Precision Engineering Works Pvt. Ltd. is an equipment manufacturing company which produces the equipments for the telecommunication industries(Latino, Latino & Latino,2016). The company is in the industry for long time hence the organization has some of the renowned clients (Latino, Latino & Latino,2016). However, in recent times it has been seen that the company is losing the market as the competition is growing strong. Apart from that there are other factors which are responsible for which the organization is losing the market. The percentage of the profitability has been decreased by 45 % in recent for Precision Engineering Works (PEW) . These conditions are not desirable for the PEW as it will become a barrier for the expansion of the business(Latino, Latino & Latino,2016). The main objective of the paper is to analysis the causes for which the PEW is losing the market (Latino, Latino & Latino,2016). Apart from that the root cause analysis for the loosing of the market in the competitive environment has been developed (Peerally et al.,2017). Based on the identified problem the improvement plan has been made and the required actions those are needed to be taken are mentioned(Latino, Latino & Latino,2016). Moreover the required management of the business and the strategy and the technical management have been discussed in the context of the improvement of the overall situation. The conclusion has been drawn on the basis of the findings from the paper.
The main concern about the Pew is that the company is losing market in the industry. The profitability of the company has gone down almost 45% which is not desirable for the organization (Murray-Davis et al.,2015). In this context the causes for the degradation of the business profitability can be identified. There are some causes for this situation, two main reasons for this situation are-
The analysis of these two root cause will be helpful to identify the main problem. Apart from that the identification of the root cause will be helpful to find the relevant solutions to solve pr mitigate the problems (Hazen et al.,2014). The better management and the strategy for the problem solving will help to improve the business situation for the PEW.
There are various tools which are helpful for the root cause analysis. Some of the most used tools are fishbone diagram and five why techniques.
Problem 1 : The company is losing the business in the competitive market and the profitability of the company has gone down by 45%.
Tool used in this context: The tool used in this context is five why tool for the root cause analysis of the problem.
Usage of the tool: Why company is losing profitability?
The company is losing profitability because the selling of the products and the equipments made by the company has decreased drastically.
Why the selling of the products made by the company has gone down?
The selling of the products of the company has gone down as there are many options available for the consumers (Agrawal, Panigrahi & Subbarao, 2017). Many new organizations are investing their money for making the equipments for the telecommunication industry.
Why people are preferring the products of the other companies?
The clients are preferring the products of the other company because they are getting the equipments required for the telecommunication industry in lower price.
Why the Pew is lacking from the smart pricing strategy?
The PEW is lacking from the smart pricing strategy as there is a lack of the survey in the market regarding the pricing of the other companies.
Why the PEW is not implementing smart pricing strategy?
In the current business situation the company is considering this.
The root cause of the mentioned problem is identified. In this case, the main cause is the absence of the smart pricing strategy in the PEW.
Assumptions made: There are some of the assumptions which can be made in context.
It can be assumed that the equipments made by the different companies along with the PEW is of the limited type. There is very little chance of development of the new equipments.
The clients who are the buyers of these equipments are solely dependent on the PEW and other limited number of companies for the equipments.
Quality is not the factor that effects the popularity of the particular equipments so there quality can not be considered as the parameter for the evaluation.
The marketing and the promotion of the equipments will not affect the business situation for the particular company in this case.
The clients are only concerned about the pricing of the equipments.
Problem 2: The competitors in the industry are increasing.
Tools used in this context: The tools in this context is fishbone diagram.
Usage of the tool: The fishbone diagram is also cause effect diagram. The head of the diagram denotes the main problems. The sub arrows from the main structure pointing at the head are the possible causes of the problems.
In this context the main problem is the decrease of the profitability of PEW. Possible causes are the increase of the competitors in the market and the lack of smart pricing strategy (Wasson, 2015). Increase of the competitors in the market can not controlled by the company (Vom Brocke, Petry & Gonser,2016). However, the organization can improve their performance by taking required steps (Parker, 2017). Conduction of the brain storming process can improve the overall situation by providing the rational solution regarding the improvement of the condition.
