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Executive report 1 Submitted by: Harpuneet Singh XXXXXXXXXX XXXXXXXXXXBibekanand yadav XXXXXXXXXX Executive Meeting: Performance Summary The performance is mapped through the different initiatives...

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Executive report 1
Submitted by: Harpuneet Singh XXXXXXXXXX
XXXXXXXXXXBibekanand yadav XXXXXXXXXX
Executive Meeting: Performance Summary
The performance is mapped through the different initiatives which include:
a. Operational Strategy
The focus here is to maximize the revenue and reduce the maximum costs possible while taking care of the quality and Six Sigma parameters. Keeping in mind the TQM factors, new equipment can be purchased for increased production as well as old equipment with less productivity can be sold. The planned increase in productivity also focuses on reduced rejection rate along with new equipment. In order to increase customer alignment towards the product, certain different designs and a cele
ity contract is also into decision pipeline.
The Increase in net profit margin in future years will help the company achieve the investor expectation of increased EPS. However with all the changes to be done in the future, TQM factors will always be taken care of keeping in mind the quality of the products.
The cost reduction will be done based on performance of the employees in last 2 years.
. Human Resource and Culture
The human resource management will go into robust changes with new talent coming and experienced personnel getting more responsibilities. The focus of the human resource will be on less rejection rate vis-à-vis increase productivity. There will be more training for best practices and a limited cost cutting at mid-level management to temporary boost revenues/profits and
ing the company on line with the industry average. The decision of the cost reduction in workforce pay is due to this year’s stats of less productivity even if the employees have increased.
c. Marketing and Advertisement
The Marketing has always played an important role in increasing a
and’s value and sales. Since the expenditure on above has been more or less the same in previous years and the cu
ent year, the decline in revenue is moreover related to workforce and other productivity reasons for which various decisions have been taken. Keeping in mind the marketing strategies of the competitors, more expenditure should be allocated for the advertisements keeping in mind the future increase in production and demand of the products. Cele
ity contract is already in the pipeline which will help boost our sale in respective regions.
d. Finance
The cash flows of the company are fine with timely payments of the creditors as well as monies received from the debtors. Since the focus of the company will be changed in coming years with new equipments, increased workforce and productivity along with increase expenditure on marketing, 5-year loan from bank is being pondered upon. Since the interest coverage ratio and Default Risk ratio are above average, the company will focus on increasing net profit margin in double digits for next years. To increase shareholder satisfaction, dividend payout strategy is also being prepared.
e. Key Initiatives
There are changes related to:
a. New equipments, increased workforce and productivity.
. Working on capital infusion via 5-year bank loan to finance new decisions.
c. Dividend payout and cost cutting strategies are being drafted to increase customer satisfaction and increased net profit margin.
d. Overall focus is now on increasing net profits and increase in customer as well as shareholder satisfaction.
Sheet1
    Year    Revenue    Profit
    1/1/10    432646    40000
    1/1/11    447078    42134
    1/1/12    425257    21042
    1/1/13    429756    16842
Revenue/Profit
Revenue    40179    40544    40909    41275    432646    447078    425257    429756    Profit    40179    40544    40909    41275    40000    42134    21042    16842    
Sheet2
Sheet3
010000200003000040000500000100000200000 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Revenue/Profit
RevenueProfitLinear (Profit)
Answered Same Day May 27, 2021

Solution

Neenisha answered on May 28 2021
138 Votes
Executive Meeting: Performance Summary
Operations Strategy
The main idea of operations strategy is to reduce the cost by working on operating efficiency in order to increase the profits. In 2014, company’s rejection rate has gone down a little but the production capabilities have remained same. Company is only focussing on North America and Asia Pacific region. The Net footwear production has also increased in 2014. However there have no significant changes in company’s operating strategy and next year company will try to increase the production efficiency.
Human Resource and Culture
North America Region
In 2014, the total number of workers have reduced from 798 in 2013 to 799 in 2014. With the decrease in the number of workers there is decrease in the productivity of the workforce as well, the workforce productivity has declined from 5011 in 2013 to 5006 in 2014. The reason behind decrease in productivity is lesser training of employees. In North America region company has not increased any of the employees factor significantly, Base wages, Incentives and other benefits almost remain the same.
Asia Pacific Region
There has been increase in number of employees from 3450 in 2013 to 3426 in 2014, however the workforce productivity has decreased despite in increase in the number of workers. The workforce productivity was 3450 in 2013 and 3426 in 2014. There has been no significant increase in the base wages, benefits or training in this region as well.
In total, the company has tried to reduce the base wages and training expenditure in 2014 in order to minimize the cost, but this has resulted in decrease in the workforce productivity as well.
The company is trying to cope up with the industry standards and has tried cost reduction because there has been no significant increase in the workforce productivity despite of increase in the workforce. The...
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