THE CRITIQUE OF THE ARBORITE STRATEGIC ISSUES

Document Type:Case Study

Subject Area:Management

Document 1

The second part of the research project explores many strategic organisation issues that have been affecting the company since its establishment and the entry of advanced technological oriented companies in the market they include the following, Wilson Art Company, Formica among others. The above information is strictly deduced from the case study of the Arborite Company. The third part of the project also analyses the useful recommendations and various interventions that can be put into practice in Arborite company to reverse the situation that put the organisation into an absolute crisis. The significance of the research project has also been especially intertwined with the recommendation to provide a unique work plan of its kind. Lastly, the project presents action plan on how the critical explanation of the recommendation or interventions can be best put in place by merely following the laid down processed and in line with rules and codes of conduct.

Sign up to view the full document!

According to technological terms, it is known as high-pressure laminate (HPL). HPL consists of sheets of paper that have been coated with two types of resins where they are baked for approximately 265 degrees and at a pressure of around 1300 pounds per square for about an hour. With the above processes put in place, the stacks and resin will be transformed into a single sheet of identical composite materials. In the year 1987, the Arborite company started experiencing some complex issues within its operations, this led to an urgent intervention by the stakeholders to help in revising the situation at hand, Brian Nutter, was appointed as the new manager of the company, initially he was the Domtar's manager, one of the Arborite affiliate company.

Sign up to view the full document!

He had vast knowledge and experience to help the struggling Arborite company back to its feet. The primary manufacturing method had not changed for the last 20 years. For example, maintenance and plant overhead were considered as standard based on their age and the condition of the equipment used in the company. The company used old bar treater technology and very minimal process controls and therefore the negative results was that approximately 7% of the cover paper was wasted6. The lay-up process was performed manually. They used core stock with a 115lb. The method of advertisement by the Arborite company used an old system, for example, the brands of the products manufactured by the company were not branded through mixing appealing colours and textures.

Sign up to view the full document!

It made it difficult to compete with the latest companies such as Formica and Wilson Art. The world had already evolved with technological innovations that were used by elite architectures and contractors. By still leaning on the old systems of information technology, their market share deteriorated finally stumbled. The lack of information systems made it unable for the company to estimate the proportion of sales that were made in all affiliated companies. Product performance of the Arborite company was struggling, and this became the first organisation strategic issue witnesses by the company management. Arborite firm was ranked number last (3), Wilson Art became at the top and strictly followed by Formica. Arborite company met the purchase criteria. The figure below shows a graphical presentation of how Arborite company related with other two companies (Wilson Art &Formica).

Sign up to view the full document!

Name of Companies Product performance Appearance Availability Support 1. The Arborite company should engage itself in increasing the number of qualified employees in the company since, and the company has its branches established in more than one country globally15. The sales agent should be increased and outnumber that of its competitors such as Wilson Art and Formica. Increasing the number of employees and especially the sales agent will help the company in taking care of different clients who need HPL hence it will increase the sales of goods leading to the improved market share of the company. The company should also be restructured regarding its market share and sales. The since the company deal with vast productions of HPL its warehouse should be increased in terms of capacity, effective storage systems in the warehouse will be a good idea and this will protect the products in terms of accidental fires and other risks that may put the company in loss16.

Sign up to view the full document!

Branding regarding packaging should be made colourful and appealing, and this will make them appealing and fascinating to the clients19. It should be realised that using appealing and cute packaging is a psychological game initiated by the company and it may force a client to purchase a specific product they had no intention of buffing and this leads to maximisation of profit to the company. Training is an important aspect when it comes to the success of a business company. Preparation of the employees is the key concept in improving the product performance of the company. It is highly recommended for the Arborite company to come up with education programmes that will assist the workers with useful ideas on their areas of specialisation.

Sign up to view the full document!

In case some different noted issues are arising, the expertise will be ready to provide the necessary actions to be taken for the problem to be reversed completely. Conclusion The above discussion has explicitly analysed the Arborite company basing all arguments on the provided case study. The case study has shown how the problem or issues that have been affecting the company at the moment where new industries with advanced technological innovations entered the global market. The detailed discussion has also provided necessary intervention on how the organisation's strategic issues can be solved. For example, due to the old technological system used by the Arborite company, it is highly recommended for the company to embrace advanced know-how on how to produce and market their HPL products.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template

Downloadable

Similar Documents