Birmingham Vending Company Incorporated: Challenges for New Management
Birmingham Vending Company Incorporated’s new owners are dissatisfied with the company’s fiscal performance and have hired a new leader to improve profitability (About us, 2011). Before being replaced, Bob Greenwood – Birmingham’s founding owner – led Birmingham with an innovative approach to gaming and video amusement machine design, eventually achieving 30 percent market share. Greenwood’s replacement – an accountant – recently interviewed the production and marketing managers in order to understand the company’s challenges but is unsure of how to improve the Birmingham’s fortunes. The new leader needs to reconsider Birmingham’s objectives and transform the company’s strategy to meet its corporate mission.
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Birmingham’s current challenges – production Birmingham’s production manager is focused on a developing a mass process approach to production as confirmed by his goal of lowering unit costs and improving assembly plant efficiencies (Slack, Chambers, & Johnston, 2006). Improving mass process operations may result in improved profitability by lowering per unit costs if efficiencies can be identified in the production line. Unfortunately, these objectives do not align with Birmingham’s customers who demand the latest technologies and innovations but who are not particularly price sensitive. Birmingham’s new leader needs to communicate with the production manager to ensure that he recognizes that the company’s success is based on continuous innovation rather than cost minimization.
Birmingham’s current challenges – marketing Birmingham’s marketing manager wants the company to focus on offering a continuously refreshed line of highly reliable products that can be quickly delivered to customers. The marketing manager’s objectives are to market innovation,