Term Paper on "System Analysis the Company"

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1. The company needs to establish a reliable time frame for going for IPO listing within 90 days or less.

2. The company is failing to gauge the relation between sales and advertisement.

3. The company is also failing to acknowledge that the best product mix will increase the total revenue.

Combine result of all models

Using forecasting model, for the company to achieve best sales, the company needs to have sales between 37 units to 48 units. This is also supported by model two that looks into linear programming, if the company wants to maximize their revenue the best selection products mixed will be 7 units of product C. And 8 units of product E. The maximization function, 1.2a + 2.0b + 2.6c + 3.0d + 5.0e c=44.24, is not very far-off from model one. In model three we only look into the activity time frame, of which after all the constraints, the company can finish their IPO exercise in 81.67 days.

Overall strategy

1. The company needs to fine tune their advertisement budget and promotional timing in order to achieve best sales result. (Appendix One)

2. The company needs to involve the Board of Directors in the very early stage of consultant appointment to avoid high slack time (Appendix Two)

3. The company needs to cleverly adjust their product launch by differentiating their market. As shown in model three, expected revenue under combining new product with existing products (Product C. And Product E) is about $44 million but by enhancing the existing products (Product A, B and C) the company gains an additional $31 million. (Appendix Three)

IMPLEMENT YOUR "OVERALL STRATEGY"

Edinger (2012), suggests three approaches of implementing the strategy:

1. The first step is to clarify the strategy in a way that people in your organization can rally to support its implementation. In short, strategy needs to be clear and precise before it can be implemented. (Markiewic, 2011)

2. Powerfully communicating the essence of your strategy at every level of the organization using multiple mediums is the key here.

3. If strategy is "what" you do then tactics are "how" you do it. And if you want your strategy implemented well, you need to cascade it throughout the organization and get to the practical and tactical components of people's jobs every day. Ideally, you will involve your managers in this process, and they will help to translate the elements of the strategy for your organization to their own functional areas.

Based on this, Markiewic (2011) propose that the company needs to change their system-based management to suite the company strategy. But as we perfectly know from the basic features of system-based approach, the improvement in one element of the organization (sub - optimization) does not have to automatically mean improvement in the system as a whole; and thus makes other suggestions including keeping an eye on the failure to provide ineffective leadership, ownership, lack of resources, risk identification, ineffective communication and poor strategy formulation (Markiewic, 2011). Thus internal people like employees, board of directors and managers should be aware about the strategy since they are the ones who will implement the strategy. Also, it is important for the company customer and public stakeholder to be involved in the implementation process.

CONCLUSION

An IPO exercise can be controled using PERT/CPM function as used in this exercise. A successful Post IPO will depend on good strategy of which this strategy is formulated as early as possible before and during the IPO exercise. A strategy is considered as an excellent strategy when it incorporates three basic things that are clearly and precisely communicated (Edinger, 2012), communicated at every level and are built around the company system (Markiewic,2011). As in this case, in order to forecast future sales, the company had been using multiple forecasting tools to determine best case scenarios; scenarios that yield the best min and max had been identified, which helped the company to gain between $31 million to $44 million. The company also learned that increasing the board of directors' involvement during the IPO exercise can speed-up the exercise. Finally the company also realized that by carefully mixing their new products and old products, the company can increase their revenue and can also increase their market by differentiating the sales of their existing products that can be sold to other countries.

Reference

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Chiesl, N.E. (1987). The Use Of A Simple Forecasting Technique During An Interactive Computerized Business Game. Developments in Business Simulation & Experiential Exercises. 14, 39-42.

Cottrell, W.D. (1999). Simplified Program Evaluation And Review Technique (PERT). Journal Of Construction Engineering And Management. January/February,16-21.

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Moon M.A., Mentzer, J.T, Smith, C.D., & Garver, M.S. (1998). Seven Keys to Better Forecasting. Business Horizons. September-October, 44-52.

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Walberg, H. J, L, Daoxin (1997). A Technique For Objective Analysis Of Qualitative Evaluation Data. Evaluation Practice. 18(1), 55-65.

