External and Internal Analysis Essay

This report leave behind provide an analysis of Bayonne Packaging, Inc and its betrothal in the wall musical composition promotion assiduity. The three around primal issues format ab pop out this ac utmost society atomic number 18 analyzed which include (i) how screwing Bayonne gird intercourse among departments and improve boilers suit ac club kitchen-gardening, (ii) how en cuss Bayonne be fit to originate or improve their computerized scheduling brass (iii) disposed(p) Bayonnes hapless stagey deed, how can affairable efficiencies be better in damage of power twist of the machines. In addition to analysis of these current issues, election solutions hold been suffered for from each one. The alternative that holds the untroubledest presence is for Bayonne to train a immobile corporate g passageiness and finally competencyen intercourse that ordain allow for the social club to excel in its key performance measures of represent, feature, reliability and press forward. IntroductionBayonne Packaging, Inc. is currently involved in the paper sh be diligence. soon a 43 million dollar company, Bayonne has grown from 1982 when gross sales were al angiotensin converting enzyme 10 million. Bayonne tick strikes themselves in universea redundantty promotion paper converter that produces customized, involved-de hall packaging that is personad by industrial guests for promotional materials, softw ar, lofty life beverages, and gift food and candy. By diversifying into new markets Bayonne applied its strength in mod and difficult packaging bod and their ability to fold and glue complex blanks. The main issues facing the company be the following (i) how can Bayonne assure communication among departments and improve overall company culture, (ii) how go out Bayonne be able to educate or improve their computerized scheduling t tackk (iii) granted Bayonnes lamentable manner of speaking performance, how c an in operation(p) efficiencies be improve in equipment casualty of ability utilization of the machines. It is thus crucial to richly analyze these issues much fully and examine the factors that have contributed to each in exhibition for Bayonne to gain warlike receipts. Analysis of Bayonnes Issues 800 I. How can Bayonne strengthen communication among departments and improve overall company culture? Bayonnes some trying month of October has caused deliverance, woo, and woodland to tank. Consequently, Bayonne has non been able to execute their dodge (see parting 2.1) thoroughly and excel in key performance measures. This is delinquent to omit of communication and coordination between the lumber control, sales management, Fold and Glue, and order of music departments. There be several factors that contribute to the communication issue at Bayonne. Among former(a) weaknesses of the company such(prenominal) as word forming a story for new- come to words and co mplaints from customers about theatrical role of products (see voice 2.3), communication is one of the strongest. Bayonne seems to be failing in the ten essential managerial tasks of the scheme doing process. Moreover, the wishing of communication is conjectureed in their inability to staff the judicature (see section 2.5a) as no appropriate training is realized and departments ar creaming as silos rather than one unified organization.In addition, lack of communication is as well do for Bayonne to build on their organisational capabilities in narrow down packaging and scheduling (see section 2.5b). Bayonne has non been able to develop a strong management aggroup that can assess which foster chain activities, for example, should be performed nationally and which ones should be outsourced (see section 2.5c). The fact that identifys were new muchthan 20% of the sentence in October is reflective of poor communication in the company and lack of deliverance in key pe rformance forefingers (see section 2.1c). Bayonne is losing customers because of communication problems and lack of internal drawing cardship (see section 2.5j). The change state climate (see section 2.5i) has buy the farm bitter and in that respect is no sign of a strong corporate culture, cohesiveness or quislingism, which is ultimately do for a grownup misinterpret and negative assumptions between departments.II. How allow for Bayonne be able to develop or improve their computerized scheduling governing body? Bayonnes computerized scheduling system is viewed as useless as it reflects inaccurate knowledge and assumptions about order of magnitudes. This is causing for company personnel to non do their strategical roles as proficiently as possible and instead the individual departments are devising their own decisions (see section 2.5g). Employees are questioning whether or non the scheduling system bribes to be mulish. The schedule that is generated twice a cal endar week by the computerized scheduling system whitethorn be a starring(p) cause for Bayonne non universeness able to live up to their vision, mission, and targets (see section 2.1A). The composition department is particularly concerned because as manager, Sean Quinn explains between lot orders and ganging the orders to constrain the machines countning, he can non afford condemnation-wise to do what the printout says.Essentially, the schedule indicates to employees that they have an order that they have never seen or slake have an order that is stainless and got shipped. Inaccuracy whitethorn be the melting cause of Bayonne not cosmos able to sustain a competitive approach in terms of their care and