To facilitate a successful turn-around for the Able Corporation, we must identify what threats are currently affecting the business. From there, we can hone in on the more difficult tasks and organize them by importance. Some of the difficulties the Able Corporation is dealing with include
1. Minimal market share amongst various products,
2. Quality of most tools is considered to be low to moderate amongst consumers,
3. Costly badly maintained manufacturing plants,
4. Too much focus on product innovation and not enough marketing focus to compliment the new products,
5. Inadequate research concerning the market analysis, i.e. market share, demographics and dynamics of the market,
6. Financial health,
7. Cordless products should have a pricing which reflects their added convenience, and
8. Consumer tendency to purchase products via the industrial or consumer outlets have been changing.
In my opinion the top two strategic objectives the Able Corporation will need overcome this year would be to formulate adequate market analysis to help the company to better understand the demographics and dynamics of its target market. The second objective would be to improve the quality of some of our tools that have been labeled as low to moderate in performance and quality. While all issues plaguing the Able Corporation are important and should be addressed, if we start by tackling these two issues, we will see improvements in other areas of the organization. If Able Corporation were a patient being wheeled into a trauma unit, would we immediately begin sewing up the bleeding wound or would our task be to discover why the patient is bleeding and conclude the best way to stop it?
According to a study quoted by Mary Coulter in the text “Strategic Management in Action,” having a company with the largest market share is no longer the best strategy towards increasing sales and profits. In today’s reality, it is more important to address customers’ needs and recognize the subtle changes. Meeting and exceeding the clients needs have become the best way to increase profit potential (Coulter, 2007, pg. 125). Improving the Able Corporations market strategy would help to manage their customers and competitors. Segmenting the target market by age, purpose, or class helps to define the individuals the company is selling to and can make the marketing approach a little more personal (Coulter, pg. 152). Able Corporation has two basic segments: professional and consumer. These units are sold in two different channels, therefore marketing methods should vary slightly based on the purchaser.
Able Corporation can gain marketing insights, build a stronger brand, and design more effective communications with a stronger, more clearly defined market analysis. What are the competitors doing? How do Able Corporation prices compare? Are the products offered in outlets that are easily accessible to our target market? These questions relate to the four Ps of marketing: product, price, promotion, and place (Coulter, pg. 145). Another method for gaining the insight necessary for a sufficient market analysis would include a SWOT measurement. This resource gauges the strengths, weaknesses, opportunities, and threats of the business. Understanding what could go wrong is just as important, if not more important, than understanding what could go right (Coulter, pg. 140).
Improving the measurement of quality, the second objective, can be little more challenging than the first obstacle chosen. However, it is just as important and can help to improve the customers’ opinion of the Able Corporation as a brand. Six Sigma is a relatively new approach towards measuring quality and strategies to improve quality. The Six Sigma DMAIC, which stands for define, measure, analyze, improve and control, focuses on driving out defects as a method of systematically improvement. Defects according to this practice are defined as anything out of customer specifications (iSixSigma, 2008). For the Able Corporation, this means looking at the equipment that is outdated as a non-negotiable for removal. It is necessary to improve technology to successfully improve quality.
In conclusion, the Able Corporation must find ways to effectively increase the use of resources and eliminate defects. Treating the cause of the problem is more important and more effective than just treating the symptoms. While Able Corporation has a long road of necessary improvements ahead; this diagnosis and approach will maximize opportunities and increase potential for the future.
References:
CTU Online. (Ed.). (ca. 2008). Phase 1 Course Material [multimedia presentation]. Colorado Springs, CO: CTU Online. Retrieved July 12, 2008, from CTU Online, Virtual Campus, MPM420. Business Strategy: 0802B-01. Website: https://campus.ctuonline.edu/MainFrame.aspx?ContentFrame=/Classroom/course.aspx?Class=23719&tid;=39
Coulter, M. (2007) Strategic Management in Business. (4th Ed.) Pearson/Prentice Hall: Upper Saddle River, NJ.
iSixSigma. (2008) Define Six Sigma. Retrieved July 14, 2008, from http://www.isixsigma.com/sixsigma/six_sigma.asp
