Issues Affecting Dyson Company - Report Example

Name Professor Course Date Question 1 Issues affecting Dyson Company The major issue affecting Dyson is competition from other companies offering the same products. Dyson offers its products at a reasonable price in relation to production costs. The products offered by the other companies are cheaper than those of Dyson. James Dyson did not consider comparing the prices of its products to those of competitors in the market, and this will affect the sales of the company. This is an important strategy to the organization when marketing such that it can survive the competition posed in the market. Before fixing the prices of the products, market research and analysis should be done to ascertain the prices of competitor products in the market. This would enable James Dyson to fix prices, which are not far from those of competitors such that more customers would be attracted (Krzyżanowska 274). Dyson Company is offering products of high quality, but the market price is a factor to be considered. The customer enjoys the quality of products, but price might make them shy away and instead move to buy competitor products due to cheaper prices. For example, James Dyson is selling its product at $350 while that of a competitor is sold at a price between $175 and $200. This is clear indication that this is a challenge that Dyson is facing in the market. This is because the customer will not go for a product sold at $350, which is a double price, and ignore that of $175 from a competitor. As time goes, Dyson might be out of the market because other countries like China are currently producing the same products, which are sold at a cheaper price of $75. This cannot be compared to that of $350, this means it will reach a time that Dyson will not be selling any product in the market. This will result to little or no profit making in the company, and it might not be able to pay its debts leading to collapse of the company. In addition, due to this trend the company might not afford to pay the employees. The employees will be forced to quit the jobs and seek for jobs in other companies. Lack of experienced staff is another crucial problem affecting James Dyson Company. The staffs who are employed in the company are juniors and young as they graduated from the university. This shows that they do not possess any knowledge and skills that enable them to fight with the competitors. The staff will not make important decisions in how the company should plan or strategies various activities as marketing, new technology, and other ways that can be employed to outweigh the competitors. This is because they have not handled or work in the same positions before. In addition, the staff will not assist in the decision-making process in the company due lack of experience and better skills (Krzyżanowska 73). Due to inexperienced staff, James Dyson will incur more expenses in offering more training to the staff such they can acquire more knowledge and skills in relation to their respective fields of work. James Dyson will be forced to organize frequent seminars and workshops, which will involve spending more funds. In addition, Dyson will organize staff trips to other organizations for them to learn more from experienced employees in the respective companies. James Dyson will be forced to outsource other employees who will perform technical activities that cannot be handled by the young staff. This is another issue affecting Dyson as he will incur more costs on the professional staffs that are outsourced. The outsource staff will have specialized in particular fields like auditing, law, engineering and others, and they will demand higher pay. James Dyson is the sole owner of the company, and he will be having problems in decision-making. This is because as a sole owner he will be having narrow decisions to make as compared to a group of partners. If a group of members or partners owned the company, each member would contribute an idea or opinion on the way out of the company. This would result in quality decision making in the company. In addition, expansion of the company is another problem that James Dyson is facing. This is because the capital he raises alone is not enough expansion of the company as compared to the capital raised by a group of members or partners. A group owners or partners will contribute more capital, which will be used in expansion. James Dyson ignored emails and memos yet this is the way that marketing and communication is done in the digital era. When Dyson ignored emails, he might not receive some of the communications from customers and employees. This is because currently all over the world technology is changing rapidly, and internet is used in communication and advertising. James Dyson will not be able to compete with other companies who are using the internet as a form of communication and advertising (Krzyżanowska 217). This is because most people are using various social sites like facebook, twitter, email, and websites, and they would get the products advertised in these social sites. Relocation to Malaysia is another issue that affected Dyson. This is because sales reduced drastically as he had to go and start marketing the product company from scratch. James Dyson had to establish a company in a new location, and it would take time for the residents to understand and accept the products of the company. In the process of establishment and marketing, the sales of the company reduced, and it affected the company’s development. James Dyson would not relocate with employees to the nation, and he was forced to employ new staff in the new location, which would take time for them to understand the operations in the company. In addition, it would take time for the employees, the customers as all were new, and this would affect the sales of the company. Impacts of the Issues affecting Dyson Company The issues affecting Dyson Company will have various impacts on the operations of the company. The stiff competition posed by other companies will reduce the sales of the company. This is because the other companies will use the higher product prices of Dyson as a tool to outweigh it from the market. Dyson Company will have few customers, which will lead to reduced sales in the company. The company should take immediate action in correcting this, to avoid