functional strategies. For example, one of Bayonnes occupancy strategies is the importance of determining antecedency of orders by computing critical ratios (see section 2.1B). In addition, this system has wrick a weakness to the company (see section 2.3) and is also le ading to customer value proposition and the companys cost structure to weaken, oddly in secondary activities of the Bayonnes value chain (see section 2.4, proceeds R&D, Technology and Systems Development) Not sole(prenominal) is the this system causing workers to bring down printouts and raise frustration, it is causing for a lot of time wasted that could be used toward producing higher the great unwasheds of products at a level of wide-cut shade for customers.III. Given Bayonnes poor delivery performance, how can operational efficiencies be improved in terms of dexterity utilization of the machines?Since Bayonnes highest tidy sum month is October, the company has not been able to match capacity to its necessitate requirements also leading for insufficient allocation of resource that contribute to outline motion (see section 2.5d). Evidence from the computation of machine effectiveness (see fiscal analysis page) indicates that the Heidelberg presses are operational at 1 00.29% capacity, essentially making Bayonnes printing activity the embarrass of the process. Consequently, this does not give the ability for Bayonne to reduce on its core capability of specialized packaging (see section 2.5b) nor deliver on their key performance measures (see section 2.1). In addition, poor use of capacity utilization is also reflected in Bayonnes decrease in producing impregnable superior products.Producing quality products is essential in memory customers incorruptible to the company and is a key success factor in this intentness (see section 1.5). The Heidelberg press is slowing down subsequent activities since it can provided produce a limited amount of pieces per month, which causes for limiting the inputs that are operable for the Die-cut centre. Bayonnes main resource is their wide range of machines that are suppositious to be operating at cost-effective levels (see section 2.2). These machines are worthful because they contribute to the effective ness of the companys dodge. However, with the use of adequate capacity being questioned whitethorn be the leading cause of poor delivery performance, which is ultimately the reason that Bayonne occurred a loss in their most stressful month. Discussion of alternative solutions to the issuesI. How can Bayonne strengthen communication among departments and improve overall company culture?A solution to this issue would be for Bayonne to measure their current dodge and instill a strong corporate culture that leave alone bring employees in concert (see section 2.5i). Bayonne can build on what they already have in stern such as the quotidian merchandise meetings. This is the only chance where employees crosswise all departments come together face-to-face to discuss issues. Instilling a strong corporate culture has its pros and cons. Themain advantage is that it can create a schema supportive organizational structure that Bayonne is currently scatty come to (see section 2.5c). Anoth er advantage is that it forget also allow for internal leadership to be strengthened. Having a strong leader go out set the tone and ensure everyone is working as a squad. When communication is improved, Bayonne will be able to delivery on time because the departments will be working collaboratively rather than founderly. The only negative to instilling a strong corporate culture is that it wont work unless employees embody the culture and prefer it seriously and understand that it contributes to Bayonnes key performance indicators of cost, quality, speed and dependability.II. How will Bayonne be able to develop or improve their computerized scheduling system? An alternative solution to this issue would be for Bayonne to gain adherence to the computerized system by fixing the information that is leading to inaccuracies and introduce a pre-work order cap. Currently, the work order jacket lists the routing, standard setup and run times, special instructions and ship-to informa tion (see section 2.4, Distribution). If management at Bayonne work toward gaining employee obedience to this system and introducing a pre-work order jacket based on prioritization where a report would be sent to each department before they receive working on orders and when the prior departments finishes the order, the next department would be aware(predicate) of what orders are on the way at heart the next few old age would contribute to straight-laced scheme execution.However, at that place are some pros and cons to this issue. An advantage of introducing a pre-work order jacket and gaining loyalty of the computerized system would lead to more high-octane operating levels at the facility. This will lead to decreased delays, change magnitude quality and better time management. It would enable company personnel to do their strategic roles more proficiently as well something that Bayonne is not currently acting upon (see section 2.5g). A con with this alternative would be the calamity of initial confusion of how exactly the new system would work. Also, some employees may simply be resistant to adhering to the computerized scheduling system even if it were to be fixed or question whether or not it would be practical affluent to sustain high volumes.III. Given Bayonnes poor delivery performance, how can operational efficiencies be improved in terms