Performance Improvement Strategy for A. C. Gilbert Company: Analysis

This report provides a performance improvement strategy for the A. C. Gilbert Company, a once-leading toy maker facing declining performance. The strategy focuses on regaining market share through modern marketing techniques, adapting to customer needs, and maintaining product quality. It proposes key changes, including retaining experienced executives, reducing advertising costs, hiring toy designers, and introducing new toys in phases. The report also includes key result areas (KRAs) and key performance indicators (KPIs) for measuring success. A revised strategy incorporates quality assurance managers and employee reward systems. A written risk analysis identifies threats such as changing customer requirements and financial risks, with mitigation strategies. A cost-benefit analysis supports the implementation of the improvement strategy, highlighting its long-term financial benefits.

Manage innovation and continuous improvement
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Contents
Performance Improvement Strategy................................................................................................3
Revised Performance Strategy.........................................................................................................5
Written risk analysis........................................................................................................................6
Cost benefit analysis........................................................................................................................7
References........................................................................................................................................8
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Performance Improvement Strategy
A. C. Gilbert Company was established in 1916 and became very famous for producing quality
toys. In 1950’s it was one of the lading toy maker in United States of America. But after the
death of Alfred Carlton Gilbert it become domed and started to incur losses. There were many
reasons for such decreased performance of the company (Roberts & Scher, 2014). After
evaluation of these reasons we have prepared a performance improvement strategy for the
company-
Strategic goals
1. To gain market share previously owned by company through intensive advertising through
television and new marketing techniques.
2. Changing according to the need and requirements of customers and producing more modern
and fast paced toys.
3. To maintain the quality that was once provided by company under leadership of Alfred
Carlton Gilbert (Schaper et.al, 2014).
Proposed processes and amendment to current processes
1. Most of the executives are being removed, instead of this step we should have retained
experienced executives and bring in more skilled and modern designers.
2. Current advertising expense should be reduces to 40% and such amount should be utilised in
marketing through new methods such as television advertising.
3. Instead of hiring sales staff we should hire more toy designers and place our toys in big
stores to sell.
4. Company should be more focused on particular set of toys and introduce new toys in phases.
Introducing 50 new toys line was not most appropriate method of expansion.
5. Research analysis team should be prepared to evaluate requirement and preferences of
customers in changing environment. Also feedbacks of customers on our toys should be
taken on regular basis and changes in plans should be made accordingly (Ebert et. al, 2014).
6. Overall review of the company should be conducted on quarterly basis to see whether the
changes are working or not.
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Brief explanation of how proposal will improve performance and competitiveness
In 1960 due to changes in technology and preferences of people current toys has become out-
dated. Hiring designer with experience and ideas for modern toys will help the company to make
toys as per customer requirements. Step of hiring 50% new sales staff is not good step as people
prefer to purchase toys from big stores rather than on telephone or form sales representatives.
Current marketing strategy of company is very out-dated hence it should go for new marketing
strategies such as television adverting. This method of marketing is in trend and is proving to be
positive for other businesses (Hollensen, 2015). New toys should be introduced in phases as
company would have more time to prepare plans and marketing strategies for such toys. Also
company would be comfortably able to evaluate performance of each of these toys.
KRAs and KPIs
Key results are (KRA) = KRA are decided by any organisation to assign roles and
responsibility in an organisation. In A. C. Gilbert also separate in charge should be appointed for
separate departments such as accounting, marketing, planning, designing, manufacturing etc.
Key performance areas (KPI) = KPI are the areas through which an organisation evaluate its
financial and other performance. KPI for A.C. Gilbert are sales revenue, customer satisfaction
and net profit margin (Chambers, 2013).
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Revised Performance Strategy
On the basis of discussion with other team members I have made certain additions in
performance strategy which are provided as follows-
1. Quality assurance mangers should be hired by the company to ensure that best quality
products left from manufacturing unit.
2. Employee reward system should be made and implemented in organisation to motivate
employee so that they work as best of their capability.
3. Some of the retained employees with experience should be made team leaders and mangers
so that they could direct new employees toward completion of objectives.
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Written risk analysis
Most important step in risk analysis is identification of threats to the business. In our business
major threat is changing requirement of customers. For mitigating this risk we should conduct
researches on regular basis on parent and children from age group 6 to 15. Financial risk should
also be evaluated by company. For this purpose we should focus on optimum management of our
working capital and idle resources should be invested in fixed interest securities for regular
income. Another important risk factor to consider is risk of poor quality products. In past A. C.
Gilbert was known for proving best quality toys hence it should be maintained by appointing
quality assurance manager (Aven, 2015).
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Cost benefit analysis
Cost benefit analysis should be conducted to evaluate a business project. The implementation of
our improvement strategy will revive the company’s financial performance. It is true that it
would require a large cost to implement performance improvement strategy but it would have
several benefits. These benefits will supersede such expensed such expenses over the period of
time. Hence this improvement strategy should be implemented.
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References
Aven, T. (2015). Risk analysis. John Wiley & Sons.
Chambers, D. W. (2013). Key performance indicators. The Journal of the American Dental
Association, 144(3), 242-244.
Ebert, R. J., Griffin, R. W., Starke, F. A., & Dracopoulos, G. (2014). Business essentials.
Pearson Education Canada.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Roberts, K., & Scher, A. (2014). Toys of the 50s, 60s and 70s. Minnesota Historical Society
Press.
Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small
business.
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