內(nèi)容參考分析

Strategic?StrategiccapabilityistheadequacyandsuitabilityoftheresourcesStrategic?Strategiccapabilityistheadequacyandsuitabilityoftheresourcesandcompetencesanorganisationneedsifitistosurviveandprosper.Tangible:physicalassetssuchasmachinery,labour,Intangible:non-physicalassetssuchasknowledge,knowhow,brand,reputationCompetences:theactivities,processesandmethodsthroughwhichanorganisationusesitsresourceseffectively????StrategicThresholdThresholdStrategicThresholdThreshold-theywillbevaluedbytheLectureLectureWhatuniqueresourcesandcorecompetencesmightgiveanupmarketrestaurantcompetitiveadvantage?Uniqueresources:Presenceofacelebritycheftoimprovebrandawareness,strongsuppliernetworktogethighquality,freshsuppliesoffoodCorecompetences:Cooking,creatingdishes,deliveringgoodcustomerservice11CriticalsuccessLectureLectureWhatmighttheCSFsbeforanupmarketCSFs:Prestigiouslocation,goodqualityservice,highqualityfood,extensivewinelist,strongbrandCSFs-CSFs-P3201512Q2MissionIsuggestthatwereplaceourcurrentmissionstatement‘Simplythebestinoperationsmanagement’withamorefocusedstatementwhichstatesthat‘Ourmissionistosatisfytheneedsofourmembers,toinspireourstudentmembersandtomotivateourstafftoprovidethebestpossibleservice’.CSFs-CSFs-P3201512Q2Thesearethethingswearegoingtofocusoninthelongtermtohelpustoachievegrowthandfulfilourmissionstatement.AltogetherIhaveidentified35criticalsuccessfactors.Thefulllistisavailableonourstaffintranet,butthemostimportantonesareshownbelow:TosatisfyourTogrowmembershipby5%yearonyearforthenextfiveTomaximiseprofitswithinacceptableToensurethatthesyllabusisinlinewiththecurrentoperationsmanagementenvironmenticallyevaluateicallyevaluatethecriticalsuccessJohnTurveyhasidentified35CSFs,whichseemsmorethanafewkeyareasandmayleadtoalackoffocusonthetrulycriticalareas.Hemayneedtoreducetheseinordertoensuresuccessinafewkeyareas.TosatisfyourmembersseemsareasonableCSF,asitalignsdirectlywiththemissionstatement.Toachieveagrowthinmembershipby5%yearonyearforthenextfiveyearsisnotnecessarilysomethingwhichthemembersthemselveswillvalue,unlessitbringsaddedbenefitstothem.Furthermore,CSFsshouldnothavespecifictime-boundtargetsassociatedwiththem.icallyicallyevaluatethecriticalsuccessTheneedtomaximiseprofitswithinacceptableriskisnotacknowledgedinthemissionstatement,butitisagivenofmostcommercialorganisations.Toensurethatthesyllabusreflectsthecurrentoperationsenvironmentisalsoalignedtothemissionstatement’sdesiretoinspirestudentmembersHowever,itisnoticeablethattherearenoCSFsmentionedwhichareassociatedwithstaffandtheirmotivation,despitetheinclusionofthiscommitmentinthemissionstatement.ganisationalganisationalKnowledgeisastrategiccapability.Anorganisation’sknowledgeofitsenvironment(suchasexpectedtechnologicalchanges,changesinsubstituteavailabilityetc.)canmakeitstandoutfromrivals.Itcanbemoreproactivetowardsitsenvironmentandalsobeinapositiontoreactquickertoenvironmentalchangeswhennecessary.Increasingly,theknowledgewithinanorganisationisseenasanimportantresource.Someorganisationsmayevenseektodevelopknowledgemanagement(exploitingexistingknowledgeandcreatingnewknowledge)asacorecompetence.1-1-NoblePetsisoneoffourcompanieswhichdominatethepetfoodmarketinthecountryofBrellia.Betweenthem,thesefourcompaniesshare90%ofthemarket.NoblePetswasestablishedin1930inthemarkettownofMilton.Itsfactory(plant)wasupdatedin1970withnewcanningandlabellingtechnology.However,furtherdevelopmentsandexpansiontothefactorysitewerepreventedbytherapidgrowthofhousinginMilton.Thefactory,whichwasonceontheedgeofthetown,isnowsurroundedbymodernhousing1-Thetownisalsorelatively1-ThetownisalsorelativelyremotefromthemotorwaynetworkwhichhasbeendevelopedinBrelliasince1960.TruckstransportinggoodsinandoutoftheplanthavetonegotiaterelativelyminorruralroadsandalsohavetopassthroughthetowncentreofMilton,whichisoftenverycongested.Furthermore,thelarge44tonnetruckswhichNoblePetsanditscompetitorsuse,whereverpossible,todistributecansofpetfoodtowholesalersandsupermarketdistributioncentresarebannedfromthecentreofthetown.ThusdistributionoutoftheMiltonplantisundertakenwithsmaller36tonnetrucks,whicharelesscost-effective.However,residentsfindeventhissizeoftrucktoocomplainingthattheykeepthemawakeat2-2-TheMiltonplantissolelyconcernedwiththeproductionofmoistpetfood.Rawfoodstuffandemptyunlabelledcansarebroughtintotheplant,wherethefoodstuffiscookedandputintocanswhicharethenlabelledanddistributedtowholesalersorsupermarketdistributioncentres.Manyofthesedistributioncentres,likeNoblePets’competitors,arenowlocatedonornearthemotorwaynetwork.2-2-Althoughtherecipeforthepetfoodisverysimilartoitscompetitors,NoblePetshasareputationforproducingaqualityproduct.Thisqualityhasbeenpromotedeversincethecompany’sformationbyclevermarketingcampaignswhichstresstheimportanceofgivingyourpetgoodfood,andthesuperiornatureofNoblePets’productstoitscompetitors.Thishastraditionallybeensupportedbyfreefactguidesandinformationpromotingresponsiblepetownershipandnutrition.Thecompanynowhasawebsitededicatedtogivingadviceandguidance.Thisadviceappearstobeunbiased,althoughrecommendedsolutionstopetproblemsofteninvolveNoblePets’products.3NoblePetsiscurrentlyreviewingitsoperationsandhasasked3NoblePetsiscurrentlyreviewingitsoperationsandhasaskedexternalconsultantstoassesstheMiltonplantfromavaluechainperspective.Ithasprovidedthefollowingtable(TableOne)tohelpinthatanalysis.Averagefiguresforitscompetitorsarealsoprovided.4Productioncostofasix4ProductioncostofasixcanpackofmoistpetfoodAllfiguresinCostofcansProductioncostsTransportcosts(goodinward)Transportcosts(goodSalesprice(toBTableOne:DirectcostsoftheMiltonplantcomparedtomajor33ValueMichaelPorterdevelopedthevaluechaintoanalyseafirm’sactivities–waysinwhichtheyaddvalue.TheactivitiesinthevaluechainareTheactivitiesinthevaluechainareasInboundlogistics–receiving,storingandhandlingstocksofrawmaterialsOperations–processingrawmaterialsintofinishedOutboundlogistics–storingfinishedgoodsanddistributingthemtocustomersMarketingandsales–marketingandsellingService–afterorduringsalesservicesseparatefromtheproduct(egwarranties)Procurement–purchasingProcurement–purchasingHumanresources–allfunctionsrelatedtostaffrecruitmentanddevelopmentTechnologydevelopment–managementofITandR&DInfrastructure–everythingelse!(egseniormanagersandfinancefunction)2014DecQ42014DecQ4EvaluatethestrengthsandweaknessesoftheMiltonplantfromtheperspectiveoftheprimaryactivitiesofavaluechain(15Inboundlogisticsareactivitiesassociatedwithreceivingandstoringtheinputstotheproductionprocess.IntermsoftheInboundlogisticsareactivitiesassociatedwithreceivingandstoringtheinputstotheproductionprocess.Intermsofthecostsidentifiedinthescenario,inboundlogisticsareconcernedwithrawfoodstuffcosts,thecostsofcansandthetransportcosts(goodsinward).Intwooftheseareas(rawfoodstuffcostsandcancosts)NoblePetsappearstobecompetitive.However,goodsinwardcostsarehigherthananyofitscompetitors.ThefactthatrawfoodstuffcostsandcancostsarecompetitivemakesThefactthatrawfoodstuffcostsandcancostsarecompetitivemakesitseemunlikelythatthehighgoodsinwardcostsareduetoprocurementfailings.Whatseemsmorelikelyisthatthelocationofthefactorymakestransportcostshigher.TravellingonrelativelyminorruralroadsandnegotiatingthecongestedtowncentreandthegrowingsuburbsofMiltonwillaffectthefueleconomyofthetruckswhichmakedeliveriestotheplant.ThiswillplaceNoblePetsatadisadvantagecomparedwithcompetitorswhomaybelocatedadjacenttomajormotorways.Thereisalsosomereputationaldamagecausedbycomplaintsfromlocalresidentskeptawakebythetrucks.Operationsareconcernedwiththeproductionactivitiesassociatedwithturninginputsintotheirfinalform,outputs.ProductionatNoblePetsinvolvestheprocessingoftherawmaterials,canningandlabelling.Operationsareconcernedwiththeproductionactivitiesassociatedwithturninginputsintotheirfinalform,outputs.ProductionatNoblePetsinvolvestheprocessingoftherawmaterials,canningandlabelling.Inthecontextofthescenario,thesearerepresentedbyproductioncostsanddirectlabourcosts.Directlabourcostsareroughlyinlinewithitscompetitors.However,productioncostsarehigher.Thisisprobablyassociatedwiththeageingtechnologyoftheplantitself.Althoughitwasinnovativewhenitwasinstalled40yearsago,technologychangeshavemeantthattherearemorereliableandefficientalternativesavailable.Thephysicalsiteisalsoconstrainedbyhousingdevelopmentswhichwerebuiltsubsequenttotheplant.ThustheoriginalplantcouldnotbeexpandedtoobtainanyfurthereconomiesofOutboundlogisticsaretheactivitiesinvolvedwithdistributingtheproducttothecustomer,inthisinstancethewholesalersandsupermarkets.ThisareaisrepresentedbyOutboundlogisticsaretheactivitiesinvolvedwithdistributingtheproducttothecustomer,inthisinstancethewholesalersandsupermarkets.Thisareaisrepresentedbytransportcosts(goodsoutward)includedinthetablegiveninthescenario.Likeinwardlogistics,thesetransportcostsarehigherthanNoblePets’competitors.ThisisagainpartlyduetothenatureoftheroadswhichleadtothefactoryandtothecongestioninMilton.ItItalsoseemsverylikelythatmostofthecompany’scustomershaverelocatedtolocationswhichhavegoodroadlinks.WholesalerandsupermarketdistributioncentresarerelativelyflexibleandfootlooseandmostlocatetoeasilyaccessibleAfurtherproblemwithoutboundlogisticsisthesizeofthetruckswhichcanbeusedtocarrythefinalproduct.Thelarger44tonnevehiclesarebannedfromMiltontowncentre,sothecompanyhastocontinueusingthelesscost-effective36tonnetrucks.Again,itislikelythatitscompetitorswillbebenefitingfromthelowerunittransportcostsofferedbythelargertrucks.Salesandmarketingisconcernedwiththeactivitieswhichmakethebuyerawareoftheproduct(marketing)andalsoprovideameansbywhichthebuyercanpurchasetheproduct(sales).NodetailsofthecostsofsalesandmarketingareSalesandmarketingisconcernedwiththeactivitieswhichmakethebuyerawareoftheproduct(marketing)andalsoprovideameansbywhichthebuyercanpurchasetheproduct(sales).Nodetailsofthecostsofsalesandmarketingareprovidedinthetable.However,marketingisanacknowledgedstrengthofthefirmandhasallowedthecompanytocommandapremiumpriceforitsproducts.Theterm‘noble’itselfhaspositiveconnotationsandappealstothebuyers’senseofdutytofeedtheirpetswithwhatappearstobeasuperiorproduct.Thisissignificant,becausethefirmistargetingthebuyersofaproductwhoare,inthiscase,nottheconsumersofthatproduct.ServiceServiceactivitiesaredesignedtosupportorenhancetheproduct.Normally,theseincludeservicessuchasinstallation,repair,trainingandpartsupply.InthecontextofNoblePets,thiscanbeperceivedasthefactualinformationsheetsandwebsitedesignedtopromoteresponsibleandappropriatepetownership.Althoughtheadviceisproductneutral,itsassociationwithNoblePetsenhancesthereputationofthecompanyandmakesitmorelikelythatconsumerswillbuyitsproducts.TheapparentlyunbiasedadvicewhichNoblePetsgivestothecommunityisagainanacknowledgedstrengthofthecompany.NobleNoblePetsisacompanytrappedbyitslocationanditstechnology.Thesehaveledtohightransportcostsanduncompetitiveproductioncosts.Itmaybepossibletoaddressthelatterbyinstallingnewequipmentwhichismoreefficientandreliable,butthebusinesscaseforreplacingallthemoistfoodproductionfacilitiesdependsonfuturetrendsintherelativepopularityofdryandmoistHowever,itisdifficulttoseehowthecompanycanreduceitstransportcostsifitremainsatthecurrentsite.Perhapsithastocontinuerelyingonstrongbrandingandpraiseworthyservicetoallowittochargeapremiumpriceforaproducttobuyerswhoareunawarethatitscontentisreallyverymuchthesameasitscompetitors’cheaperalternatives.4Value4ValueAcompany'svaluechainisnotboundedbyacompany'sborders,itisconnectedtowhatPorterdescribesasavalue??Aswell?Aswellasmanagingitsownvaluechain,afirmcansecurecompetitiveadvantagebymanagingthelinkages(ierelationships)withthevaluechainsofitssuppliersandForexample,ourinboundlogisticsneedstocoordinatewellwiththeoutboundlogisticsandoperationsplanningofsuppliers.Increasinglythiswillbefacilitatedbytheuseoftechnology(egextranetsand?*Quantitative*Quantitative?????Categoriesofratios1Returnoncapitalemployed(ROCE) Debt+%1Returnoncapitalemployed(ROCE) Debt+%2Grossprofitmargin Gross%3Operatingprofitmargin= %4Netassetturnover 5Returnonequity=PATandpreference%1CurrentratioCurrentassets1CurrentratioCurrentassets2Quickratio(oracidtest)Currentassets-inventoriesCurrentliabilities3Inventoryturnover/daysCostofsalesCost3Inventoryturnover/daysCostofsalesCostofsales×365days4Receivablescollectionperiod=TradeCredit×365days5Payablespaymentperiod TradeCredit×365days1Debt/equity=Interestbearing%1Debt/equity=Interestbearing%2Debt/(debt+equity)= Interestbearing Interestbearingdebt%Interestbearingdebt=long-termdebtonwhichthecompanyisrequiredtopayinterest.Insomeinstancesapersistentbankoverdraftisclassedaslong-termdebt.INVESTORS’1Dividendyield=DividendperINVESTORS’1Dividendyield=DividendperShare%2Dividendcover= Dividendper3Price/Earnings(P/E)ratio5KeyperformanceKey5KeyperformanceKeyperformanceCustomerComplaintsSpeedofresponsetocustomerStaffLaborDaysProportionofnewproductsandservicetooldperformanceindicators&performance指performanceindicators&performance指指標定率達到%電話約見成功KPI-P3201512Q2KeyperformanceKPI-P3201512Q2Keyperformance1Tosatisfyour95%ofmembersrateusasexcellentinanexternallyadministeredcustomersatisfactionsurvey2Togrowmembershipby5%yearonyearforthenextfiveyearsToimplementavigorousmarketing3TomaximiseprofitswithinacceptableriskReturnoncapitalemployed(ROCE)andmarginofsafety4ToensurethatthesyllabusisinlinewiththecurrentoperationsmanagementenvironmentTorecruitanexaminationsmanagertorewritethesyllabusCriticallyCriticallyevaluatetheThefirstsuggestedKPIcanbeimprovedbyomittingthe95%target.Atpresent,itisamixbetweenaKPIandaperformanceobjective.AnappropriateKPIwouldbe‘thepercentageofmembersratingusasexcellentinanexternallyadministeredcustomersatisfactionsurvey’.KPIsshouldbequantifiable,suchthattheycanbecomparedtoastandardortarget,oranalternativeperformance,suchasaprioryear,oracompetitor.ThereisnorealquantifiablecomparatorfortheothertwosuggestedKPIs(2&4).Forexample,theKPI‘recruitanexaminationsmanagertorewritethesyllabus’willeitherhappen,oritwillnot.ThisKPI,andtheKPItoimplementavigorousmarketingcampaignarereallyjustactions,notKPIs.CriticallyevaluatetheTheonlycorrectlyexpressedKPIisthethirdone(ROCEandthemarginofsafety).TheROCEwillprovideanindicationoftheefficientuseofcapitalinCriticallyevaluatetheTheonlycorrectlyexpressedKPIisthethirdone(ROCEandthemarginofsafety).TheROCEwillprovideanindicationoftheefficientuseofcapitalingeneratingprofit.TherisktakenismeasuredbythemarginofsafetywhichshowshowfarthecurrentincomewouldhavetofalltoresultinabreakevenNoticethatneithertheROCEnorthemarginofsafetyaregivenspecificvalues.Thesespecificvalueswillbegiveninperformanceobjectiveswhichrelatetodefinedtimeframes.ThisallowstheKPItoremainthesame,buttheperformanceobjectivecanchange.BenchmarkingiswhereoneorganisationBenchmarkingiswhereoneorganisationcomparesitsperformanceinaspecificareatoanotherorganisation,thebenchmark,toidentifyhowmuchroomthereisforimprovement.Itthenattemptstoimplementimprovedpracticestonarrowthegapbetweenitsownperformanceandtheperformanceofthebenchmark.BenchmarkingcancomeBenchmarkingcancomeindifferentInternal–divisionagainstCompetitive–companyagainstFunctional/Activity–singlefunctionagainstsamefunctioninadifferentindustryGeneric–similar?Externalfunctionalbenchmarkingwhereaparticularfunctioniscompared?Externalfunctionalbenchmarkingwhereaparticularfunctioniscomparedwiththatfunctionintheorganisationwhichperformsitbest,regardlessofwhatindustrythecompanyisin.Non-competingorganisationsaremorelikelytosharedatathanWithexternalfunctionalbenchmarkingitismorelikelythatthecomparatorwillnotonlyshareresults,butalsotheprocesswhichhasachievedtheseresults.However,giventhatthecomparatorwillbeinadifferentindustry,thecompetitivesituationmightbequitedifferentandthisreducestheusefulnessofthecomparison.ppphebalanced?Thebalancescorecard,developedbyKaplanandNorton,suggestshebalanced?Thebalancescorecard,developedbyKaplanandNorton,suggeststhatmanagersshouldappraiseperformancefromfourafinancialperspective—thisconsiderswhetheranorganisationisachievingitsfinancialtargetsandmeetingtheneedsofshareholdersacustomerperspective—thisconsiderstheorganisationfromacustomerpointofviewtodeterminewhethertheorganisationismeetingcustomerneedsaninnovationperspective—thisconsiderswhethertheorganisationiscontinuingtoimproveanddevelopaninternalbusinessprocessperspective-thisconsiderswhethertheorganisation’sprocessesareefficientaswellaswhetheremployeesaresatisfiedandmotivatedTheBaidrigemodelTheBaidrigemodelassessesandorganisationacrossseven①Leadership—howtheorganisation’sleadershipguides,governsandsustainstheorganisation’sperformance.Strategy—theabilitytosuccessfullyplan,developandimplementCustomers—thesuccessinbuildingandsustainingstrong,lastingrelationshipswithWorkforce—howtheorganisationenablesandempowersitsworkforcetoachieveorganisationalgoalsOperations—thedesignandeffectivenessoforganisationalprocessesandwhethertheseareimprovingandmeetingstrategicneeds.Results—theperformanceandimprovementoftheorganisation,relativetocompetitors,inthekeycategoriesofthemodel.Measurement,analysis,andknowledgemanagement—howdataisstored,managed,analysedandusedwithintheorganisation.