We have a case study where "Toy producing company", based in Cyprus (Europe), targets at producing high quality toys for domestic and export purposes.
During the production and sales years 1990-2010, the company encountered increased competition and in the last recent 5 years a downturn in productivity mainly due to economic effects in Europe and its knocking on effects on the company's market.
Strategies proposed by the different departments of the company and put on the table for consideration to overcome the problem included:
· Cuts in employee force
· Reviewing the production techniques
· Using lower quality (cheaper) raw materials to reduce costs
· Enforcing quality inspection on all final products by moving 2-3 staff from assembly line-this is to cope up with the increased returns
· Replacing faulty items with new ones; refurbishing defective items and reselling them at discounted prices
· denying liability on returns (resisting compensation), replacing defective parts
· Encourage/introduce self-assembly of products to reduce assembly costs
· Other cost cutting measures
Provide advice and justified recommendations, with fully justified arguments, regarding their problems with their products and processes.
They are particularly interested in your observations regarding their proposals to overcome their poor performance in the markets they are in.
1500 words; only original work reflecting creativity required.