Question

Your company is consistently rated first or second among your competitors by an independent rating service. Your company has been in existence for over 40 years, have name brand recognition, and an excellent reputation with customers. Your earnings are stable by stagnant at 4-5% a year. Competition in our line is intense. We also have a capital shortage. You want to make internal improvements within your company.
What internal improvements can you make now for and the future and why?

Answer 1

Since the company already enjoys a good brand reputation among its customers, and is regarded as one of the best companies among the rivals, it needs to leverage this reputation for its growth. The probable reason for the stagnant growth might be due to lack of innovation in the company's offerings in highly competitive product lines. Other probable reason can be the cost effectiveness of the company which might not be able to retain the same level of profitability due to dated processes and procedures, which might have been good enough in the days of past but not now, owing to intense competition. The possible actions for revamping process are given below,

(a Make a cost control program to make the processes leaner and making the company more cost effective.

(b) Study the market segments to understand their needs and use the insights to drive innovation programs to make the products more receptive for the customers, to increase sales.

(c) Encourage problem solving at the workplace  by facilitating open communication, developing a culture of inclusion to improve transparency and increase employee participation.

(d) Prepare a long term growth plan by keeping in mind the future trends and develop the products to meet the needs of current and prospective customers in the time to come.