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Business in Malaysia

In: Computers and Technology

Submitted By Jrieple
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Analysis As a large multinational manufacturing company there are inevitably many logistical issues that will surface throughout different stages of growth, specifically when launching a new product. When these potential setbacks occur it is imperative to understand the options and weigh the pros and cons of each in order to make the best informed decision. There are many factors that need to be evaluated prior to making a decision and the company needs to look at the immediate setbacks as well as the long-term. It is possible that the shipment lost in transit to Kuala Lumpur will turn up. It is necessary to exhaust all resources tracking the packages and finding out further details regarding the delivery status. Once this information is known the company can evaluate if there is enough time to send replacement material or if the packages will arrive in time for the training. If the material has not surfaced the company needs to look into the option of resending the material or an alternative plan that may include skipping ahead with the schedule and circling back to Malaysia at the end of the training timeline. The ethical implications of the above is that management has to be reasonable about situations that are not entirely (if at all) within the control of the company and the people making the projections. Management should not cut corners or make decisions that exploit or take advantage of people who are in need of salary and wages by setting their quotas too high and/or punishing them explicitly or implicitly for outcomes that are not their fault. Management has to be made to realize that the lost shipment was not the fault of anyone in the company and thus no one in the company should be punished. Even with that being the case, the company can put a rush on a repeat shipment. However, the ethical and wise thing to do is to cut corners where possible but at the same time not go too far or punish the company or its people for what is not anyone’s fault. The strategic implications are not all that hard to see. As stated before, the worst-case scenario is that everything is delayed up to 30 days and the company simply cannot ignore that to be the case. So long as the existing goals are reasonable, everything can simply be pushed back a month and everything should then be back on track. There is actually an upside to this as it will give the firm more time to ensure it is prepared for getting the product to market. The main downside from the delay is that the firm will not be able to capitalize on the product and this will almost certainly mean the meaningful life cycle of the firm will be reduced. This can serve as an example in the future to do the training and the shipping of the training package earlier so that there is some flex in the overall timeline should this happen again. Pretty much all of the above will need to be taken into account when operations are adjusted, reduced, changed or left as they are. The financial implications are also fairly obvious. The sunset of any preceding product line offerings will need to be delayed for at least as long as the delay of the new product. There was probably going to be some overlap anyway, but that will need to be adjusted in all likelihood or revenues will be falling due to a lack of a replacement in the product. Shipping the materials will have to be done again unless something change immediately and that will cost money. If the previous shipment was not insured by the shipping party, then the new one should be and the cost of the insurance should hopefully cover all definite or potential losses thus allowing to incentivize the new shipping firm to not lose the darn thing. Based on the information and options discussed, the Director of Operations should proceed with the following. First, a meeting of all the executives needs to take place in order to reevaluate the financial, operational, strategic projections and timelines after hearing all relative information pertaining to the delay. Reevaluation is a must and ignoring the problem will impact the product launch in a negative way. That being said, much of the training can be done utilizing the phone, web conferencing and other web based communication options. The ability to use these tools will not necessary delay the launch 30 days but some delay should be expected given the lost shipment. Second, a revised and firm set of projections and goals that result from the reevaluation need to be created. Placing blame based on assumptions or facts that are no longer relevant is not fair or reasonable to anyone involved and they must be adjusted. Again, the delay can be mitigated using the strong wealth of internet and phone tools that exist. However, to suggest that this could or should entirely replace the in-person and physical handling/review of the materials and product is not reasonable. Technology has its limitations and is not be meant to replace the invaluable in person training.
Third, it should be insured that new products are developed and released before the end of the life cycle of the prior product. For example, the iPod Touch is a very popular product and works quite well but the iPod Classic, which was out for years before the Touch, is still going strong and has high demand due to its increased storage capacity and ease/applicability of use (Apple, 2014).
Fourth, the other locations should not be held to unreasonable standards that do not take real events, past and present, into account. For example, not adjusting sales goals in Europe if an Icelandic volcano erupts and grounds air based transportation.
Lastly, working employees to an excess because of events outside of their control is not productive. Paying lower wages and increasing hours is not a wise choice because people will get burned out, and turnover and mistakes will increase. Treating people like a commodity to boost the stock price or a year-end bonus for an executive is not acceptable or ethical either.
In order to diminish the possibility of this same situation occurring in another country the company must create a protocol for shipping. First, sending these training materials as early as possible allows for delays to occur without delaying the project timeline. Second, purchasing insurance using a reputable vendor such as UPS or FedEx would eliminate majority of the foreseeable delays in shipping. If a similar delay occurred in another country a backup plan should already be in place. For instance, the material could be emailed to the in country manager and printing could be done locally or looked at online. There are many webinar based companies that could be incorporated so the staff could visually see the new product while they waited for the material to arrive. There are many other options that can be explored but a secondary plan needs to be in place. In the end, this is a problem the company can get past and still look forward to a successful launch of their new product. Setting ambitious and aggressive sales goals and objectives is productive as long as the company supplies the appropriate tools and support needed to reach them. Unfortunately, there are circumstances that are out of the control of the company and modifications need to be made, this is how successful companies sustain their growth. Shipments get lost; planes crash and products sometimes have to be delayed. This should not be the norm and there are good habits and tactics that can be undertaken to mitigate damages. Assuming there will never be delays or unforeseen issues is unreasonable and ineffective as a growth strategy. That does not mean that high expectations should not be expected, however, logic and reason, in addition to prepared, should allow you the tools to navigate through a problem and create a successful solution.

References
Apple. (2014, April 18). Apple. Apple. Retrieved April 18, 2014, from http://www.apple.com
IUPUI. (2014, April 8). Supply Chain Management. Kelley School of Business Indianapolis.
Retrieved April 18, 2014, from http://kelley.iupui.edu/undergrad/academics/majors/
supply-chain-management/

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