In the late 1950s A.C Gilbert missed a chance to adjust and adapt to a new market. Though this changes had been made earlier on by Jack Wrather, the organization could still not go back to its initial state and it was also unable to adapt to the behaviors of consumers over the years. This was as a result of a huge market share loss. Therefore, it is essential that this market share be improved by 10 percent as this is the best performance strategy in A.C Gilbert.
Improving and increasing the financial resources
Since A.C Gilbert had lost a lot of capital due to its loss in the market share, it was difficult for it to compete in the existing market (Terziovski 1997). To increase its share in the market, the financial resources in that company will have to be strengthened. This can be done by improving its assets in the market that will help attract private and public investors as well obtain credit funds for full expansion.
The major fallbacks at A.C Gilbert were the changes on the consumer preferences and behaviors that the company could not adhere to at the right time. The company invested too much on advertising rather than putting more funds on the physical resources of the company, this lead to poor quality of products, late delivery of goods and poor satisfaction to customers. Therefore, this company should put more funds on its machinery that will enhance quick and quality production.
Productivity
In the previous years, this company has had problems in its performance such as: reduced quality of products, inconsistency in management, low customer relationship, late deliveries of goods and inadequate staff. The above problems have led to overall poor production and difficulties in adapting to the new trends. Thus, the major objectives of the company would be to cut on the production duration by 5 percent, reduce waste by 10 percent and then ultimately lead to high quality products that are accessible faster.
Innovation
Another major problem with this company was the inadequate adaptation and innovation in the technology. There were no changes on the techniques of manufacturing, the sales force, the products and even the different departments in that organization since the year 1967. The system used in the production process is simple and cannot meet the increased demand (Bessant, 1998). Therefore, this company will have to spend an extra coin to ensure innovation to a great extent, increase the manufacturing process, increase the sales and by doing that decrease the huge expenses incurred on advertisements. The company should aim at building a new and better brand.
The processes and the systems used in this company must also be changed. Currently, the systems in the organization are quite simple and only include the following stages: designing, purchasing, planning, distribution and manufacturing. The proposed process will aim at increasing accountability and reducing wastes.
Source: (Bessant, 1998)
The trends research group: A team of experts will always try to conduct an extensive research on the trends in the market to evaluate the market wants.
A design group: The trends research team will pass their results to the design group that will develop a new principle for the current and the new products that need any changes.
The sales group: This group main objective will be to approve the conceptions provided basing on the day to day feedbacks received from the distributors and the consumers. This team will also determine the pricing and the demand of the product.
The purchase group: This group will contact the suppliers in order to obtain the goods. This team will be required to try negotiate fair prices for the products and also ensure that all the partners to A.C Gilbert follow the values and policies of this company.
Engineer group: After all the purchasing has been done, the Engineers transform all the conceptions to a reality and make necessary changes to the initial design. This group will also be required to ensure there is optimal production by making sure the manufacturing process will be effective (Terziovski, 1997). This group also determines the duration of the production process. All the relevant information will then be passed on to the manufacturing group.
Manufacturing group: it is the group that starts the production process.
Quality-control team: After the production process this team approves the quality of the products before they are distributed.
Distribution group: all the products approved are sent to the authorized distribution centers for distribution. It has the responsibility of acquiring logistics, negotiations and the market research data.
After sales services group: This group collects feedback from the consumers and the partners about the products. It will also be responsible for reporting any issues about the products to the trends research group.
The Revised Performance Strategy.
This is quite similar to the initial performance strategy with only a few adjustments.
Strategic set goals
In the late 1950s A.C Gilbert missed a chance to adjust and adapt to a new market. Though this changes had been made earlier on by Jack Wrather, the organization could still not go back to its initial state and it was also unable to adapt to the behaviors of consumers over the years (Bessant, 1998). This was as a result of a huge market share loss. Therefore, it is essential that this market share be improved by 10 percent as this is the best performance strategy in A.C Gilbert.
Improving and increasing the financial resources
Since A.C Gilbert had lost a lot of capital due to its loss in the market share, it was difficult for it to compete in the existing market. To increase its share in the market, the financial resources in that company will have to be strengthened. This can be done by improving its assets in the market that will help attract private and public investors as well obtain credit funds for full expansion.
