Wednesday, 19 October 2016

Motors and More Company Strategy



Company Strategy
Motors and More, Inc. Can be described as a sole proprietorship type of organization since it is owned by an individual with employee base of 116. The company adopts a prospector form of strategy. Prospector strategy typically involves engaging in active programs to expand into new markets and stimulate new opportunities. The company pursue new product development and are very aggressive marketers when obtaining market share(Wikidepia.org). Consequently, for a company engaged in the production of small motors, it’s consumer base are beyond the shores of its local community. Hence the rationale behind its adoption of its prospector strategy to enable it compete favorably with other leading small motor manufacturers.
Industry Realities
The industrial realities of a Small Motor manufacturing company are grim, since small motor manufacturing company's client base is bijou. Furthermore, having a segregated work force further compound the issues of Motors and More. Moreover, in a labor market of 28,000 residents and a 3.1 percent unemployment rate, being able to operate in a full capacity work force is an issue that needs to be addressed by Motors and More. Having a high turnover rate means Motors and More is operating below capacity, hence the company is unable to meet the demand of its constituencies. This puts its competitors at a competitive advantage considering the company’s production is not at optimal.

Why Teams Fail



Before we find out how teams fail, let see why teams are put together in the first place. The University of Washington University defines Teams as "a group of people with different skills and different tasks, who collaborate on a joint project, service, or goal, with a meshing of functions and mutual support" (courses.washington.edu, n.d). Each member of a team is unique and brings his/her functionality and uniqueness to the team. Also, the success of the team evaluated using performance evaluation processes. It is ideal to state that a firm's reason to create a team is to maximize the collective effort of the team since each brings his/her uniqueness to bare. For instance, if it takes an employee two hours to build a bicycle, it might take four employees 30 minutes to finish the same work. By forming a team to carry out t the task, the productivity of the team can increase. In such cases, the employees are compensated as a team on piece rate basis (Brickely, J., Smith, C., Zimmerman, J., 2016). Adam Smith also realized the effect of division labor when he visited a Pin making factory (Smith, A, 1776). By having employees work as a team, apart from boosting morale within employees, it fosters unity and in the long-run reduces employee turnover.

Teams frequently are used at all levels of the organization. Teams are formed because they are more successful at assembling specialized knowledge for decision making than are alternative methods that might be used to pass the knowledge through the traditional hierarchy (Brickley, J., et., al., 2016).

Since we know why teams are formed, and how strategically important teams are to the long-run return on investment for shareholders. Firms tend to invest in making sure teams succeed by mitigating factors that could cause a team to fail. One of the reasons teams fail is due to lack of trust within the team. Since there is a likelihood of conflict of interest or dysfunctionality sometimes due to different functionality and specialty that each team members may possess, agreeing on a common ground might be difficult. Also, it might be hard for team members to trust another team member's competency especially when they have never been on the same team (forbes.com, 2015).

Lack of Planning can also account for why teams fail. Without foresight and a "clearly defined goal understood by every team member, there will be a disparity in how each member believes that goal should be reached"(Capsim, 2015). There is a positive correlation between proper planning and the success of a team. “Many teams are expected to arrive at a goal without receiving the proper prior training and support, making it a doomed venture from the get-go"(Capsim, 2015). Teams also fail due to lack of good leadership. A good team leader can foster unity and coherency among team members. A good team lead can harness the strength of a team to maximum efficiency. A good team lead is also able to reduce free-riding through proper monitoring of the team activities to ensure every team member is doing his/her quota of the task.

 Finally, Peer pressure is another reason teams fail (Brickley, J., et. al., 2016). Sometimes team members tend to emulate or copy bad behavior or ethics from peers which might be detrimental to the long-run success of the team. One reason is that "individual team member experience the need for approval from other members, which is supported by the common human desire for acceptance"(brighthubpm.com, n. d). Although peer pressure can be positive, a negative peer pressure can lead to an unproductive or under produce team which in the long-run can result in the dissolution of the team without meeting its goal.