External and Internal Analysis Essay

This report entrust provide an compend of Bayonne forwarding, Inc and its involvement in the paper forwarding diligence. The three most essential issues cladding this companion ar analyzed which acknowledge (i) how shag Bayonne streng beca rehearse chat among elements and rectify general conjunction farming, (ii) how ordain Bayonne be up to(p) to prepargon or emend their computerized schedule carcass (iii) given Bayonnes paltry de awake(p)ry carrying away(predicate), how stop practicable efficiencies be practise roughly betterd in name of aptitude physical exercise of the railroad cars. In sum to analysis of these current issues, alternative resultant roles fox been machinateed for each. The alternative that holds the satisfyingest carriage is for Bayonne to in dependable-tempered a salutary integrated purification and lastly strengthen confabulation that allow waive for the phoner to outmatch in its identify per regu tardyance measures of follow, look, reli qualification and run. IntroductionBayonne Packaging, Inc. is before retentive involved in the paper incase sedulousness. Currently a 43 million dollar participation, Bayonne has braggart(a) from 1982 when sales were just 10 million. Bayonne differentiates themselves in being a specialty promotion paper converter that lets customized, conglomerate-demarking box that is utilize by industrial guests for promotional temporals, softw be, sumptuosity beverages, and gift food and stomachdy. By diversifying into saucilyfound grocery stores Bayonne apply its strength in advance(a) and exhausting incase role and their ability to fold and glue interwoven blanks. The primary(prenominal) issues facing the political party ar the interest (i) how smoke Bayonne strengthen lecture among subdivisions and mitigate general telephoner conclusion, (ii) how will Bayonne be able to develop or mend their computerized schedulin g arrangement (iii) given Bayonnes despicable address exploit, how loafer operable efficiencies be modify in bell of aptitude use of sinceres and organise of the machines. It is thus pivotal to richly analyze these issues more than than(prenominal) abundanty and examine the fixingss that energize preceded to each in rear for Bayonne to gain competitive benefit. compend of Bayonnes Issues 800 I. How can Bayonne strengthen conversation among parts and improve boilersuit confederation farming? Bayonnes most stressful calendar month of October has executed rake, cost, and calibre to tank. Consequently, Bayonne has non been able to draw their outline (see function 2.1) intumesce and go by in disc sustain performance measures. This is callable to pretermit of communion and coordination mingled with the pure tone control, sales commission, mountain and Glue, and composition discussion sections. at that rear atomic number 18 several factors that contribute to the chat issue at Bayonne. Among early(a) weaknesses of the company such(prenominal) as doing a reputation for after-hours hold openy and complaints from customers slightly quality of crossroads (see branch 2.3), communion is ace of the strongest. Bayonne seems to be failing in the go inherent sleep togetherrial tasks of the dodge death penalty process. Moreover, the leave out of intercourse is take a hoped in their inability to staff the organization (see air di quite a little 2.5a) as no prudish training is agnize and plane sections atomic number 18 change by reversaling as silos quite an than one unify organization.In addition, miss of communication is overly do for Bayonne to show on their organizational capabilities in specialize packaging and scheduling (see scratch 2.5b). Bayonne has non been able to develop a strong cargon police squad that can reach out judgment which apprise mountain range activities, for ex deo xyadenosine monophosphatele, should be performed inner(a)ly and which ones should be outsourced (see role 2.5c). The fact that nightspots were youthful more than 20% of the fourth dimension in October is reflective of piteous communication in the company and deprivation of delivery in report performance indicators (see section 2.1c). Bayonne is losing customers beca hold of communication problems and lack of internal leaders (see section 2.5j). The wee climate (see section 2.5i) has affiliate bitter and at that exploit is no sign of a strong embodied destination, viscidness or quislingism, which is ultimately do for a large misunderstanding and prohibit assumptions among departments.II. How will Bayonne be able to develop or improve their computerized scheduling remains? Bayonnes computerized scheduling scheme is viewed as worthless as it reflects inaccurate development and assumptions about ordinates. This is do for company violence to non do their strategicalal roles as proficiently as possible and sort of the individual departments atomic number 18 making their suffer decisions (see section 2.5g). Employees argon questioning whether or non the scheduling trunk presends to be practical. The schedule that is bringd twice a blendweek by the computerized scheduling system whitethorn be a atomic number 82 scram for Bayonne not being able to live up to their vision, foreign boot, and impersonals (see section 2.1A). The composition department is particularly bear oned be catch as manager, Sean Quinn explains between tingle raises and ganging the severalizes to relieve the machines take to the woodsning, he cannot break prison term-wise to do what the printout says.Essentially, the schedule demonstrates to employees that they look at an order that they smash never seen or even watch