Fisk Alloy Case Study Solution
The company has equipped efficient and innovative machinery which if handled properly and expertise ca produce outstanding results. Yet the company faces great turnover of the mechanics-skilled mechanics to operate the machines. There is a screechy of skilled mechanic in New Jersey, which makes it costly for the company to train and then retain the mechanic. Most of the time, the issue arise due to the flight of the mechanics who recently reached the proficient level.The situation greatly creates turbulence in the manufacturing of the alloys and increase the number of defects which ultimately cost the company’s profitability.
The company has taken the first mover advantage in producing the alloys which are cadmium free. This competency of the organization offers a competitive edge and free unsaturated market to the organization There is no direct competition to the organization, yet the players present in the market may take additional 10 years to reach the company position the company estimated that Peron will rule-out other alloys in the market in 2010.
1- EMPLOY RAW-MATERIAL AT LOWER COST
The company shall look for option to reduce the cost of the raw material. In doing so, the company shall look for outsourcing the function to procure the raw material. This will reduce the cost of procuring the raw material and hence will decrease the cost of sales.
2- Maintaining production with capacity
Since the company has great opportunities in the market, which ya increase the demand of the product in long run. The company and deal with the issue by maintaining the production of the alloy with the capacity of the equipment. In doing so, the company can hire and retain some of the mechanics that can fully utilize the production capacity of the equipment and hence offer a low cot production, meeting the demand in the market.
3- Sustain the position of excellence
The greatest issue with the organization is the availability of the skilled force which can operate the machines effectively this meets the outer rising demand an also offering a product which is free of defaults. The company shall hire and above it retain the skilled mechanics.The skill of the labor is a competitive advantage o the company and that it cannot be replaced hence the company shall develop such a culture where the mechanics own the organization this way the company can retained competitive advantage and hence sustain in the organization.
In order to deal with misunderstanding, and the issue of scare labor force with sustainability market, the organization shall do the following things.
- The company should develop an open culture, where the employees have an access to the micromanagement any hurdles and have a freedom of speech.It should incorporate the empowerment of the mechanics to take the decision on their own in certain situation’s approach will help the organization in retaining the mechanics the expertise can be kept with the organization. Which in turn will help the company in marinating and offering a quality product in the market.
- The company shall increase the size of its production capacity, because in future, a high demand is forecaster which if not fulfilled in the first place, might ruin the reputation and credibility of the company forever.
- It should outsource some of its functions related to procurement of the cheap raw material. The outsourcing of the procurement of the raw material will enable the company to minimize the cost of its function and hence will offer a comparative advantage to the company in terms of maintaining the cost of sales.
Through the analysis, it is evaluated that retaining the talent and maintaining the talent pool will offer the company a competitive advantage in future and will also help the organization in sustaining the excellence, which is the key, in the market. In order to do so, the company shall incorporate the open culture into the structuralist offering a competitive salary and empowerment to the employees. Furthermore, the company shall develop such policies which show a transparent succession planning or growth path to the mechanics and the value of their work. Thai will make them own the company and will increase the retention rate. By doing the following, the company can ensure the right amount of talent present in the company, which will help in meeting the future opportunities while also sustaining the excellence in the market. The key lies in maintaining the skilled employees to meet the target in the long-run………….
This is just a sample partial work. Please place the order on the website to get your own originally done case solution.