TORC UK's Marketplace Positioning and Supply Chain Integration - Case Study Example

Introduction: TORC UK is an electronics organization which is based in West Midlands in the United Kingdom. In the modern world, cordless screwdrivers and power tools are the products which yield the most returns. Since 2006, it has launched gardening pumps, which resulted in the retaining of operators in the new manufacturing process, however, it caused redundancy of few employees because of their hesitation to learn new skills. The main purpose of this report is to turn into a profitable organization operating with effective, efficient and economic market-oriented systems. This report will try to outline the scope and direction TORC can undertake over the long-term period in order to achieve benefits during its arrangement of resources in surroundings, to meet the needs of stakeholders as well as market. Part 1 a) Develop a more aggressive marketplace positioning strategy. In order to find out an effective marketing strategy for TORC, it is important to understand its present position within the marketplace. “Strategy is a proprietary set of actions that serve targeted customers better than competition, while strategic positioning consists in defining the focus point of a company’s resources” (Strategic Positioning, 2013, n.p.). TORC consists of a large customer range which incorporates huge sections of the public and also different organizations. It has been observed that the products reach the general through their retail outlets and that they are made available to large corporations through their sales engineers. The Ansoff product or market matrix is used for determining the opportunities for growth of the organization. At present, TORC is presently deliberating the merits of online business by a mail order subsidiary. “Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets” (TORC UK Ltd. Essay, 2003-2011, n.p). Within the metrics, the principal areas are product development, market penetration, market development and diversification. The main aim of TORC is to turn into a lean organization with an effective and efficient economically operating market-oriented system. There should be a configuration of resources surrounded by an environment to meet the expectations of the market and also the needs of the stakeholders. b) Introduce a rationalized product range to exploit the higher turnover available from more profitable products. Product development is an area which the TORC can investigate and find out what strategies to employ in order to attain a better market position. An opportunity has to be taken to diversify the existing products .For example, raising interest in females, children etc by modifying the products to suit their tastes. TORC has established its brand name already with high quality through its retail outlets that sell assorted goods in order to entice new customers. An increased influence from gardening, home improvement programmes and television have seen the new customer target base endeavoring to the male domain, but, however is trying to maintain their femininity and hence does not want to handle heavy tools presently available. Packaging of products also plays a crucial role to attract the customers, as it is based on the appeal of the end product that they buy it. “Product Development plays a critical role in ensuring a companys future growth potential” (Product Development Overview, n.d, n.p). The sales engineers will also have to inform the customers that there exist new products with reputed brand image and they have to explain the way in which they compliment the range. Even though the knowledge of entry into new distribution channels is limited, the development of an existing product that produces high profits and distinguishes itself with quality would entrench itself into any market arena. c) Develop a marketing promotion campaign to include an on-line intranet and extranet capability in order to serve more international markets. Even though the development of product will suggest the manufacturing of new tools with feminine touch, there is a chance to repackage the products, which exist when targeting a new market segment. Even though relatively new, TORCs online business is successful and has been listed as a major strength in SWOT analysis. More development of the said distribution channel in order to accommodate its variety of products might prove effective from a lean and financial perspective. According to Al Ries, history will grade the internet as the best out of all distribution channels. The reason is that the internet is the only communication media which allows interactivity. Interactivity is important to online business since the customer is given a feeling that his or her opinions and interactions matter a great deal in the trade. It also entertains the customers by linking alternative or complimentary products, instantaneous calculations of choice, selecting product with modified colors, suggested reading material when the product is chosen and also rating the product which has been already purchased. Sustainability is a feature of lean implementation whereby the productions are expected to make a background of continuous sustained improvements with less action for maximum profit. “The term “sustainability” is bandied about rather freely – now that awareness of and concern for