an order that is finished and got shipped. Inaccuracy whitethorn be the leading cause of Bayonne not being able to sustain a competitive approach in toll of their transmission line and functional strategies. For example, one of Bayonnes business line strategies is the importance of determining precession of orders by computing critical ratios (see section 2.1B). In addition, this system has be go in a weakness to the company (see section 2.3) and is alike leading to customer value suggest and the companys cost ex extinguishion to weaken, especially in secondary activities of the Bayonnes value cooking stove (see section 2.4, harvest-feast R&D, Technology and Systems Development) not altogether is the this system causing workers to swerve printouts and raise licking, it is causing for a cumulus of date wasted that could be employ toward producing amplyer messs of products at a confine of rock-steady quality for customers.III. Given Bayonnes poor delivery performance, how can running(a) efficiencies be modify in hurt of capacity utilization of the machines?Since Bayonnes loftye st volume month is October, the company has not been able to match capacity to its demand requirements too leading for in decent allocation of election that contribute to schema implementation (see section 2.5d). Evidence from the computation of machine authorization (see mo sackary analysis page) indicates that the Heidelberg presses ar operate at 100.29% capacity, fundamentally making Bayonnes printing military action the hinder of the process. Consequently, this does not give the ability for Bayonne to focus on its core capability of change packaging (see section 2.5b) nor deliver on their secern performance measures (see section 2.1). In addition, poor use of capacity utilization is withal reflected in Bayonnes decrease in producing nigh quality products.Producing quality products is essential in charge customers loyal to the company and is a key success factor in this assiduity (see section 1.5). The Heidelberg press is slowing down subsequent activities since i t can scarcely produce a special amount of shares per month, which causes for limiting the inputs that are on hand(predicate) for the Die-cut centre. Bayonnes chief(prenominal) resource is their broad range of machines that are supposed to be in operation(p) at efficient levels (see section 2.2). These machines are rich because they contribute to the function of the companys system. However, with the use of sufficient capacity being questioned whitethorn be the leading cause of poor delivery performance, which is ultimately the reason that Bayonne move onred a detriment in their most stressful month. password of alternative solutions to the issuesI. How can Bayonne strengthen communication among departments and improve overall company horticulture?A solution to this issue would be for Bayonne to re prize their current dodge and knock up a strong corporate culture that will bring employees together (see section 2.5i). Bayonne can base on what they already energise in place such as the daily toil meetings. This is the but chance where employees across all departments come together face-to-face to discuss issues. lend a strong corporate culture has its pros and cons. The main vantage is that it can create a schema supportive organizational social structure that Bayonne is currently miss off (see section 2.5c). an some other(prenominal) wages is that it will similarly allow for internal leadership to be strengthened. Having a strong leader will train the tone and ensure everyone is working as a team. When communication is improved, Bayonne will be able to delivery on m because the departments will be working cooperatively introductory than give wayly. The only negative to instructing a strong corporate culture is that it practise work unless employees embody the culture and take it seriously and understand that it contributes to Bayonnes key performance indicators of cost, quality, hurrying and dependability.II. How will Ba yonne be able to develop or improve their computerized scheduling system? An alternative solution to this issue would be for Bayonne to gain love to the computerized system by fixing the entropy that is leading to inaccuracies and introduce a pre-work order roof. Currently, the work order jacket lists the routing, mo crystalliseary standard frame-up and run quantifys, special instruction manual and ship-to breeding (see section 2.4, Distribution). If management at Bayonne work toward gaining employee fealty to this system and introducing a pre-work order jacket found on prioritization where a report would be sent to each department before they fetch working on orders and when the prior departments finishes the order, the close department would be aware of what orders are on the way deep down the coterminous few days would contribute to proper(ip) outline death penalty.However, there are few pros and cons to this issue. An service of introducing a pre-work order j acket and gaining loyalty of the computerized system would lead to more efficient operate levels at the facility. This will lead to decreased last outs, attach quality and better time management. It would enable company strength to do their strategic roles more proficiently as come up something that Bayonne is not currently acting upon (see section 2.5g). A con with this alternative would be the first step of initial confusion of how exactly the novel system would work. besides, some employees whitethorn exclusively be resistant to adhering to the computerized scheduling system even if it were to be fixed or question whether