Case Study: Strongabuilt
StrongaBuilt is a company that manufactures office furniture, in particular filing cabinets. John Strong, the Managing Director and owner of StrongaBuilt, has been struggling to keep his business problems from exploding. An interview by a consultant has revealed the following:
1. John is pleased with the calibre of his staff; they are a dedicated ‘bunch’. He has noticed, however, inconsistencies in their methods. He feels under constant pressure to travel to the branches around Australia to help solve problems.
2. Cathy, his wife, is in charge of all the administration staff. She is fighting a mountain of paperwork since the introduction of the GST and the subsequent compliance issues required by the government. Cathy feels there is something wrong with office staff in NSW. The office manager in Sydney sounds worried. They have had some products returned by a customer lately. Cathy was going to ring the customer concerned but doesn’t have the time. Cathy also feels John is working all the time and has no time for her. She is worried whether they will ever be able to retire.
3. Steve is the state manager for Queensland. He is considering leaving, although he has told the consultant this in confidence. Steve can’t take the pressure. He has a young family, and a mate in a similar role with another organisation earns more. Steve constantly has to handle pricing issues. Recently one of Steve’s customers, West Queensland Office Supplies, with whom Steve has an outstanding relationship, confided that they are moving their business to StrongaBuilt’s Sydney branch. Steve followed up on this news and was told that StrongaBuilt’sQueensland branch was too expensive. Steve could not believe it. Both branches produce the same products using the same materials. He has informed John, but John sees no problem so long as Strongabuilt retains the sale.
4. Chuan is a metal worker in Sydney who won the national award for best worker ‐ an incentive scheme introduced by the firm. Chuan is very proud of his workmanship.
Chuan has confided to the consultant that the materials currently sourced in Sydney are of lower quality than when he first started three years ago.
5. StapleWorks is a long standing customer of StrongaBuilt in NSW. As part of the consultant’s review they were contacted. Mario, the manager, said John is a great bloke. He has been dealing with him for 20 years or more. Mario says the standard of product has fallen. The filing cabinets drawers do not run smoothly and there are a number of rough edges. His staff recently cut their fingers in moving the cabinets into the display room.
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