Harris IncVEGA

docx

School

Fisher College *

*We aren’t endorsed by this school

Course

MBA5000

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by EarlManatee3662

Harris Inc. Presented to: Dr. Edward Harris MBA 5010 Fisher College Reynaldo Vega 10/01/2023

Section I - The Situation The case revolves around Harris, Inc., a company with a strong reputation for quality products and excellent customer service. As a well-established organization with over 40 years of history, Harris, Inc. faces the key issue of stagnant earnings growth at 4-5% per year. Intense competition in existing product lines, a capital shortage requiring external funding or cost-cutting for new products, and the need to make a strategic decision regarding future direction are central challenges. Three options are on the table: launching a new product line with potential for higher profits but layoffs, pursuing internal improvements for profit growth without layoffs, or maintaining the status quo with current operations. The CEO must choose the most suitable option to secure the company's future and maintain its reputation. Section II – Causes The situation at Harris, Inc. is influenced by a combination of internal and external factors. Internally, the company grapples with stagnant earnings growth, experiencing only a modest increase of 4-5% annually. This has raised concerns about its long-term financial health and competitiveness. Moreover, an internal capital shortage limits the company's capacity to invest in new products or significant internal improvements. Externally, Harris, Inc. faces intense competition in its existing product lines, making it challenging to differentiate itself and potentially impacting profit margins. Additionally, the broader economic environment, including economic conditions and consumer spending habits, plays a significant role in determining the demand for Harris, Inc.'s products and services, which can directly influence earnings growth. These multifaceted internal and external

factors collectively underscore the need for strategic decision-making to navigate the company's future effectively. Section III – Alternatives Harris, Inc. has several strategic courses of action to consider. Firstly, the company could opt to launch a new product line, which would require cost-cutting measures, including laying off approximately 25 workers. The potential reward is an increase in profits to 10- 12% within three years if the new product line succeeds, with a 60% likelihood of success. Alternatively, Harris, Inc. could choose to focus on internal improvements, including implementing new production techniques, enhancing materials procurement, and refining marketing strategies. This option offers the potential for an additional 6-7% increase in profits over three years, all without the need for layoffs. Lastly, Harris, Inc. might decide to maintain the status quo and continue current operations without making significant changes. While this option provides stability, it doesn't address the imperative for profit growth and may result in ongoing stagnant earnings. The choice among these options will hinge on the company's strategic objectives, risk appetite, and long-term vision. Section – IV Recommendations Option 2: Internal Improvements This option aligns with our commitment to quality products and excellent customer service while ensuring the well-being of our employees. Implementing internal improvements focused on production techniques, materials procurement, and marketing offers several advantages: 1. Sustainability: We maintain our reputation as one of the best places to work by avoiding layoffs and retaining our skilled workforce. This supports our commitment to employee well-being.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

2. Customer Trust: By consistently delivering quality products and services, we continue to build trust and maintain our excellent reputation with customers. 3. Profit Growth: The estimated 6-7% increase in profits over three years is a substantial improvement and helps address the stagnation in earnings. 4. Financial Stability: Financing these improvements from existing earnings avoids the need for external venture capital, ensuring financial stability. 5. Lower Risk: This option carries lower risks compared to launching a new product line, as it leverages our existing strengths and market position. While Option 1 offers the potential for higher profit margins, the associated layoffs and the uncertainty of the new product's success make it a riskier proposition. Option 3, doing nothing, might maintain stability but does not address the need for profit growth. By choosing Option 2 and focusing on internal improvements, we can drive growth, maintain our company's values, and ensure financial stability for the future while continuing to deliver quality products and exceptional customer service . Section V – Implementation and Control To successfully implement the recommended course of action, Option 2: Internal Improvements, Harris, Inc. should follow a structured approach. This begins with a thorough assessment of existing internal operations, outlining specific initiatives to enhance production techniques, materials procurement, and marketing. Employee training programs should be developed to equip the workforce with the necessary skills. Execution should proceed systematically, with close monitoring of key performance indicators (KPIs) related to production efficiency, materials cost, and marketing effectiveness. Feedback mechanisms, both internal and from customers, should be established to encourage open

communication and idea sharing. Regular reviews and financial analyses will track progress and assess the impact on profitability. Success will be determined by improvements in production efficiency, reduced materials costs, enhanced marketing performance, and increased profitability. Positive customer feedback and high satisfaction ratings will further validate the strategy's effectiveness, while continuous monitoring and data-driven decision- making will ensure ongoing success in a dynamic market environment.

Related Documents

Discussion #7.docx

Trans-Changi, Inc. Case 5.2, page 164 VEGA.docx

Ticket Master Case Study Analysis.docx

Mini-Assignment #1 - Ali S.docx

bus-400-7-2-project-js.pdf

4 540.docx

Hathaway-aa-01.docx

Hathaway-IPA-01.docx

discussion Oct 25 copy.docx

UNIT 2 PMAL,105 Harpreet singh.pdf

Discussion Thread Promotion.docx

Disruptive Marketing Plan Brand Proposal Paper .docx

Recommended textbooks for you

Management, Loose-Leaf Version

Management

ISBN:9781305969308

Author:Richard L. Daft

Publisher:South-Western College Pub

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Understanding Management (MindTap Course List)

Management

ISBN:9781305502215

Author:Richard L. Daft, Dorothy Marcic

Publisher:Cengage Learning

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

SEE MORE TEXTBOOKS

Recommended textbooks for you

Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Understanding Management (MindTap Course List)
Management
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Cengage Learning
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College