clined compared with the same period last year the production manager Mr. Goodyear attributed the lack of sales growth to the economy, he was prompted to undertake a number of economic measures that included cuts in production costs a layoff in the design and product development departments. Although profits are still flat, he believes that within the next six months, the results of his decision will be reflected in increased profits. The general manager of sales, Mr. John is really concerned with customer complaints about the company's realistic line of working models. The moving parts
Pride Wheels is a 20-year-old company engaged in the manufacture and sale of patient Stretchers and patient wheel chairs. The company has built a reputation on quality and innovation. Although the company is one of the leaders in its field the sales have leveled off in recent years for the most recent six-month period sales actually declined compared with the same period last year the
The general manager of sales, Mr. John is really concerned with customer complaints about the company's realistic line of working models. The moving parts on certain models have either got dis-engaged/failed to operate or operate erratically, his manager Mr.Jack, has proposed a trading program by which customers could replace malfunctioning models with new ones. Mr. Jack believes that this will demonstrate goodwill and appease dissatisfied customers. He also proposes rebuilding the trade and selling them at discounted prices in the company's retail outlets. He doesn't think that this will take away from sales of new models. Under this program no new staff would be needed will stop regular worker would perform needed repairs during period of seasonal slowdown, thus keeping production level. When Mr. Eric a production executive heard Mr. Jack's proposal, he said that a better option would be to increase inspection of finished models before they were shipped to prevent defective models reaching the customers. According to Mr. Eric 100% inspection would weed off any defective models and avoid the problem and entirely.
(Answer in 300 words)
What exactly is the problem faced by Pride wheels?
Assuming the role of a consultant who has been called in for advice by the company CEO, what would you recommend?
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