Assumption made: the quality and the innovation will not be the parameter for the increasing of the products of the organization.
The other tools can be used for the root cause analysis of this problem.
Brain storming: the rain storming is another process which can be used to identify the problems associated with the organization. There are different causes associated with the problems in the organization. In that case brainstorming can be helpful for identify the correct cause of the problem along with the specific solution (Snee, 2017). The main advantage of brainstorming process is that it allows all the members to express the opinion regarding a particular problem and thus the discussion can be done regarding the different aspects of the problem.
Flowcharting: flowcharting can be considered another way of the root cause analysis. The flowcharting can help to identify the problem through the graphical representation (Liu et al.,2017). The main problem is decrease of the profitability of the PEW. There can be various causes for the for occurring this problem (Lee et al.,2014). However, the pictorial over view of the significance of the different causes can be helpful to understand the main cause for the problem.
Current reality tree analysis: The current reality tree analysis will indicate the current situation of the PEW. This will include the current pricing strategy of the organization (Adams, Tenney & Pew, 2017). Along with that the current reality tree analysis will indicate the areas for the improvement of the situation of PEW (Peerally et al.,2017). In this case future analysis tree can be implemented to mitigate the effect of the pricing strategy in the PEW. This will eventually help to improve the business situation of the organization.
Kepner-Tregoe Technique
This technique will help to break the problem up to the root cause. The main problem of the PEW is the decrease in the profitability (Latino, Latino & Latino,2016). There are certain causes of this problem. However all the problems are not that relevant to the context (Latino, Latino & Latino,2016). This technique will help PEW to identify the root cause of the problem. The main problem of the PEW is the decrease of the 45% profitability (Latino, Latino & Latino,2016). This problem can be breakdown into different sub problems. The identification of the sub problems can be done though the brain storming process (Latino, Latino & Latino,2016). The breakdown of the problem into different sub problems will be helpful to identify the root cause of the problem.
RPR Diagrams:
The RPR diagrams help to identify the root cause through three factors.
Discover: This will help PEW to identify the problem. The problem of the PEW is decreasing of the profitability.
Investigate: This phase is closely associated with the root cause analysis (Peerally et al.,2017). PEW has to find out the possible discoveries regarding the problem encountered in the organization.
Fix: This will provide the PEW to come up with the relevant solutions.
Problems identified:
The identified problems for the decreasing of the profitability of the PEW are the increase of the organization providing the same equipments to the clients and many of the organizations are providing same equipments in cheaper price compared to the PEW.
Action taken:
Certain actions can be taken in this case (Latino, Latino & Latino,2016). Earlier Pew was the only company for providing the equipments for the telecommunication industry (Varatharajan et al.,2017). The organization is working in this field for last 30 years. So , it can be said that the company has the goodwill and many renowned clients are taking the services from PEW (Latino, Latino & Latino,2016). However, it has been seen that the profitability of the Pew is decreasing by 45%. The main reason for this problem are the increase of the number of competent in the market and the lack of the smart pricing strategy in PEW.
The action can be taken in order to mitigate or eliminate the problem (Chang, 2016). The main action that can be taken is to implement the smart pricing strategy (Hammer,2015). In order to get the smart pricing strategy the analysis of the business market is needed to be done by the Pew (Latino, Latino & Latino,2016). Apart from that the innovation of the new equipments and maintaining the quality of the equipments can be considered in this case (Lee & Olson, 2016). The overall actions those can be taken can be identified into long term and short term solutions.
Long term actions: The long term actions are the implementation of the smart pricing strategy and analysis of the market (Head & Alford, 2015). Apart from that the marketing of the products can be done by the company.
Short term actions: The short term actions that can be taken is regarding the reduction of the prices of the equipments.