The major fallbacks at A.C Gilbert were the changes on the consumer preferences and behaviors that the company could not adhere to at the right time. The company invested too much on advertising rather than putting more funds on the physical resources of the company, this lead to poor quality of products, late delivery of goods and poor satisfaction to customers.
In the previous years, this company had problems in its performance: reduced quality of products, inconsistency in management, low customer relationship, late deliveries of goods and inadequate staff. The problems led to overall poor production and difficulties in adapting new trends (Terziovski, 1997). Thus, the major objectives of the company would be to cut on the production duration by 5 percent, reduce waste by 10 percent and ultimately lead to high quality products that are accessible faster.
Innovation
Another major problem with this company was inadequate adaptation and innovation in the technology. There were no changes on the techniques of manufacturing, the sales force, the products and even departments in that organization since the year 1967. The system used in the production process is simple and cannot meet the increased demand. Therefore, this company will have to spend an extra coin to ensure innovation to a great extent, increase the manufacturing process, increase the sales and by doing that decrease the huge expenses incurred on advertisements. The company should aim at building a new and better brand.
The processes and systems used in this company must be changed. Currently, the systems in the organization are quite simple and include the following stages: designing, purchasing, planning, distribution and manufacturing. The proposed process will aim at increasing accountability and reducing wastes.
The trends research group: A team of experts will always try to conduct an extensive research on the trends in the market to evaluate the market wants. This team will also collect feedbacks from consumers and impressions from the after sales team that will assist in analyzing trends.
A design group: The trends research team will pass their results to the design team that will develop a new principle for the current and the new products that need any changes. This conceptions will be passed on to the sales group.
The sales group: This team main objective will be to approve the conceptions provided basing on the day to day feedbacks received from the distributors and the consumers. This team will also determine the pricing and the demand of the product. This team will then pass this information on to the purchase group. It was also write reports together with the after sales group.
The purchase group: This group will contact the suppliers in order to obtain the goods. This team will be required to try negotiate fair prices for the products and also ensure that all the partners to A.C Gilbert follow the values and policies of this company.
Engineer group: After all the purchasing has been done, the Engineers transform all the conceptions to a reality and make any necessary changes to the initial design. This group will also be required to ensure there is optimal production by making sure the manufacturing process will be effective (Bessant, 1998). This team also determines the duration of the production process. All the relevant information will then be passed on to the manufacturing group.
Manufacturing group: it is the group that starts the production process.
Quality-control team: After the production process this team approves the quality of the products before they are distributed. This group will also approve any parts made by the engineering group.
Distribution team: all the products approved are sent to the authorized distribution centers for distribution. This team has the responsibility of acquiring logistics, negotiations and the market research data.
After sales services team: This team collects feedback from the consumers and the partners about the products. Focus groups and surveys will help collect this feedbacks. This team will also be responsible for reporting any issues about the products to the trends team.
The strategy of analyzing risks
An increase in the cost of machinery must be countered by ensuring there is increased profits. If there are no profits obtained, then this will be quite a huge risk. Since the company has made many adjustments in its departments, the chances of not meeting the cost of machineries is low. In case the cost is not met then the company will face huge risks. This shows that there is a medium risk.
Work health and safety
Introduction of new machineries will have an impact mostly on the engineers who may end up using the machines inappropriately creating risks to themselves. Therefore, there should be adequate training and auditing of the workplace health and safety must also be done. The influence of this audit might be sometimes huge. This shows there is a high risk.
All the government guidelines and standards must be well followed. In case a toy produced outlaws the safety of consumers then there will be a huge loss. Though, the likelihood of such an instance is low.
|
Current Year |
First Year |
Second Year |
Third Year |
|
|
30,000.00 |
_ |
_ |
10,000.00 |
|
|
50,000.00 |
_ |
_ |
_ |
|
|
1,000,000.00 |
_ |
_ |
_ |
|
|
15,000.00 |
_ |
_ |
_ |
Source: (Bessant, 1998)
References
Bessant, J. (1998). Developing Continuous Improvement Capability. Journal of Innovation Management, 57-89.
Milé Terziovski. (1997). The Effects of Continuous Improvement and Innovation Management Practice on Small to Medium Enterprise (Sme) Performance. Australia: University of Melbourne.
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