Management: Fatab Shoes Case

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KANGYANGLAWSONPENUMUDICONSULTANTS


Case Summary C S

Character Profile

Issues

SWOT Analysis

Case Solution

Alternative Solutions/Recommendations

Conclusions

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Fatab Shoe Company‐ multi‐national shoe F t b Sh C lti ti l h manufacturer based in Zimbabwe

Caribbean Subsidiary‐ C ibb S b idi l i fi f losing profit after competition ii entered the market HQ sent new top manager to Caribbean to assess and remediate

the problem Complete overhaul of staff and facilities was needed The plan will take 5 years to turn around the subsidiary to gain profit once again fit i

KYLPCONSULTANTS was hired by HQ to introduce alternative solutions for the situation at hand lt ti l ti f th it ti t h d KANGYANGLAWSONPENUMUDICONSULTANTS


New Manager from HQ

Marketing Department Manager M

• Hands‐on manager • Experienced CPA • “if your not with me, your against me“ mentality

Mr Bullhead Mr. Bullhead

• Political Appointee • Pro‐Change

Mr Focus Mr. Focus R&D Manager

Quality Control Director

• Caribbean lifestyle • Political indifferences P liti l i diff • Believes new designs are too expensive

• Highly educated • Knew how to solve K h t l problems but had trouble implementing

Mr. Brickhead

Mr. Zapatos Production Manager

Mr. Squarehead

•Brother‐in‐law to Mr. Brickhead •Refused any inspections • Did not know how to manage staff or equipment

Plant CEO

? Plant CEO

• Caribbean lifestyle • Did not care about what HQ wanted • Did not conduct meetings with staff

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g g Organizational Decision‐Making

Lack of Leadership

Fatab Market Monopoly No New Products Low Quality Products/Outdated Designs

O td t d P d ti Li /E i Outdated Production Line/Equipment t

Plant CEO does not communicate with staff/no leadership ff Lack of Work Motivation Defect in Production Quality

Market Competition p

Hiding Financial Reports from HQ No new marketing/products on the market

Faulty Equipment/ No replacement parts on‐hand Large Delays due to break‐downs

Social/Political/Personality Conflicts

Staff let personal difference affect organizational performance (i.e. political party)

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g Strengths

Weaknesses

• Mr. Bullhead’s strong qualifications/ background • Previous success of the brand

• Outdated equipment/production line • Political Influence in the hiring process and decision making •No plant administration leadership in place • The plant CEO’s ignorance for the problems

Opportunities

Threats

• Mr. Zapatos‐ ISO 9000 training • Mr. Focus‐ marketing reports/ ideas • Availability of styles of shoes, Less expenses A il bilit f t l f h L needed for R&D department

• Mr. Squarehead‐ arrogant • Mr. Brickhead‐ refuses to think of new id / d l ideas/models • Public’s loss of trust in the products • Lack of work motivation in the workers • No negociation between director of the quality control Mr Zapatos and the quality control, Mr. Zapatos, and the Production manager, Mr. Squarehead

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Mass Overhaul

Fire all top Plant officials, including Marketing, R&D, CEO, Quality Control, and Production Replace officials with experienced international people Update production line/marketing 5 year turn‐around time

Positive Highly educated people in positions to make large difference and turn company around International ideas tested by experience Needed improvements to marketing/production taken care of

Negative Plant employees may not be loyal to new officials New officials may not understand market/ culture of Jamaica/Caribbean

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p , g / Replace R&D, Production Managers/ Plant CEO

Keep Marketing/ Quality Control Managers

Either buy new equipment or have replacement parts on‐hand

Market Testing k i

To mentor all department heads To make sure current tolls are being used

Upgrade Production Line/Equipment

They still have good ideas that can be implemented into the company

Hire International Consultants

These officials did not fulfill their job requirements Family ties should not effect job performance Consider hiring regional/local people for the positions instead of international

Take current products in other markets and market test them in the Caribbean Saves money on R&D/Marketing

Corporate Checks & Balances

Put in place checks and balances so that financial reports can be true to form

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p g Importance of Understanding a Market’s Culture

Leadership

With employees and costumers Employees will fee loyalty towards their own people Company needs to know when Costumers want new products and what the market vulnerability is The main problem was the CEO not managing his employees and making the right decisions. CEO did not make the right decisions and did not hold managers accountable

Social/Political/Personality Conflicts

These conflicts cannot effect the organization A manger must be able to identify these problems and solve them quickly and efficiently

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