Rio Bravo Essay

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Rio Bravo IV – A report of the plant manager Steyn (2010: 30), quoting Thompson and Strickland define a company’s strategy as the game plan a company’s management has for positioning the company in its chose market arena, competing successfully, pleasing customers, and achieving good business performance. Steyn, Schmikl and Van Dyk (2010: 18) define corporate strategy as the pattern of major goals, objectives and essential policies that lead to improved benefits, the prime purpose being to add value to the organisation. The authors continue to show that this strategy is best achieved through the utilisation of the Balanced Scorecard. Introduction of Packard Electric and Rio Bravo IV...... Negative issues identified are: Unclear Mission Although the parent company possibly has a defined mission, it is clear from the Case Study that no formal mission has been identified for this particular plant, the only clear goal is the contract to provide electrical parts to the Japanese company, New United Manufacturing Incorporated (NUMMI). The authors have also identified that Rio is not familiar with NUMMI’s requirements and operations. Had they understood the type of clients, they are dealing with, it would have been easy for them to produce a “Mission Statement” based on the services they need to provide to NUMMI This was due to the fact that the appointed management didn’t have the necessary skills, knowledge and experience in setting up this kind of the manufacturing plant never mind a plant of this magnitude, even the resources allocated to this project lack experience in the same. Market not clearly defined Part of ensuring that a successful manufacturing plant is set up is knowing the market you are operating in, with and against. The failure in knowledge of the market restricted Rio in in identifying the competitive dimensions that need to be

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