environmental impacts continues to grow” (Planchard, 2010, n.p). Entering either globally or locally based markets may be very difficult for the organizations and thus, they need to devise good strategies that will enable them to not only enter markets but also sustain market share during the long run. The management of TORC will have to create a marketing plan that would help it to enter the market and ultimately earn profits for the organization. The aim of the plan is to analyze the new commercial atmosphere and examine strategies in order to address processes for marketing the services, products, measure performance, inform stakeholders and allocate resources. The making of an effectual site may raise the question of outsourcing or in-house skills and the continuous need for collaborative working in order to make the desired product. Entering the fundamental arena, TORC may also investigate by using agents, distributors, dealers and overseas franchises. The combining of market penetration and market development may also allow TORC to create an opportunity for leanness and agility which it lacks at present. d) Raise the Key Performance levels (such as Q.C.D.) within the new, and extended enterprise. In order to transform TORC into a lean and responsive business, the following areas have to be assessed and verified. The human element of performing an assessment which is manual has to thus be eliminated. “In an increasingly global market it is essential that UK businesses remain competitive. And seeking continuous improvement in all areas of your business will help you meet the challenge of this global competition” (QCD: Measuring Manufacturing Performance, n.d, 1). The production department will have to gather additional data that helps increase purchase and sales orders dealt by the project management, stock control and also foreign trading transactions. Diversification, which means new products in the new markets, is mostly a risky process due to unknown quantities of the market. Clarity of possible risks and expectation arising from the new market are important while applying this particular strategy. TORC has to make use of its customer base more effectively and in a better manner. Importance is focused on the prospect clients who order for products, which is used to find out the master production schedule. Part 2 a) Examine what and how the company can achieve improved manufacturing output and reduce waste, TORC UK Ltd is producing various electronic household items, which includes the 2006 gardening pumps. On the other hand, due to the introduction of this latest product, retraining of workers in the new developed process was undertaken, however, it resulted in the joblessness of some workers due to their unwillingness to learn new skills. Presently, cordless power panels and tools such as screwdrivers comprise TORC’s most economically yielding product range. TORC UK Ltd can attain enhanced manufacturing output and decrease wastage in several ways, mainly by recognizing the work flow connected with manufacturing the product. This contains the processes, people and technology necessary for production with the communication, resources and dealings needed all through the company. They can also make a balanced scorecard derived from data from a protected repository. Another step is to recognize economic dealings for the scorecard, for example: customer measures, monthly sales for example the number of support calls of product, number of products manufactured every month and staff retention. “Monitor information generated from process improvement projects to implement improvements throughout all of your manufacturing operations. Analyze costs and benefits” (Duggan, 2013, n.p.). Create an intranet website to issue reports, business case studies and balanced scorecards. They can also ensure that every worker have access to the data and suitable coaching on how to implement the measures to improve manufacturing productivity. TORC UK Ltd has dealt with about 200 production suppliers in the previous twelve months though there were more than 850 names of the company on the computer supplier database. The purchasing manager explained that every industry that they bought goods from was entered onto the database at the persistence of the finance department. This has guided to a lot of arguments among finance and purchasing departments as of the extra clerical work for the purchasing department. b) Improve product quality and service reliability, TORC UK Ltd is an ISO 9000 qualified firm and it is the globally established standard for the firm’s internal quality management. Improving productivity and quality in business normally results in increased employee and customer satisfaction. Using quality management methods such as benchmarking, process mapping and cost-benefit analysis can achieve usual development in every work-flow processes. Enhanced output thus results in fewer delays, fewer defects and reduced costs. “Excluding service, good product quality can be understood by exploring three attributed that are frequently mentioned in marketing: good performance, ease of use, and trouble free operation” (Ryu, 2012, 14). (Improving reliability and quality for product success By Dongsu Ryu, pg- 14) There are several ways to improve product quality and service reliability in TORC UK Ltd that contains analyzing the various processes. Guide