Richmond Wonders Company’s Strategies

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Table of Contents

Background
Strengths and Weaknesses
External Environment
Analysis of findings
Corporate-Level Strategy
Business-Level Strategy
Analysis of Implementations
Recommendations

Background

This paper analyzes the Richmond Wonders case study with the view to determining if the company’s CEO (Pamela Besana) is pushing too much change too quickly in implementing an offshore manufacturing strategy.

Strengths and Weaknesses

The company’s strengths rest in its brand image (manufacturing of high-quality wooden toys with a “made in America” logo), strong customer base, broad experience in the toys industry, and support from the firm’s owners. In weaknesses, some employees appear not committed to provide the best, union issues are threatening to affect business, and the company is currently experiencing high operational costs associated with locating its manufacturing plants in the United States.

External Environment

Richmond has the opportunity to increase its sales revenues by gaining entry into the midmarket. However, the company faces stiff competition for market share from new venture companies and other established players.

Analysis of findings

To gain a strong competitive position, the company must find a way to reduce production costs and diversify its market to include the midmarket customer segment. Although the company has the potential to establish manufacturing capabilities offshore, it must come up with a way to deal with union officials and ensure that its popular brand name is not compromised.

Corporate-Level Strategy

Some senior management members do not share in the company’s marketing strategy and vision, while the corporate culture appears weak. The CEO has decided to bring in some new employees to deal with these corporate issues

Business-Level Strategy

The company appears interested in serving the high-end customer segment, though the CEO has realized the need to get into the midmarket to realize projected growth revenues.

Analysis of Implementations

The company can be described as a family business due to its founders and nature of shareholding. The current CEO, who is considered an outsider, has attempted to change the status quo by putting in place aggressive deadlines, enhancing customer interactions, and proposing a new bonus scheme with the view to improving cycle times. However, these strategies are yet to achieve the intended outcomes.

Recommendations

Based on the question for the case study, it can be argued that the CEO is not pushing too much change too quickly. An analysis of the company’s strengths, weaknesses, and external environment reinforces the fact the entity must change its manufacturing strategy to be able to lower its production costs and reach customers in other market segments. However, part of the problem seems nested in the weak organizational culture and the inability of some of the company’s senior managers and employees to share in its strategies and core values.

The CEO is right in pushing for the changes that relate to changing the manufacturing strategy and employing new people who share in her vision. However, it is important to bring other employees and managers on board in trying to improve the competitive advantage of the firm and also to meet the projected growth targets. Consequently, it is recommended that the CEO works with other stakeholders in changing the company and includes them in all decision making processes to reduce resistance. It is also recommended that the company embarks on a new program aimed at strengthening its corporate culture and ensuring that all employees believe in the mission and values of the firm. Lastly, it is recommended that the company brings on board people with expertise of how the offshore marketing strategy will be operationalized to minimize potential barriers. When these recommendations are fully implemented, the intended changes will result in positive organizational and business outcomes.

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