The CanGo Company’s Management Analysis

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Introduction

The CanGo Company is experiencing deep managerial changes. The fact is that, these are the modifications of the entire management system, and the principles of providing the services. The company is seriously focused on the issues of process improvement, and needs to optimize the aspects of strategic innovations implementation. Considering the fact, that the main concerns are closely associated with the matters of equipment, fixed costs, variable costs and the skills levels, it should be emphasized that the central aspects of the strategic management require serious consideration and in depth analysis.

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Nevertheless, essential problems are still visible, as the company lacks precise responsibility structure and delegation strategy, consequently, the sooner this problem is solved, the more effective strategy implementation process will be observed.

Company Overview

The CanGo Company is focused on the reformation of the strategic management issues, and the values of the investment strategies. Thus, investments are planned to be made into the new assembly line equipment, as would accelerate the assembly process, and make the direct sales more real for the current market situation. The fact is that, the line flow processes, which will be touched upon by the investment strategy, will be customer tailored to the manufactured product. Intermittent processes, on the other hand, tend to use more flexible, general-purpose equipment because of the variety of products and services they produce. (Drejer, 2006)

Another aspect, which is regarded by the company management, is closely associated with the skill level of the employees. Originally, the skill levels go down as one moves from intermittent to line flow processes. Considering the fact, that the assembly line processes, the jobs tend to be broken down into small units so that the skill requirements are less. The exception is in certain types of continuous processes that are highly automated and workers are required to have sufficient technical skills to monitor the equipment.

In general, the overview of the problem should be based on the Six Sigma principles, as these are the most effective tools for adjusting the business aspects and values of the strategic improvement. Thus, the five steps of process improvement for CanGo are the following:

  • Define the problem. Outline what needs to be improved, how the delegation and responsibility systems should be restructured, and what is needed for the further prevention of structure violation.
  • Measure key aspects of the troublesome processes. Collection of the relevant data is required for proper measurement of the problem levels, and the values, associated with the further implementation of solution principles. Measuring of the investment problems, and the data, associated with the assembly line should be performed from the perspective of customer care principles, if the main aim of assembly line rearrangement is to make it more customer tailored.
  • Analyze the collected data and verify cause-and-effect principles, which are applied for the defining and measuring the possible problems. After that, the cause-and-effect relations should be identified from the perspective of the considered factors, and the root cause should be found.
  • Improve the current processes, based on the data analysis, and apply the techniques of the design and experiments principles.
  • Control the implementation process and the further improved business running. Control systems should be implemented not only for the new equipment, but for the employees, as the workplaces should be visually monitored. (Oladunjoye and Onyeaso, 2007)

The analysis of consumer behavior is closely associated with the matters of customer care policies and principles. Thus, it should be emphasized that along with the implementation of the new production strategy, which presupposes the creation of the new assembly line and reorganization of the control system, CanGo Company needs to rearrange the customer care. The strategic outline is similar to Six Sigma tool for arranging the business process.

  • Problem Recognition. CanGo managers have defined that the main problem is in the quality and speed of serving customers, as well as the way of delivering the manufactured goods. Thus, it should be emphasized that the real value of customer care policy is underestimated at the moment.
  • Information Search step presupposes the location of the weak link in the supply chain, which is aimed at serving the customers’ needs. Considering the case study, it should be stated that the weak point is the delivery system, as it does not consider the factors of demand correlation, associated with seasons.
  • Alternative Evaluation is the searching of the related problem, or the related cause, which originates the ineffective customer care processes. As for CanGo, this problem is closely related with the matters of personnel negligence, and the absence of the strict responsibility structure. Thus, customers are not served properly, and no one can find the person, responsible for this failure.
  • Product Choice. Originally, the solution is found, and the necessary actions, required for the improvement have been evaluated by the executive board. Thus, the main problem, which is defined for the CanGo company is covered by the factors, associated with the delegation structure.
  • Post-purchase Evaluation. This step will be required when the new assembly line is implemented, and the new strategies approved. Thus, the customer care principles, as well as the personnel effectiveness should be estimated, and regarded through the prism of decision effectiveness and operability of decision execution. (Mintzberg and Rose, 2003)

It should be emphasized that consumers often experience misgivings about their purchases, especially in the service sector, where CanGo operates. If the product is expensive enough, the sphere of on-line gaming is regarded as the sphere, where people do not receive the physical goods or services, thus, the effectiveness of delivery system and quick satisfaction of the consumers are the key aspects which should be considered. (Betz, 2004)

