2250 words 15 hrs and do one more copy

Introduction

The report below features a strategy project for the Woodlands Group. The Woodlands Group is a company made up of three semi-autonomous firms that operate together to produce, cover and sell processed wooden boards for household and business furniture. The company group which was previously owned by John Albion is now under new management, Tyack’s Ltd. Nevertheless, since the change of management, the three firms have been disagreeing on the best way forward for the group. Each of the three firms has a specific request for the future where both Albion Mill and Bettafinish want new light gauge machines whereas Surface Stockists want a new warehouse. The purpose of the report, therefore, is to present a defined way forward for the company by identifying the key issues facing the company, analyzing the business environment,conducting an internal review of the business, accessing the competitive performance of the business and finally developing the key recommendations for the business.

Step 1: Situation Mapping

Currently, Woodlands Groups is in a crisis, since the three firms are disagreeing on the best way forward for the company based on the challenges experienced by each firm. Albion Mill which is managed by John Albion deals with the production of processed wooden boards. The mill deals with the manufacturing of three types of wooden boards light gauge, medium gauge, and heavy gauge all of which it sells to Bettafinish. Of the three types of boards, the light gauge has the highest customer demand and also accrues the most profit to the Mill. Therefore, Albion Mill considers buying a new over specifically for the light gauge boards so that there are longer production units. The purchase of the new machine will help increase efficiency on the lighter gauge boards and also improve the profits of the mill. In relation to the future of Woodlands, Albion Mill maintains that the three firms should operate as a single unit to help foster consumer confidence especially under the new management and in the current Brexit fiasco.

Bettafinish on other hand is managed by Tony Thompson and has been in operation since 2002. The main role of Bettafinish is to place the vinyl cover on the wooden boards bought from Albion Mill. However, Bettafinish has a problem with the Albion’s prices and occasionally buts from Laver to put pressure on Albion to reduce its prices. Bettafinish sells its finished boards to Surface Stockists. Nonetheless, Bettafinish has been facing issues with Surface Stockists, where it cannot meet the high demand for light gauge boards required by them. Hence, Bettafinish proposes to buy a new machine to boost its supply of the finished boards. The machine would be economical as it would not require an increase in labor, yet it would increase its output. Tony is however uncertain about the future of the company group but would like to sort out the flow of boards from Albion and the orders received from Daisy.

Lastly, Surface Stockists deals with the sale of finished boards to furniture manufacturers. Daisy Elworthy, the managing director of the firm, however, has a number of issues. The first issue is that the firm wants a new warehouse to cater to its growing stock volume especially since its customers want a reliable flow of products on all their products. The second issue is that there have complained about the quality of light gauge boards produced by Albion and the firm has even been forced to pay up in compensation but Albion is not interested in changing its quality of the boards. Three, Surface Stockists is also keen on expanding its business as it projects an increased customer demand but it is uncertain of ongoing environmental regulations. Four, Daisy is frustrated that Tony Thompson is not looking into Smart Manufacturing despite the incoming market changes and strict environmental regulations. In relation to the future of Woodlands Group, Surface Stockists recommend a more aggressive management style from Tyzacks that would revise the outdated practices at the company.

Step 2-Review the Environment of the Business

Opportunities

Woodlands Groups has an opportunity to ensure bring together the three semi-autonomous companies to ensure that they have a smooth relationship for them to increase their service delivery. By ensuring that the three semi-autonomous companies work together, it is possible to improve service delivery to the end consumers and increase the level of profits made by the entire group given that the three companies can make a better force. Furthermore, Woodlands Group stands to enjoy the opportunity of improved leadership which is concerned in making more profits and pushing the entire group forward as opposed to trying to benefit individually. Following the Brexit vote, the company stands a chance of enjoying increased demand given that more customers from the country will consider their products as opposed to getting them from different sources outside the country. The company can also expand its operation by improving its storage space, production capacity and level of operations so as to serve its customers better and ensure that the incoming competitors are kept at bay.

Threats

On the other hand, Woodlands Groups faces threats from increase internal wrangles that have led to reduced trust between the Sub-autonomous companies and therefore reduced chances of success. With such internal wrangles, some companies have even gone ahead to source products from rivals thus weakening their partners while strengthening the competitors. Furthermore, the company faces threats from clients’ dissatisfaction given that most clients do not get the right products within the required time especially when the three Sub-autonomous companies fail to coordinate properly. In case the customers are not satisfied with the service or product provided by the suppliers, they are likely to consider other companies which means the Woodlands Groups will end up losing their highly valued customers. Lastly, the company stands to waste resources on the wrong products in case it does not make the right moves towards enhancing coordination given that the three Sub-autonomous are interdependent.

