Question
Energy Corporation is an automotive battery manufacturer that began operations in Wilmington, North Carolina in 1994 and has focused its business on manufacturing conventional automotive
Energy Corporation is an automotive battery manufacturer that began operations in Wilmington, North Carolina in 1994 and has focused its business on manufacturing conventional automotive batteries throughout North and South America. Energy is headquartered in and around Wilmington, where the majority of batteries are still manufactured. However, when Energy expanded into South America in 2011, it also opened a small corporate office in Buenos Aires (Argentina) to help run business across the continent. The company doesn't have major contracts with automakers to supply batteries in new cars, but Energy batteries are a brand commonly used as replacement batteries. Although the company has been generating moderate profits since its founding, CEO Robbins Ficker hopes for opportunities to grow the company beyond its traditional market. Robbins recently started a new research division within the company to focus on producing a rechargeable battery for use in electric vehicles. The electric vehicle industry is still fairly new, and there are still many companies trying to establish themselves as leaders in this nascent industry. Thus, Robbins sees an opportunity for Energy to enter the market at an early stage and become a mass producer of electric vehicle batteries while continuing to produce conventional vehicle batteries, but he does not plan to invest more money in research and development in the future. When Robbins first announced the new research division, there was some reluctance from longtime employees and managers at the company concerned about the change in focus on the new direction of producing batteries for electric vehicles. Their main complaint was that the financial investment required could be more and the risks higher given that electric cars still represent a small percentage of total car sales. Thus, they believe that if the results of the new research point to financial losses for the company, it will eventually lead to job losses. Development of the new electric battery was completed late last year and became available for purchase in January. The battery has been featured in numerous trade publications for its impressive performance and competitive price. Due to the positive publicity and good reputation, the company was able to sign contracts as a battery supplier for small electric vehicle manufacturers in both Europe and Asia. Similar to when Energy first expanded into South America, it will require it to open corporate offices on both continents. Robbins and most of the senior leadership team are primarily from the US and have some concerns about expanding into Europe and Asia due to many variables for which they may not be prepared. For example, they are not sure what to expect for the business culture in these new markets. In addition, they understand that there must be significant changes in how the company handles marketing, sales, and product pricing. Finally, new manufacturing facilities are expected to be established in these new regions and markets because transportation costs for heavy batteries will be very high if the company continues to manufacture. From its current location in North Carolina, US While Robbins wants to focus on electric battery manufacturing in Asia, employees in North Carolina worry that Energy may eventually decide to move all of its battery manufacturing operations from there. However, CEO Robbins assured the staff that they had no intention yet to move current production outside the United States. In addition, he believes that the company's expansion will eventually make Energy a more profitable company and he hopes the company will become more profitable, providing them with more stable jobs in the long term. In addition, CEO Robbins also understands that there will be a significant need for effective recruitment and training for the new offices in Europe and Asia. The current plan is to move the Director of Operations, Karl Speth, temporarily to the Asian headquarters in Vietnam and the Director of Human Resources, Kim, to the European headquarters in Germany. Robbins believes having these two trusted leaders on site as these new offices open will help with hiring decisions and maintain visibility for the company as it begins with many new employees. Robbins specifically chose to have Carl in the Vietnam office because they plan to focus on manufacturing rechargeable batteries in Vietnam where labor costs are low. Soon after Kim began working at the company's European headquarters, a new trade policy was passed that required electric vehicles ordered in Germany to have 75% of the parts produced domestically or automakers must pay a 10% customs duty on parts imported from other countries. Kim and Robbins make plans to establish manufacturing operations in Germany within two years. Before power began manufacturing in the country, many electric cars in Germany were reported to have overheating problems. The German Transport Agency (a government body) suspects something is wrong with the batteries and is investigating the accidents. It is worth noting that all batteries in the affected cars were manufactured and imported from Energy Company. Robbins performs duties as Chief Marketing Officer, Trotman, with developing and disseminating a marketing brand and customer vision for the new electric battery by sending promotional messages about battery safety with an emphasis on longevity and Aterji's expertise in manufacturing conventional automotive batteries to help keep existing employees motivated. This will be a strong challenge for the management because the marketing strategy must balance the interests of the current employees and the stability of the long-term business plan with the future. In addition, the marketing strategy must translate across multiple continents, cultures, and languages. Given that the majority of senior leadership and other staff were in and around the same location, there was no strong focus on communications, with four corporate offices spread around the world, and physical separation of senior leadership, there was a need for effective channel communication and standardization in decision-making. that company. And with the company's vision and communication, it must extend internally to employees around the world to ensure a unified vision and mission that builds employee morale. Finally, communications with suppliers, investors, customers, and communities must be coordinated to maintain a unified message from the company and sensitive to the many cultural practices in which it operates. The chief financial officer, Johnson, wants to be proactive in managing the cost implications of a large and rapid expansion. And to try to avoid major financial mistakes, Johnson recommends that all current management and all new managers hired have clearly defined goals for achievement. He believes that each identification department should identify current deficiencies and ways to improve as part of their goals. Johnson would also like managers to prioritize goals in short-term and long-term categories, prioritizing the most important of each category. Johnson hopes these goals will form the basis for making financial decisions when resources become more constrained. wanted:
Questions:
Question 2: What do you think of the company's decision to expand outside the United States and enter new markets? What are the most important factors to consider in such a situation? Did Energy succeed in this?
Question 3: Robbins is concerned about the high level of uncertainty surrounding the company's recent expansion. He hopes to anticipate any problems that could arise by identifying risks and problems under different circumstances. He wants to focus on both the circumstances in which he assesses potential risks and where he does not understand them. What management tool does Robbins use?
Question 4: Robbins reviewed customer surveys and noted that customers were not happy with Energy Online services available in the Asian market. Energy uses the same format in other markets, but customer preferences differ in the Asian market. Robbins wants to apply the strategic decision-making process to determine the solution. What is the next step that Robbins should take to solve this problem?
Question 5: Why is it important for Energy managers to set SMART goals during this period of growth and uncertainty? What are the characteristics of SMART goals?
Question 6: Robbins hopes to address concerns about low morale at the new plant in Asia. Robbins wants to apply strategic decision-making to address low morale and has authorized Human Resources (HR) to conduct surveys that can help pinpoint the source of anxiety. While the surveys have been completed, HR has not yet compiled the results to present to Robbins. What is the next step that Robbins should take to solve this problem?
Question 7: Robbins is concerned that the company may lose direction now that it has many new offices and employees. To address this concern, Robbins created a plan that integrates all the functions and activities of the entire company into one clear whole. What approach should Robbins use to address this concern?
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