The following issues I have identified are: Staff training and Procedures There is currently no training taking place within the store as it is seen as a waste of money. This is causing low staff moral and is showing in staff attitudes. The procedures booklet issued by head office is almost redundant and is unused by the store. Structure of Staffing The business seems to be top heavy with little or no respect for night Managers. It seems though the manager and assistant are not seeing the business as a whole by not working different shift patterns.
There are not enough regulations and monitoring system for the daily accounting activities. For instance, management and auditors spend very little time reviewing the insignificance of petty cash account. So the five elements of internal control is not work well in this company. The control environment was not effective; there was no effective risk management, which helped the company to realize its objectives; control activities and monitoring are lack. Moreover, the CEO is ultimately responsible for the internal control who assumes primary responsibility for the system of internal control.
Therefore, the project leadership, the BD manager and vendor, lacked the necessary local company knowledge. The CEO, Financial
* Lack of inventory Management Lack of inventory management and standardized parts not being used in manufacturing, due to unrelated inventory procurement of Zing PC. * Ineffective collaboration with the suppliers No or little communication with key suppliers, hence effecting quality and quantity of shipments. * Poor Internal communication Lack of internal communication causing disruption of business processes / operations. * Manufacturing bottlenecks Lack of inventory management / loss of inventory causing manufacturing delays, hence creating bottlenecks / in efficiencies. * Assembly Lines Faults Poor design of assembly floor line is causing manufacturing delays as inter related task are done separately.
Q1) What are the roots of Jamba Juices problems? As Jamba Juice transitioned to the different positions, it was not able to mobilize an efficient value chain to capture the value created. Primary activities are not linked aligned: * Operations: * lack of operation excellence – managers found it difficult to manage a 700 store system: (See exhibit A for analysis of costs as a percentage of sales, operating expense is 35% of sales and has stayed constant) * Outdated stores * Lack of free cash flow * Marketing & Sales: * lack of targeted product specific marketing * Lack of innovation – menu not being regularly updated Secondary activates are not aligned: * Firm infrastructure * Business model based on company-owned stores * No support provided for potential franchise owners * Technology: * No IT infrastructure to consistently review/understand performance at individual store or overall company level * Procurement: * Lack of a robust supply chain – sensitive to raw material price volatility (costs of goods sold as a percentage of sales increased from 2007 to 2008 (Exhibit A)) Other factors that have contributed to Jamba Juice’s problems: * Rapid uncontrolled expansion * Lack of barriers to entry * Market is fragmented Q2 & Q3) Which of the strategic options should White undertake? How should he sequence them? Immediately: * Engage with suppliers to optimize inbound logistics to reduce costs * Close unprofitable stores * Incentivize current managers for increasing the operation margin of their stores Short-term: * Transition the culture of the company: hire new executives (who have experience with a franchise model) in key strategic roles * Transform to a franchise based business model – sell franchise to small propriety operators: this
Both sides lack important information about each other and the learning process is slow and tedious. Culture, work styles, and language barriers are the primary causes for issues. The plant is lacking decision makers which are critical for the plant to operate efficiently and effectively. The management problem is further compounded by problems with the plant performance. The Beijing factory severely lacks any resemblance of an information system and suffers from a hodgepodge of machines that complicates the production system.
The goal was to take the manual data would be integrated into one system where the corporate marketing group would manage the data. The problem from the beginning of the project was the lack of support and resource allocation. There was no alignment with the project sponsor and the project manager as they were clearly disconnected and not on the same page. The project was over budget, lacked quality material and pressured to meet the committed timeline. The PM ultimately took the fall for the team and was removed off the project.
Other problems include the company having a lackadaisical business strategy, internal conflicts among upper management, an information technology department that has not been well run and is frequently criticized by peer executives, and a lack of integrated business objectives that do not align with information technology objectives, the inability to prioritize projects due to unclear business objectives. This has resulted in project failure, a bad company reputation, loss of market share, and stock price tumbling. Carlisle believes that IZL Corporation is salvageable, but needs to upper management to do this. In this paper, the problem, recommended and alternative solutions, as well as implementation strategies are discussed. Key Issues The key issues for Jack Carlisle, according to Robert Austin, are recorded in the informally published manuscript, Jack Carlisle, CIO.
Inventory, quality, vendors, management, and the workforce were all inefficient in the current operations. Various improvements were needed to create a lean operation, starting with buy-in from the managers. Henry Malone, manager of shop operations for thermocouple manufacturing, did not have a positive view of JIT. The facility did not have an integrated system to track inventory and viewed the shop’s floors a “no man’s land” due to goods disappearing after leaving the stockroom. Other issues included setup times and incentive programs.
The main problems found in this case are the ineffective management shown by the catering director, the ineffective support and management from the HR department, the authoritarian organizational culture and the lack of preparedness displayed by Carlos. Solutions and recommendations are proposed to solve the organizational problems. The problems Ineffective operations management In this case, the catering director that has lost control of operations and is disconnected from the realities of her subordinates and customers. Her functioning is very administrative and task oriented, but not efficient. The disconnection from subordinates is illustrated by the lack of