or not it would be practical bountiful to sustain high school volumes.III. Given Bayonnes poor delivery performance, how can operational efficiencies be improved in equipment casualty of capacity utilization of the machines? A solution in improving capacity utilization would be to sword more use of the internationalistic princely and Queen mac hines. Currently these machines are in operation(p) at nearly 50% capacity utilization. Since these are the fas interrogation machines, placing master(prenominal) orders to them would generate higher volumes. Advantages in making these machines the main use would contribute to Bayonne outperformling in their key performance indicator of speed (see section 2.1C) and improvement in functional and business strategies (see section 2.1B). The machines are only operating at 44.49% capacity utilization, which means that Bayonne is lacking in improving operational efficiencies that could produce down cost. These machines produce the most pieces at the highest speed so making use of them would be highly beneficial. The main blemish of this proposed alternative is that the volume whitethorn strickle meshing margins of the company a concern of president Dave Rand (see section 2.4). In addition, these machines are building complex and difficult to set up which could interfere with alloca tion of proper time management. This may result to poorer quality causing for Bayonne main strength in progressive mail boat convention to be diminished. tributeAccording to my analysis, Bayonne must focus on strengthening communication indoors the company. Bayonne has to instill a strong corporate culture and develop on internal leadership inside the company. This will lead to happier more productive employees and will allow for Bayonne to build upon their organizational capabilities. In turn, strong communication will lead synchronisehronization among the departments and employees will work as a team rather than as silos. A strong corporate culture and jumplent communication will eliminate misunderstanding and foiling among departments that has been causing for Bayonne to develop a path depict for late deliveries and poor quality. Ultimately, communication will be the key in Bayonnes ability to execute their schema and excel in key performance measures that are crucial to the get aheadability in the company.Financial abbreviationOverall, Net advance margin has been declining which indicates that the company has depleting cash reserves and may turn out difficulty salaried liabilities. Gross profit margin for Bayonne is declining which may indicate that fewer funds may be available for operating expenses. referable to limited financial info in the case, other profitability ratios (i.e. operating profit margin, net profit margin, return on equity, liquidity ratios (current ratio, working capital), and leverage ratios (total debt-to-asset, debt-to-equity) withdraw not been able to be computed.It is apparent that the Heidelberg press machine is operating at full capacity and is the constriction of the process. This is causing for scheduled hours to go overtime. high-velocity machines such as the outside(a) royal and the international queen (only being employ 44.96%) are not being to the full utilize to an efficient manner, which may be t he cause in late delivery and poor quality.APPENDIX1. EXTERNAL ASSESSMENT1.1 PESTEL summaryPolitical n/a environmental severe weather conditions may have a substantial feeling on this intentness if these conditions were to cause a delay in the transportation process of the big money roundthing like a power outage or blackout could interrupt the flow of the packaging process, which in turn will have an effect on sales and the customer. sociocultural Customers to the paper packaging industry pursuit to use up a greater opposition with promotional materials reflects the rapid growth of this industry. fast society want things delivered on time with no delays.(not being able to keep up rush-orders may affect sales). expert advanced technology may cause industry profits to decline or no longer be essential (e.g. migration of software sales and distribution from CDs to the internet) sparing if cost of materials (such as glue or paint) used to do the packaging were to asc ension orders from customers may decline (important to stay strategically priced). Legal not according with FDA requirements (about coatings, adhesives, and liners) could have an effect of business inwardly this industry.Overall, the macroeconomic environment of the paper packaging industry certifys a few challenges. Despite limited info given in the case on away knowledge of this industry it seems that this industry has experienced booming growth. This industry may be challenged when it comes to diversifying into new-sprung(prenominal) markets if the dot-come bubble continues to divulge and migration of software sales and distribution form CDs to internet were to increase. In order to survive, companies within the paper packaging company have to diversify into emergent markets and constantly initiate in form of the packet or product.1.2 Porters 5F compend there is no sufficient information about rivals within this industry in the case that can be applied to this frame work.1.3 Driving Forces Regulatory influences and government policy changesRequirements set by the food and medicate administration (FDA) can have an intrusion on be, operational efficiencies and health and refuge concerns if companies within the industry do not comply with the regulations. Product and marketing debutAdditional customer market segments have become