Sma Case Perp Essay

762 Words Sep 26th, 2011 4 Pages
In this paper, I would argue that the best strategy for MEPD is new product development and innovation based on the current market environments and its unique technical capabilities. To support my argument, I would use Congruence Model to analyze the problems and advice solutions.
Crucial Performance
SMA has a strong technological capability in the invention and had been running at an average of 10% growth over the previous 10 years. As one of eight line division in SMA, MEPD developed unique technical advantages and entered new markets quickly until 2000. However, as the general economy is going through a tough period and tge business environment becomes very competitive, MEPD fails to keep its uniqueness and struggles with the
…show more content…
The third problem is alignment of human resource. Most of the newly promoted managers have no experiences within MEPD. Though they have strong engineering skills but were weak in marketing and collaborative skills to manage the activities across departments, resulting there is no leadership within the organization. Additionally, most of the specialists were recent technical or business graduates with one or two years of sales experience in marketing department. The similar situation happened in sales department.
The last problem is alignment of culture. The existing culture is conservative and lack of mutual trust and confidence, which hinders the new product development cycle. Additionally, the budget forecasting systems encourages unrealistic results. To meet corporate’s growth and profits objectives, people only focus on volume and sacrifice profitability.
Conclusions: Integration
The core business strategy for MEPD is new product development and responsive service to individual customer specification. To realize this objective, management needs implement a universal business strategy throughout the organization, and then aligns the strategy with formal organization, human resources and culture. There are several options as demonstrated in the following.
In terms of formal organization, management hierarchy should become an effective integrative tool. For example, if there are any disagreements
Open Document