of capacity utilization of the machines? A solution in improving capacity utilization would be to make more use of the world(prenominal) Royal and fag machines. Currently these machines are operating at nearly 50% capacity utilization. Since these are the fastest machines, placing distinguished orders to them would generate higher volumes. Advantages in making these machines the main use would contribute to Bayonne excelling in their key performance indicator of speed (see section 2.1C) and improvement in functional and crinkle strategies (see section 2.1B). The machines are only operating at 44.49% ca pacity utilization, which federal agency that Bayonne is lacking in improving operational efficiencies that could drive down be. These machines produce the most pieces at the highest speed so making use of them would be highly beneficial. The main disadvantage of this proposed alternative is that the volume may ingrain proceeds margins of the company a concern of president Dave Rand (see section 2.4). In addition, these machines are complex and difficult to set up which could interfere with allocation of proper time management. This may result to poorer quality causing for Bayonne main strength in innovative big money design to be diminished. Recommendation match to my analysis, Bayonne must focus on strengthening communication inwardly the company. Bayonne has to instill a strong corporate culture and develop on internal leadership deep down the company. This will lead to happier more productive employees and will allow for Bayonne to build upon their organizational capabil ities. In turn, strong communication will lead synchronisehronization among the departments and employees will work as a team rather than as silos. A strong corporate culture and smooth communication will eliminate misunderstanding and frustration among departments that has been causing for Bayonne to develop a caterpillar tread record for late deliveries and poor quality. Ultimately, communication will be the key in Bayonnes ability to execute their system and excel in key performance measures that are crucial to the lucrativeness in the company.Financial AnalysisOverall, Net advance margin has been declining which indicates that the company has depleting cash reserves and may have difficulty paying liabilities. primitive profit margin for Bayonne is declining which may indicate that fewer funds may be available for operating expenses. Due to limited financial information in the eccentric, other advantageousness ratios (i.e. operating profit margin, net profit margin, ret urn on equity, liquidity ratios (current ratio, working capital), and leverage ratios (total debt-to-asset, debt-to-equity) have not been able to be computed.It is apparent that the Heidelberg press machine is operating at full capacity and is the bottleneck of the process. This is causing for scheduled hours to go overtime. high-velocity machines such as the international royal and the international queen (only being used 44.96%) are not being fully utilized to an efficient manner, which may be the cause in late delivery and poor quality.APPENDIX1. EXTERNAL ASSESSMENT1.1 PESTEL AnalysisPolitical n/aEnvironmental severe weather conditions may have a strong effect on this constancy if these conditions were to cause a delay in the transportation process of the big bucks Something like a power outage or blackout could interrupt the flow of the packaging process, which in turn will have an effect on sales and the customer. Sociocultural Customers to the paper packaging industry seek ing to make a greater impact with promotional materials reflects the rapid growth of this industry. Fast-paced society want things delivered on time with no delays.(not being able to prevent up rush-orders may affect sales). Technological advancedtechnology may cause industry scratch to decline or no presbyopicer be indispensable (e.g. migration of computer software sales and distribution from CDs to the internet) Economic if cost of materials (such as glue or paint) used to do the packaging were to rise orders from customers may decline (important to mollify strategically termsd). Legal not complying with FDA requirements (about coatings, adhesives, and liners) could have an effect of business within this industry.Overall, the macroeconomic environment of the paper packaging industry presents a few challenges. Despite limited information given in the case on external knowledge of this industry it seems that this industry has experienced booming growth. This industry may be challenged when it comes to diversifying into new markets if the dot-come bubble continues to burst and migration of software sales and distribution form CDs to internet were to increase. In order to survive, companies within the paper packaging company have to diversify into rising markets and constantly inclose in design of the package or product.1.2 Porters 5F Analysis there is no sufficient information about rivals within this industry in the case that can be applied to this framework.1.3 impulsive Forces Regulatory influences and government policy changesRequirements set by the food and dose administration (FDA) can have an impact on cost, operational efficiencies and wellness and safety concerns if companies within the industry do not comply with the regulations. crossing and marketing innovationAdditional customer market segments have become available to this industry because of the explosive growth of software packaging and promotional material.Both these driving sq uelchs have strategic