available to this industry because of the explosive growth of software packaging and promotional material.Both these driving hosts have strategic implications for competing companies in the paper packaging industry. For example, if companies within this industry do not comply with specific industry requirements then they will not be able to run their business or go into financial debt. Also, it is important that this industry to diversify into emergent markets in order to compete competitively.1.4- strategic Group Map no sufficient data in the case to redress this framework since the case does not talk about competitors.1.5 KSFS ontogeny collaborative relationships with customers, who are closer to the end consumer works well with industrial customers for companies in this industry is crucial as it has an impact on sales for the company and eventually for the industrial customer. Excelling in global supply chain managementExcelling in operational performanceIt is important to keep get through of cost deviation in and out of the company. For example, if cost of undecomposeds sold (COGS) takes up a high percentage of the companys sales may indicate that the company is not acting efficiently or not earning enough revenue to comfortably run the business. Effectively managing the delivery of products composition keeping costs minimized It is important for companies in this industry to develop a track record for constant on-time delivery as this will reflect in the customer being loyal to the company which will crash sales.1.6 Industry aspect overall this industry is conductive of good profitability since more industrial customers motivation their products to be packaged decently in order to be shitable. It is therefore important to excel in cost, quality, speed, and dependability at a competitive level for companies within this industry.2. INTERNAL ANALYSIS2.1 How well is Bayonnes present strategy working The present strategy at Bayonne is to out-compete rivals and prioritize in four key performancemeasures, which are quality, cost, speed, and dependability. This is mainly more of an trading operations strategy seeing as this company is the manufacturing business of the product that the customer sells. It is important for Bayonne to deliver on quality packaging, constantly enclose all while minimizing costs and producing high volume to remain competitive.A) Vision mission and objectivesVision although there is not enough sufficient data that states Bayonnes vision it can be assumed that based on what is given in the case, Bayonnes vision might be alon g the lines of becoming the number one industry leader in specialty packaging by providing the best customer satisfaction, quality and product innovation. Mission based on what is given in the case, Bayonnes mission could be being committed to providing innovative solutions to difficult package design while excelling in cost, quality, and delivery. Objectives financial objectives at Bayonne are to keep costs down as much as possible, while still delivering on quality. Strategically, Bayonne aims to excel in their key performance measure of dependability, cost, quality and speed thats embedded in their strategy. Overall, they extend in being operationally efficient. B) Bayonnes Competitive ApproachBusiness Strategies work closely with customers to ensure satisfaction and approving in the design on the package Building on competitive advantage by providing additional finish to the package as a courtesy to the customer. Also tapping into new markets and products such as promotional material Importance of determining precedency of orders by computing critical ratios (e.g. humiliate than 2 indicates concern for the job) Expediting the most important orders in hopes of sustaining customers loyalty to the company. Functional StrategiesEnsuring quality is met by strike outing ii pieces every hour and conducting a final exam charge Ensuring that the work-order jacket travels with the job at each department Ensuring that if a full delivery cannot be made then at least getting partials out is important When orders need to be effected quickly, then this is done by ganging them up whenever possible. Sales management department is focussed on set acutely to the market in order to sustain volumes.C) discover Performance IndicatorsStrategic how Bayonne is doing in terms of their key performance measures Financial/ implement Effectiveness-Quality quality control reports indicate that 6% of products were found defective collectible to glue problems, leading to an increase in customer rejects of shipped products. refinement department has problems in including all pieces of the product. -Cost cost of goods sold has increased, net sales have decreased from previous(prenominal) years, which has caused Bayonne incurring a passage in 2011. -Speed there is a glare overall speed of delivery to customers. Machines are not being fully utilized since employees are not given the opportunity to assess which orders to run on what machine. A plenteousness of orders that are urge ond causes for a breakup to occur in exertion leading to supernumerary set up time for the machines. -Dependability not doing well. Customers are aware of Bayonnes disparity of delivering packages on time.This is reflective in the companys worst month October where 20% orders were late. Financially, Bayonne understands that there is a tradeoff in keeping costs down, getting good quality and hitting delivery promises. The ultimate remainder is to perform financially well in all three. Bayonnes declining net profit margin may be suggestive that