Evaluation of a Strategy for Increase in Car Production

Evaluation of a Strategy for Increase in Car Production

The Morgan motor company is a small conservative company that is based

in the north of England that is a producer of hand made, high quality

cars. The purpose of the strategy is to identify the cause of the

problem that is currently meaning that Morgan can only produce around

nine cars per week. Despite this the company has much strength in the

way that it operates, for example the company has a background of

being very traditional. Job production has provided a very highly

skilled and committed workforce and has enabled the production of a

high quality.

The negative culture and resistance to change of the workforce and

management has led to the company becoming outdated. The job

production style of the car has led to a long manufacturing period.

The final weakness of the company is the long training period of four

years has generated a high labour cost. The stock control system in

the company is very outdated for example there is no computer in the

company.

The conservative nature of the company is non progressive which means

that with the rapidly changing nature of the car market means that the

company will continue to fall further behind its competition and

eventually become obsolete.

This will be achieved through the use re engineering in phases in the

company and the Kotter and Schlesinger model of change. There will be

little participation and negotiation with the workforce due to the

incredibly negative culture that is in place at the company which will

delay the process by giving the workforce more power. It may be

necessary to use a large amount of manipula...

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required in the company to improve the production output. The

remainder of the employees and the management of the company are very

conservative and resistant to any change in the company. In terms of

the long term objectives of the business I believe that the strategy

will enable Morgan to increase its sales revenue and profits as they

should be able to produce 12 cars per week, however it would be

unlikely to achieve the level of output within two years as the

employees would need to be trained in operating the machinery and due

to the negative nature of the company once the change has been pushed

through they are likely to continue to produce the car the same way.

In terms of resources of the company a large amount of finance would

be required for the business to pay for the production layout and

tooling.