Political

On the political front, the Brexit decision is likely to affect the operations of the business especially in terms of sales and customer relations especially in Europe. Currently, Woodland Group believes that consumer confidence is likely to improve in case the Brexit vote oases given that the demand and quick supply of boards will be strong. There is also new environmental regulation regarding the circular economy that has been proposed which will force the company to change material used in the finishing of boards due t the issues of waste disposal and recycling of finished problems. On the other hand, the economic situation will for the company are likely to change as the market will seemingly focus on quick delivery of a broad range of designs which means that it must be at the forefront of analytic driven manufacturing. Furthermore, following the Brexit vote, the consumers within the UK will have increased purchasing power and will increase their purchases which will consequently lead to increased income sales. On the social front, Woodlands Group has had a problem with younger staff who fail to take the ethos of the wood producer seriously and have resorted to removing these workers from the factory. On the technological front, the company will be looking to develop smart manufacturing also referred to as Manufacturing 4.0. Such a change in the market will help in dealing with the new environmental regulations that are likely to be set in Europe in the near future.

5 forces analysis

At Woodland Group, the buyers’ bargaining power can be termed as moderate. At the moment, the company has stood out in terms of the quality of products compared to its products which have also been boosted by the increased technical ability of the employees. As a result, the company has been able to maintain a high quality of products thus maintaining the buyers altogether. On the other hand, the company’s bargaining power of suppliers is high given that there is a supply chain that operates within the company as the Sub-autonomous companies support each other amid the difficulties. Woodland Group also faces a low threat of substitute products given that the products follow a certain production process before they are ready for the end consumers. The production process involves the three Sub-autonomous companies and follows procedures that make them unique and valuable to the consumers thus eliminating the threat for substitute products. In terms of the threat of new entrants, the company has already established itself in terms of its operations and economies of scales which has, in turn, maintain the threat of new entrants at a low state. Lastly, in terms of competitive rivalry, Woodlands Groups faces limited threat of competition given that the company produces top-notch products that are unmatched by other players in the market.

Step 3-Internal Review of the Business

Strengths

The company enjoys a number of strengths especially with respect to the idea of ready customers for its products. This means that the company has demand for its products and is likely to make constant profits. Woodlands Group also enjoys a stable distribution chain that ensures that the products move within the Sub-autonomous companies where they are improved and readied for the end consumer.

Weaknesses

One of the key weaknesses of Woodlands Group is the increased internal wrangles between the three Sub-autonomous companies which have also contributed to increased internal competition within the company. The company also seems to have weak leadership as most of its leaders are seeking to help their Sub-autonomous companies as opposed to working together to ensure that better results are achieved.

Business model

Woodland Group is trying to ensure that its three autonomous companies come together and operate in a manner that will improve its overall productivity and profitability. The company is creating customer value by investing in product development and ensuring that customers are fully satisfied with the end product. The three Sub-autonomous companies have also invested in abled workers who play a key role in ensuring that the products are up to the required levels. The company will remain competitive by adopting better technology as well as improving its leadership to guide it in improving customer satisfaction and operational fluidity.

Step 4- Assess Competitive Performance

Following a careful analysis of Woodlands’ strengths and opportunities, it is easier to ascertain its competitive performance in the market. One is that Woodlands Groups enjoys having vast years of operation. Its first firm, Albion Mill was established over 200 years ago and hence it’s many years of operation in the timber business, put it at a better competitive edge as it is more knowledgeable about the dynamics of the business. John Albion, for example, has been in the business for hundreds of years which has given him vast experiences and contacts to run the company, and hence once these contacts and years of experiences are put to good use, then Woodlands stands to have an even bigger market command. Two is that Woodlands enjoys a ready customer base to consume its products. According to Daisy, Surface Stockists has four major customers whose consumers 55% of the total boards produced by Albion Mills. Hence, Woodlands already enjoys a better lead in the market and could comfortably alter some of its productions process to meet the demand for its key customers. The third competitive edge for Woodlands is that the three firms have helped the business to have a stable supply chain right from the board production to the sales of the finished boards. This gives the business a better competitive edge since a change in customer demand can easily be met by adjusting the operations of the affected firms. Four, is that each of the three firms is currently making profits from their designed areas of operation. Both Albion Mills and Bettafinish are making the highest profits from the light gauge boards whereas Surface Stockists is making the most profits from the heavy gauge boards. Therefore, this is the best time to make the required adjustments in the management and supply chain of the boards without affecting the returns enjoyed by the company. Also, its current profit levels in the business, but the business at a better competitive advantage over its competitors. Lastly, the Woodlands Groups is well knowledgeable of the strengths and weaknesses of its competitors and could easily use this information to its advantage. For example, Bettafinish is very confident with its processes of gluing the vinyl plastic sheets since its main competitors Laver, has been experimenting with different materials and processes with no success. Nonetheless, there are a number of processes that could be borrowed from Lavers such as the use of the plastic-based materials and also adjusting its prices on some of the board gauges to help have a better command of the market.

Step 5- Project Outputs

To deal with its current challenges, the Woodlands Groups could consider the following recommendations;

1. Enhance the effective coordination of the three firms to avoid selling out the business to competitors or losing existing customers.

2. Focusing on the company as a whole and doing away with the perception that the companies exist autonomously to help eliminate internal competition and foster better coordination of the three firms.

3. Adopting new technological practices such as the use of Smart Manufacturing Technology to help foster efficiency in the production process.

4. Putting in place a more enhanced leadership strategy and flow of communication to help address emerging issues in the company more aggressively.

5. Addressing the current internal conflicts to avoid time wastage and to make the supply chain process seamless.

References