Business Management Discussion Questions

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Wood Right Furniture: Case Presentation Wood-Right is a company that deals with manufacture and sale of furniture products. The company has a way of administering its affairs in areas such as employee remunerations and quality of their products. The owner of Wood-Right firm gets ill and decides to retire. He sells the company to an organization known as Relax Recliners. The individuals working in this firm must adjust with the new management of the succeeding firm. The firm plans to produce the same quality as the former company and lower the sale price of the furniture. Do you agree with Rich that the company can adopt a cost-saving strategy and still produce a high-quality product why or why not? As a group we think that Rich has a good strategy of cutting down the price and selling good quality product, but we think instead of cutting the price he should adopt the Good value pricing strategy offer just the right combination of quality and good service at a fair price. In many cases, this has involved introducing less-expensive versions of established, brand name products. In other cases, good-value pricing has involved redesigning existing brands to offer more quality for a given price or the same quality for less. Through application of strict mechanism, the company will make it real for every product to meet an average cost and contest its own costs of the goods. The company plans of changing activities at the production line that will limit the time per unit produced. In fact, this worries one of the employees who suggests that in case such a plan is adopted, many will be laid off. In our view, strategy to be adopted ensures maximum utilization of employee and discourages payment of labor expenses without adequate return. Moreover, Rich makes a promise to all employees who attain the production goals of the company. They will get their normal wages and in addition receive a bonus twice a year. This ideal motivates and raises employees’ morale enabling them to work harder and produce more in the efforts of reaching the firms goals. Alternatively, this will increase the furniture sales without reducing the quality of the products. This is achievable since the division of task applied at the firm’s production unit will ensure there is a steady flow of products in the market as manufacturing is fully utilized. Finally, Rich plans of ensuring standards of production will be reached at through development of a formula which will keep plant output levels. What should Rich’s strategy be from now on in terms of how he should interact with these employees? Explain your reasoning? According to the case these employees were well treated so Rich should try to do his best as much as he can so that the company will be successful. By doing that Rich need to study these employees, implement a strategy by making a plan of action to change the culture of the company, it would set goals to inspire employees and encourage them to improve their knowledge and skills and all employees should have the opportunity to present their ideas to improve the quality of the services and assets of the company in which they work. In addition to the employee feeling more responsibilities within the company, the company will also benefit from the initiative of its employees, with better ideas and cut in unnecessary costs. The management system is very important for future organizational decision-making, it will help the organization to access information quickly and securely. Strong leaders cultivate an environment where employees feel empowered, have autonomy in their decision making and come together as a team to be creative and solve problems. Failure to this might lead to low yields in production since unsuitable personnel may be located at the wrong phase. It’s difficult to identify the individual’s personal needs and therefore Rich should focus only on common wants. This will improve the relation between him and employees thus increasing cohesiveness which in turn will reflect to improved output. Should Rich have adopted a different way of communicating this information to his subordinates? Why or why not We believe Rich should have used polite way of passing his information to the subordinates. First, Rich welcomes and informs the employees that the company management has changed to Relax Recliners and should therefore be ready to experience some changes. In addition to this, he tells the company employees of changes they expect from the new company. Good to note, he stresses that unlike from goals of previous company the current formed company is focusing with the quality and ensuring the competitive prices. As the foreman of the company, he has the mandate to give directives as offered by the management body of the company. Additionally, Rich gives the changes that would commence and states the measures to be taken for their implementation. He politely answers employees who fails to understand what he means. It’s quite challenging for Rich to come up with the strategies that would fully accommodate the adversity experienced concerning the employees. As a result, the best way is to take control over these employees to ensure that the company’s changes are practically achieved.
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