erThe Importance of Planning For A Stereo Manufacturer
There have been a continuously developing process of recording, prepare &
process, and playback equipment during the last century. This has placed the
music in a totally new position in our society.
Prior to the 20’th century music was only related to special occasions like
concerts and the high festivals. This has changed. Nowadays we listen to music
wherever we are, in supermarkets, cinemas, radios, official places and even from
small pocketsized players. Earlier all music was live, today almost all music
we listen to are recordings. This also states that, the trends in the music
industry is ever changing. The development of sound-recording technique has
matured a serious audio industry. It contains of a wide spectre of different
manufacturers, which often link to each other and to other participants in the
Sale of records became the modern audio industry’s launch. Because all record
players around the world were standardised, the sale of records had an enormous
take off. This made it possibilities to earn a good profit in the music/audio
industry, and many different equipment manufacturers arised.
The market was, and still is, alive because of the continuing audio developments.
Radios, cassette players, CD players, DAT players, minidisk players, etc. give
rise to even more sales.
In the 1960’s the firs stereo recordings were made. Soon afterwards, the
industry introduced the notionHi-Fi (high fidelity) just to make clear how
far the development had come.
When the cassette tape was introduced in the 1960’s, many problems were solved.
Now it was possible to produce a recorder which could be used when the
surroundings were in motion (i.e. in a car) . Now it was workable to bring the
source of music were ever people wanted. The cassette could also record, and was
extremely easy to use compered to the LP. Also the cassette became standardised.
Later we got DAT, CD, minidisks, etc. which all have brought the audio market a
The stereo industry of today is noticed by several manufactures that compete in
the same market. Hence that competition is severe and the importance of being in
front with design innovation, product consistency, value for money, sound
quality and the firm’s goodwill, is of greatest importance.
This also means that planning is crucial.
Planning is something that is arranged beforehand. Worked out in advance to
reach a goal.
“The ability to determine appropriate objectives:’doing the right thing ‘.
The stereo industry consists of two main segments, the home stereo market and
the professional market. Even though many manufacturers operate in both these
markets, I will assume that Sonic Wave Ltd. only operate in the home stereo
Sonic Wave Ltd. has over the last years achieved a sustained period of dramatic
growth and prosperity without use of any strategic plan. However, over the last
six months it has seen a decline in sales because of a launch of an innovative
range of stereo equipment from an Asian producer. Their main problem is that
they do not have a quick response to counter this challenge from Asia. This is
because of their lack of planning.
As with all industries a mission statement makes the main framework of a firm.
In the stereo industry the mission statement is to produce equipment to pass on
music to its listeners. Furthermore each firm must decide whom they want to
target, and with what sort of equipment they want to target the group.
With this as a basis we are able to set a strategic goal. This goal should
include our business philosophy; I.e. sound quality, price level, etc. as well
as an explanation for the chosen philosophy. It should also include what product
range to develop and produce. A clear aim is set. This provides a sense of
direction. By setting a goal, one opens the possibility to diversify the
resources availible. Both machinery and people have limited resources, which
should be used in the most effective way. This also means that controlling
becomes more important, but also easier because each employer and employee have
clear tasks to perform. If we are about to reach the goals we have set within
the deadline, we must know our progression. This information is obtained through
control. In order to guide our plans and decisions it is crucial to have a
To obtain this strategic goal we need a strategic plan (plan designed to meet an
organisation’s broad goal ). Without a strategic plan it is hardly possible to
have a view