The Key Systems and Processes Used by AC Gilbert - Assignment Example

Assignment Overview Alfred Carlton Gilbert was a renowned inventor and a manufacturer of toy who invented the Erector engineering set. He founded a company in 1909, which is known as The Mysto manufacturing Company. Later in 1916, the company was renamed as AC Gilbert Company and gained immense reputation for producing quality toys. The company grew rapidly in terms of its operation as well as revenue generation. After the death of AC Gilbert in 1961, his son AC Junior succeeded him. The toys produced by the company were quite expensive particularly due to the reason that the toys were of high quality. The company primarily targeted group of boys rather than girls and concentrated mainly on producing educational toys. It followed a specific set of procedure to manufacture and market the toys. The cultural changes witnessed by the toy industry had profound impact on the company. However, AC Gilbert Company’s response to these changes was slow. As a result sales, profit and share price of the company declined. In order to cope up within the challenges of decline profitability, certain imperative actions were taken. The company was permanently closed in the year 1967 after the firm struggled to improve business performance. 1.0 The Key Systems and Processes Used By AC Gilbert（ here I think should be question 1, not 2） Supply Chain The supply chain process used by AC Gilbert was conventional in nature. The company was unable to bring innovation in its supply chain. The company purchased raw materials and packaging needed for the manufacturing of the products from suppliers. The company channelized its sales through independent manufacturer’s representative. The company emphasized towards building relationships with independent representatives while no heed was accorded on developing customer relationship. In this respect, the supply chain of the company was traditional one and accordingly, was not able to conduct operations in accordance with the changing needs of customers. Operational System The toys were designed by small group of designers who were engaged in developing the concept for the products. The planning departments was responsible for translating the product concepts into designs and were further accountable for determining the sources required for producing the products. The department was also liable for forecasting the sales of the products as well as develop production plans for each product, timeframe and production runs schedules. Product Service and Delivery The company produced high quality toys that were relatively expensive. The toys were solidly created with embedded features for better sustainability. The parts and packaging were designed with a viewpoint that would last for many years. Although the toys manufactured by the company were educational but were created primarily for boys rather than girls. In order to deliver the toys manufactured to the ultimate customers, independent manufacturer’s representatives were used. 2.0 Performance Measures, Assessment Tools and Techniques (question 2) Sales KRAs* KPIs* Performance Review SLA* Improve Performance of Sales Executives Sales per Rep Employee self-evaluation Increasing the efficiency of sales force Management reporting on Sales Performance Sales by contact method Outcome based evaluations Seeking customer involvement KRA* Key result areas KPI* Key performance indicators SLA* Service level agreements Operating KRAs KPIs Performance Review SLA Stock Control Inventory Shrinkage Rate (ISR) Providing feedback Ensure optimum level of stock Waste management Process Waste Level Goal setting Reduce wastage Planning KRA KPI Performance Review SLA Customer satisfaction Customer complaints handling Survey Deliver quality product Pricing Price earnings ratio Price comparison Deliver quality product at reasonable price Supply Chain KRA KPI Performance Review SLA Better supply coordination Perfect Order Rate The order entry method Develop harmonious relationships with suppliers Faster / timely communication Inventory to Sales Ratio The customer order path Ensure efficiency in production and delivery system 3.0 Evaluation of the Effectiveness of the Performance Measures, Assessments Tools and Techniques ( question 3, please mention quality, sales, profit, supply chain performance, business growth) The implementation of the above mentioned the performance measures, assessments tools and techniques within AC Gilbert would have depicted different results for the company. Accordingly, use of KPI tools such as sales per rep and sales by contact method would have facilitated in attaining increased efficiency of the sales force engaged within the company that would have ultimately promoted the company to deliver quality product to its target customer segment. It has been observed that the company had witnessed considerable decline in its sales turnover. Correspondingly, the use of these techniques would have facilitated the company in achieving the desired sales goals during the year 1962, which fell short in the subsequent year. Simultaneously, implementation of inventory shrinkage rate (ISR) and process waste level would have reduced the issue of over price faced by the company during the year 1963 and further assisted it to attract substantial target customers. Similarly, the implementation of customer compliant handling function and price earnings ratio analysis would have facilitated the company to retain large customer base and increase its sales during peak season. Besides, it would have enabled the company to maintain fair return on its investment in the form of increased profit. On the other hand, the implementation of perfect order rate and inventory to sales ratio would have allowed the company to improve its supply chain performance as well as embrace continuous growth of its business. 4.0 Trends That AC Gilbert Failed To Identify in the Late 1950s along with Strengths and Weaknesses possessed by it prior to 1960 (question 4, mention about market share, reputation, stability, profit, sales and ability customer services standards. Here has two question, you only answered ‘missed’. Where are the strengths and weakness?) Missed By It Based on the given case scenario, the company was unable to comply with the changing trends within the industry. Accordingly, it has been identified that there were significant changes in terms of the preferences of the target customers based on features and requirements. Notably, boys were demanding exciting and new slot of cars as oppose to traditional train sets while girls were more inclined towards buying grown dolls that were modern and trendy. However, the company failed to grasp these changing trends and keep on producing its own conventional model type dolls that hampered its competiveness to a significant level. Besides, dramatic changes were occurring in terms of sales and marketing of products. The phenomenon of television advertising was gaining widespread popularity but the company failed to recognize this opportunity. All these failures to comply with the market trends contributed towards huge decline in its sales turnover. The decreasing sales of the company further resulted in fall in its market share. Nonetheless, the company enjoyed a strong goodwill and reputation but was not able to channelize this advantage in an appropriate direction. Employees performance was also deteriorating that forced the company to undergo massive employment cut. The company failed to adapt to the changes occurring within the industry and did not paid heed on innovation that further resulted in poor supply chain. Strength and Weakness The major strengths of the company were its strong goodwill and reputation. Besides, the quality of products that it offered to its target customers segment can be identified as another crucial strengths possessed by the company. However, one of the major drawbacks or the weaknesses surrounding the company was its failure to embrace continuous innovation in its product planning and development. At the same time, the inability of the company to adopt new and emerging promotional tools was another vital weakness of the company. Due to the inability of the company to comply with the changing business environment, significant instability in its operations was observed. Consequently, the instability in its business operations was coupled with declining market share and reducing profit. The customer service standard that was initially perceived to be superior also began to deteriorate. All these factors contributed to weaknesses of the company that later culminated in the form of complete oblivion of the company. 5.0 (question 5.0) Specialist that Could Have Been Consulted to Advise on and Identify Technology and Electronic or Other Commerce Opportunities Internal As far as the internal activities of the company are concerned, it would have been beneficial for the company to consult engineers, production staff, manufacturing staff, sales personnel and R&D human resource personnel. Additionally, by seeking advice from the above-mentioned consultants, the company could have been able to improve its production process along with productivity. The company by seeking advice from R&D would have enabled to embrace innovation in terms of product design and production, which would have ultimately facilitated in tapping the changing preferences of customers. External With respect to the external activities of the company, it would have been advantageous for the company to seek advice from marketing consultants, advertising experts, engineers or designers and IT consultants. Similarly, advice from aforesaid experts would have facilitated in improving its delivery systems as well as embrace new and innovative means for promoting its products. Besides, the company with the help from engineers and designers would have been able to design and produce products that are eligible to meet the changing requirements of the different target customers. Read More