every personnel sufficiently so that they can create high-quality products in their work and thus they can increase performance measurements. Benchmark present processes, recognize troubles, forecast future outcomes and determine productivity profits utilizing key performance indicators for the company. They also conduct quality testing of the procedures and value employee, supplier, customer and business partner advice and input about solving service troubles. Utilize consumer feedback to develop current products and also create designs of new ones. Arrange a report shortening findings, and hand out the reports all through the organization to recover quality and productivity. c) Reduce inventory and manufacturing costs Inventory stands for one of the biggest and most tangible investments of every manufacturing business. Smart inventory management plans can not only assist boost earnings but also they can help a barely surviving business to gain a little stand. TORC has updated its IT system gaining Sage 200 and installing about 120 terminals across sites. Sage 200 controls customer-facing conditions and back-office procedures with core retail or wholesale activities, and the engineering and manufacturing costs. “Reducing manufacturing costs increases profitability by making more with what you have or the same with less. It sounds pretty simple but many companies struggle with this. Of course there are many ways to reduce manufacturing costs” (Reduce Manufacturing Costs, 2002-2013, n.p.). TORC will require to investigate extra alternatives to raise sales revenue at the same time as reducing inventory and manufacturing costs. Venturing into included IT systems will address the weakness outlined above. The industry’s power lies in its qualifications of ISO 9000 for improvement and quality in its key functioning indicators. TORC seeks to achieve value added leanness for attracting and benefiting consumers. Addition of value can be attained by manufacturing products required by consumer, ensuring alterations that are done right first time and lastly ensuring the consumer is eager to pay for changes completed. d) Increase overall efficiency, effectiveness and economy levels of the business operations management. Efficiency, effectiveness and economy levels of the business may contain closing various manufacturing units and expanding others, merging various stages of the manufacture process, closing units that are duplicating attempt of others etc. “Efficiency is the measure of the speed and accuracy with which work is completed. It has also been defined as the ratio of input to output, or the rate at which input is converted into output” (Waldt, 2004, 71). (Managing Performance in the Public Sector: Concepts, Considerations and By Gerrit Van der Waldt, pg – 71) TORC UK Ltd has identified the need to go towards becoming a lean operation with more effective, efficient and financial market-oriented systems. The organization has so far only succeeded in part, being restrained by factors for example, limitations of site and space, quality and product design, the scale and scope of the present manufacturing systems and techniques of distribution, production and the position of market. The product range explanation is a restructuring of products range to reproduce alterations in demand, thereby concentrating its marketing and sales effort on its greatest sellers. Therefore, it is the elimination of outdated products with low economic benefits to the business being included into the creation and designing of other product. By combining the product range available, the company can thus give lean control more than manufacturing process even as freeing up storage space. Conclusions and recommendations: This report tries to outline the scope and direction TORC can undertake over the long-term to achieve the advantage during its understanding of resources in the present scenario, to meet the needs of stakeholders and market. Having examined various marketing strategies, the recommendation will conclude that a joining of Market Development Market with Penetration would permit TORC to expand a chance for leanness and agility that it currently lacks. TORC will have to apply extra market study into such areas before agreeing on this strategy. Reference List Strategic Positioning. 2013. Wa’ed. Retrieved April 20, 2013, from TORC UK Ltd. Essay: A review of TORC UK’s Marketplace Positioning and Supply Chain Integration. 2003-2011. American Essays. Retrieved April 20, 2013, from Product Development Overview: Product Development Strategic Approach. (n.d.). Frost & Sullivan. Retrieved April 20, 2013, from Planchard, Marie. Driving Sustainable Product Development. (2010). Sustainable Industries. Retrieved April 20, 2013, from QCD: Measuring Manufacturing Performance. (n.d). Retrieved April 20, 2013, from Duggan, Tara. How to Improve Manufacturing Productivity. (2013). Hearst Communication Inc. Retrieved April 20, 2013, from Ryu, Dongsu. Improving reliability and quality for product success. (2012). United States of America: Taylor & Francis Group, LLC. Retrieved April 20, 2013, from Reduce Manufacturing Costs. (2002-2013). Vorne Industries, Inc. Retrieved April 20, 2013, from Waldt, Gerrit V. D. Managing Performance in the Public Sector: Concepts, Considerations and Challenges. (2004). Berne Convention. Retrieved April 20, 2013, from Read More