As a company try to grow and expand their business, the proper team must be in place that specialize in key areas they want to expand in. Korvette was not able to contain the proper team to specialize in new business areas. Lack of knowledge in these new areas cause those businesses to shutdown and lose more profit. The inability to cope with the amount of stores opening up in further locations from the original in New York made it very difficult for them to oversee the particular activity that was going on. Weak channels of distribution were very poor and made it difficult for them to transfer merchandise.
So they believed that local market would not have need in as much services and complexity as contrary markets. Also they believed that the local markets would give to company much higher margins and other benefits. But by being small company, Logoplaste for faraway locations needed a huge number of senior managers to control new firms at new markets. Unfortunately Logoplaste did not have enough senior managers to enter new markets. And as well, it was very difficult from financial perspective due to financial crisis, when banks were not giving out loans and funds for every single company.
And she also overestimated the profits the bakery can made and the capacity they need. Because the growth of the company is slow and stable, I don’t think that she should choose a much too large building to move in. She didn’t consider the long-term expenses of the building and whether the revenue they made can afford the cost. Therefore, she should ask the professions for advice and consider all the factors that will influence their development. 2.
Analysis: Although Green is willing to achieve a high selling growth for the company, he concentrated too much on achieving the goal instead of observing the surrounding situation. Moreover, Green did not have enough managerial experiences so he was not able to deal with issues based on a structural and long-term view; that's why he decided to avoid interactions with Davis instead of making improvements or rebuilding his relationship with Davis after Davis first criticized him. Their divergence in work style and personalities also contributed to the problem. For example, Davis prefers using memos or presentations when a meeting is set up, while Green would rather talk to his client directly or talk about things face to face. In addition, lack of communication further deteriorated the situation between Davis and Green.
Enron Corporation did not give the CFO’s factual or expected benefits from these previous transactions or provide financial statements in its entirety. Not changing the original structure could have been completely different. Enron made a huge decision by hiring people that was outside the company and giving them the power to make critical decisions that would affect the organization. The reward system within the company changed and gave the Top performers more opportunity for bonus and stock options. Since this system was organized by an internal authority, it did not work too well.
The first area concerns the chains inability to adapt to change. The layout of the stores has remained unchanged for the past 15 years, despite the change that competing stores have made to their layouts. A grocery management system that is implemented, used, and adhered to is recommended. The second area concerns the roles of the district store supervisors and their store managers. Store managers have been deprived of the opportunity to advance due to the lack of training and the general development of managerial skills by their supervisors.
• Though there was a Robust ERP system, the system failed due to major inconsistency of important information across different parts of the corporation. This made it difficult for executives to monitor and compare performance. • Even with Data warehouse initiatives, there were issues of the technical expertise required to extract meaningful data from the warehouse and data useful for predicting the future. • SYSCO’s competitive advantage was dependent of the decision of Twila Day to implement the BI Software, which would give SYSCO an advantage over its competitors. Initiative Objectives/Benefits No Objectives Benefits 1. Business Intelligence Software gave users access to data that was relevant to them • Avoid the need for employees to write complicated database queries or engage in programming tasks.
Communication distance between executives and front line management. Since the previous CEO placed many of his friends on the board, their interests to grow are not in line with that of their front line management. 2. Theme park management is not as efficient as it should be relative to its price. Their low pay structure does not incentivize their employees to grow with the company.
The lack of teamwork within GM was one obstacle in pursuing the project. Many managers felt that the company had already invested billions in developing fuel cells and didn’t want to switch gears all of a sudden. Also, lack of trust and other managers were scared of another failure of an electric car. A lack of commitment from the start of the project was also an issue. If Lutz and Burns had the managers on the same page and assured them of the potential success of the volt, there would have been less hesitation.
Levine has put a lot of efforts for success of the project but at the same time he had a personal interest of becoming independent GM in the company. He did not estimate the project resources like monetary costs and human capital involved with the project ahead of time which created problem during the execution phase of the project when the Aurora team was over the allocated budget. Also, he was aware of the cyclical nature of the business and potential restriction on staffing but he did not plan accordingly including the risk assessment of a great idea like Aurora. In a nut shell, we think that Aurora project was a success overall but Levine could have managed it better with detailed resource planning and risk assessment for better and accelerated execution in short term. [Exhibit 1 and 2] Challenges Faced One of the biggest challenge faced by Levine is to venture into a disruptive technology market because this resulted in him (and Teradyne) facing the ‘Innovator’s Dilemma’.