Strategies of the Company Classics Cabinets Pty Ltd - Case Study Example

Academic essay Name Course Task Professors name Date Executive summary Case study 1: craft shop or factory? Classics Cabinets Pty Ltd was a company founded in 2001. It started out as a crafts shop, but with time, the shop grew into a great company that specializes in good quality kitchen furniture. The crafts shop was owned by two siblings, Chinh and Anh Chu. Chinh specialized in cabinet making while Anh was a master in interior design. As the reputation of the company grew, so did the number of customers. With time, the company grew and the roles of the siblings as well changed to accommodate the rising number of clients. Chinh became the operations and productions manager and while Anh became the overall manager he was responsible in finance section. Traditionally, the company focused on custom made kitchens cabinets. Anh, on the other hand, assisted in the decorations this is because; custom made cabinets had greater demand as compared to the standard made ones. This is because; the customers delighted in custom made designs because they were unique as compared to the standard made ones. This increase in volume of sales resulted in the company creating a limited selection of kitchen cabinets that were in small, manageable batches. Since the company had only one warehouse to operate from, they made both custom and standard made kitchens from there. However, the standard kitchen cabinetry was in most cases abandoned partially complete due to the high demand of custom made ones. Due to this, the store was crowded with accumulated incomplete furniture. In estimates, 60% of the cabinetry made in the store was custom. They accounted for 75% of the company’s revenue. However, the demand for standard made kitchen cabinetry has been increasing. This means that the company will have to adapt a mechanism to cope with this change in the market (Kraft maid). The factory has been using general-purpose tools to make its cabinetry. This is because; the general-purpose tools can be used to make almost everything, especially the custom made cabinetry. This means that this general purpose machinery is flexible. The layout of the factory is also well organized. This is because all equipment is organized based on their function. For example, the saws and the cutting tables are grouped together and placed at the same lace. This is done in order to ensure that the factory operations are running smoothly. In addition to that, this arrangement prevents the risk of accidents caused by workers crisscrossing each other. This confusion is dangerous in the workshop (SC weir Cabinets). To cope with the increasing number of customers, the factory has introduced a system where scheduling trade offs are used to prioritize the orders. In these schedules, custom made cabinetries are given the first priority. This has resulted in a great number of standard cabinet parts being left lying around the factory. This is responsible for the loss in the company. This is because; so much raw materials and capital have been tied up in these standard cabinets yet they are left lying around in the factory. To cater for the increasing number of cabinets in the factory, the company has rent a warehouse where the excess inventories are stored. This has been a good move, as the factory is now more spacious and workers can operate with ease. The introduction of the builders’ kitchen into the business has been a major milestone for the company. This is because; these builders kitchen will increase the revenue of the factory. However, it might make it necessary for the factory owners to look for more warehouses where they can store their merchandise. In addition to this, the factory needs to hire more carpenters and designers in order to balance on the inventory. This will reduce the number of cabinets left incomplete hence holding up factory resources. In addition, the company will create more job opportunities in the area. The country’s economic performance will grow. Technology is a very import aspect in the growth of the company. This is because; through the introduction of computers, planning kitchen structures has become easier. The designers are able to demonstrate to their customers the outcome of the designs they choose. This can also be achieved using a 3-D imagery. This has been one of the best moves the company has adopted. Abstract Today’s world is plagued by numerous business propositions. Everyone everywhere has some great business idea they believe is the best and will revolutionize the world. However, all these are dependent on what the consumer needs. The consumer’s tastes and preferences are a major dictator and a great element of business. Information on this as well as, the basic knowledge about the internal and external environment of the business is very important in any business. This information helps to equip the organization with valuable information that enables the organization to become successful and a leader in the market ecosystem. Classics Cabinets Pty Ltd designs and manufactures is the company of focus and, it is one of those companies that have made it in the industry. This paper aims at not only identifying but also at analyzing the most relevant external environmental factors, external operating environments and the strengths and weaknesses of this great organization. Moreover, this paper includes a thorough assessment of the organization’s resources, organizational structure, competitive position, and probable future expansion possibilities of this organization. This is all in an attempt to shed some light