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NEW_Proposal - Case Study Example

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Queensland Leisure Group (QLG) is a family owned company with a long tradition of manufacturing in Queensland. The Business is always built on brand value by providing premium quality on regular basis, however recent changes to market conditions has resulted in QLG facing the sharp decline in the net profit margin along with its share in the market…
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Queensland Leisure Group (QLG) is a family owned company with a long tradition of manufacturing in Queensland. The Business is always built on brandvalue by providing premium quality on regular basis, however recent changes to market conditions has resulted in QLG facing the sharp decline in the net profit margin along with its share in the market. Their operating profit as a percentage of turnovers has decreased from a high of 13.7% in 2004 to a low of 3.96% in 2009 that is matter of concern. The key factors that have led to this are stiff competition from local vendors providing imported quality products at lower prices. Their application of modern trends of business is cost effective without any compromise on the customer service. Their understanding of customer's requirement and ability to meet the demands of customer at reasonable cost in lesser time assists them in taking competitive advantage over the rival companies. The challenge QLG is facing that if they fail to act immediately, further reductions to market share and profitability are bound to happen. There will be higher attrition of skilled resources and deterioration in overall performance and profitability in the current business.
The prima facie issues for QLG are to modify its HR strategies to optimize the resource strength in work environment to combat the challenges of dynamically evolving phenomenon of volatile business.
The proposal to improve the system includes 5 key changes to address the objectives as identified by Queensland Leisure Group executives during the consultation process. These five stages will create positive change in a number of critical areas:
Corporate Hierarchy Modification: QLG needs a horizontal and functional business structure that will reduce labour costs and increase flexibility to assist them in responding more quickly to the rapidly changing factors in the environment scan.
Modification in Operational Procedure: Modern technology and processes should be used to increase productivity and efficiency in the production department through automating manual operations and applying cost optimization for different processes.
Profile Structure Modification: New profiles will create dynamic resources in the QLG allowing them to be used more efficiently to meet swiftly changing consumer demands, and
Organization culture Modification: QLG will be able to retain its caring, family orientated culture while promoting the culture of innovation, open and commitment towards a more versatile business.
Following the analysis that NAHN Consulting have completed, this proposal will be instrumental in leveraging the existing process as standard reference to find the appropriate tools and structure to enhance the financial performance of the company. The forecasted projection will be an improvement of 5% increase in your Net Profit in 2011 followed by a further 10% in 2012 based on the implementation of our proposed changes. It is also firm belief that with these improvements will increase chances of talented resource retention that will reduce costs associated with recruitment and training of new staff. Read More
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