Domain Synthetic Fibre Case Study

1234 words - 5 pages

For a constant rise in returns or stability in the level of income, an organization has to take into effect a good management process. An organization therefore has to strategically manage its affairs. The authors Brian ‘et al’(1996, p 1) defines strategic management as the process of systematically analyzing the competitors, customers and the organization itself so as to provide a basis for maintaining optimum management practices. Proper strategic management enables an organization to maintain operations in the business world and overcome any challenges that arises.
Brian ‘et al’ (1996, pp 1-2) further argues that the main objective of strategic management is to achieve a better alignment of both the corporate policies and strategic priorities within an organization. Therefore for an organization to stand the operational challenges and operate effectively, an organization should strategically manage its affairs to avoid heavy losses, threat of closing down among others. Strategic management enables a firm to gain a competitive advantage over other firms, hence high returns.
The Domain Synthetic Fibre is a manufacturing company which manufactures synthetic fibres. The company has a mission to be the leading natural synthetic fibre and chemical production company in the United Kingdom. Currently the company is in a crisis because the patent on established product is about to expire. Though they have a potential replacement of the patent, it still has engineering problems associated with bulk production of the replacement (Crylon). This may be so due to the ineffective strategic management in the company. This may also be as a result of adoption of a formal approach to strategic management. Brian ‘et al’ (1996, pp 4-7) states that a successful strategic management is not the adoption of the formal approach. The quality and consistency of implementation and the ability of the organization to adopt changes may lead to a successful strategic management. In the conclusion about formal approach to management, Brian ‘et al’(1996, p 8) concludes that the formalized system of planning is no guarantee of success but equally leaving things to chance constitutes the best possible guarantee of failure.
The company has come up with an option of producing similar but differentiated product. This is through the acquisition of the new patent Crylon. This new product has some quality advantages over the former (Britlene) hence they expect rise in returns with the introduction of the product. With introduction of Crylon the management is split on issues whether to stop the production of Britlene after the patent expires or not. The management has a proposal of either using the two horse approach or majoring on one product. That is either continue producing Britlene and reduce prices hence deter new producers from entering when the patent expires or, major on Crylon production.
Doman Synthetic Fibre Company operates in the chemical and synthetic fibre...

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