on the secrets that help to boost these market giants to where they are today. The objective of this is to motivate the small upcoming organizations to strive and get to these great heights as well (Classic cabinetry). Unless an organization is ready to learn from others also from its past mistakes, it is highly unlikely that it will grow and develop per the company’s expectations. Therefore, this paper should act as a road map for all those smaller organizations that are still struggling at the bottom and want to rise to the top. An organization cannot be built by an individual; rather it needs the joint effort of everyone working within it to become great. Introduction Company background information Classics Cabinets Pty Ltd designs and manufacturing company that has over the years worked towards achieving its exemplary reputation in the industry. It is recognized as the leading industries in the cabinetry market. This is because; it creates and develops quality products that are competitive and desired by all. Classics Cabinets has over the years become famous for its contribution to the building industry by bringing innovation to life (Pearce & Robinson, 2011, p.62). The company is dedicated in producing the best quality designs in kitchens. Therefore, it helps in making designs that are supposed to help people to exercise their creativity hence exercising their minds. Classics Cabinets creates a wide range of goods varying from kitchen drawers, shelves, decorations and other classy features found in the kitchen. These new inventions increased the popularity of Classics Cabinets worldwide. Despite the fact that most Classics Cabinet’s products are expensive, many people still buy them. This is because; Classics Cabinets ensures it produces the normal things in a unique way hence; it is able to capture the consumer’s interest through its unique design (Ogunlana, 1999, p.43). Environmental scan Business environments are no longer what they used to be a long time ago. This is because, of the new information technologies that have evolved with time altering the business world completely. This has resulted in a change in the people’s tastes and preferences. Becoming successful is not always about creating goods and services all through; rather it also entails the assessment of one’s environment. The company should know what the consumer needs and how best to present their commodities in the targeted market. This means that the company should carry out a thorough assessment of its forces as well as conduct an evaluation of their targeted market. This evaluation should be accurate and precise since wrong evaluation can have disastrous consequences for any company irrespective of its size and organizational structure (Paolini, 2011, p.54). For any organization to be successful, it must be ready to perform the internal environmental scan, the external environmental scan also, the competitive environmental scan. For the internal environmental scan, the strengths and weaknesses of the company are analyzed. The organizations resources are also analyzed. In this perspective, the company is capable of establishing their positions in the market. In the external environment, we analyze the economic, political, ecological, technological and social factors. This is because all these factors whether directly or indirectly affect the company progres. The economic factor influences the purchasing power of the people. Research proves that most of the consumers are located in Asia.Therefore; this can be considered the most influential external factor as far as Classics Cabinets is concerned. The political factor, though important, is not considered the most influential. This is because the politics outside the country hardly ever influence the incorporation. It therefore, retains its title as the manufacturer of the fanciest kitchens in the world (Barney, 2007, p.51). In the ecological environment, the company is considered environmental friendly. Therefore, it is the brand name that plays the most crucial role in promoting the sales of each product since people want to be associated with only the best brands available (Schermerhorn, 2005, p.77). In the industrial environment, the key elements that are most likely to influence Classics Cabinets comprise of new entrants into the market, suppliers, substitutes, buyers, and other industry competitors. As far as Classics Cabinets is concerned, the most influential factor is the buyers since they can easily alter the cost of shares in the stock market by publicly criticizing the goods produced by the company. Therefore, the consumers have the most influence on Classics Cabinets, and they are responsible for its success. However, it is important to note the strengths and weaknesses of the organization so that managers can capitalize on the strengths and work to improve on the weaknesses. The greatest strength of the Classics Cabinets is contained in its brand name. Classic Cabinets products have always been unique in the market. The brand name is the most solid strength of the company. On the other hand, the weakness of the Classics Cabinets can be viewed as the way in which it was solely run by two individuals. For years, Chinh and Anh, the founders of Classics Cabinets Company, have been the managers of the company. Although many people did not understand his methodology while others criticized them, they considered this a major resource of the company. It is through their ideas and hard work that Classics Cabinets Company became a success. Currently, thanks to Classics Cabinets and their determination, Classics Cabinets has become the