Shipper Manufacturing Company which is a manufacturing company has been discussing how best to undergo a transition in its operations, marketing and office equipment. The managing director has come up with a formula that in his views is the best to revamp the company. In this paper, the issues surrounding the company transition are analyzed and at the end recommendations given.
The proposed transition and what triggered the business strategy change According to the planned transition, the items that are being affected have been prioritized. Of most importance has been the computer system that the company has been using which is being converted from IBM to Hewlet-Packard. The change is expected to reduce the machine time of computer operation which will in return reduce the flexible costs of administration. While the installation of the new computer system will require high initial costs of installation, the new system will require less maintenance costs which will lead to increase in the gross income should all other costs remain constant. The change is triggered by the fact that the company is planning to shift from low volume production to high volume production while still maintaining customer oriented design. This has called for increased logistical approach. The computer system has to be changed so as to meet the demands of the growth in technology and also the compatibility of new structure.
Cost, quality, flexibility and delivery The priorities cited by the managing director are the change in the accounting systems. This is done in two views and references. One, the accounting system have to be compatible with the new computer system that the company shall be using. This will include training of the accounting staff on the application software of the new computer system. Secondly, the accounting system will change in order to conform to the new requirements of the international accounting standards. The international standards are the mark of quality and a reference point in accounting field. The other conversion is in the organization structure where new lines of authority shall be drawn. While the company has been majoring on seeking new markets, the proposed change is expected to be more reliant on the customer based marketing. This shall be done by standardizing all its products for both local and international consumer so as to create equity to its customers. This will ensure that the products are flexible for any market and this will reduce duplication of processes. Standardization of these products will increase the quality of products (especially in packaging) aimed for consumption by local customers. This shall also include involvement of customers in decision making process which makes the customers to own up to the operations of the company. The customer based marketing is faster; less costly and unqualified (the customer is not dictated on what to tell other prospect customers…