Problem Analysis
Ever since the acquisition has taken place, between Excel and Gemini, the new CEO of Excel has been planning to outsource the manufacturing strategy.
Ever since the decision has been made by the new CEO Dreanan, Regis has been under severe pressure and is rather threatened by the diminution in the role of the in-house manufacturing that shall be headed by the Vice President of Supply Chain Management at Gemini. Since Reg is is unsure about the new strategy because she and many of the employees at Excel believe that manufacturing has been the strength for the company.
Once it shall outsource its manufacturing, the company shall lose its hold upon the quality and shall become hostage of the outsource companies. In such a situation where the management is unwilling to support her idea, Regis has even threatened to resign if she is not allowed to actually work in her way.
The case basically highlights the issue where one of the major issues have been the fact that the management of Excel Systems has been unable to take a stand upon their major success factors and have actually relied on Gemini to make decisions.
Recommendations
Based on the issue that has been presented in the case, the most appropriate recommended solution for Caroline Regis in such a situation where the new CEO has been quite rigid and content with his approach where he is unwilling to listen to the management of Excel Systems. Therefore, the most feasible and the appropriate recommendation for Regis shall be to resign from the company.
The reason for this recommendation is rather simple, since the VP Supply Chain at Gemini has been a close companion of CEO Dreanan, therefore, he might not be willing to look upon to the other options available.
Moreover, the leadership of Excel Systems has been rather weak and has been unable to take stand for their employees. The COO of the acquired firm has been unable to take stand and has been unable to convince the CEO about the strengths of having its own manufacturing unit.
In such a situation, the ideal solution for Vice President of Manufacturing, Caroline Regis is to resign from her post and let the company eliminate and discontinue the manufacturing department.
Analysis
SWOT Analysis
Excel Systems Manufacturing Systems:
Strengths:
The major strength for the company’s manufacturing system has been the fact that it has been producing high quality products which has been satisfying the needs of the customers. Moreover, the management of the company under the leadership of Vice President of Manufacturing, Caroline Regis has been able to bring in employees that have focused on quality.
Another major strength for the unit has been the commitment of the management to hold the decision making power in their hands. Manufacturing has been a major strength for the company and it has reaped in decent profits for Excel Systems.
Weaknesses:
The major weakness for the Excel Systems Manufacturing Systems has been the high prices associated with the production department being installed in the United States. Other players in the market have been outsourcing its manufacturing units to Chinese companies more often........................
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