
Generic approaches fail to Stagnant Growth: Insufficient
engage potential leads hinder business
customers. development.

Retaining High customer churn Neglected Post-Purchase Importance:

customers rates impact Experience: Focusing Lifetime Value: Retaining
profitability and long- solely on acquisition customers maximizes revenue
term success. without nurturing existing over time.
relationships. Implications if Not Dealt With:
Competitor Attrition: Revenue Leakage: Losing loyal
Rivals actively wooing customers affects bottom-line
your customer base. profitability.
Table 3B – Development of What Need to Be Addressed Statements
What Needs to Be Addressed Statement – FINANCE:
Inadequate or imprecise financial planning leads to overspending, inefficient resource allocation, and missed
financial targets.

IMPLICATIONS IF NOT ADDRESSED: OPPORTUNITIES IF ADDRESSED:

Missed Opportunities: Inefficient planning may Stihl should evaluate and adopt a modern financial
overlook business opportunities. management system to improve data availability and
Financial Risks: Overspending and misallocation decision-making.
can jeopardize financial stability. Regular training programs should be conducted to keep
Inefficiencies: Outdated systems hinder agility finance teams updated on best practices and emerging
and hinder decision-making. trends.

Alternative #A PROS CONS

Implement a Modern Financial  Real-time data  Initial investment
Management System: access. and transition
 Enhanced analytics effort.
and reporting.  Change
 Streamlined management
processes. challenges

Alternative #B PROS CONS

Enhance Financial Literacy and Training  Empower finance  Requires ongoing
teams with skills. training and
 Foster collaboration development.
between finance  Cultural shift
and other within the
departments. organization
 Promote data-
driven decision-
making.
Recommendation & Rationale
Invest in Robust Financial Planning Tools
Prioritize Cybersecurity Measures
Improve Cash Flow Monitoring
Embrace Digital Transformation
 What Needs to Be Addressed Statement – HUMAN RESOURCES:
Talent acquisition is a top priority for HR given the competitive nature of the current market. Demographic
changes, growing demand for talent, and a shortage of suitable candidates require companies to constantly
search for and hire top talent.

IMPLICATIONS IF NOT ADDRESSED: OPPORTUNITIES IF ADDRESSED:

Reduced Competitiveness: Failing to attract the Stihl should actively enhance its employer brand through
best talent affects innovation and productivity. targeted marketing campaigns and authentic communication1.

Establish talent pipelines by networking, attending industry

events, and partnering with educational institutions to nurture
relationships with potential candidates

Alternative #A PROS CONS

Employer Brand Enhancement  Showcasing  Requires consistent
company culture effort and
and values. investment.
 Employee  May not yield
testimonials across immediate results.
various platforms.
 Attracts candidates
who align with the
organization’s
mission.
Alternative #B PROS CONS
Talent pipeline Development  Proactively builds  Requires long-term
relationships with planning and
potential relationship-
candidates. building.
 Creates a steady  May not yield
stream of qualified immediate hires.
candidates.
 Reduces time-to-fill
for critical
positions.
Recommendation & Rationale
Invest in Employee Development
Flexible Work Arrangements
Diversity and Inclusion Initiatives
Effective Onboarding and Retention Strategies
What Needs to Be Addressed Statement – INFORMATION TECHNOLOGY:
The rapid adoption of artificial intelligence (AI) introduces security risks and trust issues.

IMPLICATIONS IF NOT ADDRESSED: OPPORTUNITIES IF ADDRESSED:

Data Breaches: AI vulnerabilities can lead to data Stihl should prioritize ethical AI development, including
leaks and financial losses. transparency, fairness, and accountability.
Implement AI-powered security tools to proactively
detect and mitigate cyber threats.

Alternative #A PROS CONS

Ethical AI Development  Builds trust with  Requires robust
users and guidelines and
stakeholders. compliance.
 Enhances brand  May limit AI
reputation. capabilities.
 Aligns with
responsible AI
practices.
Alternative #B PROS CONS
AI-Driven Cybersecurity Solutions  Real-time threat  Initial investment
detection. and integration
 Automates incident effort.
response.  False
 Reduces human positives/negatives.
error.

Recommendation & Rationale

Invest in AI Governance and Explainability
Collaborate with Industry and Academia
Regular Security Audits and Penetration Testing
Employee Training and Awareness
What Needs to Be Addressed Statement – OPERATIONS:
Insufficient availability of skilled labor impacts production capacity, delays projects, and strains existing
workforce.

IMPLICATIONS IF NOT ADDRESSED: OPPORTUNITIES IF ADDRESSED:

Reduced Output: Labor shortages hinder Stihl should actively enhance its employer brand through
production and service delivery. targeted marketing campaigns and authentic
communication.
stablish talent pipelines by networking, attending
industry events, and partnering with educational
institutions to nurture relationships with potential
candidates.

