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Competitive Operational Strategy - Case Study Example

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Summary
This report is on the changes required in the operational strategy of Hypergol Electronic Systems, a company involved in manufacturing of electronic operating and control systems. The company has recently considered a proposal for change in its product line…
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Competitive Operational Strategy
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Competitive Operational Strategy

Download file to see previous pages... The company has regional offices in Malaysia, South Africa and Poland to meet the demands in Asia, Africa and Europe. The company was privatized in the year 1986. The major reasons for the decision to change the product line are the uncertainty in military contracts due to political changes and inefficiency in the government system. The civilian aircraft industry was also facing crisis as many firms in the line wound up their operations due to high competition and fluctuation in demand due to the entry of second hand aircrafts in the field. Thus there existed an uncertainty in the civilian and military aircraft sector. So the company decided to lay higher emphasis on industrial products.
2. As the demand for industrial products will be more in developing countries of India and China with a huge consumer base the necessity of shifting the head office from Europe to Asia have to be seriously considered.
One of the major problems faced by the company is the high finished goods and work in progress. In spite of it overtime is given to execute orders at short notice. This is a paradox. The reason given by the production department is that they can manufacture only in batches and cannot cater to the variation in demand. The execution of orders at short notice involve over time and sometimes high rejection. ...
In spite of it overtime is given to execute orders at short notice. This is a paradox. The reason given by the production department is that they can manufacture only in batches and cannot cater to the variation in demand. The execution of orders at short notice involve over time and sometimes high rejection. The purchase department is of the opinion that a raw material inventory has to be built up to meet the fluctuating demand. Although a minimum of raw material, work in progress and finished goods inventory has to be maintained, to maintain uninterrupted production and to meet unexpected demand. To overcome this, an ABC analysis is required to stock minimum quantity of high value items.
Though the company has these problems it has an efficient management team that is skilled in decision making at the appropriate time. They have a customer focus and discuss freely the day to day problems among themselves and arrive at a consensus. The top management team portrays higher leadership qualities in its operation. Effective communication is one of the tools used by the company to enhance its leadership. The vision and mission of the company is shared by all the employees in the organization. "Effective leadership is one key element in the success of a group and virtually anyone can learn to be an effective leader." (Effective leadership. 2001). Both suppliers and customers are regarded as partners of the company.
At present the company has its product lines in three segments namely military operations, civil operations and commercial operations. Though the company has commercial operations in its product lines it is less established compared to the other two. Programmable Logic Controllers systems and the associated software are the main products ...Download file to see next pagesRead More
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