This is almost a guaranteed way to lose customers. 5. I would suggest that GLC carefully consider every pro and con of the possible operation. Being able to transport products to the manufacturer in a larger quantity would be great, but does the possibility of losing customers or perhaps not being able to have the project funded by investments put the company in an economic decline be worth
Joann, the purchasing agent for Occidental Aerospace, wanted to take advantage of the availability of Standard’s competitor’s bids to negotiate down on price. Until Standard is able to justify the price charged in terms of the value of the benefits provided they are in to lose Occidental as a client. Stiff competition might have force Occidental to focus on cost reduction, hence changes in its procurement policies. The company now requires multiple bidders instead of the previous sole sourcing which contributed to the long established relationship with Standard Machine over the years. Responding appropriately would not only secure the long preserved relationship but also increase Standard’s profitability.
If without the planning of a budget, the company may easily over spending on the cost. In addition, it helps to understand whether the business is in a healthy finance position by comparing with the actual figures with the projected figures. (John Tennent page179) mentioned that for a business planning on budgeting is a process used by management to create the blueprint for achieving that success. Financial planning is the most fundamental task for a business to determining on it strategic goals, objectives and achievement. The Financial plan needs to include the timeframes as well in order to achieve the goal within the budget set.
With the economy in recession, high unemployment rates, and high interest rates proved very challenging for Welch to run GE. The challenges faced from inside the company were massive information and inefficient macro-business models. Amidst all the challenges, Welch took them on with a motto, which was to be “Better than the Best” (Bartlett & Wonzy, 2005). Welch took a stand to restructure the company and identified managers who would fit in areas that could assist to restructure the company, while other managers who did not bring value to the company were let go. By eliminating the sector level, about 123,450 jobs, and also eliminating addition of new jobs, Welch implemented lean and agile methodologies, as well as real-time-planning strategy.
The company has seen an increase in weaknesses over the course of the recall mentioned in this specific scenario. The fact that millions of dollars is being spent in order to ensure that the recall is handled correctly is a great indication that the company wants to do what is right, but it is a financial strain that the company simply cannot handle, as well as a great way to damage the brand name. The company has the strength of their corporate structure and a pretty clean history to help grow positive brand awareness. Mattel has the opportunity to correct the situation found in the scenario if they apologize to the public and issue a statement about their plans to alleviate all concerns. Finally, the threats to the company include decreased growth, loss of leadership position, and the potential for new recalls to emerge.
Although confrontation of the aforementioned issues is of paramount importance, the most critical obstacle encountered by today’s managers, is their ability to effectively make decisions that allow the organizations they represent to adapt quickly to change. Without a fast-response to change, companies risk several compelling reasons to “adapt or die,” including a loss of market share to both foreign and domestic competitors; organizational atrophy, occurring as a result of stagnant lines of vertical communication mired in layers of bureaucracy; and missed global opportunities in larger, emerging free markets
As we know, people don’t like changes, especially the ones they can’t predict. If they feel uncomfortable after the acquisition, they will leave the company. High employee turnover rate will lead to vest cost of training expense and reverse effect of working environment. 1 BADM 590 Home Assignment 2 2.Return on investment Yue Wang Cisco had the acquired company’s products appear on its price list on the day the deal closed so that Cisco’s sales force could immediately begin to sell the new products. I find it is a great method to raise the acquired company’s sales.
The next issue is a role of TBTF institutions. Firstly, some businesses that are so large can make up a significant part of an economic sector. So their failure could cause the sector to crash and damage the economy. Secondly, the failure of TBTF companies has the potential to take other businesses down with them, as all companies maintain relationships with partners. When a major source of orders disappears, a
Changing the formatting and organization of financial reports is a big undertaking for most businesses, but to require businesses to redo many years of financial data into a new format would be a great cost and a source of great frustration for companies. As I reviewed the format of example 1 on page 115, at first glance I was opposed to this change. The format was unfamiliar and difficult for me to read since I am accustomed to separate income, balance sheet and cash flow reports. But once I took my time to read the detail captions, I see how this format could make reading financial statements easier. I found the flow from assets/liabilities to income/expenses and finally ending with cash flows a better system than using three reports to review separately.
It’s their internal problem too, because stitching manager wants to run the work order with minimum change overs, so he always has a choice to select desired work order (work order having similar specifications), due to huge inventory stock. The inventory stock helps manager to select his choice, so that change over time may be minimized. When the inventory is low then the manager has to accept changeover loss, multiple times in a week. 6.1.1.4. Late Arrival of Worker The late arrival of worker is fourth major reason behind the situation of huge inventory level in stitching department.