In order to implement the action plan certain resources are required. For the analysis of the market situation and implement the smart pricing strategy the business analysts are needed to b employed by the company (Booth, 2015). Apart from that the project manager is needed to implement the pricing strategy in the business process of the PEW (Peerally et al.,2017). For the marketing purpose a dedicated team is needed to be employed for the promotion of the products made by the PEW (Latino, Latino & Latino,2016). It indicates the need of the human resources for the company.
For the reduction of the pricing of the products mentioned in the short term goal , the expert advice of the analyst is needed (Heher,2017). Apart from the proper cost is needed for the implementation of all long and short term goals.
The follow up regarding the actions taken are needed to be followed. The project manager is needed to be ensured that the business analysts are working on the current pricing strategy (Geerling, Chernofsky & Pratt, 2014). Apart from that the management of the organization is needed to be ensured that the reduction of the price is happening in orderly basis.
The business and the strategic management is important for the proper implementation of the planning in the organization. There are various methodologies for the implementation of the business management and the strategies in the organization (Latino, Latino & Latino,2016). Some of the popular methodologies are the PRINCE2, agile (Buechler et al.,2015). The PMBOK is the guideline for providing the reference for the implementation of proper project management planning in the organization. This guideline will be helpful for the implementation of the smart pricing strategy in the organization. The first phase of the project is the requirement gathering (Peerally et al.,2017). In this case, the requirement is to implement the pricing strategy which will be helpful for the company to compete with the other organizations (Peerally et al.,2017). The planning and the designing of the execution will be done by the business analyst. The execution of the plan will be monitored by the project manager.
Apart from the pricing strategy it can be seen that improvement of other factors will be beneficial for PEW in order to compete with the other organizations. These factors are the improvement of the quality of the products and the smart marketing strategy (Korpershoek et al.,2016). The innovation of the new products will be beneficial for PEW in order to gain the popularity in the market (Latino, Latino & Latino,2016). In order to do this certain emerging technologies are needed to be implemented in the processing of the business of the organization (Vidyasagar, 2016). The technical management is important in order to manage use of the emerging technologies in the organization.
Leadership is the quality that enables the employees to become motivated and work to achieve the organizational goals (Chen et al.,2016). In this case, the organizational goal is to gain the market share of the equipments used in the telecommunication industry for PEW (Latino, Latino & Latino,2016). In order to do this the management can appoint the project manger of the project leader who will be responsible for carryout the tasks for achieving the goals of the organizations (Firestone et al.,2018). The leader can operate in democratic way where he or she can consider all the opinions of the employees before implementation of the certain changes in the organization (Peerally et al.,2017). Apart from that the leader can point out the mistakes of the employees in a proper way.
There are different ship qualities those can be applicable in this context. However, the democratic leadership quality is chosen in this case (Fairhurst & Connaughton, 2014). This will all the employees to join in the problem solving process. The employees will feel that their opinions are considered in the implementation of the process of the smart pricing strategy.
Conclusion
The discussion is regarding the implementation of the improvised business pan in PEW. The main objective of this implementation is to improvise the business process of Pew so that the organization can compete with the other companies in the market. It can be seen that the PEW has good reputation and was doing well in the market. However, the business situation is changing and the number of competent are increasing. The clients are getting many options from where they can select the particular product. The pricing of the product is playing an important role in the selection. It has been seen that the pricing of the products is comparatively high for the Pew with respect to other companies. This is the reason the company is losing the profitability and the share of the market. The reason is identified through the root cause analysis. The other sub problems are also indentified through the root cause analysis. Certain assumptions has been made during the construction of the root cause analysis. On the basis of the identified problems the long term and the short term action those are needed to be taken are identified. Apart from that the management and the business strategy required for the managing of the whole project is considered along with the management of the technology and the required leadership quality are mentioned in the discussion. It can be said that the identification of the proper cause for decrease of the profitability of the PEW can be helpful to eliminate certain problems regarding the organization. However, proper management plan is needed to be taken in order to implement the smart pricing strategy in the organization. Apart from that the selection of the right project management methodology along with the choosing of the proper leader for the project management team will be helpful for the proper implementation of the pricing strategy in the organization.
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