You have been assigned as a leader of a cross functional team of internal consultants to your CEO and the Board for your company.
Your company is faced with dwindling profit and constant chaos due to: 1. Intense competition from local competitors 2. New entrants from China/Vietnam with very low prices 3. Increasing inventory of great products which used to be fast moving 4. Lack of coordination with supply chain decisions and customer demand from CRM 5. Customers of least profit getting maximum attention and more profitable customers defecting 6. Sales Force placing unreasonable demands coupled with production interruption 7. Lack of integrated and coordinated planning and control 8. …show more content…
* Focus on low volume/short run business which is not of interest to the Chinese and not worth setting up sourcing arrangements.
* Products with frequent modifications need close interaction with customer for intensive design/engineering.
* Improve customer relationships and loyalty; build up strong personal relationships and a strong service track record.
* Getting the support of employees is crucial. Let them know about our current concerns and get them to play a part in improving business. Ask for their ideas.
Supporting Competitive Strategies: These strategies reduce cost and risk, enhance capabilities, and help to strengthen the niche.
* Target the right customers, those who are less likely to go to offshore and may be less price- sensitive.
* Work to be cost competitive in manufacturing processes through Lean, automation and other investments to reduce costs.
* Consider cost reduction through production in low-cost countries via sourcing or joint ventures.
* Develop strategic partnerships with companies that offer complementary products as well as customers, suppliers, and even competitors.
* Become a global player through a worldwide presence or production system. Use partnerships and alliances off-shore to expand reach and distribution capabilities.
(Solution on 3) 3) Increasing inventory of great products which