As a company that wants to grow, SPAR s Applied System Group (ASG) faces a few external and internal pressures urging the company to change in order to adapt to the new business environment. SPAR’s Applied Systems’ client base primarily consists of government-based agency, from Canada’s Department of National Defense to U.S’s Navy and Coast Guard. However due to shrinking budgets in the defense department of government-based agency, SPARs Applied Systems faces the external pressures of less sales due to lower demanded from its major clients. Along with decrease demand ASG also faces the problem of its heritage programs nearing competition, 70% of its revenues will be gone once these projects are completed. ASG also have the policy of cost plus when working on government projects, which meant if the project was delayed or went over budget ASG would have to eat the cost. Another external pressure that is forcing ASG to change is the company is technology focus rather than customer focus, with the increasing competitions in the market ASG is ill prepare for the external pressure of growing competitiveness in their field.
A major internal pressure ASG is experiencing has to do with their employees, although ASG’s employees are the most skilled in their field, the company itself did not know how to best direct their energy. The employees were comfortable working in their current environment, which means costs are not effectively allocated. With declining revenue it is critical for management to change the culture in order for the company to be more profitable. Along with the contract of cost plus it becomes clear that ASG needs to allocate their cost efficiently in order to generate profit. In conclusion none of this can be achieved without Stephen Miller. What Makes Stephen great leaders, when Stephen faced numerous challenges when he took on the role as the General Manager at ASG.? The problems that he faced were quite difficult to solve with a single...
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