Edinger, S. (2012, July8). Three Cs of Implementing Strategy. Blog posted on www.forbes.com/sites/scottedinger/2012/08/07/three-cs-of-implementing-strategy/

Markiewicz, P. (2011). Change Management In The Strategy ImplementationProcess. Intellectual Economics. Vol. 5, No. 2(10), p. 257 -- 267.

APPENDIX A: FORECASTING MODEL

Appendix Two -- CPM/PERT Model

Appendix Three -- Linear Programming

Strategy One -- Introducing New Products And Combine With The Existing Product

Strategy One -- Introducing New Products And Combine With The Existing Product -- Sensitivity Analysis

Strategy Two -- Enhancing Existing Products And Sell It At A Different Market

Strategy Two -- Enhancing Existing Products And Sell It At A Different Market -- Sensitivity Analysis

CPM

Critical Path Method

Start Date Days to Completion

1/12/13-81.67

Finish Date

5/6/13

Times (in Days)

Time Distribution: Triangular [42] Series Used in the Gantt Chart Weeks Days

ID Task Name Predecessors

(Enter one ID per cell) O

(min) M

(most likely) P

(max) Duration

(exp. time) ES EF LS LF Slack EF of Predecessors Successors LS of Successors ES Critical +T -T Duration +T -T Slack Events Axis

10 Start 0.00 0.00 0.00 0.00 0.00 0.00 0-0 0-0 0-0 0-0 0-0-20-30 0-21.6666666667 ERROR:#N/A ERROR:#N/A ERROR:#N/A ERROR:#N/A ERROR:#N/A ERROR:#N/A ERROR:#N/A ERROR:#N/A 0-0 -0.5

20 Pre-Planning Activities 10-15 30-35 26.67 0.00-26.67 0.00 0.00 0.00 0-0 0-0 0-0 0-0 0-0-40-50 26.6666666667 0-0-26.67 8.33-11.67 ERROR:#N/A ERROR:#N/A ERROR:#N/A 0 ERROR:#N/A ERROR:#N/A 0.5

30 Board Review and Approval 10-15 20-25 20.00 0.00-20.00-21.67-41.67-21.67 0-0 0-0 0-0 0-0 0-0-60-41.6666666667 0 ERROR:#N/A ERROR:#N/A ERROR:#N/A 20.00 5.00 5.00-21.66667 ERROR:#N/A ERROR:#N/A 1.5

40 Selection & Appointment Of Consultant 20-10 15-20 15.00-26.67-41.67-26.67-41.67 0.00-26.6666666667 0-0 0-0 0-0 0-0-0-60-41.6666666667 26.6666666667 15.00 5.00 5.00 ERROR:#N/A ERROR:#N/A ERROR:#N/A 0 ERROR:#N/A ERROR:#N/A 2.5

50 Identify Commericial Funding 20-10 15-20 15.00-26.67-41.67 0.00 0.00 0.00-26.6666666667 0-0 0-0 0-0 0-0-0-70 0-26.6666666667 15.00 5.00 5.00 ERROR:#N/A ERROR:#N/A ERROR:#N/A 0 ERROR:#N/A ERROR:#N/A 3.5

60 Prepare Statutory Filing 30-40 15-20 25-20.00-41.67-61.67-41.67-61.67 0.00-20 41.6666666667 0-0 0-0 0-0 0-0-80-61.6666666667 41.6666666667 20.00 5.00 5.00 ERROR:#N/A ERROR:#N/A ERROR:#N/A 0 ERROR:#N/A ERROR:#N/A 4.5

70 Prepare Marketing Material 50-15 20-30 21.67-41.67-63.33 0.00 0.00 0.00-41.6666666667 0-0 0-0 0-0 0-0-0-90-100 0-81.6666666667 41.6666666667 21.67 8.33 6.67 ERROR:#N/A ERROR:#N/A ERROR:#N/A 0 ERROR:#N/A ERROR:#N/A 5.5

80 Final Review By Board of Director 60-15 20-25 20.00-61.67-81.67-61.67-81.67 0.00-61.6666666667 0-0 0-0 0-0 0-0-0 100 81.6666666667 61.6666666667 20.00 5.00 5.00 ERROR:#N/A ERROR:#N/A ERROR:#N/A… READ MORE