Management Strategy

This article discusses the importance of effective management strategy in the modern business world. It explores a workplace case study and analyzes the application of the 5P strategy. The case study focuses on a toy manufacturing company and addresses issues such as declining quality, unethical business operations, and competition. The article also discusses the company's structure, workplace issues, and the CEO's plan for offshore manufacturing. It concludes with the importance of formulating attractive rewarding policies to manage the crisis of human resources related to offshore manufacturing.

Running head: MANAGEMENT STRATEGY
Management Strategy
Name of the Student
Name of the University
Author Note

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Introduction:
The importance of the effective formation of the strategy is seen to amplify in a
significant manner in the modern business world. With a precise focus on the increasing
competition in the modern business world, it becomes significantly important for the
managers to formulate effective and appropriate strategies that have the potential to enhance
the growth of the organizations. The managers face the necessity of managing the various
threats of the sustainable business such as the high bargaining power of the buyers, suppliers
along with the high threat of the competition from the part of the competitor organizations.
Under such situation, the responsibility of the managers regarding the formation of the
suitable strategies has significant amount of contribution to the success of the companies in
managing these threats (Noe et al. 2017). The paper is focused in the elaboration of a
workplace case study which is based on the effect of the globalization of the global market
integration. The mentioned case study provides significant information regarding a business
organization named as Lakeland Wonders, a United States based toy manufacturing company
(Hbr.org 2019). Apart from this, the paper analyses the importance of the functionality and
the strategies in the mentioned organization. The analysis of the company’s strategy and the
functions is significantly based on the application of the 5P strategy.
Part A:
As mentioned earlier, Lakeland Wonders is one of the reputed wooden toy
manufacturer in the US market and the company was able to create significant amount of
trust amongst the customers regarding the capability of the company in providing optimum
quality products. Other than this, the company had a hierarchical management structure in
place for the effective management of the business operations and the Chief Executive
Officer of the company was Cheryl Hailstrom (Hbr.org 2019). Along with that, the CEO of

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the company was answerable to the senior vice president of the operations of the company
Mark Dawson. In addition to this, the company had the departmental head for various
departments of the company such as the manufacturing, design or the sales. Apart from the
structure of the company, the organization had three different plants for the manufacturing of
the products and nearly 5000 employees are employed in the company (Hbr.org 2019).
Workplace Issues:
The company was seen to suffer from a series of issues starting from the decreasing
quality of the products and the unethical business operations from a section of the employees
which forced the company to such a state where they were facing an intense level of
competition from the part of the competitor organizations. Along with this, the senior
management of the company was seen to plan for the achievement of a lucrative deal and as
the first step, the CEO of the company wanted to add more number of plants specifically in
the mid- scale market. However, that proposal of the change was seen to be affected by the
apathy of the employees of the company and some of the departmental heads of the company.
The company had a strong reputation of being one of the very few companies capable
of providing high quality in their products and services that they offer to their customers. The
formation of the customer community from the part of the company was possible due to the
excellence of the company in providing the desired quality and designing the products in
accordance to the likings of the clients. However, under such situation, the company faced a
sudden decline in the number of the products of the company in the US market and along
with that, the competitor organizations were seen to offer improved quality products at a
significantly competitive prices which was threatening the selected company for a decline in
the sales and the market share of the company. Under such situation, the CEO of the
company identified that the declining organizational culture of the company which was more

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prominent with the exit of the employees even before the end of their shift timings, was one
of the significant reason responsible for the decline in the performances of the company.
Other than this, the head of the manufacturing department of the company was seen to
disagree to increase the production of the company and was forcing an inclusion of the third
shift and on the other hand, the employees of the design department of the company along
with the head of the department were seen to be involved on the unethical business
operations. The head of the design department of the company was preferring the local
ordinary design firms for the products of the company instead of the firms capable of
providing the quality in the design of the products. The intentional misconduct from the part
of the departmental head of the design department was one of the prime reason responsible
for the significant decline in the quality of the products of the company. Under such situation,
the company was subjected to the achievement of a lucrative “Bull’s Eye Deal” which had
the prospective to place the business in a perfect position for the accomplishment of the
required growth and success in the US market.
Under such situation, the CEO of the company introduced a plan for the offshore
manufacturing as the idea was to decrease the manufacturing cost of the products of the
company. With a precise focus on the prices of the products in the mentioned deal, it was
petty evident for the CEO of the company that the existing cost of manufacturing were in
need to be reduced for the gaining the financial feasibility in achieving the deal. Hence it
became necessary for the company to introduce offshore manufacturing along with the
outsourcing of the required infrastructure starting from the employees, the offices and the
other requirements of the machinery. However, the CEO faced the apathy of the employees
regarding implementation of the new plan which restricted the effectiveness of the plan.
Considering the scope of offshore manufacturing, Da Silveira (2014) commented that it
becomes significantly important for the decision makers of the organizations operating in the

