The first few months seems to have been a success - Marcus spent a lot of his time with employees and customers, learning the field since he was, as mentioned in the text, an "outsider". However, keeping the company's integrity and image intact was a priority.
However, the problems outlined in the case seems to start - or at least have been worsened - with what will become CMR's largest account, Blackstone Homes.
After reviewing the text in question, three major problems stand …show more content…
3) The right people on the right place
Again, according to the text, there was a clear misunderstanding between both parties; it was even referred as a "shouting contest", which is far from being a normal and healthy business relationship. The Key Account Managers (from both sides) could not agree on contract terms and conditions. It could therefore be a good thing to change points of contact and see if the situation can be resolved; a stronger relation, transparency, honesty and "business awareness" between the two companies might also help straighten things out.
4) Additional ideas
The solution to increase profit may not be by simply increasing selling price. We would suggest CMR to run an audit on their Supply Chain, Logistics and Selling, General & Administrative Expenses to see if cost reductions are possible. Could modern machinery help cut their production costs? Could they outsource some of their non-core business or reduce raw material costs by creating a joint-venture with a competitor? Chasing down inefficiencies in the production line can be even more effective than a price increase.
Using the previous points, we would suggest the three following