GEK TECHNOLOGIES Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    3
  • Words:
    1533

9GEK Technologies

Table of Contents

31.0 Introduction

32.0 Competitive Strategy

43.0 Identification of Issues

64.0 SWOT Analysis

64.1 Strengths

64.2 Weaknesses

74.3 Opportunity

74.4 Threats

85.0 Conclusion and recommendation

1.0 Introduction

With increased competition that has been brought about by globalization, companies need to identify various issues that affect them in their management accounting, production and sales1. The Management, accounting, production and sales are important towards enhancing performance of an organization and thus need for a company to focus on strengthening on the named aspects. This paper focuses on analyzing the various issues being faced by GEK technologies through performing a SWOT analysis. Finally, the paper will provide recommendation to the different identified issues.

2.0 Competitive Strategy

Every company needs to define its competitive strategy especially in today’s competitive business environment. A competitive strategy is defined as how a company competes with his competitors ensuring that it has a well established competitive edge. For GEK Technologies, the company over years has a well established reputation in the production of prestigious audio products. The company aims as ensuring that it sets the standard for reliability, service and performance. The company ensures that its products are of high quality so as to meet customers’ demands2. Brand image is an important strategy towards enhancing and strengthening a company competitive edge. GEK Technologies is committed towards maintaining a strong commitment to enhance its brand image. The company is further involved in upgrading its product with increased technological advancement across the globe. From the MP3 players, the company has been able to produce USB Turntable which has more features such as; it can be plugged into a computer and thus music is converted from vinyl records into a more digital format.

3.0 Identification of Issues

Despite the well established brand image by GEK, there are various issues regarding the performance of some of their products especially in the recent years. From the company reports, even with increase in total sales in an acceptable rate of about 10%, their sale mix was changing significantly. The company chief financial officer is particularly concern with the sale of the record players due to its sharp decline as well as the high costs involved in producing this particular line. The high level of craftsmanship required for record player, the product has considerably had high than average cost of material and labour. Additionally, the company reports that both retaining and attracting the highly skilled workers for this product line was becoming a daunting task3. The new employees were not eager to learn the skills to manufacture this product line whose manufacture was surrounded by loyal, more experienced and older employees.

Over years, the company ability to meet the customers demand for this particular product line was becoming constrained due to the limited manufacturing capacity. Increased USB Turntable sales highly resulted to delay in production and thus backlog of orders. At this same time, company managers have been overworking themselves so as to ensure the plant has a well developed capacity to meet the increased demand4. The idea by some plant managers to shut down the record player line so as to increase the production of the USB Turntable line will destroy the company image especially to the loyal customers for this particular product line. Additionally, elimination of the record player product line will let to the loss of $287, 000 worth of raw material which can only be used in the production of the record player.

The fact that new styles which had increased portability made the sales of record players become more difficult for the company. The new styles were the current criterion for music enjoyment and thus the decreasing the sale of the record players significantly. In regard to the different identified issues, it is necessary for the organization to consider the various options as well as strategies to solve issues regarding to production and sales.

4.0 SWOT Analysis

From the case study, GEK Technologies is a successful producer of electronics such as USB Turntable and record players. To evaluate the company success, progress and faults, a SWOT analysis useful since it will assists in identifying both internal and external areas that need to be improved as well as internal and external areas that have proven to be successful.

4.1 Strengths

Over the years, GEK Technologies has grown through offering prestigious audio products which aim to set standard in their reliability and service. This has enabled the company position itself to be pioneer in the audio electronic market. GEK is self sufficient it is committed towards strengthening its brand image. The company is products meet its highest standard of quality in the audio industry5. The company has invented the USB Turntable which coverts music vinyl records into digital format so that it is able to be played on portable music players. GEK Technologies has loyal customers who purchase their products due to quality. Additionally, the company has loyal employees who are more experienced and dedicated towards ensuring that the products produced are of quality.

4.2 Weaknesses

Clearly, advanced technology is being created and produced for customers and therefore, GEK is faced with a difficult task of ensuring quality and consistency in their products. For instance, some of the company managers plans to shut down the record player line so as to increase the production of the USB Turntable line will destroy the company image especially to the loyal customers for this particular product line. Although the company has loyal employees, they are old and new employees are not willing to acquire new skills regarding the production. This is a potential weakness creating potential risk for production continuity6.

