Cmr Enterprise

Topics: Cost, Costs, A Good Thing Pages: 4 (965 words) Published: April 21, 2012
This particular case depicts the history and issues faced by a relatively small company active in the custom architectural millwork industry for the past 25 years. The new owners wanted the newly-acquired company to grow even further. The first few months seems to have been a success - Marcus spent a lot of his time with employees and customers, learning the field since he was, as mentioned in the text, an "outsider". However, keeping the company's integrity and image intact was a priority.

However, the problems outlined in the case seems to start - or at least have been worsened - with what will become CMR's largest account, Blackstone Homes.

Problem Identification

After reviewing the text in question, three major problems stand out:

1) Customers change requests:
When Blackstone Homes sell a house, it does - of course! - come with a pre-finished and installed kitchen, included in the price. However, if the customer wishes, he or she would visit CMR's showroom and they would build these woodwork according to their new specifications. The added cost will then be charged to the contractor, which will later add it to their bills.

This takes time and lead to price increases. This is, in part, what contributed to the clash with Blackstone Homes.

2) IT solution not adapted:
InfoCentral, the software implemented by Marcus, does not work out as intended and do not fit the business needs. It is not always updated as required by the employees. According to the text, it may be helpful for the commercial and financial/accounting side, but is lacking several features for its residential counterpart to be really as useful as it can be.

3) Deteriorating business relationship
The business relations between the two companies started well and was fulfilling for both part. When the business expended, so did the problems.

The root cause seems to be the change requests made by the homeowners. This lead to late delivery, poorly reviewed performance and...
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