Report and project plan - Essay Example

Due to numbers of internal and external problems and issues, the company’s Board of Directors has decided to overhaul the whole company in all aspects. The board is aimed to formulate a plan to bring revolutionary changes in the working and operational environment of the company. Spector (2010), states that managers are generally more responsible to carry out such kind of revolutionary plans. The detailed report of this project plan is summarized in the form of Gantt chart prepared by Microsoft Office Project as Appendix-I.

The main aims and objectives for the plan are: Establishing a vertical integration structure so that dependability of Pipework is minimized on external agencies Setting up of integrated information technology system throughout the company Improve the overall standards and minimizing the grievances of the workforce Enforcing of democratic leadership style instead of autocratic style Improving the quality control TASK 1: VERTICAL INTEGRATION STRUCTURE Pipework is not directly related to selling.

Basically it is a manufacturing company which deals with the manufacturing of pipes, boiler, and household items. Besides several administrative and non-technical issues, the company is also facing challenges at its production and quality department. These challenges include some macro level issues like political and economic constraints in different countries. In respect of production, company is not capable of making the branded items. For manufacturing of some accessories or certain parts of an item, Pipework is highly dependent on other manufacturing organizations.

Thus bargaining power of suppliers is high. As far as quality of production is concerned, the imported items are not conforming to the desired specifications. Although, company has managed to procure some manufactured items from third world countries, but even then boilers manufactured from Taiwan and Korea has created difficult conditions for Pipework because their prices are relatively too low. Pipework cannot compete the price war because it has to cost extra amount on transportation of goods from other countries as well as the custom and import duties take the prices even more high.

In recent years, the situation has reduced the overall revenue of the company. Therefore, in order to improve the market share, Board of Directors has intended to invest heavily on the vertical integration structure in the company. A vertically integrated company is generally independent of external supporting factors thus becomes more competitive (Slack, 2010). Zara fashion retailer and Apple Inc. are excellent examples of vertically integrated companies. Successful execution of this plan will not only generate the turnover of the company but will also support it to set up other tasks effectively.

Objectives To reduce the dependency on external agencies, setting up a well-established vertically integrated structure in the company. It will be executed by: Setting up of separate independent plants equipped with latest design and