②③④⑤⑥⑦LeadershipwillconsiderLeadershipwillconsideranorganisationinareassuchas?itsleadersprovideclear,wellcommunicatedgoalsandleadbyitscorporategovernance—forexample,inwhetherbestpracticeisbeingappliedandallstakeholderviewsareithasconsidereditswidersocial??StrategywillconsiderStrategywillconsideranorganisationinareassuch????whetherithasclearitsabilitytocreatestrategichowstrategiesaredevelopedandwhethersuitableandsufficientresourcesareprovidedforstrategicwhetheritmeasuressuccessorfailureofstrategic?CustomerswillconsideranCustomerswillconsideranorganisationinareassuch????thelevelofcustomersupportthelevelofcustomerinteractionandwhethercustomersaresegmentedandproducts/servicespersonalisedtoWorkforcewillconsideranorganisationinareassuch?????recruitmentandretentionworkforcecareerprogressionworkforcetraininganddevelopmentrewardschemesandcontrolsOperationswillconsideranOperationswillconsideranorganisationinareassuch???whetherprocessesarereviewedandassessedwhetherprocessesareimprovedhoweffectiveprocessesareindeliveringcustomervalueandstrategicResultswillconsiderorganisationalimprovementinallkeyareassuch??????productandprocessresultscustomerresultsworkforceresultsleadershipandgovernanceresultsfinancialandmarketresultsThecategoryasksaboutperformancelevelsrelativetothoseofcompetitorsandotherorganisationswithsimilarproductofferings.MeasurementanalysisMeasurementanalysisandknowledgemanagementwillconsideranorganisationinareassuchas:????whetherorganisationalknowledgeismanagedandsharedwhetherbenchmarkingisusedwhichperformancemeasuresareusedandhowdataiswhetheractionistakenasaresultofperformanceElandEland–theElandisanindustrialcountrywitharelativelyhighstandardofliving.Mostcommercialanddomesticconsumershavecomputersandprinters.However,theeconomicperformanceofthecountryhasdeclinedforthelastsevenyearsandtherearelargeareasofunemploymentandpoverty.Theeconomicproblemsofthecountryhaveledtoasignificantdeclineintaxrevenuesandsothegovernmenthasaskeditsowndepartments(andthepublicsectorasawhole)todemonstratevalue-for-moneyintheirpurchases.Thegovernmentisalsoconsideringprivatisingsomeofitsdepartmentstosavemoney.TheDepartmentofRevenueCollections(DoRC),whichisresponsibleforcollectingtaxpaymentsinthecountry,hasbeenidentifiedasapossiblecandidateforfutureprivatisation.ElandEland–theThepeopleofElandareenthusiasticabouttheprinciplesofreuseandrecycling.Therehasbeenanotableriseinthenumberofgreenconsumers.Mindfulofthis,andawareoftheeconomicbenefitsitdelivers,thegovernmentisalsoencouragingitsdepartments(andtheeconomyasawhole)torecycleandreuseproducts.TheTheprinterconsumablesThereisasignificantcomputerprintermarketinEland,dominatedbyOriginalEquipmentManufacturers(OEMs).ManyofthesearehouseholdnamessuchasLandy,IPDandBell-Tech.OEMsalsodominatetheprinterconsumablesmarket,whichisworthabout$200mperyear.However,therearealsoindependentcompanieswhoonlysupplytheprinterconsumables(printercartridgesandtonercartridges)market,offeringpriceswhichsignificantlyundercuttheOEMs.Theprinterandprinterconsumablesmarketsarebothtechnologydriven,withcompaniesconstantlylookingforinnovationswhichmakeprintingbetterandcheaper.TheemergenceofindependentprinterconsumablessuppliershasnotbeenwelcomedbytheOEMs.TheyhavebroughtlegalactionsagainsttheindependentsTheemergenceofindependentprinterconsumablessuppliershasnotbeenwelcomedbytheOEMs.Theyhavebroughtlegalactionsagainsttheindependentsinanattempttomakerefillingtheirbrandedproductsillegal.However,theyhavenotsucceeded.ThegovernmentinElandhasruledthistobeanti-competitive.However,theOEMscontinuetopromotetheircasewithpoliticalparties,claimingthattheyneedtherevenuesfromprinterconsumablestofundinnovationsandadvancesinprintertechnology.Theyalsoregularlyissuestatementswhichworryconsumers,claimingthatprintersmaybeharmedbyusinginkwhichisnotfromtheOEM.Landyhasbeenparticularlyaggressiveinthisregard.Itcontinuestopursuelegalclaimsagainsttheindependentsandhasalsoissuedastatementwhichmakesclearthatifoneoftheirprintersisfoundtobefaultywhilstusingnon-Landyink,thentheprinter’swarrantywillbevoid.ItisrelativelyeasytoenterItisrelativelyeasytoentertheindependentprinterconsumablesmarketandsocompaniestendtocompeteonprice.Thereislittlebrandloyaltyamongstconsumers,whoregularlychangetheirchoiceofbrand.Theindependentcompaniesconstantlyfocusonfindingtechnologieswhichmaketheprintcartridgescheapertobuyandareofbetterquality.Usedprintcartridgescanbereusedfortheirmaterialalone(recycled),orreusedbybeingrefilledwithink.However,therearestillprintingproductsonthemarketwhichcanonlybeusedonce,orareexpensivetorecycle.ReInkReInkReInkCo(ReInk)wasformedfiveyearsagobyDexterBlack,atechnologyentrepreneurwithexpertiseinprintertechnologies.Hestillremainstheonlyshareholder.HesetupReInktoproduceandmarkethisdesignsforreusableinksystems.ReInkisfocusedprimarilyonthereuseofprintercartridgesbyusingaprocesstorefillthemwithink.KeytechnicalelementsofReInk’sinnovativeprocessforrefillingcartridgeshavebeenpatented,butinEland,suchpatentsonlylastforeightyears.Thecurrentpatenthasafurthersixyearstorun.ItwouldhelpprovideagoodstandardoflivingItwouldhelpprovideagoodstandardoflivingandrelativelycheappropertyandsohecouldattractgoodstaffformodestsalaries.Hisassumptionprovedcorrect.Hehasbeenabletoattractanexpertteamoftechnologistswhohavehelpedhimdevelopauniqueapproachtoprintercartridgereuse.Asoneofthemcommented,‘Itookapaycuttocomehere.ButnowIcanaffordabiggerhouseandmychildrencanbreathefreshcountryair.’ReInkisanattractivecompanytoworkforandtheteamofReInkisanattractivecompanytoworkforandtheteamoftechnologistsareenthusiasticaboutworkingwithsuchanacknowledgedindustryexpert,wheretechnicalinnovationisrecognisedandrewarded.BothhisstaffandcompetitorsacknowledgeDexter’stechnicalexpertise,buthiscommercialexpertiseislesswellregarded.DexterrecognisedthisasaweaknessanditwastheprimedriverbehindhisdecisiontorecruittwonewdirectorstotheTofundthedevelopmentoftheprinterrefillingtechnology,ReInkhasneededsignificantbankloansandaTofundthedevelopmentoftheprinterrefillingtechnology,ReInkhasneededsignificantbankloansandasubstantialoverdraft.Althoughthecompanyhasmadeasmalloperatingprofitforthelastthreeyears,interestrepaymentshavemeantthatithasrecordedalosseveryyear.Itcurrentlyhasrevenuesof$6mperyear,20%ofwhicharederivedfromalong-termcontractwiththeDoRC.ReInkisnotoneoftheindependentcompaniescurrentlybeingsuedbyLandy.Tohelphimaddressthesecontinuingfinanciallosses,DexterrecentlyrecruitedasalesdirectortoattempttoincreaseTohelphimaddressthesecontinuingfinanciallosses,Dexterrecentlyrecruitedasalesdirectortoattempttoincreaserevenuethroughimprovedsalesandmarketingandahumanresources(HR)directortoreviewandimprovestaffingpractices.TogetherwiththefinancialdirectorandDexterhimself,theymakeuptheboardofAlthoughAlthoughbothoftheserecentlyappointeddirectorshadthecommercialexpertisewhichDexterlacked,neitherhasbeenasuccess.Thetechnologistswithinthecompanyareparticularlyscathingaboutthetwonewappointments.Theyclaimthatthesalesdirectorhasneverreallymadetheefforttounderstandthemarketandthat‘hedoesnotreallyunderstandtheproductweareselling’.Therehasbeennoevidencesofarthathehasbeenabletogeneratemoresalesrevenue.TheHRdirectorupsetthewholecompanybyintroducingindiscriminatecostcuttingandattemptingtoregradestafftoreducestaffcosts.ThetechnologistsbelievethattheHR