to the collapse of the company. The inexperienced staff will offer poor services to the customers. This is because they do not have vast experience in offering the same services to the customers. This might cause the customers to move to the competitor companies. This is because the customers are not satisfied with the services offered by the staff. The staff does not possess the required skills to make urgent decisions in the company. This will make the company lose customers and resources waiting for the outsourced staff with vast knowledge and skills in the respective fields (Krzyżanowska 104). James Dyson is a sole owner of the business, and he will be making shallow decisions in the company that would not bring positive results in the company. For example, when James Dyson wants to expand the business he will not make good and quick decisions. This is because he is the only person contributing the ideas and opinions. If they were working as a group or as partners, each of them would contribute different ideas and opinions, which would lead to better decisions. The company is affected because the sole owner he will be overwhelmed by the decisions to make. The company will expand slowly because James Dyson is the only person raising capital for expansion. This is because the company does not have any other source of capital apart from Dyson as the sole owner of the business. This is as compared to a group of partners where each of them will participate in raising capital. This would enable the business to expand rapidly within a very short time because the partners will not strain when raising the capital as the sole owner in the case of Dyson. The act of Dyson avoiding responsibility through ignoring emails and memos will affect the company. This shows that Dyson ignore the use of the internet in various functions as communication and marketing company products. As a result, Dyson Company will receive stiff competition from the other competitor companies because they are using the Rapidly changing technology in various ways. In addition, Dyson does not use the social sites web pages yet they are most visited sites by many people. This would be the important method of marketing its products. The competitors are using such technology methods that they are selling more products in the market as compared to those sold by Dyson company (Krzyżanowska 91). The migration of the company to Malaysia affected both the company and employees. Many employees their jobs because, as a result, of relocation. Over 600 people lost their jobs because they would not relocate to Malaysia. The company was affected mostly because its sales were reduced. This is because the new place did not have reliable and established customers like in the previous location. The company was forced to incur extra costs in marketing the company in a new location. This is because the company would not pick up immediately as it was new to the people of Malaysia. Dyson Company was forced to market both the company and its products by use of even demonstrations on how the products are used. New employees were employed in Malaysia, and it changed the standards of services offered to the customers. This is because the employees who lost their jobs had understood the requirements of the customers, and they need to be attended. It led to reduced number of customers in the company, which led to a reduction of sales. This affected rate at which profit was made and the expansion of the company remain stagnant for some time. This would take time, and the company was forced to incur other costs on training the staff on how to interact with customers. Evaluation of Long-term Sustainability of Dyson Company The sustainability of the company will not take long if the immediate measures are not taken on the issues affecting the company. For example if the company does not respond to the rate at which it receives competition from other companies, it might lead to the closure of the company (Krzyżanowska 126). The companies like Samsung and LG from South Korea are selling their products as low as $150 compared to that of Dyson Company, which sells at $350. Competition is a greater challenge to the company, and it should be addressed immediately to save the situation of Dyson Company. China produced cylinder cleaners, which were sold at $75 in the market. This shows the trend at which Dyson Company receives serious competition. At this rate of price reduction from various companies, it will reach a point that Dyson Company will not sell its products in the market. This is because all the customers will have moved to the cheaper products which serve the same purpose as those offered by Dyson Company. The rate of expansion at which the company is venturing to different countries is reasonable, but market is where the company is having serious problems. The use of current technology, which is ignored by James Dyson, is another issue that the company should look into. This is because currently nothing can be done without involving the use of internet. Internet technology is involved in various departments like marketing, production, communication, administration, finance, and many others. The company should respond to this issue for it to remain sustainable in the market. Question 2 Recommendations to Dyson Company Dyson Company needs to take some measures in addressing the issues affecting the company. In relation to competition, the company should review the prices of the products. This is because prices are the main issue that is used by the competitors to fight each other in the market. Since the company has moved to Malaysia, and it has reduced productions cost by 25%, it should adjust the product prices such that it can sustain the competition posed in the market. If the issue of prices is not addressed, it the company will not be making any sales in the market, which lead to the collapse of the business. Prices of products are really a challenge to the company because other competitors are selling up to $75 and $150 while Dyson is selling at $350. The company might even maintain high quality products which sales at $350, but it should consider producing the products which sales at the lowest prices like those of the competitor companies (Krzyżanowska 88). The customers will have different products to choose in the market because there will be the expensive and cheap products in the market. In every country or community, there are people of different classes. There are those who can afford buy expensive products and those who to the cheaper products. In this perspective, Dyson Company will have gathered the needs of both categories of the people. The company will not lose customers to a competitor, as they will choose the products as per their affordability. Another approach is the quality of products. The company should make sure that the products are of reasonable quality. The company will produce the cheap and expensive products, but it should make sure that the quality of the products will satisfy the customers. This will enable the customer to have trust on the company products, and he/she will not be persuaded to buy products from other companies. The company should maintain the servicing of the customer's products frequently. This is another strategy that the company will make sure that the customers remain reliable and satisfied by the services. This is because it is rare for the other companies to offer such services to the customers without demanding payment. When recruiting employees, the company should make sure both the junior and experienced employees are recruited in their respective fields of work. The junior employees will be having less experience in the field and they seek for assistance from the experienced colleagues. The company will avoid the expenses incurred on the outsourced employees who have experience in the respective fields. The experienced employees will make sure that quality services are offered to the customers. This is because they understand various ways of handling customers as they have worked in such positions before (Krzyżanowska 239). The customers will be satisfied by the services offered in the company and the competitors will not sway them. The customers will assist even in marketing the company by recommended other people to buy products in the company. The experienced staff will guide the junior staff on various skills, which will lead to the production of high quality products. This is because the employees will apply skills acquired in such positions before. As the customers go for quality products, they will be held firm in the company because they are comfortable with the quality of products and services offered to them. The experienced employees will assist the CEO and director in decision-making. This is through contribution of opinions and ideas, which will lead to quality decisions made in the company. The employees will contribute their views on how the company can address the issues affecting. For example, in relation to competition, the employees will understand better how the competitor companies can be outweighed in the market, and they will give their ideas and advises to the company on the way out. The company should not ignore the advice, opinions, and ideas from the employees. Instead, it should analyze them critically such that they will pick the important and sensitive strategies offered by the employees. The company should embrace the use of digital technology in the company. This is because everywhere in the world has been transformed to the digital era where all the activities are processed online using the internet. When it comes to marketing of the company and its products, the company should use social sites and web pages to advertise the products. Currently, many people both young and adults are frequently visiting the social sites. This will be the best way that the company will market its products. The company will create its own facebook and twitter web pages on the social sites. The products offered by the company will be uploaded on the web pages and how they are used. The customers will view the products and their uses in the social sites, and they will contact the company. The company can transact with customers in different countries online and deliver the products without travelling long distances. In addition, the company should have its own website where the mission, vision, products, and services offered are displayed (Krzyżanowska 193). The company will also upload their products, prices, and contacts on the website. This will enable the customers who rarely use the social sites to access the products and even make inquiries in various items offered by the company. Another important issue the company should address is the salary review. The salaries of different employees should be reviewed after some time. This will enable the employees to be satisfied, and they will deliver their duties maximally. The salary should be reviewed in relation to the level of education, knowledge and experience possessed by the employees. This is because the company cannot pay the same salary to an employ having a degree and that having a diploma in their respective fields of work. The company should consider offering rewards and incentives to the employees as an appreciation of their contribution to the company. Rewards and incentives are offered in different ways even appreciation by word of mouth will make the employee feel recognized for his/her contribution to the company. The company should offer the rewards to the best performing employees at the end of the year as a surprise. This will increase the morale of the employees to work hard in their respective duties knowing that they will receive incentives and rewards at the end of the financial year (Krzyżanowska 87). Through this strategy, the company will meet its goals and targets set because each employee will work extra hard without being supervised or monitored. Apart from the individual rewards, the organization should organize general rewards where all the employees will benefit. For example, the company can organize a trip for the employees at end of the year. This will make other employees who did not receive the rewards not to feel discriminated. In addition, the company can organize seminars and workshops where the employees will undergo training after which they given certificates of training, which will boost their career in the future. The employees will also acquire knowledge and skills from the training that will make them improve their performance in the company. Works Cited Krzyżanowska, Magdalena. "The Influence of Competition on Marketing." Available at SSRN 2002722 (2012). Read More