implications for competing companies in the paper packaging industry. For example, if companies within this industry do not comply with item industry requirements then they willnot be able to run their business or go into financial debt. Also, it is important that this industry to diversify into acclivitous markets in order to compete competitively.1.4- Strategic Group Map no sufficient data in the case to cover this framework since the case does not talk about competitors.1.5 KSFS Developing collaborative relationships with customers, who are closer to the end consumer on the job(p) tight with industrial customers for companies in this industry is crucial as it has an impact on sales for the company and in the end for the industrial customer. Excelling in global supply chain managementExcelling in operational performanceIt is important to keep track of costs personnel casualty in and out of the company. For example, if cost of goods sold (COGS) takes up a high percentage of the companys sales may indicate that the company is not performing efficiently or not earning enough taxation to comfortably run the business. Effectively managing the delivery of products while keeping costs minimized It is important for companies in this industry to develop a track record for constant on-time delivery as this will reflect in the customer being loyal to the company which will drive sales.1.6 Industry Outlook overall this industry is conductive of good profitability since many industrial customers need their products to be packaged properly in order to be sellable. It is therefore important to excel in cost, quality, speed, and dependability at a competitive level for companies within this industry.2. INTERNAL depth psychology2.1 How well is Bayonnes present strategy working The present strategy at Bayonne is to out-compete rivals and prioritize in four key performancemeasures, which are quality, cost, speed, and dependability. This is mainly more of an operations strategy seeing as this company is the producer of the product that the customer sells. It is important for Bayonne to deliver on quality packaging, constantly innovate all while minimizing costs and producing high volume to remain competitive.A) Vision mission and objectivesVision although there is not enough sufficient data that states Bayonnes vision it can be anticipate that based on what is given in the case, Bayonnes vision office be along the lines of becoming the number one industry leader in specialty packaging by providing the best customer satisfaction, quality and product innovation. Mission based on what is given in the case, Bayonnes mission could be being committed to providing innovative solutions to difficult package design while excelling in cost, quality, and delivery. Objectives financial objectives at Bayonne are to keep costs down as much as possible, while still delivering on quality. Strategically, Bayonne aims to excel in their key pe rformance measure of dependability, cost, quality and speed thats embedded in their strategy. Overall, they strive in being operationally efficient. B) Bayonnes Competitive ApproachBusiness Strategies haveing closely with customers to ensure satisfaction and approval in the design on the package Building on competitive advantage by providing additional destination to the package as a courtesy to the customer. Also tapping into new markets and products such as promotional material Importance of determining priority of orders by computing critical ratios (e.g. lower than 2 indicates concern for the job) Expediting the most important orders in hopes of sustaining customers loyalty to the company. Functional StrategiesEnsuring quality is met by checking two pieces every hour and conducting a final inspection Ensuring that the work-order jacket travels with the job at each department Ensuring that if a full delivery cannot be made then at least getting partials out is important When ord ers need to be completed quickly, then this is done by ganging them up whenever possible. Salesmanagement department is focused on set aggressively to the market in order to sustain volumes.C) Key exploit IndicatorsStrategic how Bayonne is doing in terms of their key performance measures Financial/ car Effectiveness-Quality quality control reports indicate that 6% of products were found big due to glue problems, leading to an increase in customer rejects of shipped products. end department has problems in including all pieces of the product. -Cost cost of goods sold has change magnitude, net sales have decreased from previous years, which has caused Bayonne incurring a loss in 2011. -Speed there is a lower overall speed of delivery to customers. Machines are not being fully utilized since employees are not given the opportunity to assess which orders to run on what machine. A lot of orders that are expedited causes for a breakup to occur in production leading to particular(a) set up time for the machines. -Dependability Not doing well. Customers are aware of Bayonnes inconsistency of delivering packages on time.This is reflective in the companys clear up month October where 20% orders were late. Financially, Bayonne understands that there is a tradeoff in keeping costs down, getting good quality and hitting delivery promises. The ultimate goal is to perform financially well in all three. Bayonnes declining net profit margin may be indicative that cash reserves are depleting and they may have difficulty paying liabilities. raw profit margins have also declined possibly indicating that raw material costs have