CMR Enterprise - Innovations and Challenges
CMR Enterprise is one of the fastest growing businesses in Lincoln as a result of the innovations it has used since it grew from a tiny company, Mike's Cabinet. Because it specializes in domestic equipment such cabinets and architectural work, the company has embraced technology, public relations, and internal restructuring to meet competitive market conditions and expand its customers' premises. The new management took over in 1997 with lofty goals of increasing the company's revenue from $7 million to $50 million by 2007. This required sacrifice, attention to detail, and focus on every entity allocated to an employee. However, through its developments, there are some issues which they did not perfect on and possibly cost their customers or income by the end of each year. For example, the company focused much on the external affairs and forgot about the welfare of its employees same as internal communication as Marcus notes. This report gives the business essentials factored in, analysis of some activities within the firm and gave recommendations on how the company could perform better
Business Essentials
For any business to thrive during the information age, it has to embrace technology. The small business from which CMR enterprise modified could not move far using the three computers it had. No matter the size of business, use of technology provides security for business information more than using the traditional means of filing records. It is easier to retrieve relevant information when required reducing the cost of serving a client. Through such considerations, communication is easier, and there is efficiency in noting the cash flows both in and out of the company. The business first moves to invest in information technology was timely and important to save the business of duplication of work by its employees. However, one consideration not made, as we will see later is having people conversant with the use of the new technology. Individuals, and more so employees, are resistant to changes in their areas of work no matter how essential it seems.
Importance of Communication
Moreover, communication is a vital tool for any business owner. The success of CMR at getting its point across can be the difference between sealing a deal and missing a potential opportunity. Business must engage its costumes and all forms of clients through answering questions on products and services. Effective communication and negotiation ensure achievement of goals. The organization, for example, placed people who capitalized on communicating with customers through following the bids and having negotiations though, the percentage of won projects was far below the manager's expectation (Pg.4). The use of customer care services enables an in build bond between the clients and the business where some customers could market the business to the friends. The building of a relationship with the bid sub-contractors would ensure easy follow up, and persuading the contractors to implement their proposals. The same case should have ensued when the business made a partnership with Blackstone Homes to ensure lack of conflict and smooth transition.
Expansion and Partnerships
Another makeable business essential provides by Marcus after buying the small company was to go commercial from just sale of cabinets to enterprise bids where the process could as well involve other groups (Pg.4). In maintaining customers loyalty, the business should ensure that it has all related services for a product within and if incapable, it should hire the services or products from another company for the customer. The business also set plans on how to achieve its anticipated profit through its vision 2007. CMR, for example, had to provide bids for clients who after bidding they could execute for the designing and making the cabinets but for the complex project, they could contract other firms. Through this process, they increased their customers, from just the local to national ones. The company also had to perform other significant roles including increasing the odds to win bids and negotiating with the possible bidders hence it was a customer-oriented company.
Partnership with Blackstone Homes
Partnering with Blackstone Homes was the last move the firm made to enhance its services to the consumers. Since the business provided a market for one another, collaborating was the best steps to prevent one of the enterprises have incapability of meeting its client needs. The sales for CMR would increase if Blackstone Homes actualized its dreams to build 40 homes in that month and 70 other homes later as it presented to Marcus (Pg. 10). However, the partnership comes with many concerns, which need an address before the start of the process. There are terms and conditions set to prevent conflict and ensure smooth coordination of events, an aspect the two firms lacked. When one company fails, the other company can realize huge losses since there are some terms it cannot break such as dealing with customers directly without informing the other. Though the expected benefits are more when the proper structures are followed, it is risky to build trust in an organization, which one is not aware of its motives in venturing into the market.
Analysis of CMR Business
The company ensured proper communication to its clients and forgot about internal communication, which forms the basis of the success of any business. As Marcus notes, internal miscommunication played a significant role in some of the challenges the industry faced after it partnered with Blackstone Homes Company. After building a communication system in the organization after taking over, Marcus forgot that the new roles each member was to play required proper communication for efficiency in serving clients (pg. 5). The newly added employees such as the Salesperson required understanding how the old employees worked for his work could have a direct influence on the rest of the team. His late realization of communication lapses was unfortunate for the years the company had in the market could have made enormous growth was internal communication factored in. The internal communication errors translate to miscommunicating to the client since the person communicating to the customer is not necessarily the one who serves the customer.
The business info central initiative was the right decision to manage information but came at the wrong time (Pg.7). Although after a long period it bore fruits, its introduction was unplanned, and the employees were not psychologically ready for the new idea. As stated early, the welfare of the employees in the organization got ignored at many instances hence their plans took time to pick. The top managers as they note, took time to familiarize themselves with the new software, which required a lot of learning to effect in their use. There was no smooth integration of the system into the business. The new idea brought a crisis for its call to further learning and training. One or two employees, the new salesperson, and the new manager became favored at the expense of others, an aspect that could result in internal conflicts. The business should have factored in its employees, train them and have their mind set on an introduction of a new system which they could use to enable them to serve their clients better.
Lastly, the top manager of the CMR was unable to assess the future position of the organization before partnering with Blackstone Homes Company. When a deal is too good, think twice. As a leader, he did not foresee future crisis, which started as early as the second year. The business was in evolution or growth stage, and it was vital to avoid any issue that could translate to setbacks. As noted in the case, the first year was great in sells, but there were concerns about maintaining the integrity and proper condition of the marketed products as the narrator notes (pg. 11). The second year became even worse with more concerns evolving and the two firms being unable to maintain the terms. Clients knew the company, which made the cabinets, hence it was impossible to cut out the direct link with CMR. Other vital concerns such as the inconsistency in actual and estimated costs would lower the integrity of the producer.
Recommendations
Every business has its objective to achieve and devises a plan to meet its goals. CMR has its aims and requires a team spirit from all the private workers to actualize its aims. To realize the dreams, it should consider the following;
A company cannot solve internal crisis of another company so Marcus should accept that he has less to do concerning Blackstone Homes
A manager should always be flexible hence Blackstone is not the only determinant of CMR success
The CEO should be quick to make wise decision to prevent total collapse of the business
The company should value the Welfare of its employees and engage them in any move which has a possibility of affecting their internal affairs
Proper internal communication is vital for the CMR if it intends to remain relevant in the market
The CEO of the organization should be patient with some aspect such as building a relationship and introduction of new systems in the body since they take longer to bear fruits
Scenario
Scenario 1 - Distribute SG&A based on revenue Total CMR (%) Blackstone (%)
Commission on goods 4 % 1%
Compensation of employees for working overtime 0.1% 0.1%
Advertising 2% 1%
Commuting allowances 0.3% 0.1%
Scenario 2 - Assign indirect labor cost to the corresponding segment, distribute SG&A based on revenue Total cost ($) Total cost ($)
Commission on goods 354640 88660
Compensation of employees for working overtime 8866 8866
Advertising 177320 88660
Commuting allowances 26598 8866
Scenario 3 - Other Alternative
Transportation cost 2% 1%
Alternative labor 1% 1%