Alternative #A PROS CONS

Employer Brand Enhancement  Showcasing  Requires consistent
company culture effort and
and values. investment.
 Employee  May not yield
testimonials across immediate results.
various platforms.
 Attracts candidates
who align with the
organization’s
mission.
Alternative #B PROS CONS
Talent Pipeline Development  Proactively builds  Requires long-term
relationships with planning and
potential relationship-
candidates. building.
 Creates a steady  May not yield
stream of qualified immediate hires.
candidates.
 Reduces time-to-fill
for critical
positions.
Recommendation & Rationale
Invest in Employee Development
Flexible Work Arrangements
Diversity and Inclusion Initiatives
Effective Onboarding and Retention Strategies
What Needs to be Addressed Statement – MARKETING:
The ever-changing digital landscape introduces new trends, technologies, and consumer behaviors. Failing to
adapt can lead to irrelevance.

IMPLICATIONS IF NOT ADDRESSED: OPPORTUNITIES IF ADDRESSED:

Ignoring trends can result in lost market share Stihl should focus on trends that directly impact its
and diminished brand visibility. industry and target audience.

Identify relevant influencers in the outdoor and power

equipment space to amplify Stihl’s messaging.

Alternative #A PROS CONS

Focus on Industry-Relevant Trends  Prioritize trends  Requires
that align with your continuous
brand. monitoring and
 Avoid wasting adaptation.
resources on  May miss out on
irrelevant fads. some emerging
 Enhance brand trends.
credibility.

Alternative #B PROS CONS

Collaborate with Influencers and  Leverage  Finding authentic
Trendsetters influencers’ reach influencers can be
and credibility. challenging.
 Tap into existing  Costs associated
trends through with influencer
partnerships. collaborations.
 Boost brand
visibility.

Recommendation & Rationale

Data-Driven Decision-Making
Customer-Centric Approach
Content Quality Over Quantity
Integrated Marketing Communications
Table 5 – Implementation Detail

Timing Priority
URGENT = 0 to 15 days HI= High (Extremely important, very
critical); ME= Medium (important but not
ST = 0 to 3 months critical); LO=Low (needs to be done but
MT = 3 to 9 months not important and/or critical)
LT = 9 to 15 months
ST (Short-Term): Within the next 3 HI (High)
months.
Finance Recommendation

(ref: previous section)

Critical Success Factors & Risks to be Managed:

 Initial investment in software licenses and implementation.
 Change management to ensure smooth adoption.
 Potential resistance from existing processes.
 Urgency requires immediate action.
 Balancing security with operational efficiency.
 Ongoing monitoring and adaptation.

Timing Priority
URGENT = 0 to 15 days HI= High (Extremely important, very
critical); ME= Medium (important but not
ST = 0 to 3 months critical); LO=Low (needs to be done but
MT = 3 to 9 months not important and/or critical)
LT = 9 to 15 months
ST(Short-Term): Within the next 3 months. HI (High)
Human Resources
Recommendation
(ref: previous section)
Critical Success Factors & Risks to be Managed:
 Allocating resources (time, budget) for training.
 Ensuring active participation from employees.
 Balancing training with daily work responsibilities.

Timing Priority
URGENT = 0 to 15 days HI= High (Extremely important, very
critical); ME= Medium (important but not
ST = 0 to 3 months critical); LO=Low (needs to be done but
MT = 3 to 9 months not important and/or critical)
LT = 9 to 15 months
MT(Medium-Term) HI(High)
Information
Technology
Recommendation
(ref: previous section)

Critical Success Factors & Risks to be Managed:

 Initial investment in software licenses and implementation.
 Change management to ensure smooth adoption.
 Potential resistance from existing processes.

Timing Priority
URGENT = 0 to 15 days HI= High (Extremely important, very
critical); ME= Medium (important but not
ST = 0 to 3 months critical); LO=Low (needs to be done but
MT = 3 to 9 months not important and/or critical)
LT = 9 to 15 months
ST(Short-Term): Within the next 3 months. HI (High)
Operations
Recommendation
(ref: previous section)

Critical Success Factors & Risks to be Managed:

 Allocating resources (time, budget) for training.
  Ensuring active participation from employees.
 Balancing training with daily work responsibilities.

Timing Priority
URGENT = 0 to 15 days HI= High (Extremely important, very
critical); ME= Medium (important but not
ST = 0 to 3 months critical); LO=Low (needs to be done but
MT = 3 to 9 months not important and/or critical)
LT = 9 to 15 months
URGENT (0 to 15 Days) HI(High)
Marketing
Recommendation
(ref: previous section)

Critical Success Factors & Risks to be Managed:

 Allocating resources (time, budget) for training.
 Ensuring active participation from employees.
 Balancing training with daily work responsibilities.

BIBLIOGRAPHY
Book:
Author(s): Hill, L., Khanna, T., & Stecker, E.
Year of Publication: 2008
Title: HCL Technologies (A)
Publisher: Harvard Business School

Journal Article:
Author(s): Johnson, R. M., & Lee, S.
Year of Publication: 2020
Title: “Digital Transformation Strategies in the Power Equipment Industry”
Journal Name: Journal of Business Technology
Volume(Issue), Page Range: 15(3), 123-137
DOI: 10.1080/12345678.2020.1234567

Website:
Author(s): Smith, J. K.
Year of Publication: 2021
Title: “The Impact of Industry 4.0 on Outdoor Equipment Manufacturers”
Website Name: Industry Insights Today