Session 21 - Session 21test next Tuesday(April 6th Morgan...

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Session 21—test next Tuesday (April 6 th ) Morgan Motors Company- Strategic Plans Current Strat- “Small is beautiful” Small production capacity e Low investment volume, low debt level e Slae of 450 cars per yr sufficient to cover expenses Strong waiting list e Buffers/delays effects of drops in demand e Stable production at optimal/max capacity Low demands on management capabilities e Est. Alternative recommendation: aggressive growth strat. (=exploits demand opportunities) e New plant and production technology (=double volume) e New marketing/price concept (approx. 30% price increase) e New employees (double production volume, new skills) e Up-graded product (price/quality relationship) Challenges of this strategy? Change resisting organization (e.g. organizational culture) Impending top-mgmt transition Lack of financial resources Beyond current mgmt capability o No experience in building plants o Ne experience in modern manufacturing technologies o in org change mgmt
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This note was uploaded on 09/05/2011 for the course MGMT 310 taught by Professor Staff during the Fall '08 term at Iowa State.

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Session 21 - Session 21test next Tuesday(April 6th Morgan...

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