Managerial Decision Making.

Added on - Sep 2019

Trusted by 2+ million users,
1000+ happy students everyday
Showing pages 1 to 4 of 11 pages
Running Head:Managerial Decision MakingMANAGERIAL DECISION MAKING
Managerial Decision Making2Table of ContentsIntroduction......................................................................................................................................3Background of the company........................................................................................................3Discussion and Findings..................................................................................................................4Problem background....................................................................................................................4Problem definition........................................................................................................................4Solution generation......................................................................................................................5Solution evaluation......................................................................................................................7Implementation and action plan...................................................................................................9Conclusion.....................................................................................................................................10Reference List................................................................................................................................11
Managerial Decision Making3IntroductionBeacon Lighting Group Limited is a famous lighting solution company in Australia and itis one of the leading companies in lighting solutions industry of the country. The companyoperates its business successfully from its incorporation which made it capable of becoming oneof the renowned lighting solution companies of Australia. At present times, Beacon LightingGroup Limited faces a problem in relation to inventory management which influences its profitvolume and operating cost in a negative manner. This particular problem arises out of a numberof factors and the company needs to take some immediate steps to resolve this issue as it isessential for it to succeed.The main aim of this study is to discuss the problem statement ofBeacon Lighting Group Limited that it is currently facing with inventory management and topropose a relevant solution as an effective resolution of this problem. The study includesdiscussion in five sections such as the background of the problem, the definition of the problem,generation of the solution to resolve the problem, evaluation of the solution generated, alongwith implementation and action plan. The current study is drafted with the purpose of guidingBeacon Lighting as well as the other companies which are suffering from a similar problem andintended to address it in an effective manner.Background of the companyBeacon LightingGroup Limitedwas established in the year 1967 and from the verybeginning its business operations,it has introduced itself as one of the specialist lights, ceilingfans retailers in Australia. Beacon uses to offer a number of decorative lighting solutions anddesigner fashionable ceiling fans to its customers. It also offers a huge range of electricalproducts along with advisory and knowledge providing services in relation to those electricalproducts. The products Beacon uses to offer to the customers are exclusively designed andhighly capable of meeting customers’ demand for decorative and fashionable lighting andsolutions.The products Beacon offers includetable lamps, pendants, floor lamps, chandeliers,exteriors, ceiling fans, globes, wall lights, down lights, spotlights, batten fixes, bathroomlightings, flush mounts, solar panels, and accessories (bloomberg.com, 2019).As Beacon’sproducts encompass fashion, design, and energy efficiency features, it becomes one of
Managerial Decision Making4Australia's favourite lighting solution companies.Beacon is aimed to expand its business in thenational and international market by improving the customer's environment. Beacon Lighting iscommitted in order to provide environmentally friendly and fashionable products to thecustomers with expertise delivery system and unparalleled service (beaconlightinggroup.com.au,2019).Discussion and FindingsProblem backgroundManagement of inventory is one of the most crucial tasks every manufacturing andretailing company needs to concentrate. Poor inventory management often leads companies toface frequent stockouts, blockage of cash, and wastage of raw materials as well as finishedproducts due to their reduced effectiveness and usefulness and more. Lack of proper strategiesand practices in order to manage inventory increases the business cost. At BeaconLightingGroup Limited, the improper inventory management practices led it to face a number ofproblems associated with low inventory turnover rate, increasing the cost of storage, imbalancedlead times, and a large amount of backdated or obsolete inventory. BeaconLighting's less focuson its inventory management will affect its severely in long-run which will accordingly lead thecompany to lose customers and reduction in profitability (Lwikiet al.2013). During the past fewyears,BeaconLighting is facing this issue and it makes the company invest more in channelinginventory.Ineffective inventory management starts with improper analysis and inventoryhandling strategy. The lack of thorough analysis and measurement of inventory led Beacon Lightto face problems related to poor inventory management. Due to the lack of an inventorymanagement system, Beacon uses to face a lot of hindrances while providing optimum customersatisfactory products and related services.Problem definitionThe problemBeacon LightingGroup Limited of Australia currently facing is inventorymanagement. Inventory management is an element of a company’s supply chain management.The process of inventory management uses to supervise the movement of finished goods from
Desklib Logo
You are reading a preview
Upload your documents to download or

Become a Desklib member to get access