- Published: November 17, 2021
- Updated: November 17, 2021
- University / College: University of Sussex
- Level: Undergraduate
- Language: English
- Downloads: 44
Next, a lack of ownership is also a major contributor to low profits attributable to a lack of focus on reducing operational costs. Lack of focus on employee retention and motivation caused the downfall of Sunshine Food Inc. Lack of co-ordination between the production and sales department added more problems. Lack of diversified expertise in the staff is one of the major problems in Sunshine Food Inc as most of its staff was from its parent company.
Recommendations to improve the situation include strategic changes in different aspects of the business; this should include changes in corporate strategy, marketing and sales methods, research, and human relations. Firstly, the corporate strategy has to be aligned with the organizational goal of improving profits. Next, developing a research team to check profitable and nonprofitable products on a periodic basis will help the company assess customer requirements, market performance and efficiency of the strategies followed. This research can be used to formulate sales and marketing strategies accordingly. Sunshine Foods needs to expand its offerings to all kinds of stores including smaller stores through competitive business offers. Quality control mechanisms such as Total Quality Management and Lean methodology can help in attaining the vertical growth of the business by improving their quality, reducing costs, and improving operational efficiency. Building and improving relationships with suppliers, appointing quality-certified suppliers, defining quality standards, and appropriate measurement of quality and efficiency also help in maintaining quality in large volume production. From a human relations perspective, diversified sales teams have to be developed; decent incentive schemes, healthy performance measurement system, greater employee engagement, learning and development opportunities can help in retaining their best talent besides promising good business. Overall, objectives and measures of sales, marketing, operations, and human resources have to be aligned to the corporate and business strategy in order to achieve desired results.