MILAN MOHANTY INTERNAL ENTREPRENEURSHIP AT THE DOW CHEMICAL COMPANY Overview:- The Dow Chemical Company is the second largest chemical manufacturer in the world in terms of revenue and in terms of market capitalization; it is the third largest in the world (as of 20071). There was a steady growth of the market from the year 2002. But before that the company faced a back drop in the profit margin. The company realized its growth in 2002 only after merging with Union Carbi as the company’s sells rose to $27.8 billion. Back in 1998, the company faced the real down turn of the sale to $18.4 billion. Then, for 4 years continuously, the company managed to keep the sales around $20 billion. In the year 2000, the company planned to adopt a …show more content…
* Ian Telford, the European sales Director for EP&I can be considered as major pillar for the strength of the company. His crystal clear goals and visions for the company established an efficient procedure for the development of the company and his enthusiasm and the hunger for success motivated its employees for a better team work with success keeping in mind. He was flexible with his concepts and the strategy so that he can react as per the situation, which helped him to overcome the hurdles which came in the way of his success. Weakness: * The company has to suffer economical loss due to its cyclic nature of production. The production does not run at full efficiency every time. This leads to the waste of energy, money and resources. * There was no transparency in the price of EP&I products which can act as a hindrance in the market. No transparency of the price can lead to a bad market status and thus leading to a heavy decline in the efficiency. * The attitude and behavior of Ian may not be a big concern for the development of the company but it can degrade the motivation which can degrade the strength and unity of the employees in the company. This can lead to downturn of efficiency and shows the sign of immaturity. Opportunity: * The management should consider a group of customers who solely wants product at low cost rather than consignment or service. * The management should take
Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.
The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.
According to consultants in the case study, “We have found the output and also the input quality control inadequate and ineffective, substandard raw materials have been accepted from suppliers on fourteen occasions have repeatedly gone bad while in storage, inadequate supply of some items has either stopped or slowed down production, the morale among production workers is found to be very low.” The team leader is not performing his job well. The employees are being nonchalant at work which is destroying company’s image. As a result, the company will lose its business.
PTI had been entirely dependent on Harry Elson to manage all strategic, financial, operational and marketing decisions. However, Lane’s Lane experience in managing finances, managing operations, leading teams and making strategic decisions in the manufacturing industry are the necessary hands-on skills to lead PTI after Elson’s death.
This is the case of huge fixed cost involved in production, so the argument goes like this, if they will stop manufacturing, there will be a huge loss for them including the total fixed cost and sunk cost, which cannot be recovered.
The main problem for the company is to facing the high scrap rate and quality of the product. Another reason is the machine breakdowns, every time the machines stopped and restarted will make scraps out from the machines. Last reason is to produce new product will cause high
The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.
Conversely, looking at the income statement for PMWL, operating income shows healthy gains of $45,862, which means the operating expenses are significantly lower in comparison to AWBL’s. However, PMWL’s cost of goods sold appear abnormally high, which makes an investor question whether this company is at it’s maturity phase in the product life cycle, and how much additional capital is necessary to bring this figure down to a number that leverages economies of scale and allows for profit maximization.
After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new
How to operate on a day to day basis (Meet organizational objectives) and no business model whether revenues and costs make viable business sense.
The company may have to pay higher production costs or may not be able to produce and
* Employee’s were losing confidence in Alex as a team member and motivator can be connected to the theory of inter-personal roles as this role includes training and motivating the employees which lacks in this case.
· Nowadays, technology is developing more and more and so companies need to catch up this opportunity to expand market and business. In the case of Global Star Enterprises, the firm has less
Southwest Airlines encourages respect, innovation, a caring attitude and strives to adhere to all labor and employment laws which includes respecting privacy and equal opportunity. With a strong concern for avoiding corruption and avoiding anti-competitive behavior, they work hard to maintain accountability of all business practices. An example of this is the promotion of competition to provide consumers low air fares and a variety of high quality air service offerings across the US. This shows their devotion to the community they serve and maintains the company culture.
Managing internal operation is the most important task for an organisation especially a multinational company. A good managing system can bring the whole company to the next level. While a poor managing system will cause tons of problems. In fact, the point of managing internal operation require level of strategy of understanding not on consumer behaviour, but the employee’s attitude and performance towards the company itself.