cash reserves are depleting and they may have difficulty give liabilities. Gross profit margins have also declined possibly indicating that raw material costs have increased and manufacturing costs have gone up. In calculating machine effectiveness, it is indicative that in the print department the Heidelberg press is the slowest of machines, which is creating a bottleneck in the process where capacity utilization is 100.29%.2.2 VRINResource Wide Range of Machines operating at efficient levels. Capability specialised Packaging (includes innovative, difficult packaging design, and coating touches) Is it Valuable?The machines pass the valuable streamlet because they contribute to the effectiveness of Bayonnes strategy. The transnational gallant and International Queen are Bayonnes most important machines that contribute to gaining operational efficiencies and added value to the customers beca use they operate at a high speed. Bayonnes specialise packaging capability is very valuable and highly contributes to the effectiveness of their strategy (especially in the quality area). Since this capability is competitively valuable, Bayonne passes this test.Is it old?Since these are generic machines, this resource is not rare. It therefore does not pass the test since other packaging companies can dedicate in the aforesaid(prenominal) machines as long as they have the financial stability to do so. Not a clump of companies may take the time to closely work with customers in special and complex packaging design. Also adding personal finishing touches is not something a lot of other paper packaging companies take the time to do. Bayonne therefore passes the rare test. Is it Inimitable?The machines are imitable therefore this resource does not pass the unreproducible test since other companies can purchase the same machines to produce the same quality packaging. in that respe ct is no singularity to them. Capabilities in specialized packaging design is something that other companies can copy as it is not competitively superior to strength rival companies. Bayonne does not pass the inimitable test. Is it Non-SubstitutableAlthough Bayonne may have an efficiency advantage with their machines, it does not pass this test since likely rivals can copy the same machines and produce equally good products at lower costs by locating their plants in countries where wage rates are relatively low. Potential paper packaging industry rivals may also offer specialized packaging capabilities. This means industrial customers can pick and choose with which paper packager to follower with. Therefore, Bayonne does not pass this test.Overall, this framework presents strategic implications to Bayonne indicating that their resources and capabilities are not ones that contribute to Bayonne having a competitive advantage that is sustainable. The companys resources of mach ines and specialized packaging capabilities present to be competitive assets to the company and are exchange to Bayonnes strategy. However, by not notch the last 2 tests of this analysis is indicative that Bayonne may be prone to parrotlike attempts and efforts from potential rivals.2.3 SWOT Analysis Strengths working(a) closely with customers Aggressively entering into new markets Innovative and difficult package design Ability to fold and glue complex blanks Ability to price aggressively soundly managed scheduling in Composition department in terms of being rarely out of stock and re-stocking quickly. Use of High-speed machines help keep volumes high uniform performance from Maintenance team in running inspections and fixing something mightily away if it breaks down. Weaknesses Complaints from customers about quality (concentrated in Fold&Glue) leading to defective products Developing a bad reputation for late delivery time, which is also causing customers to lose trus t in the company mismanagement and communication problems between departments inevitably causing orders to run late (threats coming from heads of other departments, no synchronization) Computerized scheduling system appears useless as it conflicts with time management of rush orders Some machines run slow disrespect being fast to set up (e.g. Staudes) Data reported through the stool floor computer terminals is inaccurateOpportunities Diversifying into emerging markets and taking on new types of customers. future money to be made in Manhattan in terms of promotional material which can lead to gaining more customers Threats gap of receiving safety concerns for not complying with FDA requirements leading to overall increased costs.2.4 Value Chain Analysis are the companys cost structure and customer value marriage offer competitive? Primary activitiesSupply chain management from the limited information provided in the case, there is not much that can be said about Bayonnes supp ly chain management. The most applicable fact is that Bayonnes supplier is International Paper that helps keep the composition department stocked with the necessary materials that are used to make the products. In terms of costs in this area, according to Bayonnes income contention the Cost of Goods Sold (COGS) significantly increased from 83.2% in September 2011 to 90.7% in October 2011. Since October is also the month in which Bayonne occurred a loss of $365,694 is indicative that the company is not do well on the cost performing measure. Operations Bayonne places high value in executing their operations strategy since they are responsible for producing the product itself at their facilities. The goal is to keep margins low while getting the volume.The flow of order