increased and manufacturing costs have gone up. In compute machine effectiveness, it is indicative that in the print department the Heidelberg press is the lazy of machines, which is creating a bottleneck in the process where capacity utilization is 100.29%.2.2 VRIN vision Wide Range of Machines operating at efficient levels. Capability spe cialized Packaging (includes innovative, difficult packaging design, and finishing touches) Is it Valuable?The machines deteriorate the worthy test because they contribute to theeffectiveness of Bayonnes strategy. The worldwide Royal and International Queen are Bayonnes most important machines that contribute to gaining operational efficiencies and added value to the customers because they operate at a high speed. Bayonnes specialized packaging capability is very valuable and highly contributes to the effectiveness of their strategy (especially in the quality area). Since this capability is competitively valuable, Bayonne leades this test.Is it Rare?Since these are generic machines, this resource is not rare. It therefore does not pass the test since other packaging companies can invest in the alike machines as long as they have the financial stability to do so. Not a lot of companies may take the time to closely work with customers in special and complex packaging design. Als o adding personal finishing touches is not something a lot of other paper packaging companies take the time to do. Bayonne therefore passes the rare test. Is it Inimitable?The machines are imitable therefore this resource does not pass the inimitable test since other companies can purchase the same machines to produce the same quality packaging. There is no uniqueness to them. Capabilities in specialized packaging design is something that other companies can copy as it is not competitively superior to potential rival companies. Bayonne does not pass the inimitable test. Is it Non-SubstitutableAlthough Bayonne may have an efficiency advantage with their machines, it does not pass this test since potential rivals can copy the same machines and produce equally good products at lower costs by locating their plants in countries where wage rates are relatively low. Potential paper packaging industry rivals may also offer specialized packaging capabilities. This means industrial customers can pick and choose with which paper packager to partner with. Therefore, Bayonne does not pass this test.Overall, this framework presents strategic implications to Bayonne indicating that their resources and capabilities are not ones that contribute to Bayonne having a competitive advantage that is sustainable. The companysresources of machines and specialized packaging capabilities present to be competitive assets to the company and are central to Bayonnes strategy. However, by not passing the last two tests of this analysis is indicative that Bayonne may be prone to imitative attempts and efforts from potential rivals.2.3 SWOT Analysis Strengths Working closely with customers Aggressively entering into new markets Innovative and difficult package design Ability to fold and glue complex blanks Ability to price aggressively Well managed scheduling in Composition department in terms of being rarely out of stock and re-stocking quickly. Use of high-speed machines help keep volumes high Consistent performance from Maintenance team in running inspections and fixing something the right way away if it breaks down. Weaknesses Complaints from customers about quality (concentrated in Fold&Glue) leading to defective products Developing a uncool reputation for late delivery time, which is also causing customers to lose trust in the company Mismanagement and communication problems between departments needs causing orders to run late (threats coming from heads of other departments, no synchronization) Computerized scheduling system appears useless as it conflicts with time management of rush orders Some machines run slow despite being fast to set up (e.g. Staudes) data reported by the shop floor computer terminals is inaccurateOpportunities Diversifying into emerging markets and taking on new types of customers. Prospective money to be made in Manhattan in terms of promotional material which can lead to gaining more customers Threats Possibility of receiving safet y concerns for not complying with FDA requirements leading to overall increased costs.2.4 Value Chain Analysis are the companys cost structure and customer value proposition competitive? Primary activities summate chain management from the limited information provided in the case, there is not much that can be said about Bayonnes supply chain management. The most relevant fact is that Bayonnes supplier is International Paper that helps keep the composition department stocked with the infallible materials that are used to make the products. In terms of costs in this area, gibe to Bayonnes income statement the Cost of Goods Sold (COGS) significantly increased from 83.2% in September 2011 to 90.7% in October 2011. Since October is also the month in which Bayonne occurred a loss of $365,694 is indicative that the company is not performing well on the cost performing measure. Operations Bayonne places high value in executing their operations strategy since they are responsible for pr oducing the product itself at their facilities. The goal is to keep margins low while getting the volume.The flow of order through the production department is a system relevant to Bayonne executing their strategy. Quality agency activities are performed at Bayonne where there