Declining Revenues in Assembly Plant

In response to the deteriorating position and declining revenue, the owner hired a sales manager. The person in this new position was to become knowledgeable about the company, do some selling, come up with some recommendations, and hire additional sales personnel. The new salesperson assumed that sales would drive the company, whatever accommodations necessary to fill orders would be made, and sales would be autonomous from the managerial structure of the organization. Based on this perspective, the new sales manager introduced himself to each of the other managers, spent a few days in the field, and then hired a secretary. When the new employee reported to work, a great deal of confusion ensued.

Some history of the company and a description of the internal environment is necessary to analyze effectively the problem of declining rev

. . .
cFadden, 1996, p. 12) and open communications with all employees (Hallowell, 1996, p. 514). Falling revenues could be attributed primarily to the declining and fickle aerospace industry rather than company problems. However, closer examination points to a number of breakdowns in the internal systems of the company. The most obvious mistake was the way the new sales manager was hired. The owner assumed that, without analysis, increasing sales would reverse the trends toward fewer customers and canceled orders without any analysis. The new sales manager received no orientation to the company culture and way of operating. In this void, the new person operated on his own, which created problems with the other mangers. Resentment arose among the workers when a new manager and a new secretary were hired amid rumors of possible lay-offs. The owner made no effort to fill these positions from existing personnel despite shrinking revenues. The primary focus of this company is its customers. Before this crisis, the company had not engaged in any strategic management planning and did not appear to pay much attention to either running day-to-day affairs or to adapting the organization to changing environmental fact
. . .

Some common words found in the essay are:
, Drummond Hodgson, Thibodeaux Favilla, Southwest Airlines, sales manager, Resource Management, Management Decision, Data Systems, Chief Executive, jet engine assembly, engine assembly, declining revenue, jet engine, aerospace industry, drummond hodgson, adding sales, 10 business, manufacturers assembly, thibodeaux favilla 1996, contract recommendation,
Approximate Word count = 1714
Approximate Pages = 7 (250 words per page)

More Essays on Declining Revenues in Assembly Plant