leading worldwide (Urban Home Builder). Strategies of the company Strategy mainly focuses on the continuity of the organization. It aims at imposing codes of conduct and patterns of behavior on the employees in the organization making them conform to what the management wants. In this perspective, the company’s objectives are to be attained. Managers must be well equipped to handle strategic change in the organization. Coming up with new strategies means that the organization is moving from a familiar domain to a relatively stranger and undefined one. Therefore, this is the greatest challenge managers managers will have to undergo. A successful manager has to be free to take opinions from his subordinates and should be radical in his views. This refers to trying out new things and take chances in what he does. Therefore, for any organization to prosper, it must have a good manager and must have a good and workable business strategy. Implementation plan Objectives The objective of this essay is to basically try and identify any new product strategy implementation that could be in place at Classics Cabinets. At Classics Cabinets, their strategy lies on their product leadership. This involves providing their consumers with quality products that surpass those of their competitors. To overcome their competitors, Classics Cabinets has used a strategy of creativity, constant improvement and rapid commercialization. This has greatly helped to boost the company to greater lengths making it the most popular company in the Asia. Functional tactics When it comes to strategizing, the organization must ensure they consult an expert who can guarantee them success at minimal costs. Poor leadership can result in disastrous effects to the company. Therefore, good leaders are mandatory in any organization. A contingency plan should be created and implemented to enhance the profit maximization of the company. For example, in the case of Classics Cabinets, managers must create a contingency plan for each identified risk that would hinder them from achieving their objectives. Moreover, all levels of risks should be marginalized and clearly stated (Witzel, 2004, p.88). Therefore, the Classics Cabinets team ought to interact and participate in active communication with each other. This is the only way one can determine whether or not the plans were a success or not. Milestones and Deadlines The greatest challenge that faces organizations like the Classics Cabinets Company is the ability to satisfy its consumers’ needs. Every day, customers change their tastes and preferences, and so the company has to adapt fast. The company through this will be on a competitive edge over its competitors. Although macro- factors affecting the organizations external environment beyond any organizations control, measures must be put in place to handle such occurrences just in case they occur (Merillat, 2002, p.32). Moreover, another problem that has been facing this company is the bad publicity some people accord to it. This is because some people claim that Classics Cabinets Company does not meet their deadlines. Also, some accusations claim that it is biased in the types of commodities it produces as it tends to focus more on custom facilities instead of the standard ones. These obstacles can be solved with time, however, those of which take too long to be solved delay the company’s progress. Therefore, it is the duty of the manager to identify the objectives of the projects and prioritize them accordingly. This is to avoid time wastage and to ensure other projects are allocated adequate time. Risk Management Risk management entails identifying, assessing and prioritizing risks that face the company. This is then followed by a coordinated and economical application of resources done in order to minimize and control the impact of risk in the company. Factors that deal with risk management are not constant, and they are prone to change with time. Therefore, a solution to a problem today is not necessarily a solution to the same problem a year from today. The greatest risk that Classic cabinets face is that of political instability. Asia is famous for being politically unstable. This therefore, affects the productivity of the company (Crouhy, 2001, p.63). Research objectives I. To identify implementation strategy Classics Cabinets has. This is achieved through critical analysis of both their internal and external environment. II. To establish the policies implemented by the company. This is in order to deal with the upcoming competitors. III. To analyze the cause of the company’s success. References Barney, JB 2007, Gaining and sustaining competitive advantage (3rd Ed.), Upper Saddle River, NJ, Pearson Prentice Hall. Classic cabinetry. Retrieved from http://www.classiccabinetry.biz/site/Kitchens.html Crouhy, MD 2001, Risk management, London, McGraw-Hill. Kraft maid. Retrieved from http://www.kraftmaid.com/cabinets/home.aspx Merillat, F 2002, Kitchen cabinetry, Pakistan, MND publishers. Ogunlana, S 1999, Profitable partnering in construction procurement, Vietnam, Taylor & Francis. Paolini, G 2011, Kitchen Cabinets Made Simple, Vietnam, Taunton Press. Pearce, JA & Robinson, RB 2011, Strategic management: Formulation, implementation, and control (12th Ed.), Boston, MA, McGraw-Hill/Irwin. Schermerhorn, JR 2005, Management, New York, Wiley. SC weir Cabinets. Retrieved from http://www.scweircabinets.com.au/kitchens.html Urban Home Builder. Retrieved from http://www.enfocity.com/homes/home-interiors-vietnam- interior-designs-furniture-kitchen-cabinets/ Witzel, M 2004, Management: the basics, London, Routledge. Read More