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Victoria Heavy Equipment Case Essay

Decent Essays
Victoria Heavy Equipment’s most recent organization has been lacking effective communication practices amongst all of its divisions. The company has been suffering from lack of clear goals in measurable terms, for its divisions. The idea of each division functioning as an independent unit, whether it being cost or profit center, is a remarkable beginning. However, clear goals and key measurable need to be set for each center, which in our case have been overlooked. As a result, many of these centers have over spent, resulting in over expenditures, something we can definitely not afford with anticipated slower market.

Brian Walter Jr. had a great vision of not turning into “bureaucratic, quantitatively, grey-suited manager ...”, yet the
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This clearly indicates miscommunication between R&D and Finance.
In addition, better communication was required at time of design of LTM-1000 between marketing and ultimately our customers to first of all build what our customers wanted. Rather than creating a monster that was assumed was what our customers would buy. Second, should there existed an effective communication guidelines between finance, marketing and R&D at the time, we possibly could have convinced LTM 1000’s target customer to foot the bill for some of development and prototype costs. I am quite aware that LTM 1000 was on Brian’s Want-List which could not have been disregarded but with better consultation with other departments, it could have turned into a more sellable product rather than a successful crowd-magnet.

First step is to set, agree and emphasize on our hard goals as a team. These goals are not expected to be too different form the ones set by Brian for V.H.E. After that, each division is expected to present their SWOT or a similar analysis for their individual center. Once these tasks have been completed, each individual center manager and I can set and agree on hard goals for that division along with a specific strategy to reach those goals. For example, the goal of reducing waste, including, high level inventory will be on the hard goals list for all profit centers. Profit sharing plan will be re-written to reward
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