This memorandum addresses our recommendation for Product Data Management and Visionary Design System employees. First, it states the principal and agent relationships. Second, it addresses the sources of problems with PDM. Third, it discusses solutions and recommendations for PDM and VDS employees. Finally, it discusses other organizational changes and concludes with a summary of our recommendations.
The PDM software provides organizational efficiency for VDS. As a result, the VDS executives serve as the principal and PDM is the agent. The executives of VDS pride themselves on working closely with the customers and departments as well, therefore, VDS serves as agents to customers. VDS has the greatest potential to achieve a great competitive advantage because it captured a large portion of the market from its previous services. As a result, VDS has the advantage of the opportunity to explain its extensive benefits for consumers’ design process during its consultations. PDM needs VDS’s respected brand in the market and it has the technological advances to bring in greater revenue for VDS as a whole.
Sources of Problems with PDM
VDS’s advantage develops from its consultation advice and the benefits and simplicity of the PDM software; however, without the cooperation and understanding from the Sales Representatives, this advantage fails. The consulting services were first cut to save money, but without them, the PDM service cannot increase profits. In addition, the sales representatives do not have the knowledge to see the benefit in investing in this product. A large disadvantage PDM faces is its recent creation as a whole division. Top management often overlooks PDM not progressing in its production and work unlike other divisions. VDS’s staff needs to provide extra support and resources to obtain efficient progress. Changing Compensation for PDM Employees
VDS’s founders expect their employees to not only...