The major issue presented by the case is MPEPD growth .
* The main causes are, They are not developing products fast enough. Each functional team independently judging the viability of the product. The status of the project was never clear cut.
* Different departments have different goals. Plant Managers are looking in gross margins. Sales departments focused exclusively on volume with no concern for gross margin
* The lack of co operation and dis trust between Product development Marketing causes delay in development of new products
* Spichty is not involved enough in the problems that arise from differences in the goals of functional departments.
* The following weakness in Individual departments also hurting the division growth
If Corporate Sales were forecast to be lower than desired, the division might be asked to increase its sales goals forcing sales department to get low gross margin.
Performance is based on sales volume.
Marketing Department –
Week Marketing, lack of marketing directions and a very narrow product base ( page 9) Marketing department has many new people. Most marketing specialist were recent technical or business graduated with one or two years of sales experience.
Market development lacks the responsiveness of the divisions needs.
Plant managers are conservative and unwilling to take risks for the loss of efficiency and profit margins
In the product development, If a department not met its goals, as was often the case, new deadlines would be set. While problems encountered were always described, the issue of slippage in goals and the underlying reasons for it were rarely discussed. Differences in opinion in product development meetings are usually proved very hard to resolve.
* Need to complete the Phase 3 ( Interfunctional Co Ordination) of the...
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