However, presently the company is facing turbulent times because of weakening innovative practices and customer satisfaction. There have been issues in regards to bad management as well as the autocratic style of leadership which lead to breakdown in communication and teamwork. There was no laid down standard of reporting and clarity in regards to functioning of various department. This became a cyclical chain leading to inefficiency in creating value for the company and that for the customer. Therefore there was an urgent need for organizational change and introducing new innovative product to stay competitive in the marketplace. What are the main problems that the Mobile division is experiencing?
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The time duration of the company discussed in this case is from to In this case study, Roger Cahill has been acting as the Vice President of mobile division for less than a year. Boldflash previously known as BoldDisk founded by two computer science professors in in Waltham Massachussets.
Key players are Dr. The key issue in this case study is to strategically manage the BoldFlash Mobile Division as well as go for increasing growth.
Situational Analysis BoldFlash was founded by two scientific professors in Waltham in The company produces flash memory components for electronic devices like floppy disks, mp3 players, and smartphones for original equipment manufacturers OEM and direct to consumer markets.
Currently the growth rate and market share is going down to various problems within the organization as well as due to macroeconomic issues. As Dr. Roger Cahill became the Vice BoldFlash: Cross-Functional Challenges in the Mobile Division President, he try to develop and introduce newer NAND flash technology, resolve the internal issue as well as cope up the tablet miss to try to remain competitive.
Corporate level strategy: BoldFlash Mobile Division has the strategy to increase the growth rate and market share by focusing on customer needs, product development, and cost reduction for price control.
Business level strategy: BoldFlash is going towards intensive strategy for new product development. BoldFlash is also focusing on market development by considering tablet miss. Functional level strategy: Functional level strategies are found inappropriate as sales department doesnt consulted with other functions while making proposals.
Communication gap, low moral are the possible causes for this problem. Marketing department has been unable to find customers for their products developed by the product development process.
Posters Five Forces Model Bargaining Power of Buyers: The bargaining power of buyers has increased due to high density NAND flash memory technology as one customer alone consuming one third of the market for newer flash memory technology.
Highly scientific PHD staff product development department. High product cost Opportunities Make storage devices for tablets. High product price Threats Competitors and new entrants can get market share because of tablet miss, high density NAND technology, low customer satisfaction level, high prices and higher cost of production. BoldFlash product development did not always align with the customer needs. Sales department made proposals and sold products at any price they could in order to meet their revenue without considering the production capacity as well as without communication with the other functional departments.
BoldFlash researched for its own sake rather than to improve product s or meet new customer needs and faulted a corporate culture that was not always focused on results.
They developed customized chips for mobile phone market customers while completely missing critical market in storage devices used for tablets. Handing its competitors an advantage in a critical growth market.
Low growth rate with high prices and high production cost led the company to disastrous position. They have to consider the tablet miss in order to be competitive. Alternative Strategies Outsourcing strategy: BoldFlash should outsource the manufacturing of the flash memory chips to those countries where they can minimize their cost. So that they can focus on their competitive advantage which is research and development. Diversification strategy: BoldFlash can diversify by producing other types of storage devices rather than flash memory storage device.
Implementation Plan BoldFlash should outsource the manufacturing to India because of lower labor rate and higher skilled labor. They have to make supply chain strategies for timely deliveries.
They have make new suppliers in India located near to their manufacturing plants. They have develop a quality control division in India to monitor the quality of the product. Related Interests.
BoldFlash: Cross-Functional Challenges in the Mobile Division Case Study Analysis & Solution
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BoldFlash: Cross-Functional Challenges in the Mobile Division
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