Introduction
Over the last several years our management team at The Fresh Connection has been working diligently to turn around a fledgling company and improving its position in the global market and with the stakeholders. When we inherited this task our company had an ROI of almost -13%, and there was an extensive list of outstanding issues. From less than optimal capacity utilization to product obsolescence, there were issues in every aspect of the supply chain that were combining to drive the overall ROI down. Our team focused on developing an aggressive front end strategy to combat the ROI, anticipating that change may not come as quickly as we would like. Ultimately, we believe we have gotten to a point now where we know what our root causes are, and have found a solution that has started to pay off.
Strategy and Impact
By far the most important decision we had to make as a team was what kind of strategy we would implement. This included two parts, the fist being the customer facing strategy, and the second was the internal operations strategy. We had decided that our customer strategy initially would be to sell high profit margin products and manage lower volumes. This would start to shift to a more flexible and adaptive strategy as our company began to understand the customer’s needs. We shifted to targeting each specific customer with the highest demand products and would eventually trim our offerings by removing two of the products that had the lowest service
We evaluated our company’s position in the industry, and found ourselves in an excellent starting position to further develop our products and match them to the industry’s needs. Our market share is adequate and we can advance further with our strategy improve and reposition our products in the coming years. We have underutilized capacity, which we intend to improve, while increasing automation to reduce costs. We have plans to improve our promotion to improve product awareness and with the appropriate product lines we will increase price to improve margins and better align our high-end product image. Our current financial position is optimistic, showing our leverage (Assets/Equity) at 2.0, when our goal is to maintain 1.5-2.0 overall. By utilizing the analysis tools we are learning what elements are driving demand, how to effectively tailor our products through R&D, how best to adjust our marketing and pricing, while lowering input costs, in order to improve margins and to ensure our stakeholders are all satisfied.
The company is looking to increase profitability and find a long-term solution to the inventory problem.
One frequently asked question in business today that is least answered is, as stated by David Chaudron, PhD (2003), “What can we do to make our business flourish, survive and grow?” With the rapid changes in technology and the rise in the globalization of markets, we must have a game plan in place for adjusting to these changes. It has become increasingly difficult to predict what is going to happen, and there are thousands of obstacles and opportunities along the way. To add to the confusion, there are thousands of products, solutions and methods for dealing with these changes. With many brands, sizes and varieties it is very difficult to choose what is best for your organization. Add to that,
Teams were able to introduce a new line of microcomputers in four different regions. All five teams were entering the market at the same time and they started with exactly the same amount of resources and knowledge of the market. There were three business segments in PC market. The higher priced Mercedes segment, included high performance computer for use in engineering and manufacturing applications. The medium priced, largest group of customers was the Workhorse segment, which was based on easy to use PC. The Traveler segment included practical computer to use while traveling and their customers were price sensitive. In quarter one, the teams were to establish their firm and set up their shop. Following, in quarter two, the teams dived in to test the market. In quarter three, the teams had to make some changes and decided on market expansion. In quarter four, they made choices to invest in the future. In quarter five, they had to expand their business strategies. In quarter six, they were able to adjust their firm’s strategies, tactics, study the market, review financials, evaluation production data if it was
There has been a large amount of research into what strategy is, since Michael Porter’s perennial work in the 1980s. Studies done on the execution of strategy have been far less numerous. However, there is one major understanding about the execution of strategy. The execution of strategy is a vital part of success in business. A summary of many myths surrounding various strategic executions will be outlined, along with their subsequent analyses.
Strategy is a set of complicated tactics formulated by the executives of a company directed towards the achievement of company’s goal (Salmela, 2002). It is about all the path ways that a company would follow to reach its ultimate goal. It is a company’s strategy which helps to identify what it does better than the other companies in the industries, which may be different from what it does best. For successful strategy formulation and implementation, a company should know the needs of customers and should have knowledge of its competitors. Through a good strategy a company would identify that opportunity which makes it different from the others (Thompson, 2005).
The overall strategy undertaken by the team while investing in R&D was to tackle two major issues: price and energy density which represented the desired features required by customers.
Li & Fung is a long-standing Hong Kong based company that that has evolved from an export trading company to a coordinator of value-added services across the entire supply chain in a global, open manufacturing environment. They assess the clients’ product and delivery needs and orchestrate supply, manufacture and delivery in a very tailored and specialized way (Claremont Conversation Online, 2008). In the prevailing business environment, it has not been cost effective to trade with SMEs since production orders were below the factory minimums. Through the implementation of an internet portal, they have secured their position with the SME market while maintaining economies of scale.
Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).
Significant investments have been made by MF&L that arguably are capable of satisfying the future demands of the growing company. Multiple platforms were integrated to form a solution that addressed many of the issues faced in the early 2000’s. Their
St. Jude Medical, on September 2015 announced their new executive leadership team, and that incoming President and Chief Executive Officer (CEO) Michael T. Rousseau has been chosen to lead the organization into the next phase of growth and innovation. The new team ensures the continuity of key leadership positions within St. Jude Medical. The executive leadership team will include a new structure intended to drive organizational effectiveness and maximize the depth of experience of St. Jude Medical’ leaders (Media Relations, 2015, para.1). The expectations, plans and prospects for the company, including potential clinical successes, anticipated regulatory approvals and future product launches, and projected revenues, margins, earnings and
In order to develop the “right strategy” to succeed in business, managers must make the right decisions; and in order to make the right decisions, they must have objective, accurate, and timely : E. information about market trends and changes.
In this modern hypercompetitive marketplace, a company must be a powerful competitor to survive. A company must possess a powerful strategy in order to become a powerful competitor. But what makes a good strategy for the company?
Traditionally, strategic decisions were thought of as "big decisions" made by general managers. However, big strategic decisions may not be the only source of competitive
The senior management team at Aztec Component Supplies knew that they were facing a decision crucial