through the production department is a system pertinent to Bayonne executing their strategy. Quality assurance activities are performed at Bayonne where there are two inspectors on each shift cover version the Co mposition, sheet, print and Die-cut, Fold&Glue, and Finishing departments as well as inspecting the cargo ships dock. The inspectors check the machines every hour during the production run and a final inspection is performed before the product gets shipped out. Distribution In order to keep track of the products that Bayonne produces, gravid reliance is held in their Work order of battle Jacket. For example, before shipping the finished product to the industrial customer, quality control managers check the product against proof in the work order jacket. The jacket lists routing, standard setup and run times, special instructions, and ship-to-information. It also held the customers gestural proof along with samples signed by operators, supervisors, and QC at each level. Distributing finished products to customers on time is highly important to Bayonne not losing customers however data shows that in the month of October 2011, they were late more than 20% of the time causing cust omers to lose trust and expedite orders.Sales and Marketing although there is not enough information to indicate what Bayonnes costs, activities, and assets related to sales force efforts are the products that Bayonne produces at one time impact the end customer. For example, industrial customers who place large orders with Bayonne and pay a high price per piece place high expectations that Bayonne deliver the product on time in correspondence to say, a promotional campaign that they are entrance on a specific date. Its seems that sales management at Bayonne is not maturation a good track record for on time delivery because of miscommunication going on between the departments. Also, sales management places high relevance on pricing aggressively to the market, which may conflict with profit margins of the company. Service Bayonne provides all necessary services such as design care and final delivery of the package. It is important for the company to gain customer approval wh en create artwork and package design as it directly affects profitability. This is why the sales force at Bayonne works closely with the customers masking that the company respects the important decisions that they make since these customers are the ones that make the product sell to end consumers. Profit Margin president Dave Rand complains about margins, but not about volume.Secondary ActivitiesProduct R&D, Technology, and Systems Development Bayonnes strength is in innovative and difficult package design and their ability to fold and glue complex blanks. In order to remain innovative and keep volumes high the company uses high-speed machines such as the International Royal and International Queen. Bayonne also uses a computerized scheduling system, which add up the standard set up and run hours for every order released to the plant and schedules order by priority. However, the use of the computerized scheduling system is having a negative effect in terms of order processing . Human Resources Management Since Bayonne is mainly a family run business, there are no real HR practices in place. Employees essentially work on a do what it takes system and there are no training procedures. General administration n/a2.5- Ten Managerial Tasks of the system action Process a) Staffing the OrganizationBayonne Packaging began as family business and later grew into a larger organization. However, the lack of cross-functional communication may beindicative that no proper training is realized as the departments work as silos rather than one unified organization. Bayonne recognizes the importance of good upper management seeing as the old VP of operations was fired and replaced by John Milliken who has a background in general manufacturing and seems to edge traits of a valuable and talented employee. Since Bayonne incurred a loss in 2011 this may reflect on the fact that management is weak, and employees may not be valued as important assets that tie directly to strat egy execution and gaining of competitive advantage. b) Building on Organizational CapabilitiesBayonnes ability to manage people to gain competitive advantage is lacking. Through internal development, Bayonne can build on their scheduling capability. Since each department works in a separate manner, there is no synchronization, which interferes with orders being successfully completed. Second, Bayonnes capabilities in specialized packaging can also be improved through internal development by having managers at the company set an objective to develop this capability and organize activity around it. Bayonne is able to differentiate themselves by possessing strength in innovation and difficult packaging design (i.e. working closely with customers in the design and adding personal touches in the finishing department) but lack of collaboration and communication in the company have resulted in operational deficiencies. c) Creating a dodging -Supportive Organizational Structure Bayonne is not properly organizing work efforts in a strategy supportive fashion.In order to excel in the key performance measures of cost, quality, speed and dependability embedded in their strategy they may have to reassess operational activities. A strong management team has to be built within the company in order to assess which value chain activities, for example, should be performed internally and which ones should be outsourced. Currently at Bayonne their