Customizing strategic planning model for Iran’s cement industry

Strategy is concept which differentiates between success and failure of a manager. That’s why a substantial volume of management literature has been devoted to strategy formulation. There are different approaches in strategy which each one works well in a certain context. Strategic planning as an approach to strategy making is applicable in organizations in which production process has low degree of complexity and environment is fairly stable. Cement companies in Iran experience such a context, so strategic planning can be a valuable tool for identifying strategies in cement industry. This study aims to identify a basic strategic planning model so that it takes into consideration the characteristics of Iran’s cement industry. Driving forces, value chain, key success factors, and generic strategies: are the main elements which have been customized according to industry’s features. The needed information for this purpose has mainly been gathered through document review and experts interview. The findings of the study show that in near future cement companies will face big changes and they have to meet the requirements of new competition environment. Economy liberation, elimination of government subsidies and supports, and a growing demand due to renovation of neighbor countries: are the main driving forces which shape the future of industry. Primary activities of value chain have been identified to assess a company against its competitors. It has been identified that Iranian cement companies generally have serious problems in their marketing because government’s interventions have prevented creation of real competition in this industry. Energy productivity, management skills, capacity utilization, being close to market, and investment on cement downstream products are the KSFs major issues which companies should pay close attention. Cost leadership seems to be the most effective generic strategy in this industry.Validerat; 20101217 (root