Woodsy is a firm that makes garden furniture and employs 30 employees.
It purchases uncut timber from a nearby lumberyard and keeps it in a covered space to dry out and season before use. This can take up to two years, and the wood yard takes up so much land that the manufacturing space is limited.Because the company's owner-manager, Bill Thompson, has focused on the sale of these things and has given little thought to alternative products, the company's product range is confined to the manufacture of garden chairs and tables. Bill is more of a craftsman than a manager, and the manufacturing department is far from efficient. Employees work on separate parts at their own pace, assembling the finished product with only a circular saw, a mallet, and wooden pegs. The finished objects are generally of good quality, although they are somewhat expensive due to the production processes used.Because the facilities are located on a busy road crossroads and the company's products are on permanent display to passing traffic, marketing has been deemed superfluous to date. Additionally, delighted consumers have recommended us to new clients. However, things have changed. New competitors have joined the market, and Bill has noticed a decrease in orders. Competitors provide a far wider selection of garden furniture, and Bill recognizes that in order to compete, he may need to expand his product line. Bill is constantly very busy as the owner-manager, and despite working long hours, he finds that there is never enough time in the day to do everything. His foreman is a deserving individual, but, like Bill, he is a craftsman with little managerial skills. The overall consequence is that the workers are left to their own devices to a large extent. They have little incentive to work extremely hard because they are paid by the hour rather than by the piece.Requirements:(a)Can you explain what the phrases "value chain" and "value chain analysis" mean?(5 points)(b)Use a diagram to provide a quick description of Porter's two distinct categories of activities.(5 points)(c)Examine the operations in the value chain to determine the major issues that Woodsy is facing.(5 points)(d)Prepare a set of recommendations for Bill Thompson based on your findings to help him run his firm more efficiently and effectively.Explain what the term "business process re-engineering" means and how it can help enhance overall business performance.Discuss briefly potential issues that may arise during the implementation of a business re-engineering program.You've recently been promoted to finance manager of a small/medium engineering firm that specializes in shipping component manufacturing. From 1990 to 1998, the company's turnover and profits grew rapidly, but since then, profits and turnover have slowed. It has always relied on a loyal but dwindling customer base and has never bothered to look into new product areas. The company's management spends the majority of its time on day-to-day operational issues, with little attention paid to strategic matters.Requirements:Prepare a memo for the Managing Director that addresses the following points:(a)A discussion of how operational matters are prioritized above strategic planning and management.(7 points)(b)An explanation of the possible advantages of a Management Information System that includes both operational and strategic data.(7 points)(c)The mindset and method shifts that will be necessary to implement strategic management.(6 points)