organizational structure is not aligning with their strategy in part due to communication problems. Also, there seems to be no delegating of authority or facilitation of necessary collaboration and coordination with external partners and strategic allies. d) Allocating Sufficient Resources to Strategic ExecutionBayonne is not operating as cost-effectively as possible. Although sales management may be pricing aggressively to customers by fling a high price per piece this indirectly affects profit margins at the company. Bayonne is not using their resources (i.e. their machines) in an efficient manner. e) Instituting policies and procedures that drive strategy execution activities There are currently no policies in place at Bayonne, which may hinder good strategy execution. The work climate is not one that facilitates good strategy execution employees are unnecessarily being cry at, and pressured to run orders in short receipt of receiving them. Bayonnes procedure for preventing or finding defects is signing off the first good piece the operator runs and then arranging it in the Work Order Jacket. However, this shows a degree of carelessness in ensuring good quality as often there is a possibility for more than only one piece being defective.Excelling in cost, quality, speed, and dependability is being compromised by lack of communication and coordination among employees when they disagree on unexceptionable partials and make up their own determine of thumb that is not in sync with the goals of other de partments. f) Adopting best practice and business processes that drive strategy execution activities Bayonne has not adopted any benchmarking methods that would help in implementing best practices. The only common practice at Bayonne is in recognizing revenue when its calculate the customer, and billing when the product is shipped. In October 2011, Bayonne was late with their deliveries more than 20% of the time, compared to 2009 with only 5%. This is affecting Bayonnes ability to excel in the dependability aspect of their strategy also since customers are aware of this and thence move up their orders g) Installing info and operating systems that enable company personnel to do their strategic roles proficiently The computerized scheduling system at Bayonne is weakening their organizational capabilities.Many employees find the scheduling system to be useless, as the printouts do not accurately reflect what has been finished and what postulate to be started. Lack of accuracy and s easonably information about daily operations does not allow for managers to gauge how well the company is executing their strategy. h) Tying rewards and incentives directly to the achievement of strategic and financial targets There is currently no reward system in place at Bayonne. This causes for lack of motivation and engagement among staff. Employees are overlook and not encouraged for their hard work as managers are only focus on expediting orders by getting them authorised by Dave Rand. i) Instilling a corporate culture that promotes good strategy and execution There is no corporate culture in place at Bayonne. The work environment is not strong or positive. Miscommunication leads to misunderstanding among employees and even screaming. Managers are not properly guiding employees in the slump direction of how to do things right and doing the right thing instead they are cerebrate on their own goals in mind.For example, Wascov only focused on pricing aggressively to the market and expediting orders causing for other departments to rush orders and compromise quality which leads to the upset customers) No commonly held convictions in place of how the companys business is to be conducted instead, departments make up their own separate rules leading to incisiveness across the board. j) Exercising the internal leadership needed to propel strategy implementation forward There is no strong internal leadership in place at Bayonne resulting in lack of synergy between the departments. This is why new VP of Operations Milliken has been put in place. He seems to be staying on top of what is contingency by touring the factory and asking relevant questions to department managers in aim of propelling strategy implementation forward. Neil Rand (Dave Rands uncle) is not exhibiting traits of a proper executive for Bayonne. Although he does whatever it takes to eliminate work order delays, he does this by randomly showing up and neglecting other important orders. This leads to requests for earlier finishing dates and inevitably leading to an increase in late orders.2.6 Strategic Issues1.How can Bayonne strengthen communication among departments and improve overall company culture? Miscommunication seems to be occurring across different departments, which may be the cause of the increase in late deliveries in October. Lack of company culture may also be the cause in synergy and good energy within the company. 2.How will Bayonne be able to develop or improve their computerized scheduling system? This current system is causing for many inaccuracies, which leads to orders to be expedited. Lack of proper data that the system is generating is causing for unnecessary frustration among employees and quality is being compromised. 3.Given Bayonnes poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines? It seems that the Heidelberg press machine is the bottleneck of the process as it is operating at full capacity, but it is unable to cut with variability in customer orders. Some machines are not being fully utilized which affects Bayonnes performance measures in speed and dependability