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Company X Problem Analysis

Essay by   •  December 1, 2010  •  Case Study  •  1,619 Words (7 Pages)  •  1,603 Views

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Company X Problem Analysis

Through extensive analysis from the customer satisfaction surveys, and research from the satisfaction task force, Company X found three major problems areas. The company's programs reflect poor quality, the development times are taking longer than the projected due dates and a small portion of employees are discrediting the company name and values. Each of these problems has contributed to the main problem; the increasing rate at which Company X is losing customers and revenue.

Defining problem and goals

Customers do not want to buy a product that is defective. Through thorough analysis, Company X has attributed the poor quality of its programs as a reason why customers are dissatisfied and seeking other vendors. The programs are full of bugs and glitches, which affect the overall performance of these programs. Company X also does not have access to as many resources as their competitors do, thus affecting the build and design of each program. Loss of revenue continues to make necessary resources even harder to acquire.

Customers are losing patience with Company X because the overall development time for each program is taking too long. The excessive amount of development time is due to a lack of structure and organization within the company. Employees are completing tasks their own way instead of following a standardized set of rules or processes. The communication between managers, co-workers and subordinates is very poor causing delays in the overall development time. The biggest reason for slow development time is poor planning which is a direct result from lack of organization.

The customer satisfaction surveys reveal that a small portion of Company X employees are a part of the problem. Customers have complained about certain employees acting unprofessional which is a direct cause of customer dissatisfaction. Upper management has also noticed employees' lack professional knowledge due to the lack of training. There is also a concern for outside forces such as family problems, stress or even a drug dependency that is affecting the performance of some personnel. If employees cannot perform to their fullest potential then the company suffers a series of problems. Each problem is related to the other, slowly causing a domino effect.

After identifying the problem, Company X is ready to define the goals and objectives. First off, the company knows that it needs to increase the amount of revenue and profit. To do this the company needs to grab back its customers and possibly gain new ones. Company X knows that regaining customers means a change in company policy and building high quality programs. Upper management has decided the company must implement a standardized list of procedures and processes in order to gain structure and organization.

Company X must also improve the quality of its programs by fixing bugs and glitches which will enhance the overall performance of each program. To deal with employee performance, upper management wants the department managers to implement a training schedule. Training will increase professional knowledge, and will help employees create better programs with less problems as well as handling customers in a professional matter. Lastly, Company X wants to provide a counseling service for employees who may be having personal issues or problems. This will help alleviate stress or outside pressures that are hindering performance.

Causes and forces of influence

The causes of the company's problems come primarily from the lack of a methodical approach to project management. Each individual programmer is allowed the freedom to run their development projects as they see fit. Without a concrete set of guidelines and a specific project plan with deliverables and milestones throughout the project, they are setting themselves up for failure. The management team is responsible for the development of processes and procedures, which they have failed at this point.

Some of the other causes and influences on the problem at hand involve human nature. If employees are not held accountable for their actions, they are likely to perform the least amount of work required to remain employed. This lack of motivation stems from the absence of clear guidelines and expectations for the staff. This also impacts the level of professionalism that the staff shows towards the customer.

Effects on the company and alternative solutions

The loss of company profits is the result of poor quality, untimely delivery of product, lack of knowledge, poor communication and personnel issues. If Company X continues down their current path without making changes, the effects on the company are likely to result in their organization going out of business. This will have a negative effect on all of the employees and their families as well. The investors who bought stock in Company X also stand to lose substantial earnings in exchange for losses should the business go under.

To address these issues and turn the company around, solutions must be put in place. The issue of poor quality can be linked to communication and lack of knowledge. Company X will implement a training program to ensure their employees are up to speed on the current technologies and business practices. Future employees will be required to pass an entrance exam to demonstrate their knowledge before they are hired. To handle issues with communication, management will schedule regular status meetings with their teams to make sure everyone is on the same page and on track with their projects. Management will also schedule meetings with customers and their teams as needed to ensure the requirements are being met and



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