Introduction The report presents various strategic recommendations for business improvements in a major electronics company. On having been appointed as the consultants for the organisation what is needed to provide business strategies to improve the business in the region. In this report, recommendations will be made on various strategic and structural transformations that will provide the company the best possible course of action to implement for present and long term success. These would also guide the organisation to attain absolute competitive advantage over its rivals. The first task that the consultants undertook was to understand the current business model of the company.
The below mentioned flowchart explains this model in detail: The electronics assembly company, a family-owned business, was established in the 1930s to produce radios. The company until the late 1980’s had an aggressive policy of new product development and was a major player in the fledgling electronics market. With the growth in the domestic market in the 80s, the company built a reputation for itself due to its superior quality, technology and innovative products. It appointed an assembly staff of 15 people with two qualified electronics technicians who previously worked in the R& D division of Sony and Microsoft.
Due to the company’s strategy to operate in a highly competitive market with low margins, the company was able to garner a wider consumer base for its products. However, in the recent past, the company has been facing many challenges. First and foremost, there had been very little and often no growth in sales revenues for the past three years. Further, the company is not able to fulfill the stock requirements, as there had been no supplier arrangements between the company and the Asian manufacturers to purchase components on an ad hoc basis.
This has resulted in the company not being able to assemble the product on time and fulfill the product requirements of the stores. There is also a lack of scalable leadership, the current CEO of the company would retire by the end of 2012 and no one has been nominated so far for the position. Also, the company needs specialised electronics technicians to replace the current ones, as both are nearing retirement age.
Therefore, the inundating task before the CEO is to implement a strategy that would help the company to restore its growth and sales revenue by rebuilding its brand in the market and wining over competitors. Through this comprehensive strategic report, an outline will act as a guide in overcoming the ongoing problems faced by the company and help the CEO in stimulating the changes and creating a successful organisation. DiscussionAs discussed above, the CEO of this electronics company like other companies in the segment faces various challenges including increasing revenue and sales growth, undertaking product innovation, developing the operations and creating a scalable leadership.
Further, midsized companies face issues such as addressing larger scale of production and supply with lesser resources (Wren, 2005). The company in this case study also cannot afford to allocate resources for product innovation and undertake large scale production. Further, the company is also facing problems due decrease in consumer brand loyalty and competition from other brands. Therefore, the CEO is looking at solutions that would provide tangible outcomes with low level of risks.