Major Facts
Xenia was the leading producer of transducers globally as at 1998. This company was proud for its product innovation, marketing and excellence in assembling. Despite the success it was experiencing in its engagements, the company was facing stiff competition from other producers. This compels the company to put in place measures to ensure it remains relevant in the market. These measurers involved a shift in the core competencies of the company to supply management, assembly, product innovation and marketing.
Major Problem
In the current situation, the major problem is that Xenia is facing a competitive threat from rivals. The Asian competitor of Xenia is selling its transducers for the amount, which costs Xenia to offer analogous products. Suppose Xenia was to offer these products at the price being offered by their competitors, they would incur loss. During this time, all the components for the company were designed by Xenia engineers. It was worrying, as the other companies appeared to have found a way of producing products at cheaper costs.
Possible Solutions/Alternatives
Another probable solution that can be used is the establishment of an executive position of a Chief Procurement Officer. The person holding the position would ensure that efficiency is enhanced in the procurement process in the company. The inclusion of this position is a major positive turn in the management of the company and productivity would be increased. The disadvantage is that integrating the new position with the existing positions may come with some strife from the existing organizational systems.
Choice and Rationale
Implementation/The Action Plan
References
Burt, D., Petcavage, S. & Pinkerton, R. (2OO9). Supply management, 8th Ed. New York: McGraw-Hill/Irwin.
Cohen, S. & Roussel, J. (2004). Strategic supply chain management, New York: McGraw-Hill.
