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Casee Analysis Video Electronic Company

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De La Salle University

Ramon V. del Rosario College of Business

2ndTerm, AY 2014-2015

In Partial Fulfilment of the requirements in

Entrepreneurial Business Organization

MKG502M

Video Electronics Company

Submitted By:

Grafil, Franz

Saavedra, Carlo Miguel

Sy, Rachelle

Submitted To:

Prof. Jose Morales

De La Salle Graduate School of Business RCBC Campus

November 29, 2014

SYNTHESIS

        Video Electronics Company, now on its 10th year, was founded by president and controlling stockholder, Frank Simpson, and a few investor friends for production of a narrow line of specialized small electronics parts that were sold to other manufacturers. Despite the location and untrained members, the plant was able to triple its number of employees during the past year because its reputation for quality was excellent, hence increasing production demand from both existing and new clients.

        Simpson had to build a strong industrial staff that could give his company an advantage over its competitors, since none of his present employees were qualified, Simpson, in consultation with the board of directors, hired John Rider, a mechanical engineer, as the new position of general manager of the plant so he could spend more of his time on high-level work and less of it ironing production difficulties. Rider then hired Paul Green, to develop industrial engineering function. After 2 months of getting acquainted with the process and the supervisory personnel, Green and Rider felt that the company was in bad condition in terms of machine utilization, employee utilization, waste, and reject rates that leads them to recommend minor and major improvements including the study and documentation of production processes per department to cover every operation done on the products. Senior supervisors don’t like to be watched on their work and doesn’t like to be schooled by these young people (Rider and Green) about their work therefore leaving Simpson in the middle of the situation.

POINT OF VIEW

        This paper utilized the point of view of the president and controlling stockholder of Video Electronics Company, Frank Simpson. As a consultative leader, he asks his employees for input prior to making a decision, he make sure that members of the organization are informed about conditions in the company and the changes it will undergo. Through the years, the workload has increased significantly and Simpson felt the need to hire a general manager to deal with all the production businesses so he could concentrate on the high-level work. He has been running the company for 10 years now and has full control over the management; the final decision will still be coming from him.

STATEMENT OF THE PROBLEM

        Senior supervisors are not comfortable and against the idea of being led and monitored by younger professional and newbie in the company/industry. With this in hand, the paper aims to answer this problem:

What can Frank Simpson do in order to effectively implement the changes that should be done in the company?

STATEMENT OF OBJECTIVES

  1. To satisfy senior supervisors and establish cooperation through effective communication
  2. To Increase productivity by at least 25% while maintaining the reputation for excellent quality
  3. To sustain leadership in competition with other companies within the line of product
  4. To effectively implement changes in line with the increase in demand

AREAS OF CONSIDERATION

  1. Capability of next leadership to implement the company’s effective programs

Change in leadership is constant. And with the change of leaders follows the change in management style and program-focus of an organization. With this, there is a possibility that Simpson’s effective programs might not be implemented in the succeeding terms or the next leadership won’t be competent enough to sustain the implementation of these programs.

  1. Cooperation and participation of stakeholders to the company’s effective programs

While the current members exhibit cooperation and participation in the Simpson’s programs, there’s no complete assurance that the next generations will follow the company’s values and norms due to the changing preferences, behaviors, and beliefs of the people.

     3.   There was no clear communication even in meetings

It’s always just a hunch, an intuition (Random Decision Making theory). First, Simpson felt that there’s no one in the supervisors of his company that fits being the general manager to oversee the companies arising problems; though Simpson knew them for a while, it’s not sufficient to judge them they can only excel in their specific field. In the end, this idea made him hire some young professionals outside of the company, which in turn made the senior supervisors felt bad.

 4. Green thought that he was convincing people who objected (intuition) and continued to do his survey and study, and crossed through the departments.

Swot Analysis

Strengths

Weaknesses

Good consultative leadership skills for setting meetings for important announcement

Simpson probably knows his workers personal and work capability

Professional in work-place, no padrino system, Simpson did not simply put one of his senior supervisors in the general manager position

Good reputation as the company that provides excellent quality products

Increased production demand

Issues in motivation-productivity of workers - hourly pay instead of incentives does not motivate workers to be productive.

Lack of effective communication between the general manager and it’s subordinates

Employs mostly unskilled member

Hired a general manager outside the company

Lack of guidelines for every  project

Opportunities

Threats

Expanding electronics industry

Increased competition

 

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