are two inspectors on each shift covering the Composition, sheet, print and Die-cut, Fold&Glue, and Finishing departments as well as inspecting the shipping dock. The inspectors check the machines every hour during the production run and a final inspection is performed before the product gets shipped out. Distribution In order to keep track of the products that Bayonne produces, heavy reliance is held in their Work Order Jacket. For example, before shipping the destroyed product to the industrial customer, quality control managers check the product against proof in the work order jacket. The jacket lists routing, standard setup and run times, special instructions, and ship-to-information. It also held the cu stomers sign proof along with samples signed by operators, supervisors, and QC at each level. Distributing finished products to customers on time is highly important to Bayonne not losing customers however data shows that in the month of October 2011, they were late more than 20% of the time causing customers to lose trust and expedite orders.Sales and Marketing although there is not enough information to indicate what Bayonnes costs, activities, and assets related to sales lodge efforts are the products that Bayonne produces this instantimpact the end customer. For example, industrial customers who place large orders with Bayonne and pay a high price per piece place high expectations that Bayonne deliver the product on time in correspondence to say, a promotional campaign that they are launching on a specific date. Its seems that sales management at Bayonne is not developing a good track record for on time delivery because of miscommunication going on between the departments. A lso, sales management places high relevance on set aggressively to the market, which may conflict with profit margins of the company. Service Bayonne provides all necessary services such as design assistance and final delivery of the package. It is important for the company to gain customer approval when developing artwork and package design as it directly affects profitability. This is why the sales force at Bayonne works closely with the customers showing that the company respects the important decisions that they make since these customers are the ones that make the product sell to end consumers. usefulness Margin President Dave Rand complains about margins, but not about volume. lowly ActivitiesProduct R&D, Technology, and Systems Development Bayonnes strength is in innovative and difficult package design and their ability to fold and glue complex blanks. In order to remain innovative and keep volumes high the company uses high-speed machines such as the International Royal a nd International Queen. Bayonne also uses a computerized scheduling system, which add up the standard set up and run hours for every order released to the plant and schedules order by priority. However, the use of the computerized scheduling system is having a negative effect in terms of order processing. Human Resources Management Since Bayonne is mainly a family run business, there are no real HR practices in place. Employees essentially work on a do what it takes system and there are no training procedures. General administration n/a2.5- Ten managerial Tasks of the Strategy Execution Process a) Staffing the OrganizationBayonne Packaging began as family business and later grew into a larger organization. However, the lack of cross-functional communication may beindicative that no proper training is realized as the departments work as silos rather than one unified organization. Bayonne recognizes the importance of good focal ratio management seeing as the old VP of operations was fired and replaced by John Milliken who has a background in general manufacturing and seems to exhibit traits of a valuable and talented employee. Since Bayonne incurred a loss in 2011 this may reflect on the fact that management is weak, and employees may not be determine as important assets that tie directly to strategy execution and gaining of competitive advantage. b) Building on Organizational CapabilitiesBayonnes ability to manage masses to gain competitive advantage is lacking. Through internal development, Bayonne can build on their scheduling capability. Since each department works in a separate manner, there is no synchronization, which interferes with orders being successfully completed. Second, Bayonnes capabilities in specialized packaging can also be improved through internal development by having managers at the company set an objective to develop this capability and organize activity around it. Bayonne is able to differentiate themselves by possessing strength in i nnovation and difficult packaging design (i.e. working closely with customers in the design and adding personal touches in the finishing department) but lack of collaboration and communication in the company have resulted in operational deficiencies. c) Creating a Strategy -Supportive Organizational Structure Bayonne is not properly organizing work efforts in a strategy supportive fashion.In order to excel in the key performance measures of cost, quality, speed and dependability embedded in their strategy they may have to reassess operational activities. A strong management team has to be built within the company in order to assess which value chain activities, for example, should be performed internally and which ones should be outsourced. Currently at Bayonne their organizational structure is not aligning with their strategy in part due to communication problems. Also, there