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Evaluation Of A Strategy For Increase In Car Production

1980 words - 8 pages

Evaluation of a Strategy for Increase in Car Production

The Morgan motor company is a small conservative company that is based
in the north of England that is a producer of hand made, high quality
cars. The purpose of the strategy is to identify the cause of the
problem that is currently meaning that Morgan can only produce around
nine cars per week. Despite this the company has much strength in the
way that it operates, for example the company has a background of
being very traditional. Job production has provided a very highly
skilled and committed workforce and has enabled the production of a
high quality.

The negative culture and resistance to change of the workforce and
management has led to the company becoming outdated. The job
production style of the car has led to a long manufacturing period.
The final weakness of the company is the long training period of four
years has generated a high labour cost. The stock control system in
the company is very outdated for example there is no computer in the
company.

The conservative nature of the company is non progressive which means
that with the rapidly changing nature of the car market means that the
company will continue to fall further behind its competition and
eventually become obsolete.

This will be achieved through the use re engineering in phases in the
company and the Kotter and Schlesinger model of change. There will be
little participation and negotiation with the workforce due to the
incredibly negative culture that is in place at the company which will
delay the process by giving the workforce more power. It may be
necessary to use a large amount of manipulation and coercion in order
to push the change through the company. Reengineering is the process
by which an extreme change occurs in the company all at once starting
from scratch, this will required in the company due to the extremely
negative attitude of the managers and labour force who are very
resistant to change. The company has become so outdated that it may be
better for the company to begin from scratch.

In order to identify the causes of the problem the Morgan Company
would need to carry out three different studies, these are:

* A Works Study

* Market Research

* A analysis of the accounts and sales of the company

The main purpose of the works study would provide Morgan with the
evidence of the problem within the company and to highlight the
specific problems in the company. For example the poor logistics and
layout of the factory which means that the cars have to be manually
moved around the factory from one stage to another. The works study
will highlight the areas that need to be improved by the business, and
how they can be improved, for example the car is predominantly made by
hand, can be improved by the...

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