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SWOT Analysis

Positive Negative
Internal Strength
  • CanGo is a profitable organization with the yearly income of $41,000 million in 2009.
  • The company has wide diversification basis, as products and services, range from books and videos to online gaming services.
  • The company has a diverse group of employees with different experience background and managerial skills.
  • The company resorts to the innovative employment technologies, for attracting additional experienced workers
  • The value system is extensively developed, and is aimed at satisfying the customers’ needs and requirements.
  • The company has a strong potential to enter the global market.
  • Competitive pricing and high ROI
Weakness
  • Online gaming is a new product for CANgo, thus, mistakes are inevitable.
  • Lack of competitive strength is observed because of the ineffectiveness of the executed decisions
  • The personnel is not aware on the matters of time management, and effective use of time resources
  • Some services are expensive enough, and thus are not popular, nevertheless, their manufacturing causes essential expenses for the company
  • Morale, commitment, leadership and ethical issues are rather low
  • Processes and systems are not well defined, which causes the described ineffectiveness, and impossibility to arrange the strict and properly structured responsibility delegation system
  • Does not have mission, value and vision statement.
External Opportunity
  • The company has Opportunities to venture out to different E-commerce markets.
  • The competitors, who offer similar services are vulnerable for entering the global market
  • The company has strong potential for developing innovative technologies
  • Niche target markets are easily reachable
  • Business and product development
Threat
  • IT developments of the competitors make the company more vulnerable
  • Industrial espionage, arranged by the competitors
  • Appearing of the new technologies, services and ideas causes the serious competitive struggle.
  • Lack of the most important managerial and technical personnel
  • financial backing needs essential improvement.

In the light of this perspective, it should be emphasized that the necessity to rearrange the entire managerial structure is required. The more detailed recommendations will be given in the corresponding chapter, and the SWOT analysis helped to reveal the key positive and negative sides of CanGo company, thus, the recommendations will be given basing on the analysis and company overview.

Recommendations

The entire recommendation set should be based on the principles of strategic management, as the necessity to improve the managerial and executive boards, for improving the manufacturing principles, and the values, associated with customer care, and satisfaction of the consumers is the task of the highest priority. As it is stated by Drejer (2006, p. 311):

Today’s managers have to deal with the entire business system – as opposed to dealing with its different parts independently ‑ not only to keep strategy formulation as a vital force but also to impart real energy to the strategic process. They must practice balanced results-based leadership strategies and apply a balanced approach to business systems.

Consequently, the balanced results of managerial improvement will depend solely on the implementation of the Six Sigma principles, and consideration of the SWOT analysis. From this perspective, the key recommendations will be the following:

  • The company needs to develop proper strategies for the implementation of the new assembly line, and arrangement of the new managerial structure for the improved manufacturing process.
  • CanGo needs to evaluate the environmental factors, which influence company’s entrance on the global market of on-line gaming. Additionally, world trends of e-commerce should be considered.
  • The launching of the on-line gaming platform should be based on the results, derived from data collection on the matters of financial, technical and managerial analysis of the CanGo performance. All the weaknesses should be defined and considered for avoiding unexpected difficulties. Thus, the company needs to develop the risk management strategy.
  • The company needs to find the way to arrange the low cost production of the expensive services, as in accordance with the SWOT matrix, the consumers feel themselves tricked, when they purchase expensive virtual goods or services, and company is subjected to unreasoned expenses, providing these services.
  • CanGo needs to create a cost benefit analysis that includes cost of equipment, training construction and process document updates.
  • Bring in a project manager to help create management by objectives and ensure the successful planning, execution, monitoring and closure of the online gaming project.

In general, there is strong necessity to emphasize that the recommendations, which should be made for the CanGo company are closely associated with the problems and aspects, described in the overview part. Thus, the key problems of the management touch upon the aspects of the assembly line equipment control, and the values of the customer care management. Originally, customers expect to get high quality services immediately, while CanGo is unable to provide immediate services at the moment.

Finally, it should be stated that the market research responsibilities are not strong enough for the company, which aims to enter the global market. Consequently, the analysis board should be arranged for the proper monitoring and analysis of the global gaming and marketing tendencies.

Conclusion

Originally, the CanGo company is experiencing deep managerial changes. The fact is that, these are the modifications of the entire management system, and the principles of providing the services. Nevertheless, the serious problems in the executive board, and in managerial structure may prevent CanGo from the effective implementation of numerous plans and decisions. Consequently, the key recommendations, which should be taken into considerations are closely linked with the rearrangement of the managerial structure, and proper arrangement of responsibility and delegation systems, as well as the analysis board, as lack of the objective and timely information defines the necessity of arranging the appropriate board. Finally, it should be stated that the plans, defined for entering the global market should be deeply and properly analyzed from the perspective of the innovated strategies, otherwise, mistakes are inevitable.

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Reference

Betz, F. (2004). Executive Strategy: Strategic Management and Information Technology. New York: John Wiley & Sons.

Drejer, A. (2006). Strategic Management and Core Competencies: Theory and Application. Westport, CT: Quorum Books.

Mintzberg, H., & Rose, J. (2003). Strategic Management Upside Down: Tracking Business Strategies. Canadian Journal of Administrative Sciences, 20(4), 270

Oladunjoye, G. T., & Onyeaso, G. (2007). Differences between Resources and Strategy in Strategic Management: an Experimental Investigation. International Journal of Management, 24(3), 592

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