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upscale market to take the option of the offshore manufacturing for reducing the cost
associated with the manufacturing of the products or the services that they offer to their
customers. Smith and Smith (2017) stated that the outsourcing of the employees for other
plants of the companies has significant potential of creating job insecurity amongst the
existing employees of various companies. Fratocchi et al. (2014) highlighted that the
companies considering the scope of the offshore manufacturing has the possibility to face
significant amount of infrastructural requirements along with the financial investment from
the part of the shareholders and the incapability from the part of the shareholders becomes the
crucial factor for many of the existing companies in rejecting the scope of manufacturing
from the mid- scale market. On the other hand, Da Silveira (2014) claimed that the managers
of the organizations are required to manage the apathy of the employees regarding the
offshore manufacturing with the creation of the attractive rewarding plans which includes
intrinsic and extrinsic rewards.
Description of the Company:
The company operates in the wooden toy manufacturing industry of United States.
The main product of the company for the customers is the optimum quality wooden toys of
different sizes and prices. As the organization operates in the national market, the main focus
for the company is the American customers. The company is able to create considerable
amount of customer loyalty with the sense of belonging of the American customers and the
reputation of being of a quality providing organization.
Part B:
With a precise focus on the Mintzberg's 5P strategy, the organization was observed to
focus on the functions and the formulation of the strategies in a significant manner.
Considering the “Plan” aspect, the company was observed to be dedicated in the

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improvement of the quality in their services as that was one of the main factor, influencing
the success of the company (Chungyalpa and Bora 2015). With a precise focus on the internal
analysis of the company, it is evident that the selection of the quality providing design firms
is significantly important for the success of the company and under such situation, the
managers of the company have the necessity of formulating appropriate plans for increasing
the quality of the products and services that the company offer to their customers.
Considering the “Ploy”, the company was seen to try for the achievement of the cost
leadership in the mentioned region. From the described case, it is evident that the CEO of the
company proposed an idea of the offshore manufacturing for the accomplishment of the
Bull’s Eye deal. With the proposal for the Bull’s Eye deal, it was clear that the senior
management of the company were able to understand the necessity of manufacturing the
products of the company at low prices so that they be able to intensify the price war with the
competitor organizations. This had the potential to discourage the competitor organizations
along with new entries in the market.
Considering the “Pattern”, it is evident that the company is able to gain the reputation
of being one of the top companies in the region in terms of the quality in the design of the
products (Prasetyo and Lo 2016). However, the CEO of the company was able to identify a
series of misconduct from the part of the manufacturing department and the design
department of the company which was responsible for the decline in the performances of the
company in the US market. Under such situation, the CEO of the company, was observed to
take the initiative of including two of the excellent and skilful individuals in the form of Cecil
Flemming and Pat Sampsen. With a precise focus on the apathy of the employees of the
manufacturing and the design department of the company regarding the offshore
manufacturing and the unethical business operations of the design department, the CEO of
the company considered the recruitment of Cecil for the management of the outsourcing

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operations and Pat for the management of the packaging, designing and the marketing
materials for the products of the company, to be suitable for maintaining the reputation of
excellent quality provider in American region.
With a precise focus on the “Position” aspect, it is evident that the company was able
to formulate their strategies in such a manner that it provided them the reputation of being
one of the most preferred destinations in the US market for top quality wooden toys
(Chungyalpa and Bora 2015). Along with that, considering the “perspective” aspect, it is
evident that the vice president of the operations of the company is significantly concerned
regarding various issues such as the quality concerns, unethical business operations along
with the approaching end of contract between the company and the employee union.
However, the portrayal of the competitive landscape from the part of the managers of the
company is pretty strong as the CEO of the company was able to identify the declining
organizational culture of the company. As a precautionary measure, Cheryl Hailstorm, the
CEO of the company prioritized the recruitment of Cecil Flemming and Pat Sampsen in the
organization and that signifies the desperate attitude of the management in striving towards
the achievement of the business objectives.
Considering the scope of the competitive advantage, it is evident that the senior
management of the company is able to put strong emphasis on the training and developmental
activities and that reflect from their ability in providing top quality products. Hence, the skills
and competencies of the employees of the company can be considered as “Rare” (Knott
2015). Considering the skills of the employees, the capability of the company in producing
unique products enables it to apply the diversification strategy (Rizea 2015).

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Conclusion:
On a concluding note, the managers of the company are expected to make sure that
they formulate appropriate and attractive rewarding policy that includes both intrinsic and
extrinsic rewards. This will be crucial for them in managing the crisis of human resources
related to the offshore manufacturing and the outsourcing. The formation of a strong
rewarding policy will be able to motivate the employees in minimizing the detrimental
impact of the apathy regarding the offshore manufacturing.

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References:
Chungyalpa, W. and Bora, B., 2015. Towards Conceptualizing Business
Strategies. International Journal of Multidisciplinary Approach & Studies, 2(1).
Da Silveira, G.J., 2014. An empirical analysis of manufacturing competitive factors and
offshoring. International Journal of Production Economics, 150, pp.163-173.
Fratocchi, L., Di Mauro, C., Barbieri, P., Nassimbeni, G. and Zanoni, A., 2014. When
manufacturing moves back: concepts and questions. Journal of Purchasing and Supply
Management, 20(1), pp.54-59.
Hbr.org 2019. Welcome Aboard (But Don’t Change a Thing). [online] Available at:
https://hbr.org/2002/10/welcome-aboard-but-dont-change-a-thing
Knott, P.J., 2015. Does VRIO help managers evaluate a firm’s resources?. Management
Decision, 53(8), pp.1806-1822.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Prasetyo, A.H. and Lo, W., 2016. Towards Strategic Mix 5P. International Journal of
Business Management and Economic Research, 7(3), pp.654-661.
Rizea, R.D., 2015. Growth Strategies of Multinational Companies. Petroleum-Gas University
of Ploiesti Bulletin, Technical Series, 67(1).
Smith, A.P. and Smith, H.N., 2017. An international survey of the wellbeing of employees in
the business process outsourcing industry. Psychology, 8(01), pp.160-167.