The following appeared in a report presented for discussion at a meeting of the directors of a company that manufactures parts for heavy machinery.
“The falling revenues that the company is experiencing coincide with delays in manufacturing. These delays, in turn, are due in large part to poor planning in purchasing metals. Consider further that the manager of the department that handles purchasing of raw materials has an excellent background in general business, psychology, and sociology, but knows little about the properties of metals. The company should, therefore, move the purchasing manager to the sales department and bring in a scientist from the research division to be manager of the purchasing department.”
The author of the topic states that delays in manufacturing attributes to the falling revenue of the company. While I acknowledge that the directors manage to restore the financial status of the company, I would contend that they design strategies in an overly limited way. The logic of their argument and their conclusion they reach are both fundamentally flawed.
First of all, delays in manufacturing may caused by factors other than insufficient knowledge in metal properties. For example, insufficiently trained workers and worn out equipment in the product line contribute to the delay. The production of metal actually involves many processes, and it is better to evaluate the efficiency of each process one by one.
Moreover, it is unwise to let a scientist to make plans on purchasing metals. Most scientists are specialized in doing research but they may not be familiar in making business decisions. Purchasing involves skills in interacting with others and bargaining with the supplier. The knowledge in metal properties is not really useful for one in handling relations and making decisions. In addition, it is illogical to move the purchasing manager to the sales department. The skills in purchasing may not be applicable to sales.
Last but not least, delays in manufacturing may not be the only factor to falling revenue. Environmental factors such as economic downturn and a fall in product quality may also decrease the revenue. Unreasonable pricing in product may also reduce the revenue as it may discourage the buyer to purchase the product. The best way to find out such factors is to conduct surveys and marketing research.
For the reasons stated above, the arguments stated in the topic simply doesn't hold up. If one truly wants to boost up the company revenue, one has to conduct a thorough study rather than to give a conclusion with weak arguments.
“The falling revenues that the company is experiencing coincide with delays in manufacturing. These delays, in turn, are due in large part to poor planning in purchasing metals. Consider further that the manager of the department that handles purchasing of raw materials has an excellent background in general business, psychology, and sociology, but knows little about the properties of metals. The company should, therefore, move the purchasing manager to the sales department and bring in a scientist from the research division to be manager of the purchasing department.”
The author of the topic states that delays in manufacturing attributes to the falling revenue of the company. While I acknowledge that the directors manage to restore the financial status of the company, I would contend that they design strategies in an overly limited way. The logic of their argument and their conclusion they reach are both fundamentally flawed.
First of all, delays in manufacturing may caused by factors other than insufficient knowledge in metal properties. For example, insufficiently trained workers and worn out equipment in the product line contribute to the delay. The production of metal actually involves many processes, and it is better to evaluate the efficiency of each process one by one.
Moreover, it is unwise to let a scientist to make plans on purchasing metals. Most scientists are specialized in doing research but they may not be familiar in making business decisions. Purchasing involves skills in interacting with others and bargaining with the supplier. The knowledge in metal properties is not really useful for one in handling relations and making decisions. In addition, it is illogical to move the purchasing manager to the sales department. The skills in purchasing may not be applicable to sales.
Last but not least, delays in manufacturing may not be the only factor to falling revenue. Environmental factors such as economic downturn and a fall in product quality may also decrease the revenue. Unreasonable pricing in product may also reduce the revenue as it may discourage the buyer to purchase the product. The best way to find out such factors is to conduct surveys and marketing research.
For the reasons stated above, the arguments stated in the topic simply doesn't hold up. If one truly wants to boost up the company revenue, one has to conduct a thorough study rather than to give a conclusion with weak arguments.
