Professional Documents
Culture Documents
This report has the objective to review, evaluate and analyse programs, systems and process
from the A. C. Gilbert company. In the following pages, it is outlined a performance and
sustainability review strategy with the strategy evaluation, and analyse performance reports and
trends. Furthermore, this report has also the internal and external specialists advice to identify
technological solutions.
A.C. Gilbert was a small company which provided manufactured train sets, chemistry sets and
the best-sellers: Meccano-like Erector engineering sets.
1) Supply chain: Supply chain represent the procurement, acquisition and distribution
activities of a company. Within a supply chain, these activities are viewed as linked and reliant
on one another to produce the final outcome. A.C. Gilbert supply chain includes an acquisition
of raw material, systems and process and sales delivery.
2) Operational systems:
As shown in the diagram on page 9 of the Appendix the operational system includes:
1. Design: Toys are designed by a small group of designers who develop the concepts for the
products
2. Planning: The planning department translates the concepts into designs and determines
resource requirements, including raw materials. Planning also projects sales and develops
production plans for each product, timeframes for production runs and scheduling of production
runs.
3. Purchasing: Information gained from planning stage used to purchase raw materials for
products and packaging from suppliers.
3) Product/service delivery.
2. Distribution: Arrange for delivery of goods to the purchaser using contract transport
Design Priorize the employee Quality, Key performance Focus the agenda
activities indicators (KPI)
Productivity Align the timeline
Make value added decisions KPI, Performance
reviews Perspective
Clarify roles of department Material
or individual Management Service level
agreements
Focus on results
Planning Reduce on-hand inventory Delivery on Key performance Align the timeline
to the lowest feasible levels time indicators (KPI)
Ratio Analysis
Reduce materials costs to Quality Performance
the lowest levels consistent reviews Fiscal ratios
with quality objectives Purchasing
cost Service level
Develop statistic methods to agreements
estimate future material Suppliers
requirements rating
Design strategy:
Do a research and find out what are the latest’s trends in the world of design in order to create
design oriented business opportunities. In the toy’s field is necessary to know all about colour
combinations, the latest materials and styling details.
The Sample of Service Level Agreement is attached in this email.
d. Analyse the variances from plans and targets for the key result areas (KRAs) – use
the data provided for results up to 1966 the case study on page 9.
Sales Increased gross Gross sales and net Isaacson fired the full gross
revenues staff by 50 % incomes down on old revenues squad in 1964.
. twelvemonth. Gross
saless fell abruptly of
Instructed sales staff to outlooks.
adopt an aggressive
sales approach. Company made a loss
of $ 12. 872. 000. 00
Profit Set an organisational Sales and profit are less Due W deficiency of staff.
end to accomplish than previous year: A. C. Gilbert is unable to
gross revenues of $ 20 $10.7 million (sales) and implement alterations or
million for 1963. $5.7 million (profit). present new lines rapidly
plenty to capitalise on
tendencies.
Supply chain Isaacson makes Gross sales are Due to internal discord and
(delivery) immense cutbacks in channelled through staff cutbacks. the new
disbursement. independent lines were non delivered to
manufacturer’s reps. the shops until after
which was cheaper than Christmas in 1965.
keeping an in-house
gross revenues force. Due to lack of staff, A. C.
Gilbert was unable to
implement changes or
introduce new lines quickly
enough to capitalise on
trends.
Discuss trends relevant to the organisation. What trends did A. C. Gilbert fail to identify in
the late 1950s?
Consider the strengths and weaknesses of the A. C. Gilbert Company prior to 1960.
Employee Strong reputation and The competition Lack of training Invest in proper
performance relationship with invested in more and planning training and
costumers. agressive approach and developing
worked commission Lack of focused employees
Familiar company with based. leadership as it leadership skills.
trusted people. was a family-run
business
Discuss the possible use of advice from specialists. What specialists could be
consulted to advise on and identify new technology or electronic commerce
opportunities?
Specialist Advise
Internal: Human Resource Personnel Recrute new designers to follow the 60’
trendsandnotonlyadaptthecompanystoy’sbests
ellersbutalsocreatecompetitivetoysto compete
with the Barbie and Action Man.
External: Marketing Analyst Invest in market research, SWOT analysis,
marketing in television and social media.
Conclusion:
The A. C. Gilbert Company was very proud of its innovative toys during the 50’s and a large
number of its loyal costumers due to the high quality of product materials and strong reputation.
The 60’s changed the economy, cultural and Market needs, the children at this time have
access to TV ad sand are influenced by trendy toys with colourful clothes and impressive
‘careers’. As a small, traditional company, A. C. Gilbert was slow to react to these changes.
But if the owner had invested in market research and listened specialists advice from Human
Resources Personnel and Marketing Analysts the future could be different and the company
could continue its operations until today.