• Hire Strategic IT Manager to provide ecommerce platform to counter the gradual demise of interruption marketing. By having ecommerce platform, buyers would be able to learn details about SubCo’s product and compare pricing before deciding on a purchase.
• Ecommerce would enable SubCo to sell as an agent to cheaper overseas producers and as there is no requirement for storage, selling price can be substantially reduced.
• For controlled items like steel bars, SubCo can buy in bulks when prices are low, store at its warehouse and sell when the prices go up.
• For a more systematic and prudent purchases, key position of Strategic Purchasing Manager should be created. Currently, …show more content…
Suppliers had warned that they would not supply anymore products if earlier dues were not settled.
• The HHRA seemed very adamant with her argument maintaining that these are all temporary hiccups as the fundamentals of the company are still strong with reasonably high volume of debtors.
• The other 2/3rds’ members seemed to be agreeing with the HHRA. The 2 Trading bosses just nodded their heads in concurrence. It was rumoured that the 2 receive commissions from private arrangements with suppliers on purchases made and probably this was the reason they don’t agree on the new proposal. Head of Legal sat quietly without giving any hint on his view.
• Even the CFO, the only other lady in the management and who happened to be HHRA lunch buddy also appeared to support her, despite the fact that as a professional she was brought in to inject fresh ideas to improve SubCo’s operations.
• …show more content…
Groupshift; a circumstance in which the initial positions of an individual are exaggerated toward a more extreme stance. People assess risk differently when they are in groups than when they do alone. E.g. as a professional, the CFO usually intelligently argues any new proposals put up by team members before she is satisfied with the justifications given. In her mid 40s, she would be in a riskier position if in view of SubCo’s continuing with its current business process, it would be sinking in 5 years. Somehow, when it comes to risking her cordial relationship with HHRA, she dares not decide to go against her in a decision that would significantly change the make-up of the organization the HHRA helped to built, and decided to go to the extreme by rejecting the proposals outright. She probably wants to give face to HHRA and would only be agreeing to change the business process when the HHRA’s gone in 4