'CMR Enterprise Essay\r'

'This particular case depicts the history and issues go ab let tabu by a relatively sm any party active in the custom architectural millwork industry for the past 25 years. The new owners wanted the newly-acquired company to grow purge further. The first few months seems to withstand been a success †Marcus spent a cover of his time with employees and customers, learning the field since he was, as mentioned in the text, an â€Å"outsider”. However, keeping the company’s integrity and image intact was a priority.\r\nHowever, the problems out business sector in the case seems to start †or at least have been worsened †with what ordain bring down into being CMR’s largest account, Blackstone Homes.\r\nProblem Identification\r\nAfter reviewing the text in question, lead major problems stand out:\r\n1) Customers change requests: When Blackstone Homes sell a house, it does †of course! †sum up with a pre-finished and installed kitchen, included in the price. However, if the customer wishes, he or she would visit CMR’s showroom and they would throw these woodwork fit in to their new specifications. The added cost will therefore be charged to the contractor, which will afterward add it to their bills.\r\nThis takes time and lead to price add-ons. This is, in part, what contributed to the clash with Blackstone Homes.\r\n2) IT solution not adapted: InfoCentral, the computer software product implemented by Marcus, does not work out as intended and do not accord the argumentation needs. It is not always updated as inevitable by the employees. According to the text, it may be face-saving for the commercial and financial/accounting side, but is abstracted several features for its residential counterpart to be actually as useful as it displace be.\r\n3) Deteriorating contrast relationship The business relations between the cardinal companies started well and was fulfilling for two part. When the busin ess expended, so did the problems.\r\nThe patch up cause seems to be the change requests do by the homeowners. This lead to late delivery, poorly reviewed performance and then the 7% price increase. Future homeowners started considering the prices charged by CMR to be too high. We could therefore expect set out level of sales and revenues in the future.\r\nAlternatives generation\r\n duration we will mostly concentrate our ersatzs on the three points mentioned above, we will similarly include other alternatives, even if they may not be authoritativeistic or feasible in the short/medium term.\r\n1) canvass customers change requests: We obviously cannot stop change requests and modifications made by the customers. The company and its employees pride themselves by crack flexibility and higher customers’ satisfaction. It would be therefore suicidal for CMR to put a term to these showrooms. Any soulfulness also deserve to have reasonable alternative options when they are buying an object, a home more than any social occasion.\r\nHowever, there is a imbibe misunderstanding between CMR and Blackstone Homes regarding the fixed allowances for kitchen ($6,000) and the final cost of the installation. In swan to solve this issue, it may be a best thing to review the billing part: kind of of having the installation costs â€Å"forwarded” to the contractor, all expenses over $6,000 (parts + labor) should be charged to the homeowners themselves; customers can have access to all options made available by CMR, whilst eliminating cost ship and the said related disagreements.\r\n2) Software adaptation It seems clear from the text that the whole issue also succeed in part from InfoCentral. In distinguish to relieve this issue, we would apprize that all account managers from CMR and employees involved with this software should meet and discuss its performance. What should be changed, what must be kept, or what should be included in order to fit ev eryone’s needs. However, for any IT solution to bring tangible additional value, it must be lenient to use and should not impose additional work. It is suppositional to simplify the work, not making it more complicated.\r\n3) The mature people on the right place Again, according to the text, there was a clear misunderstanding between both parties; it was even referred as a â€Å" yelling contest”, which is far from being a familiar and healthy business relationship. The Key Account Managers (from both sides) could not agree on contract impairment and conditions. It could therefore be a broad(a) thing to change points of contact and see if the federal agency can be resolved; a stronger relation, transparency, honesty and â€Å"business awareness” between the two companies might also help straighten things out.\r\n4) Additional ideas The solution to increase profit may not be by simply increasing selling price. We would suggest CMR to take up an audit on t heir Supply Chain, Logistics and Selling, General & axerophthol; Administrative Expenses to see if cost reductions are possible. Could newfangled machinery help cut their production costs? Could they source some of their non-core business or reduce unrefined material costs by creating a joint-venture with a competitor? Chasing down inefficiencies in the production line can be even more effective than a price increase.\r\nRecommendations\r\nUsing the previous points, we would suggest the three following recommendations:\r\n1) Change the billing accomplish: If possible, all additional costs over $6,000 should be charged to the homeowner directly. In order to get ahead this easier for the customers, offering various financing options may be a well idea.\r\n2) Adapt InfoCentral: Review, correct and vamp the software in order to meet real business needs. May be a good thing to check what competitors are using.\r\n3) Organize perennial meetings: The situation with Blackstone did n ot get bad in one day. It may be a good idea to set up weekly or monthly operational reviews; meetings lasting no extended than 30 minutes, where all potential issues can be discussed among stakeholders and managers. The idea is not to let such situation worsen and take the correct actions as presently as possible.\r\n'