Daikin Company: Short-Term, Mid-Term and Long-Term Plans

Topic: Company Analysis
Words: 318 Pages: 1

Daikin, one of the largest air conditioning companies, was chosen for the study. The company is engaged in the development of three types of plans: short-term, medium-term and long-term. The long-term plan is concretized in the medium-term plan, and the medium-term plan in the short-term plan, respectively. All three documents are consistent with each other and provide for the dynamics of development.

The long-term plan includes the objectives of the company, as well as the required production volume for the next ten years. Daikin’s long-term goals include improving the environmental friendliness of production, developing factory networks worldwide, and increasing its presence in the North African market (“About Daikin”). The medium- and short-term plans included:

  1. utility rates, costs of utilities;
  2. payroll;
  3. raw material consumption per unit of product or service;
  4. production process technology;
  5. marginal profit;
  6. availability of specialists with a certain level of qualification
  7. amounts of borrowed funds, amount of interest.

Execution of the plan is actually carried out by the entire managerial staff of the enterprise in its area of responsibility. For example, the head of the production oversees the production of the necessary batch of goods within a specific time frame, and the head of the supply department keeps track of how much raw material needs to be received and shipped each day (“About Daikin”). Control over all areas and the execution of the plan as a whole is the manager’s area of responsibility.

One of the shortcomings noticed in the plans is the lack of consideration for sudden circumstances, such as equipment breakdowns, a large private order, or a disruption in the delivery of raw materials. Ideally, the company should have measures in place for each such case. In order to eliminate such a disadvantage, it is necessary to initially set lower figures, not at the limit of the equipment, and if they are successful, to increase them slightly.

Work Cited

“About Daikin.” Daikin Global, 2022.