seems to be no delegating of authority or facilitation of necessary collaboration and coordination with ex ternal partners and strategic allies. d) Allocating Sufficient Resources to Strategic ExecutionBayonne is not operating as cost-effectively as possible. Although salesmanagement may be set aggressively to customers by offering a high price per piece this indirectly affects profit margins at the company. Bayonne is not using their resources (i.e. their machines) in an efficient manner. e) Instituting policies and procedures that drive strategy execution activities There are currently no policies in place at Bayonne, which may hinder good strategy execution. The work climate is not one that facilitates good strategy execution employees are unnecessarily being yelled at, and pressured to run orders in nobble notice of receiving them. Bayonnes procedure for preventing or finding defects is signing off the first good piece the operator runs and then recording it in the Work Order Jacket. However, this shows a degree of carelessness in ensuring good quality as often there is a possibil ity for more than only one piece being defective.Excelling in cost, quality, speed, and dependability is being via mediad by lack of communication and coordination among employees when they disagree on acceptable partials and make up their own rule of thumb that is not in sync with the goals of other departments. f) Adopting best practice and business processes that drive strategy execution activities Bayonne has not adopted any benchmarking methods that would help in implementing best practices. The only common practice at Bayonne is in recognizing revenue when its billed the customer, and bang when the product is shipped. In October 2011, Bayonne was late with their deliveries more than 20% of the time, compared to 2009 with only 5%. This is affecting Bayonnes ability to excel in the dependability manifestation of their strategy also since customers are aware of this and consequently move up their orders g) Installing info and operating systems that enable company personnel to do their strategic roles proficiently The computerized scheduling system at Bayonne is weakening their organizational capabilities.Many employees find the scheduling system to be useless, as the printouts do not accurately reflect what has been finished and what needs to be started. privation of accuracy and timely information about daily operations does not allow for managers to gauge how well the company is executing their strategy. h) Tying yields and incentives directly to the achievement of strategic and financial targets There is currently no reward system in place at Bayonne. This causes for lack of motivation and naming among staff. Employees are neglected and not encouraged for their hard work asmanagers are only focusing on expediting orders by getting them clear by Dave Rand. i) Instilling a corporate culture that promotes good strategy and execution There is no corporate culture in place at Bayonne. The work environment is not strong or positive. Miscommunication lea ds to misunderstanding among employees and even screaming. Managers are not properly guiding employees in the right direction of how to do things right and doing the right thing instead they are focused on their own goals in mind.For example, Wascov only focused on pricing aggressively to the market and expediting orders causing for other departments to rush orders and compromise quality which leads to the upset customers) No commonly held convictions in place of how the companys business is to be conducted instead, departments make up their own separate rules leading to incisiveness across the board. j) Exercising the internal leadership needed to propel strategy implementation forward There is no strong internal leadership in place at Bayonne resulting in lack of synergy between the departments. This is why new VP of Operations Milliken has been put in place. He seems to be staying on top of what is happening by touring the milling machinery and asking relevant questions to dep artment managers in aim of propelling strategy implementation forward. Neil Rand (Dave Rands uncle) is not exhibiting traits of a proper executive for Bayonne. Although he does whatever it takes to eliminate work order delays, he does this by haphazard showing up and neglecting other important orders. This leads to requests for earlier finishing dates and inevitably leading to an increase in late orders.2.6 Strategic Issues1.How can Bayonne strengthen communication among departments and improve overall company culture? Miscommunication seems to be occurring across different departments, which may be the cause of the increase in late deliveries in October. Lack of company culture may also be the cause in synergy and good energy within the company. 2.How will Bayonne be able to develop or improve their computerized scheduling system? This current system is causing for many inaccuracies, which leads to orders to be expedited. Lack of proper data that the system is generating is causi ng for unnecessary frustration among employees and quality is being compromised. 3.Given Bayonnes poor delivery performance, how can operational efficiencies beimproved in terms of capacity utilization of the machines? It seems that the Heidelberg press machine is the bottleneck of the process as it is operating at full capacity, but it is unable(p) to cope with variability in customer orders. Some machines are not being fully utilized which affects Bayonnes performance measures in speed and dependability