BAIT Case Analysis I Royal Caribbean Cruises Ltd Issues: External Issue: There appeared an overall depression in traveling industry since 2001. On the one hand, the outside business climate has become perilously changeable. In addition, customers tended to book more at the last minute, putting the company to a disadvantage position due to the mis-prediction of customer resources and an average 15% commission given to agents. On the other hand, the economic downturn also impacted the travel industry. Internal Issue: There is a misalignment of IT Strategy and the whole business strategy in RCCL.
Obviously it is evident that Henkel Iberica current process isn’t working due to challenges of forecast exactness and demand variability for all the products it offers. The evidence is clear in the data from 2000 to 2001 as overall sales increased 2.2% but net earnings decreased by 5.7%. For a company to be profitable, focus should be on net earnings and not sales and providing a wide range of products to satisfy every customer. The loss of earnings is most likely due to not having the right product mix and volume at the right time as well as lack of communication between sales and
One problem with the existing network is data throughput. Large files are transferred across the network regularly, and the transfers take quite a while. In addition, when two or more computers are transferring large files, the network becomes unbearably slow for users. Adding the manufacturing computers will only make this problem worse and result in another problem. Because the ceiling is more than 30 feet high, there’s no easy way to run cables to computers, and providing a secure pathway for cables is next to impossible.
Key Issues:- Although Thembeka has set up a good business in the field of jewellery but their some challenges that company were facing during their supply chain. Vonkel has to consider all those challenges before expanding their business. Following are the issues of Thembeka that they were facing:- 1. They were unable to locate the stock efficiently from their inventory which resulted in frequent stock out during the peak demand periods. In this case their inventory is placed in various outlets.
Recently growth has been restricted, due in part to recent fines from state and government agencies for poorly kept records for both clients and employees. Recently APremium has not been able to respond to the staffing demands of the newer clients in remote regions, their employee lists have become overwhelming and very difficult to filter through in time to be useful in responding to staffing deficiencies on short notice. The field staff has been complaining that payroll is always late and many of the skilled laborers are threatening to leave. APremium is seeking another contract with a very delicate group of clients who require premium care and attention to code. This contract can increase their business by 75%.
Moreover, when they leave, the organization needs to hire new inexperienced staffs with highly paid and full benefits to fill the responsibilities, this adds up to dollars and cents. * Losing time and money: when there is an increase of employees’ turnover, the tasks will be overloaded as there are no staffs to cope with those. This leads organization to recruit staffs to fulfill job vacancy and to do the tasks. Recruiting new staffs is not a short easy process and costs less, the organization has to pay much money on advertising, training, developing and so on. Also, it needsto spend time to do the interview, to select and to train them to work.
(Overall decline of market / demand) and the increasing price sensitive of customers. • Strong international player filling the needs of the booming industrial economy abroad leading to fact that Fortis is not yet ranked under the world TOP 10. Question 2) • Overall declining industrial economy in U.S lead to a decrease in demand and to high cost pressure within the industry. Given that, Fortis’s customers are becoming more and more price sensitive and less willing to pay premium prices. Additionally, the continuously increasing steel prices leading to higher production costs and impacting product’s margin.
The offer should meet the individual needs of each segment. Secondly, the pricing is another problem. The current offer is a monthly fee offer and the fee are very difficult to estimate in the contracting period, so they are frequently under estimated and consequently the contracts are unprofitable and on the contrary many customers consider the price of the service was too high. To define an optimal pricing system, Michelin needs more data on its customer even this could take more time. It demands a large customer database and efficient information gathering and data processing.
The transition was not smooth and plagued with increasingly long production delays. Because of these delays, customers were irritated and dissatisfied with Engstrom. Engstrom had to come up with a plan to turn this condition around. The Engstrom plant had to focus on cost savings, which meant producing more per hour of labor spent. The Engstrom incentive plan therefore, focused mostly on extrinsic motivation (Beer & Collins, 2008).
The fear of having lower SPH forced employees to make the non selling hours off the record and this resulted in losses for the employees, in both, monetary as well as recognition of extra efforts work. The main cause of this problem is the incentive for the sellers. It causes employees to work off the clock in order to increase their SPH. Another important problem that the employees of Nordstrom confront is the peer pressure. Every employee want be in the shifts that had maximum sales to increase their sales-per-hour, so there was a lot of competition.