Implementing the Solution:
I recommend that the leadership of Winmore Bricks Company Inc., implement the solution to the identified problem. Through detailed analysis it was determined that the problem was that Winmore Bricks Company Inc must reduce prices to a level that brick consumers will accept, while reducing costs through lower level raw materials but still sustaining an acceptable quality product. Expensive materials were being used in a market that was price driven and not entirely motivated by quality. It is recommended that to currently sustain market share and potentially grow base, the approach is medium quality bricks with and associated price reduction. A price reduction will relieve our customers like Stack 'em High who have demanded immediate price breaks. It is recommended that we develop a formula for our bricks that exceed our competitors but still provide the ...view middle of the document...
Winmore Bricks Company Inc. should then make adjustments if applicable and innovative from employees so that the employee population is invested in the success of the current strategic changes. At the same time Winmore Bricks Company Inc. will also make the changes they received from the customer, this process should occur until the feedback is bricks are at an acceptable quality level.
Once it has been determined an acceptable product has been delivered, the medium bricks will be integrated into the consumer population along with the price reduction by our sales team. To follow up our new strategic approach we will develop a new marketing campaign and solicit new customers with our lower pricing. This uptick is sales from the reduction of price, and reduction in cost will help the decreasing revenue that has been occurring year after year. Additionally, while this strategic change is occurring it is the ideal time to bring in new Plant Management for the outside to execute a culture change and new vision. During labor negotiations, it is recommended to maintain current employee compensation levels until the restructuring product executions are determined successful, currently we can't increase compensation as we are already lowering or profit margins to 3%.
Additionally, it is recommended that after two consecutive quarters of increasing profit, that new mixer be purchased as the escalating cost of repair will only continue in the out years. While it would be an ideal situation to purchase Cheap Brick, until we are able to have more financial flexibility and can sustain our current operations while returning an increasing profit, it is not recommend acquiring Cheap Bricks at this current time.
Externally we would follow up with consumers through our sales teams to ensure they are happy with the changes in product and price. Internally we would survey our workforce to find out how they feel with our strategic changes or how we could improve our current operations. Evaluation of the success of these changes should occur Quarterly.