a. The Fourwinds Marina has been facing viability problems as a result of various factors. For instance, lack of knowledge of Marina business and lack of experienced general managers have been two major factors negatively impacting on the operations of the organization. However, it can be noted from the case study that this is a unique business and there is no direct competition which means that its fortunes can be turned around if proper plans are put in place. As such, Jack the new general manager has proposed a raft of changes that need to be implemented in order to improve the fortunes of the company.
The problem facing Jack is about how to implement the proposed change in the organization. Change is often met with stiff resistance from the other members of staff. The other problem likely to be encountered in implementing change is related to the fact that the company has a weak financial position which makes it challenging to fully implement the proposed changes. This is likely to be a setback for the organization which needs to improve its overall performance through implementing some changes in the way business is done. b.
i. The major strength of the Marina is that it has state of the art equipment that can be used for various purposes in the marine business. The company has large docks that can accommodate all types of boats and it also has a big airport. The company has lodges and these can generate revenue. The company is also conveniently located at the center of major urban centers. This makes travelling to and from the company easier.
On the other hand, it can be observed that the company has its own weaknesses. The managers responsible for running the affairs of the company lack knowledge in marine business. This has resulted in the organization facing viability problems which has necessitated some changes to be made. The major opportunity for the company is that there are no other players in this particular business. This means that there is no competition. The company has the opportunity to attract as many clients as possible and it can retain them since there are no competitors.
This can help it to generate as much revenue as possible from its operations. The other opportunity is that the company can attract investors and this can help it to improve its viability. However, the major threat is that the company is that the economic conditions of the country may impact on its viability. For instance, financial crisis can impact negatively on the firm. ii. In conducting the analysis with the client, there are different measures that can be taken. First and foremost, it is important to explain to the customer the nature of business that is conducted by the organization.
After that, it becomes important to outline all the necessary equipment and other relevant things that may be required to carry out the work. What is more important in this particular case is to try to determine the operational costs that may be involved in carrying out the work. Under normal circumstances, the operational costs should not exceed the revenue generated by the company. In order for the company to be profitable, the cost must be lowered while striving to generate as much revenue as possible.
This will help to improve the viability of the organization. The client also needs to know if it is worth spending money on such a particular business venture. iii. In conducting this analysis with the client, there is need to show that the proposed changes are necessary to the company. For instance, the rented slips are likely to generate more than $75 000 to the company as profits. It can also be seen that adding another employee to assist the secretary will result in the company saving more than $300 per month.
Keeping the boat and motor inventory is another cost cutting measure that should be explained to the client. It can be seen that the proposed strategies are meant to generate profits for the organization while at the same time reducing the costs. The other strategy proposed by Keltner is to reduce the workforce. This helps to reduce the costs likely to be encountered by the company in its operations through salaries paid to the workers. To a large extent, it can be seen that Keltner’s list of actions are very effective in as far as improvement of the viability of the organization is concerned.
Essentially, the aim of business is to generate profits (Kotler & Armstrong, 2010). Profits can be generated if the company is in a position to generate more revenue from its operations which surpasses its operational costs. It can be seen from the list of suggestions proposed that the company will be in a position to reduce operational costs while at the same time generating more revenue from its operations.
If carefully implemented, the listed strategies can significantly improve the viability of the organization. iv. In the event that Keltner has asked for help to go through the changes, I would first of all consult other employees about their views towards the proposed changes. Implementing change in an organization is one of the most challenging things faced by the managers. Change is often met with resistance and the success of a change initiative mainly depends with the approach taken to implement it.
According to Jackson and Schuler (2000), employee involvement in the decision making process in the organization is a very effective method of managing change in the organization. When the employees are consulted to give their views about the changes to be made in their operations, they are likely to develop commitment since they would have been treated as viable assets to the company. Involving other employees in the decision making process is very important since this also helps to gather different ideas from different people. If people share their ideas in the organization, they are likely to come up with well informed decisions that can turn around the fortunes of the company.
References Kotler, P. & Armstrong, G. (2010). Principles of Marketing. CT: Person. Jackson, S.E. & Schuler R. (2000). Managing Human Resources: A Partnership Perspective. NY. South Western College Publishing.