Question

Read the following case and answer the questions that follow.

Widgets India is a medium-sized firm specializing in the design and manufacturing of quality widgets. The market for widgets has seen stable. Historically, Widgets India has had a traditional functional organization design with four departments accounting, sales, production and engineering It has served the company well and it was able to compete by being the low-price company in the industry.
In the past three years, the demand for widgets has exploded. New widgets are constantly being developed to feed the public's seemingly insatiable demand. The average life cycle of a newly released widget is about 12-15 months. Widgets India is finding itself, unfortunately, unable to compete successfully in this new, dynamic market. The CEO has noted a number of problems Products are slow to market. Many new innovations have passed right by Widgets India because the company was slow to pick-up signs from the marketplace that they were coming Intermas communication is very poor. Lots of information gets kicked upstairs and no one seems to know what happens to it. Department heads constantly blame other department heads for the problems.
You have been called in as a consultant to analyze the operations at Widgets India, what would you advise?

Answer 1

In analyzing the operations at Widgets India, the firm should produce innovative widgets aligned with market demand, adopt a flexible production process, produce enough output to meet market demand, set competitive prices, and employ optimal labor.

Step-by-step explanation:

In analyzing the operations at Widgets India, I would advise the following:

1. Product: The firm should produce a range of innovative and up-to-date widgets that align with the market demand and customer preferences.
2. Production Process: The firm should adopt a flexible and agile production process that allows for quick development and launch of new widgets in the market.
3. Output: The firm should produce enough output to satisfy the market demand for its widgets while also considering production efficiency and cost optimization.
4. Price: The firm should set competitive and attractive prices for its products that take into account the market dynamics, competition, and customer affordability.
5. Labor: The firm should employ the optimal amount of labor to efficiently handle the increased production and meet the market demand. This may require improving interdepartmental communication and coordination.