4.3 Opportunity

The employees at GEK Technologies are sufficient in their production expertise. These employees display highest level of craftsmanship and thus production of quality products. If the company maximize on this, it can enhance its manufacturing capacity and thus increased sales for the USB Turntable. The company can segment its products to the different target audience. For instance, the USB is popular in South Australia and West Australia whereas record players tend to have strong support in the Northeast states7.

4.4 Threats

The electronic industry is increasingly transforming and highly competitive. There are numerous competitive companies entering this market and thus GEK technologies need to maintain and enhance its competitive strategy. The sharp decline in the sales of company products is a threat in the ability of GEK to meet its customer demands.

Strengths

  • Unique and prestigious products

  • Strong brand image

  • Loyal customers and employees

Weaknesses

  • Difficultly in ensuring quality and consistency in their products

  • Poor decision making

  • Poor in attracting and retaining new employees

Opportunities

  • Sufficient in their production expertise

  • Highest level of craftsmanship

  • Enhanced segmentation

  • Industry is increasingly transforming and highly competitive

  • Sharp decline in the sales of company products

5.0 Conclusion and recommendation

From the above SWOT analysis, the company has an upper hand of using its strengths and opportunities to outdo its weaknesses and threats. With the unique products and loyal employees, the company can focus on enhancing this so as to strengthen its competitive strategy. Additionally, if the company maximize on the loyal employees, it can enhance its manufacturing capacity and thus increased sales for the USB Turntable. The company can segment its products to the different target audience.

References

Allen, R., & Helms, M. Linking Strategic Practices and Organizational Performance to Porter’s Generic Strategies. Business Process Management , 12(4), 433-454.2006.

Barone, M. and DeCarlo, T. “Emerging Forms of Competitive Advantage: Implications for Agricultural Producers.” Midwest Agribusiness Trade Research and Information Center Research Paper 03-MRP 5.2003.

Beal, R., & Yasai-Ardekani, M. Performance implication of aligning ceo functional experiences with competitive strategies. Journal of Management, 26, 733-762.2000.

Hollingsworth, Rogers 2000. Doing Institutional Analysis: Implications for the Study of Innovations. In: Review of International Political Economy 7, 595–644.2000.

Schiesel, S. “Planning the Digital Smorgasboard: For This Media Conglomerate, the Future is All-You-Can-Eat,” The New York Times, June 11, 2001.

Trento, Sandro. Corporate Governance and Industrial Relations in Italy. In: Howard Gospel/ Andrew Pendleton (eds.), Corporate Governance and Labour Management: An International
Comparison. Oxford: Oxford University Press, 226–253.2005.

Viehland, D.W. “Critical Success Factors for Developing an e-Business Strategy,” Proceedings of the 5th Americas Conference on Information Systems, 2000.

1
Hollingsworth, Rogers 2000. Doing Institutional Analysis: Implications for the Study of Innovations. In: Review of International Political Economy 7, 595–644.2000.

2
Trento, Sandro. Corporate Governance and Industrial Relations in Italy. In: Howard Gospel/ Andrew Pendleton (eds.), Corporate Governance and Labour Management: An International
Comparison. Oxford: Oxford University Press, 226–253.2005.

3
Barone, M. and DeCarlo, T. “Emerging Forms of Competitive Advantage: Implications for Agricultural Producers.” Midwest Agribusiness Trade Research and Information Center Research Paper 03-MRP 5.2003.

4
Viehland, D.W. “Critical Success Factors for Developing an e-Business Strategy,” Proceedings of the 5th Americas Conference on Information Systems, 2000.

5
Schiesel, S. “Planning the Digital Smorgasboard: For This Media Conglomerate, the Future is All-You-Can-Eat,” The New York Times, June 11, 2001.

6
Beal, R., & Yasai-Ardekani, M. Performance implication of aligning ceo functional experiences with competitive strategies. Journal of Management, 26, 733-762.2000.

7
Allen, R., & Helms, M. Linking Strategic Practices and Organizational Performance to Porter’s Generic Strategies. Business Process Management , 12(4), 433-454.2006.